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RECENT NEWS ARTICLES Click on one of the following items for more information (older articles)
The Private Sector: Catalysts For Economic Transformation Foreign direct investment declines by 78.1% to $668m Middle class critical to industrial development Importance of the Middle class for growth of Industry Interview: "Research is germane to agricultural productivity and sustainability" South East governors endorse SENEC South East Governors collaborate for Industrial Development Southeast Governors okay Economic Commission Experts challenge scientists on climate change Climate change control: Experts advocate measures Nigeria’s business environment still risky, says AIAE report Has Nigerian business environment improved? Economic Institute launches Business Environment Survey in Nigeria AIAE congratulates new MAN President, NACCIMA DG AIAE to Review Government Budget Implementation Institute condemns kidnapping of journalists Institute enhances community with Healthcare provision Nigeria must Separate Budget from Oil Benchmark Institute raps FG on Global Meltdown FG Advised To Separate Budget From Oil Benchmark
The Private Sector: Catalysts For Economic Transformation The Business Eye Magazine. Friday, 2 December 2011 Generally, the private sector is regarded as the major driver of any country’s economy. This is because efficiency, competition and creativity form the oil which lubricates the engine of growth in business. The expectation of the Nigerian government is that the experience, connection and versatility of the players in the private sector, which have kept their business concerns going over the years in spite of the not too favourable business environment, will become the magic wands in running a renascent economy. Another dimension of the involvement of the private sector emerged recently when the African Institute for Applied Economics (AIAE) took the bull by the horns by bringing the stakeholders to rub minds at the Roundtable on Economic Transformation Process in Abuja. The event was held in collaboration with the Office of the Special Adviser on Performance Monitoring and Evaluation. The discussion at the Roundtable revolved round key pillars for Nigeria's economic transformation, namely fiscal consolidation; business environment and institutional reforms and participants were drawn from the relevant government agencies, members of the Economic Management Team, Diplomatic Community, the Organised Private Sector (OPS), Non Governmental Organisations (NGOs), Civil Society Organisations ( CSOs) and other stakeholders. The Executive Director of the AIAE, Professor Eric Eboh, said the three key economic issues of fiscal consolidation; business environment and service delivery tackled at the Roundtable were equally important and interrelated. The policy analyst noted that these three economic fundamentals could therefore be considered as critical signposts of Nigeria’s transformation. Eboh averred that, “Fiscal consolidation would entail prudent management of public spending by the three tiers of government. Improving the business environment, particularly power and transportation, is indispensable for economic diversification, accelerated growth, creation of wealth and employment. But, unlocking the business environment for non-oil growth will not happen without significant reforms of infrastructure and regulatory systems. Achieving better service delivery is fundamentally linked to public service and institutional reforms that are designed to deliver improved public service performance, effectiveness and efficiency.” He charged the policymakers to handle these critical issues with all seriousness because, “how the country deals with the decision, challenges and associated trade offs will shape the success of the economic transformation agenda and the prospects of economic prosperity in the medium to long term. The criticality of the economic policy challenges coupled with the government’s economic transformation agenda has re-ignited the momentum for realignment of macroeconomic, fiscal and sector policies.” Hitting the nail on the head, the Head of Service of the Federation, Alhaji Issa Bello, said that for Nigeria to realize its dream in line with Vision 20:2020 and the Transformation Agenda, “the Civil Service which harbours the human resources needed to propel the nation forward should be prepared to embrace global best practices and the challenges thrown up by globalization.” He then called on the stakeholders to join forces with government in charting the course to logical conclusion. The number one civil servant revealed that in the interim, government would look forward to continuing with the following interventions while looking for areas to fine tune them as we go along; service delivery initiative, christened SERVICOM, examination for appointment of permanent secretaries, mandatory training and examination for all officers, the performance management system, the e-learning initiative and staff exchange programme between the public service and the private sector. The toga of responsibility is now on all the stakeholders to see how this dream can be realised. In fact, one big lesson to learn from the AIAE’s initiative is that the role of the private sector in driving economic process cannot be over emphasised. Research institutes, NGOs, CSOs should join forces to chart the course of progress with the Federal Government. Unless this is done, the country’s dream of becoming one the biggest economies by year 2020 may remain a dream for long.
