THE MALTA COMMONWEALTH THIRD COUNTRY TRAINING PROGRAMME
COMPETITIVENESS STRATEGIES FOR SMALL STATES COURSE
LOCATION: MALTA FROM 10 - 14 JUNE 2013.
PRESENTATION: COMPETIVENESS STRATEGIES AND IMPLICATIONS OF THESE
FOR FUTURE POLICIES:
(NIGERIA AS A CASE STUDY.)
IME ABRAHAM SYLVA
FEDERAL MINISTRY OF INDUSTRY, TRADE AND INVESTMENT
ABUJA , NIGERIA
7TH JUNE, 2013
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Nigeria has the population of about 160 Million people; the biggest African
Market and robust resources with 33 types of solid minerals, 7th largest oil
producer, 8th largest gas reserves, and 80mn Hectares of arable land; but is not
competitive and is hard to do business. The result is less Foreign Direct
Investment (FDI).
GLOBAL COMPETITIVE RANKING
The following are current competitive ranking especially as it affects Nigeria
Nigeria
115
Russia
67
India
57
Brazil
48
China
29
Global rank out of 144 countries
Source: WEF Global Competitiveness Report 2011 – 2012
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ADDRESSING THE CONSTRAINTS OF COMPETITIVENESS
According to Dr. Manuel Molano – competitiveness is the ability of a country to
attract and retain investment and talent.
Referring to the Harvard Business School (HBS) competitiveness model Nigeria
2012, Nigeria scores high and low in some areas. In order to achieve high level of
competitiveness in all sectors, the National Competitiveness Council of Nigeria
(NCCN) was inaugurated on 4th of February, 2013. A non government, non-profit
body, The Board is private sector- dominated with men and women of high
repute, internationally recognized, highly successful in business, vast in the
knowledge of investment climate in Nigeria, technocrats, academian’s
and
seasoned Bankers. This board is saddled with the responsibilities of bringing
Nigeria to the desire level of competitiveness; in addition to the following.
a) To benchmark, monitor and evaluate Nigeria’s Regional and
International competitiveness rating.
b) To make recommendations to the Government based on consensus,
policy measure for successive governments to create a world class
business environment, thereby enhancing business and individual
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productivity and ultimately improving the standard of living of all
Nigerians;
c) To compile and release reports on Nigeria’s competitiveness that will
guide Nigeria’s development and policy framework;
d) To co-ordinate local efforts to stimulate competitiveness by
communicating and cooperating with national and international
stakeholders through hosting of relevant events, seminars and
conferences at National and local levels;
e) To liaise with, and learn from examples of competitiveness and
sustainable development issues.
In order for the Council to achieve its mandates: the following organs are
established within the Council.
a) The NCCN Board of Trustees
b) The Management Team
c) Ancillary Staff.
The Board of Trustees will be composed of a maximum of 15 members. The
Board will be backed by a strong, professional secretariat, headed by the Chief
Executive Officer capable of supplying and or commissioning good quality
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research to inform board and also lead the management team. The primary role
of the council secretariat will be to support the Board in recommending,
evaluating and monitoring policies that could improve Nigeria’s competitiveness.
The council has come up with a work plan as follows:
1) Reform of the private sectors
2) Removal of rating in key sectors
3) Inputs in infrastructure and energy challenge
4) Input in human capital, education and skills industrial and technical
5) Input in health
6) Linkage between federal and state to work together
7) Benchmarking international apparatus with critical areas.
8) Work methodology-outreach, advocacy with policy makers and
legislation .
9) Sponsorship after identifying policies and working on them.
IMMEDIATE OUTLINE OF PLAN / SUGGESTED ACTIONS THAT WOULD BE TAKEN
TO IMPROVE COMPETITIVENESS
1) The issue of corruption among officers of the customs, immigration
services and other workers in the Airport, that is causing a lot of damage
to the Nation’s image.
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2) Reducing the prevailing bureaucracy involved in procuring entry Visas in
our foreign Missions.
