Diagnostic assignments conducted in Nigeria over the late few years, both in connection with the preparations for the MSME Project and otherwise have identified several constraints to private sector development in the investment climate, the business enabling environment.

The activity has continued during the Project’s period of implementation. In particular, under the Doing Business program a state level Doing Business study in 2008 helped support project activities. Other activities such as the Financial Sector Study also conducted in 2008 also provided intellectual support. The World Bank Investment Climate Project has pursued an investment climate focused approach.

These efforts have not been limited to those supported by the World Bank – the United Kingdom Department for International Development, most recently through the Enable and Efina Projects, USAID through its REFORM Project and others have also contributed. And, of course, all of these were merely complementary to the Federal Government of Nigeria’s commitment to improve the investment climate. At one point the MSME Project Coordinator (also Director, Policy Advocacy of NIPC) was chair of the technical group for a technical task force to address the issues raised by the Doing Business study’s treatment of Nigeria.

The MSME Project identified four subcomponents in which there was interest by the Federal and State Governments, in terms of prospects of success, and in which other agencies were not yet working. These four subcomponents were as follows:

1. Streamlining of New Business Registration especially in the Project's three pilot states.

2. Creating a Legal and Regulatory Environment for Private Sector Credit Bureaus

3. Promoting Alternative Dispute Resolution of Commercial Disputes

4. Promoting Secured Lending Against Movables and Leasing.

Partly because of the time required to build consensus several of these activities took some time to begin but all are presently under implementation.

For information about this component contact Mr. Chukwudi Odili, Investment Climate Specialist at codili@msme-nigeria.org