In December 2023, Governor Godwin Nogheghase Obaseki of Edo State signed six transformative executive orders that are set to significantly improve the ease of doing business in the state. These comprehensive policies address key areas such as grievance redress, digital infrastructure, public-private partnerships, responsible agricultural investments, open governance, and tax simplification. Together, these measures create a more conducive environment for businesses, attract investments, and foster economic growth, ultimately benefiting the people and businesses of Edo State.
One of the most groundbreaking initiatives within these executive orders is the establishment of a Grievance Redress Mechanism. This move is designed to foster an efficient, equitable, and transparent trading environment. By providing traders, taxpayers, and business organizations with a dedicated platform to formally communicate grievances related to harassment, unauthorized payments, and other issues, this mechanism ensures swift resolution of complaints. This not only maintains smooth relations among stakeholders but also builds trust in the state’s governance, empowering citizens and enhancing transparency and fairness in trade practices.
In addition to addressing grievances, Governor Obaseki has prioritized the enhancement of digital infrastructure, recognizing its critical role in modern economic development. His executive order on Right of Way (RoW) procedures sets a maximum fee of NGN145 per linear meter for broadband deployment and outlines a streamlined process for obtaining RoW approvals within 30 days. This initiative simplifies and regulates the process for broadband deployment, encourages investment in digital infrastructure, and ensures timely processing of applications. By promoting widespread access to broadband services, the order aims to boost technological infrastructure, enhance business operations, and support the state’s economic development. Improved digital connectivity will attract more businesses to the state, fostering innovation and making Edo State a hub for technological advancement.
Moreover, to drive economic development and infrastructure improvement, the establishment of the Edo State Public-Private Partnership (PPP) Office stands out as a strategic initiative. This office is tasked with identifying, facilitating, and promoting PPP projects, conducting feasibility studies, engaging private investors, ensuring transparent project selection, and monitoring project implementation. By attracting private investments and managing risks effectively, the PPP Office aims to enhance economic growth and infrastructure development. This initiative will lead to the creation of new jobs, improved public services, and the development of critical infrastructure, all of which are vital for the state’s long-term prosperity.
Recognizing the significance of agriculture to the state’s economy, Governor Obaseki has also introduced the Framework for Responsible and Inclusive Land-Intensive Agricultural Investments (FRILIA). This framework mandates transparent land acquisition processes, fair compensation, and robust grievance redress mechanisms. By focusing on gender equality and the empowerment of women and youth, FRILIA promotes inclusive growth and protects the rights of local communities. This initiative aligns with international best practices and creates a conducive environment for sustainable agribusiness investments. As a result, the state will see increased agricultural productivity, enhanced food security, and improved livelihoods for rural communities.
Furthermore, transparency and efficiency are crucial for fostering a business-friendly environment. Governor Obaseki’s executive order on open governance mandates key MDAs to publish comprehensive information on their requirements, fees, and processes for obtaining services and permits within 21 days. It introduces a streamlined default approval process where applications not processed within stipulated timelines are automatically approved. By enforcing coordinated inter-MDA verification procedures and automation of business-related processes, this order reduces bureaucratic red tape, enhances public access to services, and ensures accountability. These measures create a more business-friendly environment, promoting economic growth and building public trust, making it easier for businesses to operate and thrive in the state.
Finally, supporting small businesses is crucial for economic growth, and the introduction of a presumptive turnover tax regime for small businesses with annual turnovers below N25 million is a significant step in this direction. This regime simplifies tax obligations by categorizing businesses into traders, manufacturers, and service providers with respective tax rates of 2%, 3%, and 4% of annual turnover. The Edo State Internal Revenue Service (EIRS) is tasked with ensuring compliance, conducting audits, and promoting digital payments. This initiative reduces administrative burdens, encourages compliance, and supports the economic contributions of micro, small, and medium enterprises (MSMEs). By fostering a favorable business environment, the state ensures the growth and sustainability of small businesses, which are the backbone of the economy.
In conclusion, Governor Godwin Nogheghase Obaseki’s six executive orders represent a bold and comprehensive strategy to enhance the ease of doing business in Edo State. By addressing key areas such as grievance redress, digital infrastructure, public-private partnerships, responsible agricultural investments, open governance, and simplified tax regimes, these initiatives lay the foundation for a more transparent, efficient, and inclusive business environment. As these policies take effect, Edo State is poised to become a model of economic development and good governance, attracting investments, fostering sustainable growth, and improving the quality of life for all its citizens. The cumulative impact of these orders will be a vibrant economy, marked by increased investments, job creation, and enhanced public services, setting Edo State on a path to unprecedented prosperity.
Osaze Ighoretin Ogbomo is the Technical SSA and Team Lead, Ease of Doing Business Secretariat-ESIPO