Foreign direct investment declines by 78.1% to $668m Businessday, Thursday, 18 August 2011 00:00 Foreign investors in the Nigerian economy are moving away from starting new companies or production plants and are buying up shares of quoted companies instead. Figures from the 2010 Central Bank of Nigeria (CBN) annual report show a steep 78.1 percent decline in foreign direct investment while also showing a significant 87.2 percent increase in portfolio investment into the Nigerian economy. Foreign Direct Investment (FDI) is usually investment targeted at building new factories or investing in actual production activities which create jobs for Nigerians. Portfolio investment on the other hand, is investment targeted at buying shares of companies and Federal Government and Corporate bonds. They are called paper assets, as these assets usually do not directly add to the productive capacity of the economy. Eric Eboh, a policy economist, says this observed trend shows that the Nigerian business environment is currently challenging. “Investors are risk conscious and they have taken note of this.” Figures taken from the CBN 2010 annual report, show that total foreign capital inflow into the Nigerian economy in 2010 was $5.99 billion. A breakdown of the amount shows that the FDI portion was just 12.2 percent or $668 million. This represents a 78.1 percent drop from $3.31 billion in 2009. This is the third consecutive year of decline in FDI inflow into the country. The CBN blames the drop in FDI inflow into to the country on the “poor state of infrastructure and the global economic uncertainty.” The global economic uncertainty did not however negatively impact on the appetite of foreign investors for Nigeria’s paper assets, as portfolio investments shot up sharply by 87.1 percent, to $3.9 billion in 2010 representing 65.5 percent of capital inflows into the country. A breakdown of the portfolio inflows shows that money flowing to buy shares or equity in Nigeria ’s highly beaten stock market made up 75.8 percent of these inflows. Also 22.5 percent of the portfolio inflows went into buying money market instruments, while the balance of 1.7 percent went into buying bonds. Other investments, comprising trade credits, loans, currency deposits and other claims, made up the balance or 22.2 percent of the total capital inflow of $5.9 billion which came into Nigeria in 2010. Loans made up the bulk of other investments which came into the country in 2010, accounting for 99 percent or $1.399 billion of the inflows in this category. Eric Eboh says the trend shows that investors are looking for lower risk windows for their investments. “It is a reprioritising of risks. FDI is what creates jobs. But you have to interface with the economy and investors may be avoiding this. Increased FDI inflow is usually a vote of confidence in the economy.” Opeyemi Agbaje, a management strategist and lead consultant with Resource and Trust Limited, also agrees with this view. “The trend shows foreign investors are taking a short term view of the economy. They may have seen short term opportunities in the economy which they are taking advantage of. However, they are not investing in the country. Portfolio investment is not the type of investment we want. They are volatile” Agbaje explained. Analysis of the sources of foreign capital inflows by country into Nigeria shows that the United Kingdom remained the biggest source of capital inflows into Nigeria in 2010, accounting for 45.6 percent of all inflows. The United States ranked second with 20.7 percent, while South Africa ranked third with 9.0 percent of inflows. Inflows that passed through Mauritius ranked fourth, with 2.7 percent, while Luxemburg ranked fifth with 2.0 percent. Sweden accounted for 1.5 percent of inflows while the United Arab Emirates (UAE) accounted for 1.3 percent, and an unspecified number of countries accounted for the balance of 14.3 percent of capital inflows into Nigeria. Interestingly, investment inflows from China dropped significantly in 2010 to $9.0 million from $139 million in 2009. It is not clear why investment inflows from China dropped this much, considering the country is a major source of FDI into emerging markets like Nigeria. Inflows according to economic sectors show that the Nigerian stock market witnessed the biggest inflow of funds, accounting for 52.7 percent of all inflows for the purchase of shares. The CBN says that this is an indication of the “the renewed investor confidence in the capital market, following a series of reforms” Opeyemi Agbaje however believes it may be because investors have found out that Nigerian stocks are currently cheap. Other economic sectors that attracted significant cash inflows include the banking sector with 15.2 percent of capital inflows into Nigeria . The manufacturing sector attracted 14.2 percent of all capital inflows in 2010 - higher than the 8.0 percent of capital inflows attracted by the telecommunications sector. Other unspecified sectors of the economy attracted the balance of 9.9 percent capital inflows into the Nigerian economy. Analysis of the inflows into the different sectors of the economy shows that the banking sector recorded inflows of $909 million in 2010, representing a 188 percent decline from $2.62 billion inflows in 2009. This represents a third year of consecutive decline in investments to the banking sector. Other sectors that witnessed declining investment inflows include the oil and gas sector, for which inflows dropped to $89 million in 2010 from $114 in 2009 and from a high of $641 million in 2008. Inflows to the “financing” sector also slipped for a fourth consecutive year, to $171 million from a high of $929 million in 2007. Economic sectors that witnessed increased capital inflows, interestingly include the production and manufacturing sector, which shot up significantly by 190 percent, to $854 million in 2010 - the highest inflows into the sector in four years. Inflows into buying shares in the Nigerian stock market also touched a new high of $3.16 billion, 113 percent on the inflows