3) Working with the National Assembly and other related agencies on the
legal framework in order to formulate laws that will improve
competitiveness, deregulate the non-competitive areas to be more
competitive, starting with oil and gas sector, and taxation issues.
4) Creating awareness through press briefings and seminars/workshops to
sensitize the populace, firms and the labour organizations on the need
to be competitive.
5) Creating awareness on the existing laws that are competitive and are
developing a vision of where the nation should be within a short period.
6) Liaising with relevant institutions at the national and international
levels, in order to obtain accurate and reliable data and statistics to aid
its work effectively.
STRATEGIES
The following strategies have been adopted to ensure the immediate
implementation of these decisions. The Council has set up Ad-hoc Committee of
Volunteers among board members to work:
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a) Committee on Advocacy on Outstanding Bills: Identifying all
outstanding bills at the nation’s National Assembly relating to
competitiveness and act as champions to get them passed working in
liaison with Federal Executive Council, National Assembly and other
related Agencies.
b) Committee on Mobilization: identify one big issue affecting
competitiveness and mobilize all sectors of the economy to rally round
and be part of the solution. Have a media campaign around it to create
necessary awareness and publicity among the critical stakeholders and
the general public.
c) Committee on Making Presentations on Competitiveness To Federal
Executive Council (FEC), National Executive Council (NEC), Nigerian
Governors Forum (NGF), Organized Private Sector (OPS) and Judiciary
focusing on their roles in making the country competitive
d) Committee on drawing up strategy This Committee is charged for the
implementation of local and international publicity and communication
starting with existing processes that are not well known
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e) Committee to work on Negative Vices at the Airport / Corruption: This
body will proffer ideas and solution to areas affecting competitiveness
ranking as follows:
1) Obtaining
permits
and
changing
the
negative
experiences
encountered at the Nation’s airports, which has become unpleasant
experience to investors visiting the country and
2) Put up a paper to the President on the phenomenon of corruption in
the Airports and the means of correcting it, one of which may be
posting patriotic staff of the Customs and immigration services who
will project the image of the nation positively at the entry points,
thereby improving competitiveness.
3) Place bill boards at strategic places at the airports and other entry
points advising visitors against offering bribes to officers handling
documentations in our foreign missions or the nation’s entry point.
4) Requesting the Ministry of Foreign Affairs to advise Ambassadors in
charge of our Foreign Missions to imbibe positive mind-set, be
courteous, and business like in their relationship at their duty post
abroad.
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5) Harmonize all the Departments in charge of checking passport in the
airports in order to improve service.
COMMUNICATIONS STRATEGY
The council adopts a simple straight forward plan that powerfully connects its
objectives with the intended audience via a dynamic set of messages and tools by:
1) Adopting a simple process of either addressing the press following each
of its meetings or in the alternative send out press statements after
each meeting or both.
2) Seeking to identify key contacts in the media, including the foreign
media like Bloomberg, Reuters and the Financial Times and engaging
them
3) Adopting a format for a quarterly televised programme for releasing
update on the investment climate in Nigeria
4) Communicate results of surveys that help gauge the challenges and
investors’ perceptions of them and how things are changing in the
system to improve competitiveness.
5) Secure high profile government officials to flag off symbolic deliverable,
e.g. slogans and jingles
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6) Encourage key Government Departments and Agencies to publicize their
important attainments that help debottleneck the environment for
business
7) Create special platforms for engaging with, and impacting the work of
Nigeria’s diplomatic missions in key centres of the world.
8) Build a website for the Council urgently
9) Decide whether to recruit a professional communication consultant for
the Council’s work.
