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World Bank Lead Private Peter Mousley, Sector Development Specialist on Finance Development, has said that setting up of businesses in Nigeria is fraught with problems.

Mousely made the observation today in Lagos while presenting a report of a survey on "Doing Business in Nigeria ", carried out in 10 states of the federation.

He listed some of the problems faced by private sector operators as security, multiple taxation, epileptic power supply, bad roads and poor work environment.

Mousley said that the report ranked Nigeria 108 on business environment among 178 sub-saharan economies.

He said the project was part of a sub-national investment climate programme which supported state governments in improving their business environments.

The World Bank Specialist said that the survey was aimed at creating a basis for reform through dialogue between private and public sectors in states and to drive investments and non-oil growth in the states.

He said that it was also aimed at reducing poverty through sustainable economic growth in Nigeria's non-oil sector.

Mousley said that the informal sector generated about 59 per cent of Nigeria's Gross Domestic Product in 2003 compared with 16 per cent in China , 26 per cent in India and 29 per cent in South Africa.

He, however, said that starting a business in Nigeria was relatively easy compared to other sub-Sahara countries.

“The mind set of Nigerians toward business registration must be changed for better.

There is a need to take another look at the tax reform policy in Nigeria to reflect the people's objectives toward tax compliances.

“New business entrepreneurs should be encouraged through the small scale enterprenuers in other to empower Nigerians in various areas of human endeavour,'' Mousley said.