Doing Business 2015: Nigeria Summary
Core Content
The Doing Business 2015 report provides a comprehensive assessment of the regulatory environment for small and medium-sized businesses in Nigeria. It measures and ranks 189 economies based on 11 key areas of business regulation, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labor market regulation.
Main Changes in Methodology
- Ease of Doing Business Ranking: Now based on distance to frontier (DTF) scores.
- Additional Data for Large Populations: 11 economies with over 100 million people (including Nigeria) now include data for a second city.
- Credit Information Methodology: Updated for both the strength of legal rights index (from 10 to 12 points) and the depth of credit information index (from 6 to 8 points). Only credit bureaus covering at least 5% of the adult population can score on the depth index.
- Renamed and Expanded Indicators: The protecting investors indicator was renamed to protecting minority investors, and its scope was expanded to include shareholder rights.
- New Index for Resolving Insolvency: Includes a measure of the strength of the legal framework for insolvency.
- Updated Paying Taxes Methodology: The total tax rate component is now calculated non-linearly.
- Labor Market Regulation: Changed from employing workers to focus on the retail sector and include labor disputes and worker benefits.
Key Business Environment Indicators for Nigeria
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Starting a Business (Rank) |
129 |
138 |
- |
- |
158 |
143 |
61 |
45 |
New Zealand (1) |
| Starting a Business (DTF) |
77.13 |
73.76 |
78.91 |
71.19 |
68.42 |
74.02 |
89.43 |
91.23 |
New Zealand (99.96) |
| Procedures (number) |
8.7 |
8.7 |
8.0 |
11.0 |
11.9 |
10.0 |
5.0 |
6.0 |
12 Economies (3.0) |
| Time (days) |
30.8 |
30.8 |
28.0 |
40.0 |
28.4 |
30.0 |
19.0 |
6.0 |
Singapore (26.0) |
| Cost (% of income per capita) |
31.6 |
58.7 |
31.1 |
33.5 |
12.2 |
42.7 |
0.3 |
0.3 |
Slovenia (0.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Dealing with Construction Permits (Rank) |
171 |
168 |
- |
- |
184 |
95 |
32 |
17 |
Hong Kong SAR, China (1) |
| Dealing with Construction Permits (DTF) |
50.00 |
49.34 |
42.02 |
76.73 |
30.89 |
71.02 |
81.65 |
85.06 |
Korea, Rep. (99.83) |
| Procedures (number) |
17.0 |
17.0 |
17.0 |
17.0 |
25.4 |
8.0 |
16.0 |
9.0 |
12 Economies (5.0) |
| Time (days) |
105.9 |
105.9 |
116.0 |
72.0 |
185.9 |
125.0 |
48.0 |
126.0 |
Singapore (18.0) |
| Cost (% of warehouse value) |
26.4 |
52.7 |
478.0 |
478.0 |
487.7 |
1,020.2 |
729.5 |
90.1 |
Japan (0.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Registering Property (Rank) |
185 |
185 |
- |
- |
121 |
136 |
97 |
68 |
Georgia (1) |
| Registering Property (DTF) |
26.56 |
26.52 |
21.21 |
44.48 |
60.40 |
56.88 |
66.02 |
72.55 |
4 Economies (1.0) |
| Procedures (number) |
12.1 |
12.1 |
13.0 |
9.0 |
7.0 |
9.0 |
7.0 |
6.0 |
4 Economies (1.0) |
| Time (days) |
69.6 |
69.6 |
77.0 |
45.0 |
47.0 |
72.0 |
23.0 |
21.5 |
3 Economies (1.0) |
| Cost (% of property value) |
18.6 |
18.8 |
20.6 |
11.8 |
7.0 |
4.3 |
6.2 |
4.6 |
4 Economies (0.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Getting Credit (Rank) |
52 |
125 |
- |
- |
36 |
116 |
52 |
17 |
New Zealand (1) |
| Getting Credit (DTF) |
60.00 |
30.00 |
60.00 |
60.00 |
65.00 |
35.00 |
60.00 |
75.00 |
New Zealand (100) |
| Strength of Legal Rights |
6 |
6 |
6 |
6 |
6 |
7 |
5 |
7 |
3 Economies (12) |
| Depth of Credit Information |
6 |
0 |
6 |
6 |
7 |
0 |
7 |
8 |
23 Economies (8) |
| Credit Bureau Coverage |
5.8 |
4.9 |
5.8 |
5.8 |
22.4 |
4.9 |
55.4 |
100.0 |
23 Economies (100.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Protecting Minority Investors (Rank) |
62 |
61 |
- |
- |
7 |
122 |
17 |
4 |
New Zealand (1) |
| Protecting Minority Investors (DTF) |
57.50 |
57.50 |
57.50 |
57.50 |
72.50 |
45.83 |
67.50 |
78.33 |
New Zealand (81.67) |
| Conflict of Interest Regulation |
6.0 |
6.0 |
6.0 |
6.0 |
6.7 |
4.7 |
8.0 |
8.3 |
Singapore (9.3) |
| Shareholder Governance |
5.5 |
5.5 |
5.5 |
5.5 |
7.8 |
4.5 |
5.5 |
7.3 |
France (7.8) |
