The Presidential Enabling Business Environment Council (PEBEC) released the 2025 Business Facilitation Act (BFA) performance report last week, assessing how ministries, departments, and agencies (MDAs) complied with transparency and efficiency requirements under the BFA 2022.
The report reviewed progress in service efficiency, transparency, monthly reporting, complaint resolution, and service-delivery innovation across MDAs between January and October 2025. According to the report, high-performing MDAs demonstrated improved adherence to service level agreements (SLAs), enhanced transparency, and stronger digital processes. “Lower-performing MDAs revealed persistent gaps in responsiveness, automation, and inter-agency coordination, highlighting priority areas for targeted reforms and leadership intervention,” the council said.
In the report, the Nigerian Content Development and Monitoring Board (NCDMB) secured the highest score with 90.6 percent, leading the 2025 BFA performance ranking. The board was closely followed by the National Drug Law Enforcement Agency (NDLEA), which posted a 89.3% success rate, while the Nigeria Customs Service (NCS) ranked third with an 86.6% success rate. Also recording strong performances were the Nigerian Communications Commission (85.3%), the Nigerian Ports Authority (84.2%), and the National Information Technology Development Agency (79.9%). The Oil & Gas Free Zones Authority followed with 79.4 percent, alongside the Nigeria Immigration Service (76.9%) and the Nigerian Electricity Management Service Agency (73.8%).
According to PEBEC, several agencies recorded low compliance scores, falling below the 50 percent threshold. They include the Nigerian Airspace Management Agency (48.8%), the EFCC-special control unit against money laundering (48.5%), the Nigeria Civil Aviation Authority (48.2%), NEXIM Bank (46.9%), the Nigeria Export Processing Zone Authority (46.5%), the Nigerian Upstream Petroleum Regulatory Commission (45.1%), the Nigerian Investment Promotion Council (44.6%), NIMASA (42.4%), and the National Inland Waterways Authority (38.9%). The Patent and Design Registry (38.9%), National Insurance Commission (37.3%), Nigerian Agricultural Insurance Corporation (37.1%), and Galaxy Backbone Limited (37.0%) also ranked low.
Listed at the bottom of the table were the Nigeria Postal Service (17.1%), the Nigerian Copyright Commission (16.3%), the Federal Produce Inspection Service (16.0%), the National Bureau of Statistics (14.9%), the Environmental Health Council of Nigeria (14.5%), the Joint Tax Board (14.6%), the National Identity Management Commission (12.7%), the Service Compact (12.6%), and the Advertising Regulatory Council of Nigeria, which posted the lowest score at 3.0%.
Nigeria, one of Africa’s most populous nations and a hub of economic activity, has faced significant challenges in creating a conducive environment for business facilitation. The country is endowed with vast natural resources and a large workforce, yet various agencies established to drive economic growth have often underperformed, leading to inefficiencies that stifle entrepreneurial spirit and discourage foreign investment. Key institutions such as the National Bureau of Statistics (NBS), the National Identity Management Commission (NIMC), NEXIM Bank, NIMASA, the Nigerian Investment Promotion Council, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are pivotal players in this ecosystem. Their underperformance raises concerns about the overall effectiveness of Nigeria’s business facilitation landscape.
Government agencies are critical in ensuring smooth business operations, providing vital services, and creating policies that foster economic growth. These agencies are expected to streamline processes, reduce bureaucratic hurdles, and support both local and foreign businesses. In an ideal scenario, agencies like the NBS, NIMC, and NUPRC would work in synergy to create a robust framework that enhances the ease of doing business in Nigeria.
1. National Bureau of Statistics (NBS): The NBS is responsible for collecting, analyzing, and disseminating statistical data relevant to various sectors of the economy. Reliable data is crucial for informed decision-making by policymakers and investors alike. However, the NBS has often been criticized for the quality and timeliness of its reports. The scarcity of accurate real-time data can lead to misguided policies and deter potential investors who rely on statistical evidence to gauge market conditions. Moreover, inconsistencies in previous reports have raised questions about the credibility of the agency, further exacerbating its perceived underperformance.
2. National Identity Management Commission (NIMC): The NIMC plays an essential role in establishing a reliable national identity system, which is fundamental for ensuring effective governance, social inclusion, and security. In an economy where identity verification is crucial for accessing services and conducting transactions, the NIMC’s inability to efficiently manage the enrollment process has hindered business operations. Long wait times, inadequate infrastructure, and frequent system failures contribute to delays in acquiring a National Identification Number (NIN), which is increasingly required for banking and business registration. The agency’s struggles have led to frustration among Nigerians and foreign businesses, stifling growth and innovation.
3. Nigerian Upstream Petroleum Regulatory Commission (NUPRC): The NUPRC oversees the oil and gas sector, a critical component of Nigeria’s economy. The commission is tasked with ensuring regulatory compliance and promoting sustainable practices in the extractive industry. However, the NUPRC has often faced challenges relating to transparency and regulatory efficiency. Delays in granting licenses, poor communication with stakeholders, and inconsistent policies have created an uncertain environment for investment in the oil and gas sector. These inefficiencies can lead to significant economic losses, as potential investors may seek opportunities in more stable markets.
