NIGERIA TRADE, INVESTMENT &
COMPETITIVENESS POLICY FRAMEWORK
1
T H E 1 8 TH N I G E R I A N E C O N O M I C S U M M I T
T H E M E : D E R E G U L AT I O N , C O S T O F G O V E R N A N C E A N D N I G E R I A ’ S
ECONOMIC PROSPECTS
T R A N S C O R P H I LT O N , A B U J A
DECEMBER 3 -5, 2012
DR KEN IFE
L E A D C O N S U LTA N T, E C O W A S C O M M I S S I O N
( P R I VAT E S E C TO R D E V E L O P M E N T )
C H A I R M A N , W O R K I N G G R O U P O N T R A D E F A C I L I TAT I O N
(MINISTERIAL COMMITTEE ON TRADE POLICY REVIEW )
Ken Ife (kenife@aol.com)
NIGERIA TRADE, INVESTMENT & COMPETITIVENESS
POLICY FRAMEWORK: APPROACH PAPER
TRADE & COMPETITIVENESS
THE STRATEGIC CONTEXT
1) KEY TRADE ISSUES & CHALLENGES
2) TRADE PERFORMANCE &
COMPETITIVENESS: TRADE FACILITATION
3) TRADE FACILITATION & THE ROLE OF
CUSTOM
4)TRADE POLICY PERSPECTIVES
NIGERIA TRADE POLICY & WTO TRADE
POLICY REVIEW
5) NIGERIA TRADE STRATEGY
INVESTMENT & COMPETITIVENESS
1) KEY INVESTMENT ISSUES & CHALLENGES
2) TYPES OF INVESTMENT
3) QUALITY OF INVESTMENT
Ken Ife (kenife@aol.com)
2
4) INVESTMENT: LINK TO GROWTH, VALUE
ADDITION, EMPLOYMENT & POVERTY
REDUCTION
5)THE INFRASTRUCTURE CHALLENGE & THE
ROLE OF PPPs
6) INVESTMENT & SUSTAINABILITY
INCLUDING LOCAL CONTENT
7) INVESTMENT CLIMATE, REFORMS &
COMPETITIVENESS
8) NIGERIA INVESTMENT POLICY
PERSPECTIVES
9) NIGERIA INVESTMENT STRATEGY
10)THE ECOWAS REGIONAL DIMENSION
THE STRATEGIC CONTEXT
3
INTRODUCTION
Trade openings are created by bilateral, multilateral, regional and domestic economic opportunities. To exploit
these would require investment in hard, soft and trade related infrastructure. You will also need to invest in the
productive capacity and the service delivery platform. To break into the market and grow, you need to be
competitive. Hence we need a policy framework, competitive strategy, and a plan of action/road map, and then, a
implementable action plan.
 1) Employment a key macro-economic objective.
 Has received the least attention as quality of investment is hardly considered
 2) Other macro-economic objectives seem to head in opposite directions
 – high growth but not embedded in employment intensive industries,
 Monetary policies including exchange rates & interest rates, balance of trade etc not supportive of growth in
non-oil export sector
 Fiscal policies, border and port controls hurting trade and pushing up costs
 NET RESULT OF INEFFECTIVE TRADE RELATED GOVERNANCE
 Restrictive trade policies
 Repressive investment and business environment
 Prohibitive production cost and transportation/logistics costs
 Uncompetitive export economy
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Ken Ife (kenife@aol.com)
TRADE & COMPETITIVENESS
1) KEY TRADE ISSUES & CHALLENGES
Security challenges
Dominance of the Oil sector – 93 % of the export
revenue but 15.85% of the GDP
Decline in non-oil export – which has dropped from
2.5%(1981) to 0.2%(2005)
 Contracting manufacturing capacity and
declining national competitiveness. 8.4% of
GDP(1980) to 4.16% of GDP(2010)
 Shortage of Energy No industrial cluster- energy
strategy nor energy efficiency programmes
 Restrictive, repressive and oppressive trade,
investment and business environment
 Prohibitive production cost and
transportation/logistics costs
 Low level of educated and technically skilled
workforce (of the 1m construction workforce,
300,000 are immigrant labour)
 Capital flight . Improved business climate will
encourage repatriation of Nigerian capital
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Ken Ife (kenife@aol.com)
4
2) TRADE PERFORMANCE &
COMPETITIVENESS
Improving Customs revenue collection
efficiency can drastically reduce transaction
costs on import/export and hence the
competitiveness
Nigeria’s persistent poor trade performance
indicators provides evidence that Nigeria’s
trade is performing far below her economic
potential and customs revenue potential.
These are characterised by poor, underdeveloped and degraded trade related
infrastructure and information asymmetry.
