EDO STATE GOVERNMENT
Ease of Doing Business
EDO STATE EODB
However, it is no longer news that states are funded by the Federation account and many states run themselves with the view that at the end of the month funding come from the Federal Government. Statistics has shown that states’ ability to do well come from businesses in their environment because if states do not succeed there will no revenue to function in terms of taxes.
Hence, for any state to survive there must be enough businesses that can pay taxes, operating in an environment that enables them to thrive. It is the responsibility of government to create that enabling environment for businesses to thrive.
Unfortunately, government have become arrogant not prioritizing the welfare of businesses that is putting their welfare over that of the people. It is imperative to resolve the challenges that businesses face by looking at short- and long-term solutions to restore investors’ confidence. If measures are not taken to bolster commerce activities, businesses will have a reason to leave. The challenges we are experiencing requires reforms and some are being implemented in the state as recommended by PEBEC.
Continuous Improvement of the Business Environment
The new indicators assess four significant categories of importance to MSMEs to continually improve subnational initiatives affecting the business environment. Figure 1 depicts the different phases of the efforts.
A new orientation and approach where the pains of existing businesses form the rallying point should form the focus of government initiatives to address the bottlenecks and constraints to the business environment. Information on the EoDB is the focus of subsequent sections of this report.
This section presents an overview of the indicators under the four categories assessed during the Ease of Doing business survey. The indicators target inappropriate and encumbering regulations, policies and laws that create an unstable environment that stifles MSMEs forcing many of them to operate in the informal economy.
Categories assessed during the Ease of Doing Business survey
The Regulatory Environment indicator explores how local laws affect various aspects of a business’ operations. It analyses the legal and regulatory framework that encourages productivity and supports an enabling business landscape. Quality business regulations on starting a business, enforcing contracts, paying taxes and property rights are essential to economic development and sustained growth. This section presents an overview of the indicators under the four categories assessed during the Ease of Doing business survey. The indicators target inappropriate and encumbering regulations, policies and laws that create an unstable environment that stifles MSMEs forcing many of them to operate in the informal economy
The participating MDAs under this category are the Ministry of Industry, Trade and Cooperatives, Ministry of Justice, Edo State Internal Revenue Service, Edo State Geographical Information Services and Ministry of Physical Planning.
Transparency and Accessibility to Information
Transparency and Accessibility to Information assess the level of investment promotion, the quality and availability of state information, and its structures provided to businesses and investors. This indicator measures the role of an Investment Promotion Agency in equipping potential investors with the required information to aid their business decisions. The second component of the indicator assesses how the state uses its information services to disseminate information of value to the business community
Transparency and accessibility to information aid MSMEs’ decision-making, reduce costs, and increase market opportunities. Transparency and accessibility to information indicator delve deeper into state investment promotion initiatives and other information structures. The responsible MDAs under this indicator are Edo State Investment Promotion Office and the Ministry of Communications & Orientation.
Infrastructure and Security
The Infrastructure and Security indicator focuses on the availability of the requisite infrastructure that improves the business environment and collectively reduces the costs of operating a business. This indicator measures the provision and level of security within the state, availability of essential infrastructure such as electricity, healthcare facilities, road network and logistics costs.
Several sub-indicators cover a range of areas that impact MSMEs running their businesses in Edo State. The participating MDAs are the Ministry of Roads & Bridges, Ministry of Health, Ministry of Transport and agencies responsible for security within the state
Skills and Labour
The Skills and Labour indicator assesses the accessibility and availability of talent in the state and the presence of state structures to ease access to talent. This indicator measures the existence and efficacy of state structures in assisting citizens to gain skilled and unskilled employment.
The sub-indicator assesses how businesses gain access to a reliable and skilled labour force to meet their staffing requirements. The MDA responsible for this indicator is Edo Skills Development Agency (Edo Jobs)
However, with the slow pace at which the business environment reforms has been implemented in Nigeria since its introduction in 2016: PEBEC has collaborated with the World Bank to provide incentives to states to encourage the deepening of EoDB reforms implementation through the States Action on Business Enabling Reforms (SABER) program.