of $1.48 billion in 2009 but 7.6 percent lower that the inflow of $3.42 billion in 2008. The service sector, trading and construction sectors also witnessed some increase in inflows. ‘Middle class critical to industrial development’ by Toba Agboola The Institute for Applied Economics (AIAE) has called on the Federal Government to involve the middle class in drafting and implementing policies that will revive the industrial sector of the economy. Eboh noted that the workshop was part of the institute’s efforts of creating forum for experts and stakeholders to analyse topical issues that would form input into public policy. “The institute will weave the ideas together to form synthesis and opinion about where the middle class belong in the next few years. It is an intellectual framework between social and economic studies.” Though the participants at the workshop concurred that definition of middle class is ambiguous, the group (middle class) could be seen as a class of people in the ‘middle of societal hierarchy’. They unanimously challenged the Federal Government to reciprocate this gesture by upholding good governance as regards to maintaining relative peace in the Niger Delta, implement the power blueprint, implement the local content policies in different sectors, enhance establishment of schools to create environment for skill development and improve technology development among others in the country. They called on those taking leadership positions in government to sustain the current tempo in Nigeria, which they believe will take the country to a great height Middle class critical to industrial development - AIAE Written by Ayomide Owonibi The African Institute for Applied Economics (AIAE) has said that in order to reduce poverty and unemployment in Nigeria, the middle class should be involved in policies that affect industrial development. This, the institute said, was necessary due to the emergence of the middle class in Nigeria’s democratic process in recent times. The Executive Director of the institute, Professor Eric Eboh, who made this known at a workshop entitled “The Future of Middle Class in Nigeria” recently, noted that the workshop was organised to galvanise experts’ opinion on the position of middle class in nation building in the next 15 years. “AIAE is interested in knowing how the behaviour of the middle class could be used to improve on different policies and programmes of the government. The institute will weave the ideas together to form synthesis and opinion about where the middle class belongs in the next few years. It is an intellectual framework between social and economic studies,” he said. In their various contributions, the select stakeholders drawn from several fields of profession, including economics, public relations, media, academics, medicine, bankers, bureaucrats as well as business and women said that the emergence of the middle class in the scheme of things in Nigeria had shown that the group was ready to play a noble role in nation building. Though the participants at the workshop concurred that definition of middle class was ambiguous, the group (middle class) could be seen as a class of people in the ‘middle of societal hierarchy’. According to the participants, the middle class has re-emerged in Nigeria and the major factors that characterise the inclusion of anybody in the class are income, education, social networking and professional inclination, lifestyle, expenditure and consumption patterns and employment. The experts hinted that the middle class which constitutes the civil societies (CSOs), the non-government organisations (NGOs) and other voluntary organisations, remained the building blocks all over the world, and, therefore, called on the government to take advantage of their contributions in delivering dividends of democracy to the citizenry. The stakeholders said that the role of the middle class in Nigeria’s democratic process had culminated in free, fair and credible elections. They unanimously challenged the Federal Government to reciprocate this gesture by upholding good governance as regards maintaining relative peace in the Niger Delta, implementing the power blueprint, implementing the local content policies in different sectors, enhancing establishment of schools to create environment for skills development and improving technology development, among others, in the country. They called on those taking leadership positions in government to sustain the current tempo in Nigeria, which they believed would take the country to higher level. ‘Research is germane to agricultural productivity and sustainability’ Friday, June 3, 2011 Issues relating to the growth of agriculture to achieve food security and boost foreign exchange earnings have been in the front burner in recent times. Professor Eric Eboh, President of the Nigerian Agricultural Policy Research Network (NAPRNet), in this interview at recent the National Symposium on Agriculture, spoke on efforts made to have food sufficiency in Nigeria. Why are you holding this symposium at this crucial time in Nigeria’s history? In your speech, you mentioned that NAPRNet was formed about 18 months ago, what is the basis for forming it and what is its vision? You just mentioned the need for all hands to be on deck for Nigeria to achieve Vision 2020, how could this be realised through agriculture? As a researcher and policy analyst, you have said several times that there is need to link research outputs with policy making. How can this be achieved in the agricultural sector? What would be the next phase after this symposium? South East governors endorse SENEC Governors of the South Eastern states have approved the initiative aimed at formally establishing the South East Nigeria Economic Commission (SENEC). Governors Peter Obi of Anambra, Sullivan Chime of Enugu, Theodore Orji of Abia, and Ikedi Ohakim of Imo State, with their respective secretaries to the state government, appended their signatures to the Memorandum of Understanding (MoU) signalling the commencement of the operations of the commission.