TRADE & COMPETITIVENESS(Contd)
3) TRADE FACILITATION & THE ROLE OF
CUSTOM
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Defined “the simplification and harmonization
of international trade procedures”
TF framework: GATT Article V – (Freedom of
Transit- which includes transport, transit and
infrastructure); GATT Article VIII – Fees and
Formalities connected with importation and
exportation and;
GATT Article X – (Transparency – require all
trade regulations to be clearly published and
fairly administered).
59 WTO Trade Facilitation Standards
The transaction costs of the type amenable to
improvements in trade facilitation programmes
represent between 3 and 15 percent of total
transaction value, worldwide. Nigeria is among
the highest. A reduction of 10 percent in
transaction costs (import and export) could
save Nigeria an estimated $17 billion per year!
(Nigeria CIA-Handbook [2011 estimated]:
Export $101billion, Imports $67billion)
Ken Ife (kenife@aol.com)
5 Strategic Management Issues - Adequacy of hard, soft,
quality infrastructure to support efficient & effective
Customs Service and ensure greater stakeholder
engagement.
Resources - Adequacy of necessary human, financial
& technical resources to implement customs
transparent clearance procedures
Legal Framework – domestication of appropriate
international instrument.
Systems and Procedures – Harmonising customs
policies, systems and procedures that reduce the high
cost and length of time of transit/reduce fraudulent
and high risk goods.
Information and Communication Technologies - The
increased use and application of ICT – National Single
Window, e-trade portal and web based resources.
Integrity - Implementation status of revised Arusha
Declaration with code of conduct, performance
standards, client charter and properly trained staff etc
External Cooperation - Problems of availability of
information to interested parties on multi-lateral,
bilateral trade and regional agreements.
TRADE PERFORMANCE – A MATTER OF GRAVE CONCERN
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Nigeria is consistently at the bottom quarter (and worsening) of all known trade performance indicators
Some Key Performance Indicators – why Govt must take urgent
action
9
Ken Ife (kenife@aol.com)
3
Nigeria's index of economic freedom[1] score is 56.3, making its economy the 116th freest in the 2012 index.
its score is 0.4 point lower than last year, reflecting declines. These consistent under performance shows Nigeria trade
as performing far below her economic potential and clearly underline the grossly under-developed trade related infrastructure
and information asymmetry between the trade governance community and other stakeholders. www.heritage.org/index/country/nigeria
Ken Ife (kenife@aol.com)
Some Key Performance Indicators – Just look at Nigeria !
7
Ken Ife (kenife@aol.com)
Comparison of Customs Revenues Collected per Staff
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•The table below on customs efficiency shows just how much Nigeria lags behind in terms of revenue collection per staff (see Table below).
•Table 1: A Comparison of Customs Revenues Collected per Staff
Country
Kenya
Romania
FYROM
Russia
Armenia
Tajikistan
Bulgaria
Thailand
Bosnia-Herzegovina
Albania
Iran
Indonesia
Pakistan
Cameroon
Philippines
Tunisia
Vietnam
Kazakhstan
Serbia
Nigeria
Georgia
Moldova
Customs revenue collected
per staff
954,181
838,587
646,282
644,134
603,925
520,545
497,917
474,051
466,306
420,952
407,122
392,067
378,169
370,370
356,739
342,216
340,460
321,695
288,112
153,846
153,530
145,257
Sources: Data from Trade and Transportation Facilitation in Southeast Europe Project, and various sources for other African countries.
Ken Ife (kenife@aol.com)
Year
2003
2003
2004
2004
2006
2002
2002
2004
2003
2003
2003
2003
2006
2006
2003
2005
2004
2004
2004
2006
2003
2003
4) THE NIGERIA TRADE POLICY PERSPECTIVES
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The Goal - The goal of Nigeria Trade Policy is to promote the development of a private sector led growth,
diversification of our economy and encourage investment in productive capacity /(value addition) and the
distribution of goods and services for domestic, regional and international markets
Import Policy - Nigeria is committed to honouring all international trade agreements it entered into and
progressively liberalising with due regards to promoting investment in the productive efficiency and
competitiveness of our local industries, particularly in areas where we have comparative advantages.
Nigeria is also committed to the reduction and simplification of tariff bands(as in ECOWAS CET), which no
doubt, will increase the efficiency of customs operation
Export Policy - Nigeria is committed to increased export and diversification to non-oil sector through
investment in value addition and the establishment and promotion of Export Processing Zones with significant
incentives for the investors. We will build sustainable export capacity through investment in quality
infrastructure and strengthening institutional, technical and organisational capacities to meet international
quality standards and conformity assessment requirements.
Investment - Nigeria is committed to strengthening the Nigeria Investment Promotion Commission, the
establishment of One Stop Shops for investors and to the modernisation of our retail, distributive trade and
other service sectors.
