In recent years, Edo State has emerged as a beacon of progress in Nigeria’s efforts to enhance the business environment. Under the leadership of Governor Godwin Obaseki, the state has implemented a series of reforms that have not only improved fiscal transparency but also fostered an environment conducive to business growth.

This progress was recognised when Edo State topped BudgIT’s 2024 Quarter One Fiscal Transparency League Table, tying with Anambra State with a commendable score of 93 percent. Given this impressive track record, it is imperative that the Presidential Enabling Business Environment Council (PEBEC) consider adopting the metrics used in the States’ Fiscal Transparency, Accountability and Sustainability (SFTAS) programme for its upcoming National Doing Business Survey assessments in 2025.

Edo State’s success is attributed to a comprehensive strategy that intertwines fiscal transparency with targeted business reforms. Over the past year, the state has launched numerous initiatives aimed at making it easier for businesses to operate. For instance, the establishment of additional Small Claims Courts and a judicial committee specifically for resolving small claims reflects a commitment to efficient legal processes. Furthermore, the publication of an inventory of state and federal incentives has provided stakeholders with essential information, thereby increasing transparency and accessibility.

Edo State’s emphasis on fostering a conducive business environment is encapsulated in its various Executive Orders, which address issues ranging from tax regimes to public-private partnerships. Notably, the introduction of a presumptive turnover tax for small businesses demonstrates a thoughtful approach to taxation that alleviates the burden on entrepreneurs while encouraging compliance. These reforms are further supported by the establishment of a framework for broadband deployment, improving digital infrastructure crucial for modern business operations.

The SFTAS programme’s success in evaluating and incentivising fiscal transparency across states provides a valuable framework that PEBEC could leverage. The metrics employed by SFTAS assess key indicators such as the availability of fiscal documents, the functionality of e-procurement portals, and the timeliness of budget reports. These indicators not only promote transparency but also enhance trust between government and businesses, a critical component for attracting investment.

Edo State’s exemplary performance in SFTAS aligns with the ongoing reforms under the SABER programme, which incentivises states to implement business-enabling reforms. By integrating SFTAS metrics into the National Doing Business Survey, PEBEC could ensure that future assessments not only evaluate the ease of doing business but also the transparency and accountability of state governments. This holistic approach would incentivize all states to prioritize good governance, ultimately leading to a more favourable business climate across Nigeria.

Edo State’s establishment of the Ease of Doing Business Council and its secretariat exemplifies the importance of structured oversight in implementing reforms. This governance structure, which includes representatives from the private sector and various government agencies, facilitates collaborative efforts to address challenges and streamline processes. By adopting similar metrics and governance structures as part of the National Doing Business Survey, PEBEC could create a more robust framework for monitoring and evaluating the effectiveness of business reforms nationwide.

Moreover, the annual private sector consultation meetings institutionalized by Edo State provide a model for stakeholder engagement that can be replicated at the national level. Engaging with business leaders ensures that government policies are informed by the real needs of the market, fostering a more responsive and effective regulatory environment.

As Nigeria continues to navigate the complexities of economic reforms, the integration of SFTAS metrics into PEBEC’s National Doing Business Survey could catalyse significant improvements in the business landscape. Edo State’s achievements in transparency and reform provide a compelling case for this approach.

By prioritizing both fiscal accountability and ease of doing business, Nigeria can foster an environment that attracts investment, enhances economic growth, and ultimately uplifts the living standards of its citizens. The time is ripe for PEBEC to take this bold step towards a more transparent and business-friendly Nigeria.

Osaze Ighoretin Ogbomo is the Team Lead, Ease of Doing Business Secretariat-ESIPO, Benin City.