Shonekan Centre: Targeted legal reforms can unlock Nigeria’s economic potential

Nigeria is at a crucial juncture where legal reforms could redefine its business environment and catalyze economic growth. The Ernest Shonekan Centre for Legislative Reforms and Economic Development of the Nigerian Economic Summit Group emphasizes that unlocking growth through legal reforms requires a comprehensive and sustained effort. Uchenna Ogbonna, Executive Director of the Centre, highlighted the need to balance regulation with creating a business-friendly environment to attract investors to Nigeria. Legal barriers have been a longstanding hindrance to economic growth in Nigeria. Outdated laws, lack of consultation, poor implementation, and inconsistent judicial interpretations have created challenges for businesses. The complexity and delays in obtaining permits and approvals add to the difficulties faced by private investors. Uchenna Ogbonna stressed the importance of legislative reforms to address these issues and create a more favorable environment for businesses. Specific legal frameworks that need urgent reforms to unlock foreign investments include the Investment and Security Act, laws protecting intellectual property, infrastructure investment laws, tax reforms, and land laws. These reforms aim to attract foreign direct investment, provide investor protection, and remove barriers to entry for businesses in Nigeria. In the realm of emerging industries, such as cryptocurrency and artificial intelligence, collaboration between the government, private sector, and civil society groups is crucial. Proper research, stakeholder engagement, and evidence-based advocacy are essential to create effective policies and regulations that support these industries. The government's understanding of these sectors and the challenges they face is vital in creating investment incentives and infrastructure to facilitate growth. Monitoring and tracking progress in reform implementation are key to assessing the effectiveness of legal reforms. While efforts have been made to review and assess the impact of legislation, there is still room for improvement in monitoring and tracking reform implementation. Think tanks like the Ernest Shonekan Centre play a crucial role in providing recommendations for amendments to legislation based on feedback from stakeholders. Overall, Nigeria has made progress in reforming its legal framework to promote economic growth and attract foreign investment. By addressing legal barriers, improving regulatory frameworks, and fostering collaboration between the government and private sector, Nigeria can unlock its economic potential and create a business-friendly environment that encourages investment and growth.