THE SURMOUNTABLE AND POLICY CHALLENGES OF DOING BUSINESS IN SOUTH EASTERN NIGERIA, IGBOLAND

 

24 October 2025  /  friday Blues 1-013

 

THE SURMOUNTABLE AND POLICY CHALLENGES OF DOING BUSINESS IN SOUTH EASTERN NIGERIA, IGBOLAND

by Noble Dr. Uzodinma Adirieje (KSJI)

 

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INTRODUCTION

 

The South Eastern region of Nigeria—comprising Abia, Anambra, Ebonyi, Enugu, and Imo States—is widely recognized as the cradle of Nigerian entrepreneurship and innovation. Its people possess an unmatched drive for commerce, creativity, and industry. From the bustling markets of Onitsha and Aba to emerging industrial clusters in Nnewi and Enugu, the South East holds immense potential to become a hub of small- and medium-scale manufacturing, trade, and service industries. However, despite these advantages, the ease of doing business in the region remains hindered by a complex web of infrastructural, energy, security, and policy challenges. Fortunately, these challenges are surmountable through deliberate policy reforms, coordinated planning, and effective governance.

 

ENERGY AND ELECTRICITY CONSTRAINTS

 

Perhaps the most debilitating obstacle to business growth in South Eastern Nigeria is the unreliable and costly electricity supply. Entrepreneurs spend an enormous share of their operating costs on self-generation—diesel, petrol, and alternative energy sources. The national grid’s inefficiency, coupled with frequent outages and low voltage, undermines production, especially in energy-intensive sectors such as manufacturing, agro-processing, and cold-chain logistics. Many small businesses are forced to operate below capacity or shut down entirely.

To overcome this, there is an urgent need for decentralization of energy generation and distribution through the promotion of mini-grids, renewable energy solutions, and localized power systems. State governments should partner with private investors to develop solar farms and small hydroelectric projects to supply industrial clusters. Incentives such as tax breaks for renewable energy investors and energy efficiency programs for MSMEs would help reduce production costs and boost competitiveness. Power sector reforms must also be localized, with state electricity laws enabling partnerships that ensure reliable power supply for commercial and industrial use.

 

INFRASTRUCTURE DEFICITS AND TRANSPORT BOTTLENECKS

 

The state of physical infrastructure in the South East poses a significant challenge to business competitiveness. Roads connecting key cities—Aba, Owerri, Onitsha, Awka, Nsukka, and Abakaliki—are often in deplorable condition, leading to delays, increased transport costs, and product spoilage. The absence of a functional rail network and limited inland waterway transport further isolates the region from major national and export markets.

To transform the business environment, both federal and state governments must prioritize infrastructure renewal through a regional development master plan. Public–private partnerships (PPPs) can mobilize resources for the dualization of major highways, rehabilitation of feeder roads, and construction of logistics hubs. A functional inland dry port in Aba or Onitsha could drastically cut transportation costs and enhance trade. Similarly, the Enugu Airport should be upgraded into a modern cargo and export hub to support the region’s manufacturing and agricultural exports. Reliable transportation is the lifeline of commerce, and its improvement would unlock enormous economic value.

 

SECURITY AND STABILITY CONCERNS

 

The growing insecurity in parts of the South East has become a major deterrent to business operations and investments. Kidnapping, armed robbery, extortion, and politically motivated violence have disrupted supply chains, reduced investor confidence, and increased the cost of doing business. Many businesses now close early, while others have relocated to more stable regions.

Security is a collective responsibility. Beyond policing, the region needs an integrated security architecture involving state and community actors. The establishment of regional security frameworks, well-coordinated vigilante networks, intelligence sharing, and technology-driven surveillance systems can drastically reduce criminality. Governments must also address the root causes of insecurity—youth unemployment, social exclusion, and poor governance—through economic empowerment and civic engagement. When people have livelihoods and feel included, they are less likely to engage in or tolerate violence.

 

POLICY, GOVERNANCE, AND INSTITUTIONAL CHALLENGES

 

Policy inconsistency, bureaucratic bottlenecks, and corruption continue to undermine ease of doing business. Entrepreneurs face multiple taxation, redundant levies, and unclear regulations that discourage formalization. The lack of coordination among federal, state, and local agencies often leads to duplication and confusion.

Governments across the region must digitize business registration, licensing, and tax administration to promote transparency and predictability. A unified South East Business Facilitation Council could harmonize policies, streamline processes, and monitor implementation across states. Civil society and business associations should also play an oversight role to ensure accountability and policy continuity.

 

ACCESS TO FINANCE AND HUMAN CAPITAL

 

Limited access to affordable finance restricts business growth. Traditional banks demand high collateral, and interest rates are prohibitive. The region’s MSMEs need tailored financial instruments, such as microcredit, cooperative banking, and credit guarantees. Financial technology innovations—using transaction data for credit scoring—should be promoted to expand lending to informal and small businesses.

Furthermore, bridging the human capital gap is essential. Many enterprises lack skilled manpower, managerial capacity, and quality assurance systems. Collaboration between academia and industry should be strengthened through vocational education, apprenticeships, and innovation hubs that equip youths with practical skills in manufacturing, technology, and agribusiness.

 

CONCLUSION AND RECOMMENDATIONS

 

The challenges of doing business in South Eastern Nigeria are formidable but surmountable. They are largely structural and policy-induced, not insurmountable flaws of the people or geography. By prioritizing energy reform, infrastructure renewal, enhanced security, institutional efficiency, and human capacity development, the region can attract investment, create jobs, and drive inclusive growth.

The South East has the entrepreneurial spirit, technical ingenuity, and resilience required to rise. What remains is visionary leadership, coherent regional cooperation, and unwavering commitment to implementation. With the right mix of policy reforms and stakeholder collaboration, the region can transform its business climate and reclaim its place as Nigeria’s industrial and commercial powerhouse.

 

 

Noble Dr. Uzodinma Adirieje is a distinguished and multidimensional communicator whose work as a writer, columnist, blogger, reviewer, editor, and author bridges the intersections of global health, sustainable development, human rights, climate justice, and governance. He is the Chief of Protocols of the Abuja Grand Commandery of the Ancient and Noble Order of the Knights of St. John International, and has attained the Noble (highest) degree of the Order. He has been honoured as ‘Ezinna’ CMO of St. John of the Cross Parish, Amaruru, Orlu Diocese, Imo State; and ‘Ezinna’ CWO of St. Martin Parish, Lugbe Abuja. He holds a number of chieftaincy titles including ‘High Chief Ugwumba I of Amaruru clan’, and ‘Ahaejiejemba Ndigbo Lagos State’.