Ken Ife (kenife@aol.com)
TRADE & COMPETITIVENESS (Contd)
5) NIGERIA TRADE STRATEGY
 Trade Strategy Objectives
 To increase value addition and diversify
to non-oil export sectors and increase its
contribution to GDP
 To encourage investment in petroleum
and gas down-stream industries
 To increase existing trade volumes in
traditional export markets and explore
new markets
 To reduce the cost, time and
documentation requirement for export
and import and other non-tariff barriers
 To promote investment in trade and trade
related infrastructure and create
sustainable employment and reduce
poverty
 To encourage partnership and synergy
with the Trade Facilitation stakeholders
Ken Ife (kenife@aol.com)
10
TRADE STRATEGY : 5 – PILLAR
FRAMEWORK
 PILLAR 1 : REGULATORY REFORMS
(ENABLING INVESTMENT CLIMATE)
 Investment friendly environment
 A dynamic and entrepreneurial National
Trade Policy
 Package of fiscal incentives and longer
term planning and fiscal horizon
 Sectoral intervention funding and
support for trade related infrastructure
 Strategic use of Export Expansion Grant
and other instruments
 Effective Competition Law and other
enabling laws such as the modernised
Customs (CEMA) Act 2011
 Greater PPP and private sector
engagement in trade policy formulation
and service delivery
Strategic framework(contd)

PILLAR 2: COMPETITIVE STRATEGY
Product selection strategy – (product of comparative
11
advantages)- cocoa, hydes & skin, oil seed, rubber,
seseme seeds, cotton, cashew nuts, shea nuts,
mangoes, pineapple, herbs, ginger, starch
 Lowering the entry and exit barriers
Integrated value chain approach(vertical horizontal
integration) based in the export processing zones
accessing export expansion grant
Increasing access to industrial cluster premises in EPZ
Building competitive capacity (quality standards,
conformity assessment around SPS, TBT and NTBs etc)
 Access to Cluster & sectoral intervention funds.
 Creating knowledge assets & e-trade portal
 Economic diplomacy & trade reciprocity
 Subsidies on areas of market failure
 Asymmetric trade liberalisation in EPA context
 Offensive strategies that exploit temporary windows
within WTO rules without invoking import ban and
import licence or high levy
 Defensive strategies & early warning systems
 Nigeria foreign trade desks & investment centres
(PPPs) in key target oversea markets for state govts
and federal govt
Ken Ife (kenife@aol.com)
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PILLAR 3: INFRASTRUCTURE(HARD & SOFT)
Quality infrastructure (product /market
assessment, product testing, standards,
metrology, certification & inspection)
Cold chain & export conditioning centres (
network of 6 export conditioning centres, plus
integrated cold chain/supply chain and logistics
management)
Fresh produce ports (required at the sea ports
and international airports with loading bays and
docking stations) to increase backhaul capacity
Power (industrial processing clusters in export
processing zones and elsewhere)
Access feeder roads to farmlands
Water / dams/ irrigation (for commercial
agriculture and out-growers scheme)
Export Processing Zones & Free Trade areas
Strategic framework(contd)
12
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PILLAR 4: TRADE FACILITATION
Trade Facilitation Task Force
Reducing clearance times, costs and number of
documents required
Urgent implementation of National Single
Window & Regional Single Window
Trade performance indicators ( very poor on all
indicators)
Suppressing non-tariff barriers; meeting
standards; labelling, traceability and rules of
origin
Meeting sanitary & phyto-sanitory requirements
Overcoming technical barriers & specifications
Customs facilitation
AEO & expedited clearance
Transit goods & ECOWAS trade liberalization
scheme
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Ken Ife (kenife@aol.com)
PILLAR 5: MARKET PENETRATION STRATEGIES
INTERNATIONAL MARKET
Value addition, manufacturing partnerships & packhouses in foreign markets
Targeting existing products (Cocoa, Hydes & Skin,
Oil Seed, Rubber, Seseme, Cotton, Cashew nuts)
and diversifying to new markets such as China,
Japan, India, UK and Brazil
Targeted markets(Netherlands [34%], Germany
[10%], Italy [8%], Spain [5%], Japan [4%], Turkey
[4%], China [4%], Canada [3%], Belgium [2%], UK
[2%] )
Establishment in Nigeria of foreign Supermarket &
Retail Chains and extension of Shoprite
Establishment by foreign Retail Chains of
Commercial Agriculture, Out-growers Scheme and
value addition facilities in the Export Processing
Zones/Free Trade Areas
