Vice President Kashim Shettima has issued a direct appeal to Nigerian state governors, urging them to fully exploit a $750 million World Bank programme designed to streamline business regulations across the country. The call came during a high-level meeting at the Presidential Villa in Abuja, where senior federal officials joined representatives from all 36 states to assess progress on the Business Enabling Reforms agenda.
Federal pressure on state governors
Shettima told governors that delays in implementing the reforms could cost their states access to critical development funding. The World Bank programme releases capital based on measurable performance indicators, meaning states that fall behind risk losing their allocation to better-performing counterparts. Several northern states have already submitted reform plans, though officials declined to name which ones until formal verification is complete.
The Presidential Villa gathering followed a World Bank report that flagged slow bureaucratic progress in key states. Shettima emphasised that the programme is not charity but a structured opportunity for states to reshape their economic foundations. His office released a statement confirming that all state action plans must be finalised and submitted within the current quarter.
What the reform programme targets
The $750 million envelope supports three main areas: simplifying business registration processes, upgrading digital infrastructure for government services, and modernising land titling systems. Each reform area carries specific benchmarks that states must meet before drawing down funds. The World Bank has stated that states achieving early milestones will qualify for top-up allocations from a separate performance pool.
Streamlining business registration
Currently, registering a new business in Nigeria takes an average of 24 days in some states, compared to a regional average of 12 days. The reform programme demands that all participating states reduce this to under seven days by 2026. Federal officials estimate that cutting registration times in half could unlock billions of naira in new private investment annually.
Digital government services
The second pillar focuses on moving core government functions online. States must establish or expand digital portals for business licensing, tax filings, and property registration. The World Bank has committed technical assistance through its Nigeria Country Office in Abuja, deploying consultants to work alongside state planning commissions.
Market and investor implications
Business leaders have long cited Nigeria's fragmented regulatory environment as a barrier to investment. A manufacturer operating in Lagos faces different licensing requirements than one in Kano, creating uncertainty for companies seeking to scale across multiple states. The World Bank programme aims to harmonise these processes, effectively creating a more predictable national market.
Foreign investors monitor governance reforms closely when allocating capital to frontier markets. Analysts at the African Development Bank have noted that Nigeria's current ranking of 131 out of 190 economies on the World Bank's Ease of Doing Business index creates significant competitive disadvantages against regional peers like Kenya and Rwanda. Full utilisation of the $750 million programme could help Nigeria climb 20 or more positions within three years, according to internal federal projections.
Local chambers of commerce in Abuja and Lagos have already called for faster implementation. The Nigerian Economic Summit Group, a private sector advocacy body, published a position paper last month urging state governments to treat the World Bank funding as a catalyst for broader economic transformation rather than a standalone project.
What happens next
The World Bank's Nigeria Country Office will conduct verification visits to all 36 states over the next eight weeks. Governors who fail to submit compliant action plans by the end of the quarter face suspension from the programme. Federal sources suggest that at least six states remain significantly behind schedule, though officials declined to identify them publicly.
Shettima's office has indicated that a second review meeting will take place in three months to track progress against agreed milestones. The programme runs until 2027, with disbursements tied to semi-annual performance reviews.
State governments that embrace the reforms could unlock significant private investment, but failure to act carries a clear consequence: lost funding and diminished credibility with international development partners.
Federal sources suggest that at least six states remain significantly behind schedule, though officials declined to identify them publicly.Shettima's office has indicated that a second review meeting will take place in three months to track progress against agreed milestones. Analysts at the African Development Bank have noted that Nigeria's current ranking of 131 out of 190 economies on the World Bank's Ease of Doing Business index creates significant competitive disadvantages against regional peers like Kenya and Rwanda.