South East Governors collaborate for Industrial Development To boost the industrial development of the south east states of Nigeria, its Governors have endorsed the take off of the South East Nigeria Economic Commission (SENEC) to midwife the initiative. SENEC Initiative is a product of the recommendations of the stakeholders forum on industrial clusters held in September 26, 2006 in Enugu spearheaded by the African Institute for Applied Economics (AIAE). The Institute in January 15 2007 initiated the process by constituting an interim steering committee to midwife the establishment of SENEC. Based on feedback and revisions, the subcommittee published the draft framework document, worked on the MOU which has now become operational tool for the Initiative. According to a release by Mr. Sola Oluwadare, the Communications and Relations Manager of AIAE, the MOU is a base document to guide stakeholders in the zone to decide the character, structure and functions of the Commission. The major goal of SENEC, Oluwadare stated further, is to serve the purpose of facilitation of investments in the South East zone, development of large physical infrastructural schemes, implementation of programmes for sustainable institutions, creation of centres for human capacity building development, development of coordinated framework for the formulation of public policies and plans. The AIAE spokesperson quoted the Executive Director of the Institute; Professor Eric Eboh as saying that the endorsement of the MOU has made the Institute to fulfil its niche objective of fostering the utilization of research based evidence for policymaking. Eboh said, “In taking the opportunity to facilitate the creation of the South East Nigeria Economic Commission, AIAE has demonstrated a high level of corporate social responsibility, geared towards impacting its immediate economic environment. The array of positive feedback and commentaries recorded in the course of preparing the Memorandum is vindication of the timeliness, relevance and prospects of the initiative”. Oluwadare, in the release noted that the governors unanimously appreciated AIAE’s role in facilitating the establishment of SENEC, and commended the Institute for taking the lead in forming the rallying point for, ‘parties that are desirous of creating and modelling a joint independent agency of the five cooperating south east states, the private sector, the civil society and the entire people of the zone.
Southeast Governors okay Economic Commission Governors of the South east states have approved the initiative aimed at formally establishing the South East Nigeria Economic Commission (SENEC). Governors Peter Obi of Anambra State, Sullivan Chime of Enugu State, Theodore Orji of Abia State, and Ikedi Ohakim of Imo State with their respective secretaries to the state government appended their signatures to the Memorandum of Understanding (MoU) signalling the commencement of the operations of the Commission. The chairman of the SENEC Steering Committee, Mr Chris Okoye also signed the document. The overall goal of SENEC is to serve the purpose of facilitation of investments in the South East zone, development of large physical infrastructural schemes, implementation of programmes for sustainable institutions, creation of centres for human capacity building development, development of coordinated framework for the formulation of public policies and plans. A release issued by Mr. Sola Oluwadare, the Communications and Relations Manager of AIAE, stated that the MoU is a base document to guide stakeholders in the zone to decide the character, structure and functions of the Commission. Oluwadare added that the document now lays out the strategic framework in terms of context and rationale, international best practices, relevance and impact of the Commission, and has therefore become a working tool. AIAE spokes person quotes the Executive Director of the Institute; Professor Eric Eboh as saying the endorsement of the MoU has made the institute to fulfil its niche objective of fostering the utilisation of research based evidence for policymaking. Eboh said: “In taking the opportunity to facilitate the creation of the South East Nigeria Economic Commission, AIAE has demonstrated a high level of corporate social responsibility, geared towards impacting its immediate economic environment. The array of positive feedback and commentaries recorded in the course of preparing the memorandum is vindication of the timeliness, relevance and prospects of the initiative”. Oluwadare, in the release noted that the governors unanimously appreciated the noble role AIAE played in facilitating the establishment of SENEC, and commended the institute for taking the lead in forming the rallying point for parties that are desirous of creating and modelling a joint independent agency of the five cooperating south east states, the private sector, the civil society and the entire people of the zones. “The parties hereby agree to facilitate, support, encourage and participate in the establishment of SENEC as a modern private-public community platform to drive development and economic growth in the south east zone of Nigeria under a financing arrangement which may include finance or funds from state government, private sector, civil society and diaspora. The MoU explicitly states that the document supersedes and replaces any such initiative that may have been carried out before now in the zone.
