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2007 Assessment

Nigeria: Integrity Indicators Scorecard

Nigeria: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	31
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	33
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	50

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments: This Act covers incorporation of companies for business purposes, or profit gain. Although there are exemptions of kinds of people who cannot apply for incorporations, these are reasonable exemptions: e.g. underage people, unsound mind, and undercharged bankruptcy.

References: Part 11, Company and Allied Matters Act (CAMA) 1990

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments:

References: The Companies and Allied Matters Act, 1990 and the Corporate Affairs Commission, which is the agency set up by CAMA to handle the incorporation of businesses do not have any provisions for a redress mechanism.

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments: Business licensing generally takes at least three months and this is with alot of kickbacks being involved. If these are refused, the process is further delayed.

References: 1. Ime Enang, senior program manager, Convention for business Integrity, Office of the Center for Democracy and Development (CDD), Abuja, Sept. 14, 2007; 2. Zipporah Aguh, executive director, Public Private Collaborations for Development (PPCD), PPCD Abuja office, Sept. 17, 2007

Peer Review Comments: The sector is a very corrupt one and it is rare that a business can be registered without a bribe being paid.

Peer Review Comments: The licensing authorities are inefficient but functional.

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments: The cost is about US$400, which is bit out of the reach of small businesses. The official cost is much lower than this, but with all the unofficial costs it would come near to the aforementioned amount. It also requires for applicants to go the particular offices, and this is mostly done at the Federal Capital Territory.

References: 1.Ime Enang, senior program manager, Convention for business Integrity, Office of the Center for Democracy and Development (CDD), Abuja, Sept. 14, 2007; 2. Zipporah Aguh, executive director, Public Private Collaborations for Development (PPCD), PPCD Abuja office, Sept. 17, 2007

Peer Review Comments: Citizens must pay a bribe to receive a business license.

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments: It is a Parastatal of the Federal Ministry of Health, regulating and controlling quality standards for local and imported products. It includes banned substances, blacklisted companies, forms and regulations. Its mandate is to regulate and control quality standards for foods, drugs, cosmetics, medical devices, chemicals, detergents and packaged water imported, manufactured locally and distributed in Nigeria.

References: The National Agency for Food and Drug Administration and Control (NAFDAC), established by Decree No. 15 of 1993 as amended is a Parastatal of the Federal Ministry of Health.

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments:

References: Federal Environment Protection Agency (FEPA) with Decree 58 of 1988 with the overall mandate of protecting Nigerias environment The Decree also empowered the Agency to promulgate regulations. To date, the Agency has promulgated or issued a number of regulations including: " S.1.8 of 1991: National Effluent Limitation Official Gazette of the Federal Republic of Nigeria, No 42, Vol 78, August, 1991"; " S.1.9 of 1991: Pollution Abatement in Industries, industries Generating Wastes, Official Gazette, Federal Republic of Nigeria No 42, Vol 78, Aug. 20, 1991 (4)"; " S.1.15 OF 1991: Management of Hazardous and Solid Wastes Official Gazette, Federal Republic of Nigeria, No 102, Vol 78, Dec. 31, 1991."

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments:

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: These inspections are carried in an organized manner. This organization is considered a success story of the overseeing role of the government. The management of the organization is transparent and accountable and any staff found to be corrupt would be held accountable.

References: 1.Ime Enang, senior program manager, Convention for business Integrity, Office of the Center for Democracy and Development (CDD), Abuja, Sept. 14, 2007; 2. Zipporah Aguh, executive director, Public Private Collaborations for Development (PPCD), PPCD Abuja office, Sept. 17, 2007

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: These are done in an adhoc manner mostly because of low capacity.

References: 1.Ime Enang, senior program manager, Convention for business Integrity, Office of the Center for Democracy and Development (CDD), Abuja, Sept. 14, 2007; 2. Zipporah Aguh, executive director, Public Private Collaborations for Development (PPCD), PPCD Abuja office, Sept. 17, 2007

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: These are done in an adhoc manner mostly because of low capacity.

References: 1.Ime Enang, senior program manager, Convention for business Integrity, Office of the Center for Democracy and Development (CDD), Abuja, Sept. 14, 2007; 2. Zipporah Aguh, executive director, Public Private Collaborations for Development (PPCD), PPCD Abuja office, Sept. 17, 2007