Background
On the 10th February, 2023, the then President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR, signed into law the Business Facilitation Act 2022 into law. Commendably, the Business Facilitation (Miscellaneous Provisions) Act of 2023 (the Act or BFA) forms part of the government’s concerted efforts, through the Presidential Enabling Business Environment Council (PEBEC) to improve the ease of doing business in Nigeria and consequently the growth of local businesses and foreign direct investments (FDIs).
The objective of the Act is simply to promote the ease of doing business in Nigeria and eliminate the bottlenecks commonly associated with same. In achieving this goal, the Act essentially codifies the Executive Order 001 of 2017 (E01) on transparency and efficiency in service delivery aimed at strengthening the ease of doing business across the country with focus on Ministries, Departments and Agencies of the Federal Government (MDAs). The Act also amended about 21exisitng legislations to cause a widespread effect of institutional reforms aimed at creating a more efficient and attractive business and investment climate in Nigeria.
EFFECT ON MDAs
With the aim of achieving transparency and efficiency of their products and service delivery,
MDAs under the Act are required to within 21 days of the commencement of the Act, publish a
complete list of requirements to obtain their products and services, at their websites and help
desks. The list should include permits, licenses, waivers, tax related processes, filings, approvals,
registrations, certification and other products and services and must be kept up to date.
The Business Facilitation Act also boldly provides that where an MDA fails to communicate approval or rejection of
an application within its published timeline, such application for a product or service shall be
deemed approved or granted and the appropriate officer causing same without lawful
reason shall be subject to disciplinary proceedings under the civil services for misconduct. The
Act also directs that all rejected applications, shall within the stipulated timeline be
communicated to the applicants citing the reasons for same. The Act further provides that the
MDAs shall operate under a One-Government directive, which means that the MDAs are
meant collaborate with themselves to process and deliver products and services to the public.
As such, each MDA is expected to share responsibility and accountability in service delivery.
The Business Facilitation Act also mandates all MDAs to have binding Service Level Agreements, which shall equally
be published on their websites and which shall stipulate the applications they process, fees and
timelines for same. This initiative is meant to drive accountability and commitment of the MDAs
to their customers.
It is however difficult to see how easily these provisions can be readily and swiftly enforced
against erring MDAs or their officers. Although, from the provisions of the Act, it is clear that
applicants may now be able to petition against erring officers and their MDAs to the Federal
Civil Service Commission for disciplinary action.
Very importantly, the Act has placed a ban on touting operations at the Airports or Seaports.
The Act defined touting as including carrying out any unlawful activity for personal gain. Only
authorized, uniform-wearing and readily identifiable personnel are allowed around secured
areas of any Nigerian Port and port officials are prohibited from soliciting or receiving bribes
from passengers or other users of the port. These provisions are meant to put an end to
prolonged harassment, extortion and intimidation at the Nigerian ports.
The objective of the Act is simply to promote the ease of doing business in Nigeria and
eliminate the bottlenecks commonly associated with same. In achieving this goal, the Act
essentially codifies the Executive Order 001 of 2017 (E01) on transparency and efficiency in
service delivery aimed at strengthening the ease of doing business across the country with
focus on Ministries, Departments and Agencies of the Federal Government (MDAs). The Act
also amended about 21exisitng legislations to cause a widespread effect of institutional reforms
aimed at creating a more efficient and attractive business and investment climate in Nigeria.