Experts challenge scientists on climate change Compass newspaper, March 23. 2011
The duo who are currently carrying out research work on ‘Technological Challenges of Climate Change Adaptation in Nigeria, Insights from Enugu State’, being coordinated by the African Technological Policy Studies Network (ATPS), said in their interim report that a heavy dependence on agricultural and forest resources in Enugu State, especially in local communities, and a dependence on environmental-unfriendly energy sources call for universal public awareness and public policies, without which adaptation to the change may be affected. The report revealed the low-lying nature of Nigeria’s 800 kilommetres coastline, which makes it prone to coastal erosion and flooding, all of which are climate change-induced forms of land degradation. The researchers called on government and stakeholders to increase public awareness so that human activity which is one of the causes could be tailored towards reducing the effects. The report stated that, “Human activities are probably what drive both land degradation and climate change. Deforestation, for example, a human activity, is a well-known factor causing land degradation by erosion. Climate change control: Experts advocate measures Nigerian Tribune. March 21, 2011 A research fellow in the African Institute for Applied Economics (AIAE), Mr. Emeka Celestine Nzeh and Mrs. Rita Ogugua Eboh, the Extension Specialist II, Centre for Entrepreneurship and Development Research (CEDR), University of Nigeria, Nsukka, made this submission in their current research on technological challenges of climate change adaptation in Nigeria; insights from Enugu State. The research, spearheaded by the African Technological Policy Studies Network (ATPS) Phase VI Strategic Plan, 2008 to 2012, noted that ‘’extreme weather events such as thunderstorms, heavy winds, and floods, which are all signs of climate change can devastate farmlands and lead to crop failure’’. “Food security is vulnerable to extreme weather events such as drought and floods. When the Sahelian zone of the country suffered drought in the 1970's and 1980's, harvest failure was remarkable throughout the region. Close to one million livestock were lost, affecting meat and dairy supply throughout the country. Flood hazards in both the north and south of the country consistently posed a danger to farmlands and hence, to food security,” the report stated. On the consequences of the phenomenon in Enugu State where the research was carried out, the report said indicators of land degradation due to climate change were already apparent in Nigeria especially in communities of the state. It stressed that deforestation, characterized by quickly disappearing forest cover, “is one symptom made worse by human intervention.” The report further revealed that ‘’changes in temperature, rainfall and water cycle dynamics can induce other problems.’’ It said: “Changes in climatic conditions in Enugu State also modify tree growth and development, reducing the availability of non-timber forest products such as spicy vegetables and mushrooms. Climate change equally increases the incidence of pests and diseases that attack and decimate forest trees. On the level of awareness and adaptation to the changes, the researchers noted that individuals and communities in state had adopted some behaviours or policies geared at restoring and conserving the environment Nigeria’s business environment still risky, says AIAE report The Nation. October 7, 2010 A report by the African Institute of Applied Economics (AIAE) has revealed that the business environment in Nigeria is challenging due to insecurity, but noted that, different aspects of the business environment have recorded different levels of progress. The report also rated Ekiti State as the most secure business environment while Abia State was rated the most risky. The Executive Director, AIAE, Mr. Eric Eboh, revealed this in Abuja while presenting to the public, its findings forum the Business Environment and Competitiveness Across Nigerian states (BECAN). These targets among others, include growing the economy by 11 per cent per annum from 2010-2013, up from seven per cent annual growth recorded from 2004-2009, increasing the size of the economy from the present N24 trillion to about N50 trillion in 2013; increasing GDP per capita from the present $1,100 to about $2,000 in 2013, and creating two million new jobs every year from 2010-2013. He noted that from the research "the over-all aggregate business environment index is less than 50 which is not healthy for the country. In terms of percentage it is not a very good score, though there is large scope for improvement. The various stakeholders should take opportunity of this evidence which is being aggregated state by state. Ekiti State is rated best in security score board in business environment while Abia is rated the last among the 36 states of the federation". Eboh, while noting that the challenge in the research is lack of administrative data at various levels, stressed that "ministries and departments in various states are supposed to keep data of their activities, of their procedures, but these data are lacking, where they are available they are not adequate and they are not well organised, that was an important challenge. We had to use our innovation to get the states to produce the data". However, Eboh, asserted that to achieve these economic targets requires the right business environment to nurture competitive and dynamic private sector. "The reason is poor business environment which has held down the growth and competitiveness of the private sector. The harsh business environment, adversely affects everyone - people, businesses, investors (domestic and foreign), managers, communities and groups. He, therefore, called on the state governments to use the opportunity of the research to start addressing the data bank at the state level by improving the statistical capability of the ministries and the planning commission."We just used four benchmarks in the area of security: major crime, minor crime, police coverage and perception and our data are from police records from Nigerian police headquarters", he explained. Has Nigerian business environment improved? Nigerian Tribune. September 27, 2010 Despite macroeconomic and growth improvements in the past six years, poor business environment has remained the principal drag on employment creation, poverty reduction and largely, the reason why the Millennium Development Goals (MDGs) has not been achieved. The harsh business environment in Nigeria adversely affects everyone – people, businesses, investors (domestic and foreign), managers, communities and groups. On the average, news about Nigeria are typically negative. Despite the country's problems, it has proven to be a magnet for companies and investors. Its natural resources, skilled workforce and robust economy make it ideal for investment. Unfortunately, underdeveloped infrastructure and other attendant factors frustrate business activities. Nevertheless, investors continue to see profits in Nigeria. A good business environment entails efficient and effective supply of public infrastructure, institutional and regulatory services. This is a primary responsibility of the government. Nevertheless, the private sector and civil society have important roles which include advocating for public accountability in the provision of these services. Based on a research done by the African Institute for Applied Economics, there has been general improvement in Infrastructure and Utilities and Regulatory Services, but the situation of Business Development Support and Investment Promotion and Security has weakened.
