Printer Friendly

Chapter 2: The business environment in Nigeria.

Indirect Costs of Doing Business in Nigeria Are High

An adverse business environment can increase production costs substantially. It is estimated that the manufacturing sector in Nigeria has to bear additional indirect costs amounting to 16 percent of sales because of bottlenecks in the business environment. Losses due to power outages amount to 10 percent of sales, and production lost while in transit (4 percent of sales) is also significant (see table 2.1). These losses affect different types of firms in different ways. Electricity is more of a problem for small and medium-size firms. Production lost while in transit affects large firms to a greater extent.

In comparison with other countries, we can see from figure 2.1 that firms in Nigeria face higher indirect costs than firms in all other comparators. This is due largely to electricity-related losses. By contrast, Nigerian firms have similar indirect costs resulting from corruption and crime.

Electricity, Finance, and Transport Are the Major Perceived Constraints

To identify the main bottlenecks the Investment Climate Survey asked Nigeria's managers about the major constraints to doing business. Three major constraints emerged; electricity, finance, and transportation. (figure 2.2) The perception of other obstacles varies across firms. Although electricity appears to be a challenge for all firms, its impact is more significant in the manufacturing sector. Access to and the cost of finance appear to affect small and medium firms more significantly than they affect large firms, as well as firms located in the less industrialized states. Domestic firms complain significantly more of access to finance than do foreign firms.

[FIGURE 2.1 OMITTED]

[FIGURE 2.2 OMITTED]

In the manufacturing sector, more than 50 percent of firms perceive electricity, access to finance, and cost of finance as the three most important constraints to their operations; transportation, the macroeconomic environment, access to land, tax rates, corruption, and crime appear as second-tier concerns (table 2.2).

In benchmarking Nigeria internationally, figure 2.3 shows that electricity, finance, transport, and access to land appear to be serious constraints when compared with other countries. By contrast, Nigeria's entrepreneurs do not perceive corruption, crime, and tax rates to be obstacles.

Electricity: The Main Bottleneck

In Nigeria power outages result in losses equivalent to 10 percent of total sales. Almost all Nigerian firms (97 percent) experience power outages. On average, such outages lasted some 196 hours per month, that is, approximately 8 days. Large firms and firms in the manufacturing sector are more adversely affected by such outages.

Faced with this situation, 86 percent of firms have their own generators, which produce, on average, 61 percent of their electricity needs. (table 2.3) Large firms have lower electricity-related indirect costs although they face the most significant outages. This is explained by the fact that 97 percent of them have their own generators. Power outages vary by state. In Kano, total outage duration averages 393 hours per month, equivalent to 16 days. In Abuja, total outage duration averages 127 hours per month, equivalent to 5 days.

In comparison with other countries (table 2.4), we can see that the percentage of firms experiencing power outages is highest in Nigeria. As a consequence, generator ownership is also higher in Nigeria than in all other comparators.

Transportation and Customs

Transportation emerged as the third most important major constraint to business. Transportation problems generate indirect costs due to breakage, spoilage, or theft, in the order of 4 percent of total sales (see table 2.1), making it the second most important indirect cost driver behind electricity. The main cause of such costs is breakage or spoilage (3.2 percent) while in transit. This should not be surprising given the very small share of roads in Nigeria that are paved (estimated at about 15 percent in 2004 compared with 80 percent of China). And yet road transport remains a major means to supply factories. Almost 70 percent of manufacturing firms in Nigeria have their inputs delivered by road.

[FIGURE 2.3 OMITTED]

Nigerian firms import 10 percent of their inputs, with large firms (15 percent) and particularly foreign firms (39 percent) importing more. Efficient customs are important for firms that use a significant proportion of inputs from abroad. Only 16 percent of firms import directly, and it takes them approximately 13 days for imports to clear customs. Exporting is a speedier process taking on average seven days to clear customs. In comparison with other countries, the number of days needed to clear customs is clearly high. Brazil and India report waiting times to clear customs approximately equivalent to that of Nigeria, whereas Indonesia, South Africa, and China report clearly lower waiting times (less than eight days) (figure 2.4).

Nigeria does not compare well with other countries in regard to customs clearance, and more specifically for both the import licensing process and the time taken to clear customs. No comparator country requires more documents for both importing and exporting than does Nigeria (figure 2.5)

Finally of all comparator countries Nigeria remains the most expensive location from which to ship imports or exports. To ship a 40-foot container for export, it costs $1,730 and for import it costs $2,450 (see figure 2.6).