| Minority Investor Protection |
5.8 |
5.8 |
5.8 |
5.8 |
7.3 |
4.6 |
6.8 |
7.8 |
New Zealand (8.2) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Paying Taxes (Rank) |
179 |
177 |
- |
- |
156 |
102 |
19 |
16 |
United Arab Emirates (1) |
| Paying Taxes (DTF) |
39.15 |
39.15 |
39.15 |
39.15 |
55.53 |
71.49 |
88.73 |
90.52 |
United Arab Emirates (99.44) |
| Payments (number per year) |
47.0 |
47.0 |
47.0 |
47.0 |
33.0 |
30.0 |
7.0 |
8.0 |
Hong Kong SAR, China (3.0) |
| Time (hours per year) |
907.9 |
907.9 |
956.0 |
747.0 |
243.0 |
201.5 |
200.0 |
110.0 |
Luxembourg (55.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Trading Across Borders (Rank) |
159 |
159 |
- |
- |
126 |
153 |
100 |
15 |
Singapore (1) |
| Trading Across Borders (DTF) |
50.12 |
50.12 |
52.14 |
43.36 |
65.47 |
54.49 |
71.05 |
88.32 |
Singapore (96.47) |
| Documents to Export |
9 |
9 |
9 |
9 |
7 |
8 |
5 |
4 |
Ireland (2) |
| Time to Export (days) |
22.9 |
22.9 |
22.0 |
26.0 |
17.1 |
26.0 |
16.0 |
8.0 |
5 Economies (6.0) |
| Cost to Export (US$ per container) |
1,564.0 |
1,564.0 |
1,380.0 |
2,180.0 |
1,332.0 |
2,255.0 |
1,830.0 |
1,005.0 |
Timor-Leste (410.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Documents to Import |
13 |
13 |
13 |
13 |
10 |
9 |
6 |
4 |
Ireland (2) |
| Time to Import (days) |
33.9 |
33.9 |
33.0 |
37.0 |
21.1 |
26.0 |
21.0 |
6.0 |
Singapore (4.0) |
| Cost to Import (US$ per container) |
1,959.5 |
1,959.5 |
1,695.0 |
2,845.0 |
1,462.0 |
2,350.0 |
2,080.0 |
1,050.0 |
Singapore (440.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Enforcing Contracts (Rank) |
140 |
139 |
- |
- |
186 |
137 |
46 |
36 |
Singapore (1) |
| Enforcing Contracts (DTF) |
47.71 |
47.71 |
48.06 |
46.54 |
25.81 |
48.96 |
66.14 |
68.08 |
Singapore (89.54) |
| Time (days) |
509.8 |
509.8 |
447.0 |
720.0 |
1,420.0 |
465.0 |
600.0 |
437.0 |
Singapore (150.0) |
| Cost (% of claim) |
57.7 |
57.7 |
62.0 |
43.4 |
39.6 |
47.2 |
33.2 |
39.9 |
Iceland (9.0) |
| Procedures (number) |
40.2 |
40.2 |
40.0 |
41.0 |
46.0 |
44.0 |
29.0 |
29.0 |
Singapore (21.0) |
| Indicator |
Nigeria DB2015 |
Nigeria DB2014 |
Lagos DB2015 |
Kano DB2015 |
India DB2015 |
Kenya DB2015 |
South Africa DB2015 |
United Kingdom DB2015 |
Best Performer DB2015 |
| Resolving Insolvency (Rank) |
131 |
129 |
- |
- |
137 |
134 |
39 |
13 |
Finland (1) |
| Resolving Insolvency (DTF) |
33.76 |
33.74 |
33.76 |
33.76 |
32.60 |
33.31 |
64.51 |
82.04 |
Finland (93.85) |
| Time (years) |
2.0 |
2.0 |
2.0 |
2.0 |
4.3 |
4.5 |
2.0 |
1.0 |
Ireland (0.4) |
| Cost (% of estate) |
22.0 |
22.0 |
22.0 |
22.0 |
9.0 |
22.0 |
18.0 |
6.0 |
Norway (1.0) |
| Recovery Rate (cents on dollar) |
27.9 |
27.9 |
27.9 |
27.9 |
25.7 |
27.1 |
35.7 |
88.6 |
Japan (92.9) |
| Strength of Insolvency Framework |
6.0 |
6.0 |
6.0 |
6.0 |
6.0 |
6.0 |
14.5 |
11.0 |
5 Economies (15.0) |
Key Findings
- Ease of Doing Business Ranking: Nigeria ranked 170th in 2015, up from 175th in 2014.
- Distance to Frontier (DTF): Nigeria's DTF score was 47.3, an increase of 3.6 points from 2014.
- Challenges: Nigeria faces significant challenges in areas such as getting electricity, registering property, and paying taxes, which are among the worst globally.
- Strengths: Nigeria's performance in getting credit improved, and it ranks 52nd in this area, which is better than in 2014.
- Comparators: Comparisons with other economies (e.g., India, Kenya, South Africa, and the United Kingdom) show that Nigeria lags behind in most indicators, with India and Kenya being closer in some areas.
Conclusion
The report highlights that while Nigeria has made some progress in improving its regulatory environment, it still lags significantly behind many other economies in key areas of business regulation. The DTF score and rankings provide a useful tool for identifying where reforms are needed, particularly in reducing the time, cost, and procedures required for business operations. The methodology changes in Doing Business 2015 offer more accurate and comprehensive assessments of business environments, making it easier to compare across economies and track improvements over time.