INVESTMENT CLIMATE REFORM STRATEGY
It is instructive to note that Nigeria is consistently ranked in the bottom 20 of the
most corrupt nations among the 176 countries ranked by Transparency
International’s corruption perceptions index. Also in 2012 US Department of
State country report on Nigeria contained a damning indictment of corruption
within Nigeria’s public and political class. Nigeria’s perception as a highly corrupt
nation is delirious to economic competitiveness. In order to redress the deficit, a
conference will soon be held to bring together about 100 key Nigeria and foreign
investors and participants from both the pubic and private sectors to discuss how
National Competitiveness Council of Nigeria (NCCN) will assist in creating an
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enabling environment for foreign investors, with particular reference to creating
awareness of the impact of corruption on economic competitiveness and foreign
investment.
OBJECTIVE OF CONFERENCE
1) To create awareness of the impact corruption has on our attractiveness
as an investment destination
2) To engage the public and private sectors in a discourse on this issue,
how corruption undermines government and private sector efforts at
increasing competitiveness
3) To develop a plan of action for the public and private sectors to include
corruption mitigation measures in attempt to attract foreign
investment.
STRUCTURE
Three or four key presentations, each followed by a dialogue or Q&A
session.
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PROPOSED SESSIONS:
1)
How do corruption and the perception of corruption affect
investment decisions? The International Business Community sees
corruption as double taxation.
2)
Impact of UK Bribery Act and US Foreign Corrupt Practices Act on
investment decisions
3)
What avenues can the private sector use to mitigate losing potential
business or investment because of the perception of corruption such
as signing up to the United Nations Global Compact and the Nigerian
Local Network, instituting a robust compliance division etc.
4)
The role of the international community in determining Nigeria’s
corruption perception i.e. how much control does Nigeria have over
her corruption image. The role of the local media.
5)
The business cost of corruption and insiders view. i.e. a Nigerian and a
Foreigner’s view.
ISSUES UNDERLINING DISCUSSIONS.
1) Fiscal and economic incentives for investment. How does corruption
undermine these?
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2) Regulatory environment against corruption – how effective is this
environment in Nigeria vis a vis investor countries;
3) Cultural issues and cultural awareness – where should the line be drawn;
4) Enabling environment – corruption, infrastructure and the business
community.
5) Challenges faced by potentials investors and what can be done by the
private and public sectors.
KEY PARTICIPANTS.
Ministry of Industry, Trade and Investment, Nigerian and Foreign Businesses,
Nigerian Investment Promotion Commission, Foreign Mission Trade Desks,
Financial Institutions, Development banks as well as civil Society.
SECURITY
Security plays important role in deciding investment destination. In order to
make Nigeria an attractive environment for investment, the Federal Government
of Nigeria through the various security agencies have maintained peace and order
in the country – protecting lives and property. To further strengthen security the
Nigerian Government had signed an MOU with United States of America to
ensure the environment is conducive for investment and to thrive businesses
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TRADE STRATEGY
In order to encourage trade, Nigeria has liberalize the economy and the NCCN and
Central Bank of Nigeria have proposed cashless economy to conform with world
standard
BUSINESS ENVIRONMENT REFORM STRATEGY
To make Nigeria globally competitive, doing business in Nigeria must be easy,
Investment policies must be favorable; infrastructure must be put in place. NCCN,
as part of achieving ease of doing business in Nigeria had advocated:
Removal of double taxation in business
Segmented pattern of taxation had been proffered
Corporate Affairs Commission regulations be amended to favor investor in
registering their business anywhere in the country to save cost and time
To access credit facility with ease
To ensure investors interest are protected
Enforcing the claus(s) in Contracts to avoid breach of Agreement
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THE IMPLICATION OF THESE STRATEGIES FOR FUTURE POLICIES ARE
1. Increase open disclosure of governments economic policies as they affect
investments.
2. Investment policies and regulations have to be brought to the public
domain.
3. Review of investment laws to make ways for a liberalized economy.
4. Making national investment regulations to conform with the international
standards.
5. Trade related laws to conform to the standards of WTO.
6. Nigerian Labor Law to conform with International standards
7. To put in place right laws for property ownership and investors protection.
8. Improving the laws of insolvency
THANK YOU.
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