In summary, transportation emerges as an important constraint because it generates significant indirect costs of doing business. Although customs and trade regulations are perceived by only 5 percent of firms to be a major or very severe obstacle, this is in all likelihood connected with the relatively low number of firms in Nigeria that are familiar with the customs procedures. For those that do trade, customs appears to be a significant obstacle to business, in both costs and time.

[FIGURE 2.4 OMITTED]

[FIGURE 2.5 OMITTED]

[FIGURE 2.6 OMITTED]

Taxes

All around the world, businesses tend to complain about tax rates. Nevertheless in Nigeria, complaints about tax rates are not at the top of the list. About one in five Nigerian firms identified tax rates as a significant constraint to business, ranking it the fourth most important constraint. In international comparisons a higher percentage of firms complain about tax rates in other countries. However, by using the Doing Business database we can see that the overall tax rate paid by firms in Nigeria is the lowest of our comparator countries. And the profit tax rate is lower only in Venezuela (12 percent) (figure 2.7). Hence it appears that tax rates in Nigeria are not a major bottleneck. The reason they appear in the top part of our ranking is that most of our sample is composed by small firms, which enjoy fewer exemptions and have a higher effective marginal rate of taxation.

Access to Land

Access to land was identified by 25 percent of firms as a significant constraint to business, particularly for small firms as well as for foreign firms. Table 2.5 takes a closer look at the reasons that may justify this perception. The two main reasons that land is perceived a constraint are, first, the cost of land and, second, the procurement process.

[FIGURE 2.7 OMITTED]

According to the survey, 25 percent of firms have tried to acquire new land in the previous three years, and 39 percent of those firms have identified access to land as a major or very severe obstacle. Furthermore, almost a third of firms that successfully purchased land still report access to land as a major or very severe obstacle. This suggests that access to land may indeed be an obstacle; even firms successful in acquiring land identify it as a major or very severe constraint. Although the cost of land (which is the primary reason that access to land is an obstacle) is an area in which intervention is difficult, the procurement process could be significantly improved.

Corruption and Crime

Corruption is perceived to be a serious constraint by 25 percent of firms. In an international comparison, we found that a higher percentage of comparator countries' firms report corruption to be a serious constraint. Bribes account for some 2 percent of total sales, which is more or less in line with the same indicator in comparator countries (see figure 2.1).

Looking in more detail at corruption, table 2.6 shows that only 44 percent of firms believe that government officials have a consistent and predictable interpretation of the law. This uncertainty may be closely linked to corruption. As shown above, small and medium firms perceive corruption to be more of a problem. We can see in table 2.6 that overall some 33 percent of firms report informal payments or gifts to be common to "get things done" in customs, taxes, licenses, regulations, and so on, and only 25 percent know in advance the amount of payment needed. When a government contract is at stake, firms expect to have to pay some 5 percent of its value in such informal gifts or payments to secure it.

Table 2.7 shows the percentage of firms that have been asked for informal payments when making certain requests, such as a telephone or electrical connection or permits and licenses. More than half of all firms have been asked for such informal payments when requesting construction permits and 40 percent when requesting operating licenses. With the exception of construction permits, this problem affects small and medium firms to a greater extent, which may justify their higher perceptions of corruption.

The court system is another institution in which corruption may be a problem. Table 2.8 shows that firms do not have much confidence in it: only half of all firms believe the system to be fair, impartial, and uncorrupted, and only three of four believe the courts to be able to enforce decisions. Clearly, the problem appears to be not so much at the postdecision stage, but at the predecision stage, with almost 60 percent of firms considering the process slow and expensive. This conclusion is reinforced by the fact that although 4 percent of firms had payment disputes in the past two years, only just over half of them were taken to court.

Other sources appear to confirm that although corruption may be perceived as a major bottleneck in Nigeria, it is not much worse than in comparator countries. Transparency International's corruption perceptions index (CPI), which attempts to quantify the degree of corruption as seen by businesspeople and country analysts, ranges between 10 (highly clean) and 0 (highly corrupt). Table 2.9 shows that Nigeria ranks 147th (of 180 countries), close to Indonesia; Kenya and Venezuela appear to be slightly worse.