The thrust of BECANS Like every federation, the responsibility for shaping the business environment in Nigeria is shared between the federal, state and local governments. The logic of BECANS is that state and local governments are crucial in ensuring good business environment and enhancing Nigeria's global economic competitiveness. State and local governments have foremost responsibility in providing and managing basic public services and utilities such as roads and public transportation systems, water and sanitation and social welfare. State governments are also responsible for the bulk of business regulatory services including property registration, tax administration, industrial and enterprise zones, contract enforcement, justice administration, business and construction licensing. So, without commensurate business environment reforms by state and local governments, the macroeconomic and institutional reforms of the federal government cannot produce the desired impact on employment and poverty. Tools and benchmarks The general Business Environment Index is lower in BECANS-II than for BECANS-I. While this might suggest that the business environment across the states has not generally improved since 2007, the performance across individual benchmarks and across states is rather mixed. The general performances on the two benchmarks - Infrastructure and Utilities and Regulatory Services - are higher than those for Business Development Support and Investment Promotion and Security. In fact, the relatively lower all-states average Business Environment Index is accounted for by the lower performance on the two benchmarks – Security and Business Development Support and Investment Promotion. Performance according to geo-political zones South-West leads in infrastructure and energy Improvements in North-Central and North-East The All-States performance on Commercial Dispute Resolution is higher in BECANS-II compared to BECANS-I. The South-West zone has the highest performance on CDR, while the North-East zone has the lowest. Abuja FCT has the highest score on Commercial Dispute Resolution, followed by Lagos States, while Edo State has the lowest. The general performance on Land Registration is lower in BECANS-II compared to BECANS-I. The North-Central zone has the highest performance on Land Registration while the South-South zone has the lowest. Abuja FCT has the highest performance on Land Registration, while Zamfara and Rivers States tie as lowest. The performance on fiscal management and public procurement is 31.08%, indicating that the states are generally weak in fiscal management and public procurement. Lagos, FCT, outshine others in commercial dispute resolution The South-West zone has the highest performance on Entrepreneurship Promotion, while the North-West zone has the lowest. The South-West zone has the highest performance on Access to Finance, while the North-East zone has the lowest. Lagos State has the highest performance on Access to Finance, followed by Abuja FCT. Ebonyi and Bayelsa States have the lowest performance. Security How has Nigeria fared? Whichever situation any state is mirrored by this business environment scorecard, there is an important lesson to be gained. Whether the purpose of the state is for own-monitoring and peer review with others, there is a large scope for the scorecard to serve as the basis of mutual learning and self-improvements among the states. Among the common challenges across the states are energy, transportation, land registration, fiscal transparency and public procurement, support for industrial parks and public-private partnership. The wide disparity between states in performance across the benchmarks and measures indicate a large scope mutual learning, particularly in the areas of land registration, commercial dispute resolution and entrepreneurship promotion. If the good performances observed in some states were to be replicated in other states, the business environment will be significantly brightened. The evidence is clear. Hypothetically, if all states were to perform at the level indicated by the best performing state across all the benchmarks, the all-states average performance on the business environment index would jump from 45.43%to 68.45%. In the same vein, if every state performed at the level of the highest scoring state across the respective measures under Infrastructure and Utilities, the all-States average score would jump from 51.06% to 88.64%. Furthermore, if every state performed at the level of the highest scoring state across the respective measures under Regulatory Services, the all-States average score would jump from 45.48% to 79.17%. Applying the same logic to Business Development Support and Investment Promotion, the all-States average score would jump from 33.48% to 80.67%; and then from 49.43% to 94.17% for Security. This analogy reveals the extent to which the business environment could be transformed if all the 36 states were to implement needed reforms. Conclusion
Economic institute launches Survey on Business Environment in Nigeria The African Institute for Applied Economics (AIAE), an independent and international research institution has concluded plans to launch the second circle of the Business Environment and Competitiveness Across Nigerian States (BECANS) on September 23, in Abuja. BECANS is the comprehensive report of the research conducted on the critical factors that influence business environment in Nigeria. A statement from the Communications and Relations Manager of AIAE, Mr Sola Oluwadare, said the report would give concise national outlook of states’ performance on benchmarks and measures which include infrastructure and utilities, regulatory services, business development support and security. The National Forum on Business Environment is an integral component of the Business Environment and Competitiveness across Nigerian States (BECANS) programme.“The Forum will feature the public presentation of the Business Environment Report on Nigerian States and Abuja, FCT, a flagship publication under the BECANS programme. Also, the Forum serves as an international platform for evidence-based dialogue and information sharing on the business environment in Nigeria, from the looking glass of state-level evidence”, he said. AIAE had in August 2007 launched the first circle which was widely received and supported by the government and business community in Nigeria, especially the Organised Private Sector (OPS). AIAE congratulates new MAN President, NACCIMA DG
