December 24th 2024
3 mins

Fixing Nigeria’s Compliance Problem: Why Regulatory Bodies Need a Customer Experience Overhaul

Dealing with Federal Agencies in Nigeria isn’t just a time wasting challenge—it’s every Nigerian's worst nightmare. From endless delays to opaque processes to rude and unwelcoming staff, regulatory bodies make it painfully difficult for businesses to become and remain compliant. For entrepreneurs and businesses trying to do the right thing, this creates frustration, inefficiency, and, ultimately, a culture where bypassing the law seems more viable than following it.
If Nigeria is to solve its compliance problem, regulatory bodies must adopt a customer experience mindset to understand and address the struggles businesses face daily. By improving how they engage with business owners, they can foster a more ethical business environment and improve overall economic growth.

Compliance as a Customer Experience Problem

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The experience of engaging with Nigerian regulatory bodies is often described as exhausting, confusing, and discouraging. Whether it’s securing a NAFDAC number, obtaining a business license, or clearing goods at customs, the process is riddled with inefficiencies:

  • Long wait times: Approvals that should take weeks often stretch into months..
  • Opaque requirements: Many business owners don’t know what’s required of them until they’re deep into the process—and often after incurring unnecessary costs..
  • Poor communication: Regulatory bodies frequently fail to provide timely updates or clear next steps.
  • Corruption and extra costs: Unofficial payments are so normalized that they feel like a standard part of doing business.

These pain points are not just inconveniences—they’re barriers that push businesses toward non-compliance. If following the rules is more difficult and costly than breaking them, many will choose the latter.

How Customer Experience Can Transform Compliance

Regulatory bodies need to start seeing businesses as their customers. Just as successful companies invest in understanding and improving their customer journeys, regulatory bodies should map out the compliance journey for businesses, identify pain points, and actively work to resolve them.
Here’s how a customer experience approach could make a difference:

  1. Journey Mapping: Regulatory bodies should document every step a business takes to achieve compliance, from the first application to final approval. This will help them identify areas where delays, confusion, or inefficiencies occur
  2. Feedback Mechanisms: Regularly collecting feedback from business owners about their experiences can provide actionable insights. For instance, an online survey or feedback portal could highlight recurring challenges and inform necessary reforms.
  3. Feedback Mechanisms: Regularly collecting feedback from business owners about their experiences can provide actionable insights. For instance, an online survey or feedback portal could highlight recurring challenges and inform necessary reforms.
  4. Proactive Communication: Clear, timely communication is critical. Regulatory bodies should provide detailed guidelines, expected timelines, and status updates at every stage of the process. Digital tools like SMS updates or online tracking systems can make a significant impact.
  5. Digital Transformation: Moving processes online can streamline applications, reduce in-person interactions (and the opportunities for corruption), and make compliance more accessible. For example, an online portal for NAFDAC registrations or customs clearances would save time and resources for everyone involved.
  6. Dedicated CX Teams: Regulatory bodies should establish customer experience teams tasked with ensuring that business owners receive efficient, transparent, and respectful service. These teams can serve as a point of contact for complaints, questions, and escalations.
  7. Dedicated CX Teams: Regulatory bodies should establish customer experience teams tasked with ensuring that business owners receive efficient, transparent, and respectful service. These teams can serve as a point of contact for complaints, questions, and escalations.
  8. Training for Staff: Frontline staff play a critical role in the compliance journey. Training them on customer service principles—such as empathy, clarity, and professionalism—can drastically improve interactions and reduce frustration for business owners.
  9. Simplified Processes: Overly complicated procedures discourage compliance. Regulatory bodies should continuously review and streamline their requirements, eliminating redundancies and unnecessary steps.

The Impact of Improved CX on Ethical Business Practices

When regulatory bodies improve their customer experience, they remove the barriers that make compliance feel like a burden. This has several key benefits:

  • Encouraging Ethical Behavior: When compliance is straightforward and accessible, businesses are less likely to resort to shortcuts or corruption.
  • Boosting Economic Growth: Easier compliance processes mean more businesses can operate legally, contributing to government revenue and creating jobs..
  • Building Trust: A positive compliance experience fosters trust between businesses and regulators, creating a more cooperative and less adversarial relationship..
  • Attracting Investment: A reputation for transparent and efficient regulatory systems makes Nigeria more attractive to foreign investors..

Final Thoughts

Compliance in Nigeria doesn’t have to be a nightmare. When regulatory bodies adopt a customer experience mindset, it will change the way they engage with businesses, making it easier—and more appealing—for entrepreneurs to operate ethically. This isn’t just about fixing processes; it’s about changing the narrative around compliance and creating a business environment that rewards integrity and innovation.