These results may, at first sight, seem intriguing. Internationally, Nigeria is perceived to be a country in which corruption is a major problem. In fact, the data from table 2.9 do suggest that corruption is (in relative terms) problematic because it ranks Nigeria 147th of 180 countries. However, a closer look at the data shows that corruption does not appear to be much worse in Nigeria than in the other comparator countries, especially Kenya, Venezuela, and Indonesia. According to the investment climate survey data fewer firms in Nigeria perceive corruption to be a major or very severe constraint when compared with Kenya, Venezuela, and Indonesia, which is in line with the perceptions reported by Transparency International.

It can be argued that managers internalize corruption and hence report a lower level of corruption even though the problem is actually higher than perceived. To address this concern we looked instead at objective indicators of corruption, such as the amount of bribes paid "to get things done." Even in this case, as shown earlier, objective indicators of corruption show that the amount of bribes paid by firms in Nigeria is lower than that paid in Kenya and similar to the amount paid in Indonesia. Furthermore if we look at the evolution of corruption over time we notice that in the past few years Nigeria's corruption level has been improving. This finding is confirmed by other sources and is a result of the significant effort taken by the Nigerian government to fight corruption through enacting the Corrupt Practices Act and establishing the Independent Corrupt Practices and Other Related Offences Commission (figure 2.8).

Finally, Transparency International's report on the Global Corruption Barometer (2007) confirms this assessment. Nigeria appears as a country in which corruption is (in relative terms) a problem. However, respondents are broadly optimistic and expect corruption to become less of a problem in the future, and they consider the government's efforts to fight corruption to be effective.

Hence, our conclusion is that although corruption in Nigeria is a problem (it continues to rank in the bottom deciles in international comparisons), a significant effort has been made to address it, as objective indicators as well as changes in perception over time (both CPI and governance indicators) have shown.

[FIGURE 2.8 OMITTED]

Crime was also reported to be a serious constraint to business by 23 percent of firms. However, crime generates indirect costs of only 0.8 percent of sales, clearly lower than those associated with electricity or even corruption. According to the ICA survey, 20 percent of firms in the formal sector experienced losses as a result of theft, robbery, vandalism, or arson. In an international comparison, with the exception of India, crime is perceived to be a more serious constraint everywhere else than in Nigeria. However, crime generates more or less similar indirect costs as in Nigeria (see figure 2.1).

A side effect of crime is yet another direct cost that would otherwise not be borne by firms: security. In Nigeria almost 70 percent of firms have to pay for security services, and they spend on average 1.8 percent of their annual sales for such services. Large firms appear to bear higher security costs than do small and medium firms (see table 2.10).

In an international comparison, although the share of firms that use security services is pretty much similar across countries, with the exception of only Indonesia and China, the overall cost burden of security services paid by Nigerian firms is among the highest, at the same level as Kenya, in which security is a major concern. Venezuela is an outlier (see table 2.11).

This leads us to conclude that although crime is not in the group of the most important constraints, survey data show that it remains a significant obstacle to doing business in Nigeria with significant cost implications.
Table 2.1 Indirect Costs-Manufacturing Sector

                             Exporting zone            Firm size
Indirect costs as
% sales              TOTAL   Yes     No    Small     Med.     Large

Electricity           9.8    9.3    9.9    10.2      9.3       5.3
Bribes                1.7    2.8    1.5     1.5      2.2       0.9
Production lost
  while in transit    4.1    7.3    3.6     3.3      5.2      11.6
Theft, robbery,
  or arson            0.3    0.3    0.4     0.3      0.4       0.4
Total indirect
  costs              15.9    19.7   15.3   15.3      17.2     18.3

                           Ownership
Indirect costs as
% sales              Foreign   Domestic

Electricity           10.3       9.8
Bribes                 0.4       1.7
Production lost
  while in transit     1.7       4.2
Theft, robbery,
  or arson             0.3       0.3
Total indirect
  costs               12.7       16.0

                                    State

                          More              Less
Indirect costs as
% sales              industrialized     industrialized

Electricity                9.8               9.7
Bribes                     1.7               1.6
Production lost
  while in transit         3.8               4.9
Theft, robbery,
  or arson                 0.3               0.5
Total indirect
  costs                   15.6               16.8

Source: ICA Survey

Table 2.2 Percentage of Firms Reporting Major or Very Severe
Constraints--Manufacturing Sector