The positions, according to a statement by the AIAE’s Communication and Relations Manager, Mr Sola Oluwadare, are well deserved and will, no doubt, take the two leading private sector organisations to the topmost status in their quest for enabling business environment in Nigeria. It statement stated that the institute believes that the duo will use their wealth of experience to lift these public advocacy organisations to fulfil the aspiration of their teeming members across the country. Oluwadare said the combined efforts of the Organised Private Sector (OPS) and economic research institutes would go a long way to create wealth from which the government could generate revenue; minimise the problem of unemployment, reduce poverty and insecurity in our society. "We, therefore, pledge to work hand in hand with the new NACCIMA DG and MAN president in strengthening this noble course in Nigeria and indeed the continent of Africa. The institute’s spokesperson said there is need for a virile private sector to make our country a respected member of the comity of nations, saying AIAE shall continue to join hands with all the stakeholders in our advocacy to foster a conducive environment for the private sector to play the role expected of it in the realisation of the Nigerian vision and renascent Africa. AIAE to Review Government Budget Implementation Worried by the poor handling and implementation of national budgets, Nigeria’s Fiscal Responsibility Commission (FRC) said in Abuja on Sunday that it has contracted a team from the African Institute of Applied Economics (AIAE) to study and review government’s budget implementation in the country in the last five years. Dr Aliyu Yelwa, the Chairman of the Commission, said the team managed by the AIAE was to examine the country’s past budget experiences which had been deficient in the last five years with a view to addressing it. APA learns here that the 2010 national budget of about US$290 billion is still in the mill at the National Assembly undergoing changes and amendments caused by the executive, less than five months to the end of the fiscal year. According to him, the country’s budget implementation experience from 2005 is nothing to write home about as results are usually not there while improper budgeting had also been the case. He said the team would look into budget experiences in the last five years in various government offices in the country with a view to ensuring full budget implementation. “The law establishing the commission mandates us to undertake studies on the economy and financial situation in the country and to disseminate such information to the public,” Yelwa said. He, however, said that there was a need to learn from the country’s negative budgeting experiences and proffer ways of making the budget work for its development. To achieve this, he said that cash flow and financial management in the country should be understudied. He added that the government at all levels should consult the people before drafting any budget as the people were entitled by law to make input into the budget. He said that it was unfortunate that “year in year out, budgeting ritual goes on in the country with nothing commensurate to show for it, as the results are, to say the least deficient”. Yelwa noted that sometimes the government plans to carry out some development projects, but never got to implementing them and warned : “We should stop taking Nigerians for granted. They should be carried along during budget preparations and outcome of the budget determined by what the people want. Institute condemns kidnapping of journalistsThe Nation July 15, 2010Toba AgboolaAfrican Institute for Ap-plied Economics (AIAE) has condemned the abduction of the Lagos State Chairman of the Nigerian Union of Journalists (NUJ), Mr Wahab Oba; Zone G Secretary of the union, Adolphus Okonkwo, the Assistant Secretary, Sylva Okereke, Shola Oyeyipo and their driver, Azeez Abdulrauf. AIAE, in a statement signed by Mr Sola Oluwadare, the Communications and Relations Manager, decried the incident, calling on the Federal Government to wade into the issue and ensure that the men are released with immediate effect. The release stated further that it was high time the government tackled the menace, especially in the South-East, before it escalated into a major crisis. He urged the government to particularly pay attention to proffering a workable policy of employment of youths because "an idle mind is the devil’s workshop". Oluwadare said: "The Policy Think Group of our Institute is already preparing to rub minds and present a position paper to the government on how to craft a policy on unemployment in the country so that our youths can be gainfully engaged. "AIAE joins forces with NUJ and empathizes with the family members of the kidnapped journalists and believes that the Federal government and the governments of Imo,Abia and Akwa Ibom states will see to it that the men are released without further delay." Also, the Institute stated in its research findings as contained in first cycle of Business Environment Across Nigerian States (BECANS I) that crime and insecurity are threats to social and economic life; adding that an insured business environment deters investors, entrepreneurs and mangers. The men were reportedly kidnapped on Sunday in Ukbariki, near Aba in Obingwa Local Government Area of Abia State while returning from the NUJ National Executive Council meeting in Uyo, Akwa Ibom state capital.