Other products to target for introduction (Shea
nuts, Mangoes, Pineapple, Herbs, Ginger, Starch )
International Exhibition and Foreign Direct
Investment promotion
Strategic framework(contd)
13
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REGIONAL MARKET
Targeted products (Aluminium products,
Metals/Mining products, Plastics/Rubber,
Textile/Clothing, Tobacco products, Acacia
Gums, Fish)
Targeted markets (Ghana [41%], Niger [20%],
Togo [15%], Burkina Faso [8%], Benin [8%] &
Cote D’ Ivoire [5%])
Establishment of regional value chains
(Pineapple, Mangoes, Yam, Cassava, Potatoes,
Millet, Sorghum )
Regional Exhibition and Investment Promotion
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Ken Ife (kenife@aol.com)
DOMESTIC MARKET
Domestic market (Focus on Trade, Domestic
Investment Mobilisation & Employment
Generation)
Commercial Agri-business and out-growers
scheme
Retail in Motion (conversion of 10million
informal retailers) – high growth sector
Value addition, improved compliance on Health,
Nutrition, Food safety and quality standards
and quality assurance
Supermarket revolution and impact of food
quality and food local content
Fast food franchise (grows at 40% per annum)
Supply Chain Development
INVESTMENT & COMPETITIVENESS
1) KEY INVESTMENT ISSUES & CHALLENGES
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Lack of investment policy framework for attracting
and regulating the activities of investors (both
domestic and foreign) over the years, though a
myriad of incentives are offered ranging from tax
holidays to government credits;
The limited efficacy of incentive policies in attracting
investment;
Lack of clear procedures and establishment
conditions for investments as well as bureaucratic
bottlenecks and a monitoring framework
Slow removal of high import tariffs /restrictive trade
and industrial policies which has led FDI to
concentrate only on tariff-jumping;
Inadequate infrastructure/skilled human resources
Lack of or limited information about changes in the
investment climate
An unstable political and social environment;
cumbersome legislation and procedures, rules and
regulations etc.;
Ken Ife (kenife@aol.com)
14
2) TYPES OF INVESTMENT
Domestic Investment(Portfolio – volatile;
public, private etc)
Foreign Direct Investment
Sources: UK, USA, EU, China, India, Asia
Net flow of capital: unremitted profits;
changes in foreign share capital; trade and
suppliers’ credit; other foreign liabilities; and
liabilities to the head offices of foreign
investors
Diaspora remittance
3) QUALITY OF INVESTMENT
4) INVESTMENT: LINKED TO GROWTH, VALUE
ADDITION, EMPLOYMENT & POVERTY
REDUCTION
INVESTMENT & COMPETITIVENESS(Contd)
15
5)THE INFRASTRUCTURE CHALLENGE & THE
ROLE OF PPPs
Nigeria Vision 20:2020, needs N35trillion ($230b)
for the infrastructure investment: Federal Govt
N11trillion($70b), State Govts N9trillion ($60b)
and the Private sector N15trillion ($100b). With
large budget deficit, minimum wage burden and
increasing foreign debt, it is difficult to see where
the two tiers of Govts will find the N20trillion. That
leaves the burden of infrastructure financing to the
private sector Private and public(states and federal
govt) infrastructure bonds and financing, greater
use of PPP models in infrastructure design,
implementation and management are more
commonly in use in the Tripartite regions. Some
of these infrastructure in Nigeria and ECOWAS are
trade related infrastructure and could have
regional impact and as such could be eligible for
Aid for Trade financing and other financing options
such as CDM (for clean energy).
Ken Ife (kenife@aol.com)
6) INVESTMENT & SUSTAINABILITY
INCLUDING LOCAL CONTENT
 Social
 Economic, and
 Environmental Sustainability
 (local content, supply chain linkages,
supplier Diversity and Procurement
Development Programme)
INVESTMENT & COMPETITIVENESS(Contd):
7) INVESTMENT CLIMATE, REFORMS & COMPETITIVENESS
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RANKINGS
DB 2013
Rank
DB 2012
Rank
Change in
Rank
1
STARTING A BUSINESS
119
119
No change
2
DEALING WITH CONSTRUCTION PERMIT 88
86
-2
3
GETTING ELECTRICITY
178
177
-1
4
REGISTERING PROPERTY
182
182
No change
5
GETTING CREDIT
23
38
15
6
PROTECTING INVESTORS
70
66
-4
7
PAYING TAXES
155
139
-16
8
TRADING ACROSS BORDERS
154
153
-1
9
ENFORCING CONTRACTS
98
97
-1
10
RESOLVING INSOLVENCY
105
104
-1
Analysis of Nigeria 132 – position in the World Bank 2012 Ease of Doing Business Ranking
Ken Ife (kenife@aol.com)
….Comparing DBI at State Level
17
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Where is it easier to do business in Nigeria—and where not?