                                    Exporting zone

Constraint                 TOTAL    Yes      No

Electricity                 81%     78%      81%
Access to finance
  (e.g., collateral)        56%     33%      60%
Cost of finance
  (e.g., interest rates)    50%     36%      53%
Transportation              33%     24%      35%
Macroeconomic
  environment               30%     28%      30%
Access to land for
  expansion/
  relocation                29%     19%      30%
Tax rates                   27%     18%      28%
Corruption                  24%      8%      27%
Crime, theft, and
  disorder                  20%     17%      21%
Practices of
  competitors in
  informal sector           19%     20%      19%
Tax administration          18%     20%      17%
Business licensing
  and permits               14%     14%      14%
Political
  environment               13%      9%      13%
Inadequately
  educated
  workforce                 6%      10%      5%
Telecommunications          5%       2%      6%
Labor regulations           5%       9%      5%
customs and trade
  regulations               4%      10%      3%

                                     Firm size              Ownership

Constraint                 Small    Med.    Large   Foreign    Dom.

Electricity                 82%     79%      76%      100%      81%
Access to finance
  (e.g., collateral)        65%     37%      14%      32%       56%
Cost of finance
  (e.g., interest rates)    58%     34%      23%      66%       50%
Transportation              32%     35%      29%      70%       33%
Macroeconomic
  environment               27%     37%      25%      25%       30%
Access to land for
  expansion/
  relocation                32%     21%      19%      58%       28%
Tax rates                   27%     27%      13%      32%       26%
Corruption                  28%     17%      9%       36%       24%
Crime, theft, and
  disorder                  22%     17%      11%      25%       20%
Practices of
  competitors in
  informal sector           21%     15%      9%       34%       19%
Tax administration          18%     18%      2%       32%       17%
Business licensing
  and permits               16%     12%      0%       13%       14%
Political
  environment               13%     13%      0%       25%       13%
Inadequately
  educated
  workforce                 6%       6%      2%       20%       5%
Telecommunications          6%       5%      3%       20%       5%
Labor regulations           5%       6%      0%       13%       5%
customs and trade
  regulations               3%       7%      1%       13%       4%

                                          State

                                More              Less
Constraint                 industrialized    industrialized

Electricity                      79%               84%
Access to finance
  (e.g., collateral)             53%               63%
Cost of finance
  (e.g., interest rates)         48%               57%
Transportation                   30%               40%
Macroeconomic
  environment                    33%               22%
Access to land for
  expansion/
  relocation                     27%               33%
Tax rates                        26%               29%
Corruption                       24%               26%
Crime, theft, and
  disorder                       19%               24%
Practices of
  competitors in
  informal sector                20%               18%
Tax administration               17%               18%
Business licensing
  and permits                    11%               22%
Political
  environment                    13%               12%
Inadequately
  educated
  workforce                      5%                8%
Telecommunications               3%                11%
Labor regulations                5%                5%
customs and trade
  regulations                    5%                4%

                                        State

                              Better          Worse
                            regulatory      regulatory
Constraint                  environment    environment

Electricity                     85%            76%
Access to finance
  (e.g., collateral)            59%            52%
Cost of finance
  (e.g., interest rates)        55%            45%
Transportation                  28%            39%
Macroeconomic
  environment                   29%            31%
Access to land for
  expansion/
  relocation                    32%            25%
Tax rates                       36%            16%
Corruption                      33%            14%
Crime, theft, and
  disorder                      20%            20%
Practices of
  competitors in
  informal sector               22%            16%
Tax administration              22%            13%
Business licensing
  and permits                   17%            12%
Political
  environment                   20%             5%
Inadequately
  educated
  workforce                     7%              4%
Telecommunications              7%              3%
Labor regulations               9%              2%
customs and trade
  regulations                   5%              3%

Source: ICA Survey.

Table 2.3 Infrastructure Indicators-All Formal Sectors

Indicator                                  Firm size

                        TOTAL   Small       Med.    Large
% firms experienced
  power outages          96      96        95        100
Average duration
  of outages
  per month (hours)      196     198       186       223
% firms with own
  generator              86      84        99        97
% electricity coming
  from own generator     61      61        61        61

Indicator                   Ownership             Industry

                        Foreign   Dom.   Manuf.    Retail    Other
% firms experienced
  power outages           92       96      98        96       93
Average duration
  of outages
  per month (hours)       125     197     238       188       150
% firms with own
  generator               86       86      86        85       92
% electricity coming
  from own generator      70       61      61       N/A       N/A

                                       State
Indicator
                             More              Less
                        industrialized     industrialized
% firms experienced
  power outages               97                93
Average duration
  of outages
  per month (hours)           212               169
% firms with own
  generator                   87                84
% electricity coming
  from own generator          63                55

Source: ICA Survey.