Furthermore, the underperformance of agencies such as the Nigerian Export-Import Bank (NEXIM), the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian Investment Promotion Council (NIPC) presents significant challenges to economic growth. NEXIM, tasked with promoting non-oil exports, struggles with bureaucratic inefficiencies that hinder its effectiveness. Similarly, NIMASA faces criticism for inadequate support to the maritime sector, limiting investment opportunities. The NIPC, designed to attract foreign investments, often falls short due to inconsistent policies and a lack of investor-friendly initiatives. Addressing these shortcomings is crucial for enhancing Nigeria’s business environment and fostering sustainable economic development.
The underperformance of these agencies can be attributed to several interrelated factors:
1. Inadequate Funding: Many government agencies, including the NBS, NIMC, and NUPRC, suffer from budgetary constraints that limit their operational capabilities. Without sufficient funding, these agencies cannot invest in technology, training, or personnel needed to enhance service delivery. Limited resources can result in outdated systems that do not meet the demands of citizens and businesses, perpetuating inefficiencies.
2. Poor Leadership and Governance: Leadership within these agencies plays a vital role in determining their effectiveness. Instances of political interference, lack of accountability, and corruption have plagued various government institutions in Nigeria. Such issues discourage competent professionals from leading these agencies, which can contribute to a culture of mediocrity rather than one geared towards performance and results.
3. Bureaucratic Inefficiencies: A pervasive bureaucratic culture often hinders prompt decision-making and service delivery. Lengthy procedures, excessive documentation, and red tape contribute to delays in processing applications and permits. This can be particularly detrimental to businesses that require swift responses to seize market opportunities or meet regulatory requirements.
4. Lack of Training and Capacity Building: Continuous professional development is essential for staff working within these agencies. The lack of training programs and capacity-building initiatives results in a workforce that may not be adequately equipped to handle contemporary challenges faced by businesses. This gap can lead to poor service delivery and ineffective engagement with stakeholders.
5. Insufficient Public Awareness and Engagement: Many businesses are unaware of the services offered by these agencies or how to navigate the bureaucratic processes involved. This lack of awareness can result in missed opportunities for businesses seeking support or information from governmental bodies. Increased public engagement and outreach are necessary to create a more informed business community.
The implications of underperforming government agencies extend far beyond the immediate inconvenience experienced by businesses. They have broader ramifications for Nigeria’s economy, affecting foreign investment, job creation, and national development.
1. Deterrence of Foreign Investment: Potential investors are often deterred by the unpredictability associated with bureaucratic processes and the inefficiencies seen within key regulatory agencies. When global companies view Nigeria as a high-risk environment due to unreliable statistics, cumbersome identity verification processes, or erratic regulation in the oil sector, they may redirect their investments to more favorable markets.
2. Stunted Economic Growth: The inefficiencies caused by underperforming agencies hinder the overall growth of Nigeria’s economy. With businesses burdened by slow processes, a lack of reliable data, and inadequate regulatory frameworks, the entrepreneurial spirit may diminish, leading to lower levels of innovation and reduced economic output.
3. Increased Informality in the Economy: When formal channels for business registration and operations are cumbersome, many entrepreneurs may resort to informal arrangements to bypass bureaucratic obstacles. This informality can result in a lack of protection for workers, lower tax revenues for the government, and an inability to plan effectively for economic growth.
To improve the performance of these agencies and enhance business facilitation in Nigeria, several strategies can be implemented:
1. Increased Budget Allocation: Ensuring that agencies receive adequate funding will enable them to invest in modern technology and infrastructure, improving efficiency and service delivery.
2. Leadership Reform: Appointing competent individuals with proven track records of integrity and effectiveness can foster a culture of accountability and professionalism within these agencies.
3. Streamlining Processes: Reducing bureaucratic hurdles through the simplification of procedures and leveraging technology can drastically enhance the user experience for businesses.
4. Capacity Building Initiatives: Regular training and development for staff members can ensure that they remain knowledgeable and responsive to contemporary challenges.
5. Enhanced Public Engagement: Agencies should invest in outreach programs to raise awareness about their services and engage with businesses directly, fostering cooperation and trust between the public sector and the business community.
The underperformance of agencies such as the NBS, NIMC, and NUPRC illustrates the challenges faced by Nigeria in cultivating an enabling environment for business facilitation. By addressing the root causes of inefficiencies—such as inadequate funding, poor leadership, and bureaucratic inertia—Nigeria can unlock its economic potential and position itself as an attractive destination for domestic and foreign investment. Ultimately, improving agency performance is crucial for fostering a vibrant business ecosystem that can propel the nation towards sustainable growth and development. The time for action is now; the future of Nigeria’s economy depends on it.