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1 Jigawa (easiest)
2 Gombe
3 Borno
4 Kebbi
5 Kogi
6 Yobe
7 Katsina
8 Kano*
9 Zamfara
10 Bauchi*
11 Taraba
12 Sokoto*
13 Benue
14 Kwara
15 Plateau
16 Niger
17 Abuja, FCT*
18 Nasarawa
19 Adamawa
20 Akwa Ibom
21 Edo
22 Kaduna*
23 Osun
24 Ondo
25 Lagos*
26 Oyo
27 Rivers
28 Bayelsa
29 Delta
30 Enugu*
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*State included in Doing Business in Nigeria 2008 report.
Source: Doing Business database.
Ken Ife (kenife@aol.com)
31 Ebonyi
32 Abia*
33 Cross River*
34 Ekiti
35 Anambra*
36 Imo
37 Ogun*
Where is it easy to start a business—and where not?
18
 1 Abuja, FCT (easiest)
 11 Borno
14 Kaduna
15 Zamfara
16 Edo
17 Jigawa
18 Abia
19 Kwara
20 Adamawa
21 Bauchi
21 Enugu
23 Sokoto
24 Oyo
12 Nasarawa
 13 Yobe
25 Katsina
26 Kano
 2 Kogi
 3 Kebbi
 4 Gombe
 4 Plateau
 6 Taraba
 7 Akwa Ibom
 8 Lagos
 9 Niger
 10 Benue
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27 Anambra
28 Ebonyi
29 Rivers
30 Osun
31 Delta
32 Ekiti
33 Imo
33 Ondo
35 Cross River
36 Ogun
37 Bayelsa (most difficult)
Note: The ease of starting a business is a simple average of the state rankings on the number of procedures, and the associated time and cost required to start a business. See the Data notes
for details. Source: Doing Business database.
Ken Ife (kenife@aol.com)
Where is it easy to deal with construction permits—and
where not?
19
 1 Jigawa (easiest)
 2 Sokoto
 3 Kano
 4 Adamawa
 5 Kwara
 6 Kogi
 7 Bauchi
 8 Kebbi
 9 Osun
 10 Niger
 11 Benue
 12 Ekiti
 13 Gombe
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14 Borno
15 Katsina
15 Rivers
17 Cross River
18 Zamfara
19 Ondo
20 Delta
21 Taraba
22 Yobe
23 Oyo
24 Plateau
25 Bayelsa
26 Edo
27 Nasarawa
28 Ebonyi
29 Akwa Ibom
30 Abia
31 Anambra
32 Imo
33 Kaduna
34 Enugu
35 Abuja, FCT
35 Lagos
37 Ogun (most difficult)
Note: The ease of dealing with construction permits is a simple average of the state rankings on the number of procedures, and the associated
time and cost required to build a warehouse. See the Data notes for details. Source: Doing Business databaseNote:
Ken Ife (kenife@aol.com)
Where is it easy to register property —and where not?
20
 1 Gombe (easiest)
 2 Borno
 3 Zamfara
 4 Kano
 5 Jigawa
 5 Taraba
 5 Yobe
 8 Katsina
 9 Abuja, FCT
 10 Kogi
 11 Benue
 12 Bauchi
14 Enugu
15 Kwara
16 Kebbi
17 Akwa Ibom
18 Nasarawa
19 Niger
20 Cross River
21 Ebonyi
21 Sokoto
23 Bayelsa
23 Kaduna
25 Adamawa
25 Imo
27 Lagos
28 Delta
29 Ekiti
30 Abia
30 Anambra
32 Edo
33 Oyo
34 Ondo
35 Ogun
36 Osun
37 Rivers (most difficult)
 13 Plateau
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Note: The ease of registering property is a simple average of state rankings on the number of procedures, associated time and cost (measured
as a percentage of the property value) required to register a property. See Data notes for details. Source: Doing Business database.
Ken Ife (kenife@aol.com)
Where is it easy to enforce a contract — and where
not?
21
 1 Katsina (easiest)
 2 Yobe
 3 Kebbi
 4 Jigawa
 5 Borno
 6 Edo
 7 Kaduna
 8 Nasarawa
 9 Ondo
 10 Bauchi
 11 Osun
 12 Gombe
14 Bayelsa
15 Lagos
16 Sokoto
17 Abuja, FCT
18 Ogun
18 Taraba
20 Oyo
20 Plateau
22 Rivers
23 Kano
23 Niger
25 Kogi
25 Kwara
27 Delta
28 Akwa Ibom
29 Benue
30 Abia
31 Anambra
32 Adamawa
32 Ebonyi
34 Imo
35 Ekiti
36 Enugu
37 Cross River (most difficult)
 13 Zamfara
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Note: The ease of enforcing contracts is a simple average of the state rankings on the procedures, time and cost to resolve a
commercial dispute through the courts. See the Data notes for details. Source: Doing Business database.