Table 2.4 Nigerian Businesses Face the Most
Serious Electricity Constraints

                     Nigeria   Kenya   Venezuela   Brazil   Indonesia
Indicator              2006    2007       2006      2003       2003

% firms
  experienced
power outages           96      85         21        64         48
  % firms with
own generator           86      70        N/A       17          39

                     South
                     Africa    India  China
Indicator             2003     2005    2003

% firms
  experienced
power outages          N/A      77     N/A
  % firms with
own generator           10      59      19

Source: ICA Surveys.

Table 2.5 Reasons for Perceiving Access to Land for Expansion/
Relocation to Be a Major or Very Severe Constraint--All Formal Sectors

Percentage of firms that
identify this as reason
for access to land for                           Firm size
expansion/relocation to
be an obstacle                     TOTAL    Small     Med.    Large

Cost of land                         92       92       90      100
Procurement process                  70       71       68       67
Availability of infrastructure       47       46       51       29
Small size of land ownership         39       37       47       49
Government ownership
  of land                            39       37       45       80
Disputed ownership                   35       33       42       69

Percentage of firms that
identify this as reason
for access to land for                 Ownership
expansion/relocation to
be an obstacle                      Foreign    Dom.

Cost of land                           89       92
Procurement process                    89       70
Availability of infrastructure         46       47
Small size of land ownership           51       39
Government ownership
  of land                              18       39
Disputed ownership                     53       34

Percentage of firms that
identify this as reason
for access to land for                    Industry
expansion/relocation to
be an obstacle                     Manuf.   Retail   Other

Cost of land                         97       85       88
Procurement process                  68       72       72
Availability of infrastructure       47       46       46
Small size of land ownership         32       44       48
Government ownership
  of land                            38       37       43
Disputed ownership                   28       32       48

Percentage of firms that
identify this as reason                        State
for access to land for
expansion/relocation to                More              Less
be an obstacle                    industrialized    industrialized

Cost of land                            92                91
Procurement process                     69                72
Availability of infrastructure          45                49
Small size of land ownership            34                46
Government ownership
  of land                               45                31
Disputed ownership                      32                39

Source: Investment Climate Survey in Nigeria.

Note: Table includes only firms that perceived access to land to be
major or very severe constraint.

Table 2.6 Perception of Government and Regulations--All Formal
Sectors

State                                               Firm size
% firms that agree with
statement                           TOTAL    Small     Med.     Large

Consistent and predictable
  interpretation of the law            44       39       58        74
Informal payments/gifts
 commonplace                           33       35       29        24
Advance knowledge of
  informal payment/gift                25       26       21        19
Percentage of annual sales spent
  on informal payments/gifts          2.0      2.0      2.3       0.7
Percentage of contract
  value paid to secure contract       5.3      5.6      4.7       2.0

State                                  Ownership
% firms that agree with
statement                            Foreign     Dom.

Consistent and predictable
  interpretation of the law             40        44
Informal payments/gifts
 commonplace                            45        33
Advance knowledge of
  informal payment/gift                 26        25
Percentage of annual sales spent
  on informal payments/gifts           0.7       2.0
Percentage of contract
  value paid to secure contract        4.8       5.3

State                                        Industry
% firms that agree with
statement                             Manuf.    Retail     Other

Consistent and predictable
  interpretation of the law             43        46        42
Informal payments/gifts
 commonplace                            31        31        38
Advance knowledge of
  informal payment/gift                 26        22        25
Percentage of annual sales spent
  on informal payments/gifts           1.7       2.0       2.4
Percentage of contract
  value paid to secure contract        5.5       4.0       6.0

                                                   State
State
% firms that agree with                  More              Less
statement                           industrialized    industrialized

Consistent and predictable
  interpretation of the law               46                39
Informal payments/gifts
 commonplace                              31                37
Advance knowledge of
  informal payment/gift                   25                24
Percentage of annual sales spent
  on informal payments/gifts             1.7               2.4
Percentage of contract
  value paid to secure contract          4.0               7.5

Source: Investment Climate Survey in Nigeria.

Table 2.7 Percentage of Firms Asked for Informal Payments When
Making Requests-All Formal Sectors

                                                  Firm size
% firms that have been asked for
informal payments when requesting   TOTAL   Small    Med.    Large

Telephone connection                 24      27       20       11
Electrical connection                39      42       32       10
Water connection                     33      35       30       11
Construction permit                  53      51       56       67
Import license                       33      48       12       35
Operating license                    40      47       28       10

                                       Ownership
% firms that have been asked for
informal payments when requesting   Foreign    Dom.

