COST OF DOING BUSINESS IN NIGERIA AND GHANA: A COMPARATIVE ANALYSIS

COST OF DOING BUSINESS IN NIGERIA AND GHANA: A COMPARATIVE ANALYSIS

CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Even though demand and supply are the basic factors in business and that determine the flow and tone of a business proposal, some other factors can hinder the execution of a particular business, at a particular time and at
a particular place. It is demand and supply that makes a business possible but it is profit and profit maximization that determines the feasibility of a business and the will for going into it. Businesses that are into production and those in the service industry have different demands. One of such that
cover both and is almost always determining a business success is electricity which is a very big issue in the country and this increases the cost of doing business at an alarming rate. The consequence is that foreign investors are very much discouraged from investing both in the already set up
businesses and introducing their businesses into the economy. Some that find their way often sell and clear out their brands. Other times the question of corruption which is also bedeviling the country also affects the
economy which affects the cost of doing business and also the stability of the currency also bears upon all these. What the above line of thought on the issue reveals is that the location of a business with all its politics and the
nature of the market can greatly bear upon the viability of a business.

1.2 Statement of the Problem
If the research effort which has gone into this work is anything to depend on, a comparative analysis of the cost of doing business in Nigeria and Ghana has not been studied with the objective of seeing the factors that affect
the cost of doing business in each seeing that both are economically similar with almost same level of business organism. This is the issue at the heart of the present research work.

1.3 Research Questions
The following questions guide the objectives and aims of this research work namely:1.3.1 what are the factors that determine the average cost of doing business in Nigeria as at mid 2017
1.3.2 What are the factors that bear upon the cost of doing business in the Ghanaian markets at the same period.

COST OF DOING BUSINESS IN NIGERIA AND GHANA: A COMPARATIVE ANALYSIS