Ken Ife (kenife@aol.com)
Disaggregation to State Level: e.g. ABIA STATE
22

Abia, Aba
Aggregate ranking
32
Starting a business
(rank)
18
Procedures
(number) 9
Time
(days)
33
Cost (% of income per capita)
67.8
Minimum capital (% of income per capita) 0
Registering property (rank)
30
Procedures
(number) 13
Time
(days)
106
Cost (% of the property value) 18.5
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Dealing with construction permits (rank) 30
 Procedures
(number) 16
 Time
(days)
79
 Cost (% of income per capita)
718.1
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Ken Ife (kenife@aol.com)
Enforcing contracts (rank)
Procedures (number)
Time (days)
Cost (% of claim)
30
40
464
47.6
States implementing reform:
23
Eight of the eleven states measured since 2008 implemented reforms in at least one area
 State
Dealing with
Registering
Enforcing
 construction permits
property
contracts
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Kano*
Anambra
Ogun
Enugu
Abuja, FCT
Kaduna
√
Sokoto
Abia
√
√
√
√
√
√
√
√
√
√X
X
√
√
√X
*Top reformer. A top reformer is a state that implemented reforms since Doing Business in Nigeria 2008 that made it easier to do business in
two or more of the Doing Business indicators, and also achieved the largest increase in the aggregate ranking from the previous report.
􀀗 indicates a negative reform
Note: This table records reforms that occurred between June 2008 and January 2010.
Source: Doing Business database.
Ken Ife (kenife@aol.com)
The Nigerian States on World Stage-comparing internationally

Best practices in Nigeria compared internationally - Nigeria in DB 2010
(represented by Lagos)
Nigeria best practice

Indicator






24
Performance Global rank
Best-performing
Performance
(183 economies)
state within Nigeria (183 economies)
How Nigerian states would compare globally
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Days to deal with construction permits
350 days
167
Jigawa
47 days
Global rank
6












Number of procedures to deal with
construction permits
18 procedures 101
Jigawa
Days to enforce a contract
457 days
64
Jigawa
Number of procedures to start a business 8 procedures 94
Abuja, FCT
Days to register property
82 days
140
Borno
Cost to deal with construction permits
580.3%(income/capita1) 143 Kano
Cost to enforce a contract
32% of the claim value 120 Katsina
Days to start a business
31 days
117
Abuja, FCT
Cost to register property
20.9% of property value 178 Yobe
Number of procedures to register property 13 procedures 177
Borno, Gombe, Kwara
Cost to start a business
77.0% of income/capita2) 153 Abuja, FCT
10 procedures
261 days
5 procedures
14 days
94.6% of income/capita
26% of the claim value
22 days
5.2% of property value
8 procedures
58.5% of income/capita




1. At the time of publication of Doing Business 2010: Reforming through Difficult Times the cost was 573.4% of income per capita.
2. At the time of publication of Doing Business 2010: Reforming through Difficult Times the cost was 76.7% of income per capita.
Source: Doing Business database.
Ken Ife (kenife@aol.com)
9
10
25
26
67
86
92
104
136
148
Nigeria
Abia
Adamawa
Akwa Ibom
50
53
47
49
HUMAN DEVELOPMENT INDEX (HDI) FOR STATES
Adult Literacy Rate Combined Gross Enrolment
GDP Per Capital
Life Expectancy Index Education Index
(% aged 15 &
Ratio for Primary & Secondary (US$)
above)
64.2
85.4
1156.82
0.419
0.712
79.2
110.4
407.75
0.458
0.896
54.6
88.6
209.34
0.358
0.659
80.0
102.0
3813.01
0.392
0.873
Anambra
Bauchi
Bayelsa
Benue
Borno
Cross River
47
50
50
48
53
54
77.0
38.7
64.3
65.4
26.9
74.6
110.8
49.2
100.6
110.0
43.0
111.1
163.14
166.82
5388.02
1434.43
529.52
604.58
0.358
0.408
0.408
0.375
0.458
0.483
0.883
0.422
0.764
0.803
0.322
0.867
0.082
0.085
0.665
0.445
0.278
0.300
0.441
0.305
0.613
0.541
0.353
0.550
72.9
56.6
76.2
74.4
74.6
51.7
75.4
38.7
62.3
57.5
36.5
48.6
63.5
55.6
89.4
51.1
41.7
68.5
75.8
73.8
72.6
60.6
80.5
67.4
52.1
24.3
109.5
114.0
111.4
118.8
111.1
41.6
112.1
33.2
90.6
61.4
50.7
40.5
118.9
96.4
105.5
101.2
66.7
101.4
114.4
109.4
103.5
108.4
116.1
42.3
89.1
44.0
2325.23
197.68
327.62
316.56
307.67
352.35
412.32
996.01
707.00
683.76
994.28
508.50
147.01
320.21
2554.98
1226.65
1687.79
247.28
1688.34
183.07
280.29
194.57
5210.69
1488.98
141.78
261.00
0.417
0.383
0.367
0.500
0.458
0.400
0.425
0.375
0.367
0.433
0.458
0.433
0.383
0.433
0.375
0.433
0.483
0.467
0.425
0.483
0.450
0.333
0.333
0.425
0.392
0.408
0.851
0.757
0.879
0.892
0.868
0.483
0.876
0.368
0.717
0.588
0.412
0.459
0.820
0.692
0.948
0.678
0.500
0.795
0.887
0.857
0.829
0.765
0.924
0.590
0.644
0.308
0.525
0.114
0.198
0.192
0.188
0.210
0.236
0.384
0.326
0.321
0.383
0.271
0.064
0.194
0.541
0.418
0.472
0.151
0.472
0.101
0.172
0.111
0.660
0.451
0.058
0.160
0.598
0.418
0.481
0.528
0.505
0.364
0.512
0.376
0.470
0.447
0.418
0.388
0.422
0.440
0.621
0.510
0.485
0.471
0.594
0.480
0.484
0.403
0.639
0.489
0.365
0.292
Life Expectancy at
Birth (years)
Delta
Ebonyi
Edo
Ekiti
Enugu
Gombe
Imo
Jigawa
Kaduna
Kano
Katsina
Kebbi
Kogi
Kwara
Lagos
Nasarawa
Niger
Ogun
Ondo
Osun
Oyo
Plateau
Rivers
Sokoto
Ken Ife
Taraba
Yobe
50
48
47
55
53
49
51
48
47
51
53
51
48
51
48
51
54
53
51
54
52
45
45
51
(kenife@aol.com)
49
50
25
GDP Index
Human Development
Index (HDI) Value
0.409
0.235
0.123
0.608
0.513
0.530
0.380
0.624
BUILDING THE SOLUTIONS:
Government must understand that:
26





Jobs are created largely by SMEs (and not by Govt nor “big business”/multinationals)
To reposition the nation on a sustainable growth trajectory we should
 Build COMPETITIVE capacity for our productive sectors in the value chains where we have
COMPARATIVE international advantages
 Build on clusters and pockets of growth that could pull the rest of the economy
Federal Govt should support State and Local Govts to lead on Job Creation.
Efficiency of the public service defines and informs the efficiency of all sectors of the economy.
More performance management and performance contracting are required in economic ,
corporate and trade related governance.
So, to tackle the obstacles to higher performance, We just need to re-organise and re-engineer
governance machinery to achieve higher levels of competence, transparency, accountability and
to minimise waste to keep ahead of growing public demand for better services
Ken Ife (kenife@aol.com)
Performance Management & Contracting – delivering a culture
and reputation of high performing States
27
 Efficiency of the public service defines and informs the efficiency of all
sectors of the economy, So, what are the obstacles to higher performance?
It is : NOT a disadvantage in resource endowment; NOT insufficient allocation
And NOT funding deficit….
You will produce outstanding results when we recognize that we do produce
outputs and that what we do can be measured, managed and improved.
We just need to re-organise and re-engineer governance machinery to achieve
higher levels of competence, transparency, accountability and to minimise
waste to keep ahead of growing public demand for better services
 Reposition the state on a growth trajectory
 Create COMPETITIVE advantage for the states in their areas of
COMPARATIVE advantages
 Restore trust in government and dignity of the public service
Ken Ife (kenife@aol.com)
BUILDING THE SOLUTIONS: 1st approach.
The Key Elements of the solution – The Flow Chart
28
The Public Service
Political Buy-in to the vision of building a new Performance Management System
5 Year Strategic Plan
Performance Contracting & Service Level Agreement
(a freely negotiated performance agreement between Govt and the management of an MDA, staff or PPP
specifying what needs to be achieved, expected levels of achievement, timeliness, evaluation and
reporting methodologies)
Monitoring and Evaluation
(a)Finance & Stewardship, b)Service Delivery, c)Non-Financial, d)Operations, e)Dynamic/Qualitative, and
f) Corruption Eradication)
Customer Service Charter
(Empowering Citizens to demand excellent services as an entitlement)
Ken Ife (kenife@aol.com)
The General Public
The Results – (From Kenya, with multiple global awards)
29
REAL GDP GROWTH(’02/’03’09/’10)
Ken Ife (kenife@aol.com)
PERFORMANCE OF MINISTRIES
(‘05/’06-’09/’10)
The Results
30
PERFORMANCE OF STATE
CORPORATIONS(‘04/05-’09/’10)
Ken Ife (kenife@aol.com)
PERFORMANCE OF LOCAL
AUTHORITIES(‘06/’07 – ‘09/’10)
31
PERFORMANCE OF TERTIARY
INSTITUTIONS(‘08/’09-’09/10)
Ken Ife (kenife@aol.com)
BUILDING THE SOLUTIONS : 2nd approach - Leveraging your annual
budget with Public-Private Partnerships in Infrastructure delivery and in
Service Delivery? Which Model of PPP to apply where?