Telephone connection                   58       24
Electrical connection                  57       39
Water connection                       68       32
Construction permit                    79       52
Import license                         71       31
Operating license                      53       40

                                              Industry
% firms that have been asked for
informal payments when requesting   Manuf.     Retail    Other

Telephone connection                  15         32        29
Electrical connection                 35         40        43
Water connection                      24         42        37
Construction permit                   51         42        59
Import license                        24         26        65
Operating license                     36         42        45

                                                   State

% firms that have been asked for         More              Less
informal payments when requesting   industrialized    industrialized

Telephone connection                      19                36
Electrical connection                     38                42
Water connection                          29                39
Construction permit                       50                57
Import license                            23                52
Operating license                         37                46

Source: Investment Climate Survey in Nigeria.

Table 2.8 Court System--All Formal Sectors

                                                  Firm size
Characteristics of the
court system                       TOTAL   Small   Med.    Large

Fair, impartial, and uncorrupted    53      52      57      61
Quick                               41      41      41      54
Affordable                          41      38      49      67
Able to enforce decisions           75      75      77      84
Percentage of firms with payment
  disputes in the past 2 years
  settled by third parties           4       3       6       6

                                       Ownership
Characteristics of the
court system                       Foreign    Dom.

Fair, impartial, and uncorrupted      48       54
Quick                                 46       41
Affordable                            58       41
Able to enforce decisions             75       75
Percentage of firms with payment
  disputes in the past 2 years
  settled by third parties            8         4

                                            Industry
Characteristics of the
court system                       Manuf.    Retail    Other

Fair, impartial, and uncorrupted     53        46       59
Quick                                38        39       47
Affordable                           38        40       45
Able to enforce decisions            75        79       74
Percentage of firms with payment
  disputes in the past 2 years
  settled by third parties           3         5         4

                                                  State

Characteristics of the                  More              Less
court system                       industrialized    industrialized

Fair, impartial, and uncorrupted         53                55
Quick                                    42                40
Affordable                               43                38
Able to enforce decisions                75                76
Percentage of firms with payment
  disputes in the past 2 years
  settled by third parties                4                 4

Source: Investment Climate Survey in Nigeria.

Table 2.9 Corruption Perceptions Index, 2007

Country        Rank (180 countries)       Index

Nigeria                 147                2.2
Kenya                   150                2.1
Venezuela               162                2.0
Brazil                  72                 3.5
Indonesia               143                2.3
South Africa            43                 5.1
India                   72                 3.5
China                   72                 3.5

Source: Transparency International.

Table 2.10 Security Services and Security Expenditure--All Formal
Sectors

                                         Firm size

                       TOTAL    Small     Med.    Large
Percentage of firms
  that paid for
  security services       69       65       84     100
Security cost as %
  annual sales           1.8      1.8      1.8     2.6

                              Ownership

                        Foreign       Dom.
Percentage of firms
  that paid for
  security services       100          69
Security cost as %
  annual sales            2.6         1.8

                                     Industry

                         Manuf.     Retail     Other
Percentage of firms
  that paid for
  security services        72         66         68
Security cost as %
  annual sales            2.1        1.3        1.9

                                     State

                            More              Less
                       industrialized    industrialized
Percentage of firms
  that paid for
  security services           72                65
Security cost as %
  annual sales               1.8               1.9

Source: Investment Climate Survey in Nigeria.

Table 2.11 Security Services and Security Expenditure--Comparison
across Countries-All Formal Sectors

                    Nigeria   Kenya   Venezuela   Brazil
                     2006     2007      2006       2003

Percentage of
  firms that paid
  for security
  services             69       70        75         81
Security cost
  as % annual
  sales               1.8      1.9       6.6        1.6

                                South
                    Indonesia   Africa   India    China
                      2003       2003     2005    2002

Percentage of
  firms that paid
  for security
  services             46         81       66      48
Security cost
  as % annual
  sales               1.1        0.9      1.3     0.7

Source: Investment Climate Survey in Nigeria.
COPYRIGHT 2009 The World Bank
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:An Assessment of the Investment Climate in Nigeria
Publication:An Assessment of the Investment Climate in Nigeria
Date:Jan 1, 2009
Words:4460
Previous Article:Chapter 1: Firm productivity in Nigeria.
Next Article:Chapter 3: Comparing the state-level investment climate.
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters