It was mixed fortunes for the five southeast states of the federation as the Presidential Enabling Business Environment Council (PEBC) released its annual report on Nigeria’s subnational ease of doing business.
The latest report which was posted on X social media platform (formerly Twitter) showed that Enugu State was one of the worst states in ease of doing business in Nigeria, ranking 36th out of the 36 states and the Federal Capital Territory, Abuja. This represented a drop of nine steps from the 27th position it posted in the 2021 ranking.
The report evaluates 10 key economic and social indices applied in the ranking, including capital importation, infant mortality, poverty rate, out-of-school children, total public debt, and formal enterprises, among others.
Enugu, in the report, was mentioned as having a total public debt of more than N146 billion, owes arrears of pensions to retired workers, has more than 70,000 out-of-school children aged six to 15, has only 26,000 formal enterprises, and habours a total of 2.63 million poor people.
It was a different performance for Abia State, which moved its ranking from 33rd in 2021 to 21st in the latest ranking, representing a leap upwards of 12 steps and making it the best state in the ease of doing business in the southeast.
Closely following Enugu from the rear in the ranking is Ebonyi State, which dropped from 23rd position to 32nd out of the 36 states.
While Anambra State was unmoved, maintaining the 7th position achieved in 2021, Imo State dropped marginally by two steps, falling from 11th in 2021 to 13th in the latest ranking.
The Subnational Ease of Doing Business (EoDB) Report aims to provide empirical information on the attractiveness of States’ business climates and to serve as a credible reference resource for businesses and investors.
The 2023 report, according to information shared in the document, builds on the inaugural Subnational Baseline Report released in March 2021 and “improves it in several areas. including deepening of the methodology and enhancing the statistical significance of the survey.”
The release of the report coincided with an Open Letter written by Chijioke Edeoga, candidate of the Labour Party in the 2023 Governorship election in the state in which the LP chieftain alleged that the excessive tax regime imposed by the state governor, Peter Mbah was adversely impacting the economy of the state.
Edeoga, in the letter, accused Governor Mbah of taxation without recommendation, among other things, insisting that the excessive tax regime has led to frustration-induced high blood pressure and the flight of businesses away from the state.
Quoting renowned economist, Adam Smith, the Labour Party chieftain reminded the governor of the principles of fairness, certainty, convenience, and efficiency in good taxation systems
“Fairness means that taxation should be compatible with taxpayers’ conditions, including their ability to pay in line with personal and family needs. Certainty means that taxpayers are clearly informed about why and how taxes are levied. In terms of convenience, Smith talked about how simple the process of collecting or paying taxes should be, while efficiency suggests that the administration of tax collection should not negatively affect the allocation and use of resources in the economy,” he said.
Edeoga insisted that the tax regime has resulted in economic hardships, adding that they it has also “conspired to result in the shutdown of countless small and medium businesses” in the state.