32
INFRASTRUCTURE
SERVICE DELIVERY
 Transport – Air, Sea, Ancillary Services,
 Opening up Government Services and




Commuter, rail, intra & inter – city transport
Road –
Design/Develop/Build/Operate/Lease/Tran
sfer
Energy –
Generation/Transmission/Distribution;
Power pool and sharing PS over-capacity
Renewable Energy
Could S-East be Centre of Excellence for
Solar, Bio-fuel, Bio-ethanol, Wind, Hydro,
Bio-mass(waste to energy)etc!!
ICT- Where is S-East in this fastest
growing triple digit micro-economy ? 3rd
Gateway ?
Ken Ife (kenife@aol.com)
leveraging PS investment.
 Health (Mobile clinic, Ambulance, Health
Screening, Health schemes to reduce
maternal/infant mortality)
 E-Governance & Information Services
 Revenue & Tax Collection
 Education(School meals. E-Learning etc)
 Waste Management & environmental
control
 Digital Judiciary Services
 Motor Licencing

Water(Rural and Sub-urban water supply)
 Procurement
Key Sector Growth Rates needing urgent attention
33
Ken Ife (kenife@aol.com)
INVESTMENT & COMPETITIVENESS(Contd)
8) NIGERIA INVESTMENT POLICY
PERSPECTIVES
Market: 165 million people linked to 300million
ECOWAS regional economy
Materials(comparative advantages):
 37 billion barrels of crude oil(worlds largest)
 160 trillion cubic metres of gas
 84million hectares of arable land(40% utilised)
 34 commercially exploitable minerals
Exploitation hindered by
 Poor infrastructure
 Low level of productive activities
 Poor global competitiveness
 Poor Doing Business Indicator ranking
 Poor skills profile
 High unemployment and poverty
Ken Ife (kenife@aol.com)
34
9) NIGERIA INVESTMENT STRATEGY
Strategic Goals:
 Attract quality FDI(linked to employability),
Diaspora investment and domestic investment to
the priority areas of natural comparative
advantages
 Deliver viable solutions to improve Nigeria’s
competitiveness as measured by the Doing
Business Indicator rankings and other key
performance indicators
 Lower entry and exit barriers and aim to 24hr
company registration and deepen One Stop Shop
investment facilitation at State /local level
Strategies:
 Strengthen institutional and technical capacity of
MDAs involved
 Implement Investment Climate reforms with
Stakeholders & Development Partners
 Strengthen and establish One Stop Shop at
State/ Local level and link to Free zones in
destination marketing
 Implement Corporate Governance Codes and
more Professional registrations
INVESTMENT & COMPETITIVENESS(Contd)
Strategies (Contd)
Review and more closely target fiscal incentives
to technical skills development and technology
transfer and infrastructure development
 Strengthen Economic Governance in:










Competition
Deregulation
Privatisation
PPP framework
Procurement
Monopolies, Mergers & Take-overs
State Aid Rules
IPR
Build Investor Confidence with greater attention
to:





Corruption and transparency
Security
Peace and Conflict Resolution
Fight against Organised Economic & Financial Crime
Addressing Perception and Image issues
Ken Ife (kenife@aol.com)
35
Strategies (Contd)
 Develop strong investment destination
branding
 MUST link promotion to specific
investment destination such as :









Export Free Zones(targetted sector) and
Clusters
Agro-Industrial Park/Zone or Corridor
Knowledge Park/Zone /Corridor
Science Park/Zone/Corridor
Nollywood Park/Zone/Corridor
Technology Park/Zone and Corridor
Oil/Gas Processing Park/Zone/Corridor
Fresh Produce Cluster/Zone/Corridor
China Town, Malaysian City, Diaspora Estate,
Grand Square, Millenium Park, Immigration
Plaza(mega, midi and mini plaza)
INVESTMENT & COMPETITIVENESS(Contd)
10) THE ECOWAS REGIONAL DIMENSION
 Implement the Strategic Framework for
ECOWAS Private Sector Development
 Transnational Markets
 Investment in Regional Value Chains
 Transit Highway Corridor
 Coastal Sea Link and Ferry Services
 Regional Aviation Commuters and Charter
Services
 Coastal Tourism
 Regional Power Pool and gas pipeline
 Agro-industrial corridor
 Regional Business Associations and
Networks
 Strengthen Investment Promotion
Agencies for West Africa (IPAWAS)
Ken Ife (kenife@aol.com)
36
THANK YOU