Institute enhances community with Healthcare provisionThe Nation, June 8, 2010Toba Agboola THE African Institute for Applied Economics has canvassed the strengthening of the Community Directed Intervention (CDI) in the provision of health care facilities and services in different communities in Nigeria and other African countries. A statement by the Institute’s Communications and Relations Manager, Mr Sola Oluwadare, stated that the position was taken by the stakeholders who converged at the Development Policy Seminar (Enugu Forum) organised by the institute recently. The theme of the seminar held at Bridge Waters Luxury Suites, Enugu, attracted several practitioners in the health sector, community leaders, academics, government functionaries, technocrats and researchers. The forum was chaired by Dr. Uzochukwu, a Fellow of the West African College of Physicians and Consultants and Public Health Physician of the University of Nigeria Teaching Hospital. He added that the seminar is composed of an alliance of like-minded Non-Governmental Organisations (NGOs), Private Sector Organisations (PSOs) and professional groups, an interactive forum for public policy dialogue among stakeholders and an opportunity for interaction between researchers, policymakers and development practitioners among others. Eboh disclosed that the theme was chosen to underscore AIAE’s commitment to influencing the government’s policy through evidence based policy debate, "and the place of health policies as they affect the community is of great importance to us."
Nigeria must Separate Budget from Oil Benchmark’ Sunday Williams If Nigeria wants to take economic diversification seriously, the country must separate its budget and financial system from oil price benchmark syndrome, the Executive Director of African Institute for Applied Economics (AIAE) has said. Speaking yesterday in Abuja at the public presentation of the book: “The Global Economic Crisis and Nigeria; taking the right lessons, avoiding the wrong lessons,” the director said the oil benchmark syndrome confers a mentality of overdependence on the oil sector. He said: “The oil benchmark mentality does not give the right national mindset for the much needed economic diversification. Time has come to consider some form of decoupling or debugging of the government budget and public finance from the oil benchmark syndrome.” He expressed concern over the rising domestic debt profile as well as rising physical deficit as can be seen in the 2010 budget that has been passed by the National Assembly. “These are areas of concern and we think that steps should be taken to watch these trends particularly the depletion of the excess crude account between 2006 to 2009. These important signs needs to be watch by stakeholders so that we are sure that we are on the part of sustainability,” he said. He said the book that was presented is a fall out of his institutes last year’s symposium in collaboration with the National Assembly Policy Analysis and Research Project on the Global Financial Crisis and Nigeria. He said the book is designed to benefit different segments of the society, adding that it shows evidence to inform and influence economic policies. Institute raps FG on Global Meltdown Franca Ochigbo, Abuja The African Institute for Applied Economics (AIAE) has urged the Federal Government to utilize opportunities presented by the global crisis in addressing the country’s poor economic status. He said, “Nigeria’s economic vulnerability is further underscored by the global crisis, not enough advantage has been taken of the opportunity, which the crisis presents for addressing the country’s poor economic fundamentals. “At the core of Nigeria’s weakness is low productivity and competitiveness of the non-oil sector occasioned by poor business environment, low quality of public spending and the generally poor economic governance. “The signs of economic stress have lingered. And there is no clearly defined trajectory or life cycle of existing policy responses. For example, the depletion of the excess crude account to offset shortfalls in oil benchmarked government revenues of the three tiers of government has continued. “And the prospects point to further depletion. In recent years, domestic debts have risen asymmetrically to growth performance. Federal Government’s domestic debt has almost doubled between 2006 and 2009. State governments are accumulating domestic debts through bond issuance.
FG Advised To Separate Budget From Oil Benchmark
Executive Director of the institute, Eric Eboh, said in Abuja that the oil benchmark mentality does not give the right national mindset for the much needed economic diversification, arguing that time has come to consider the “decoupling or debugging of the government budget and public finance from the oil syndrome.” Speaking at the launch of a book, ‘The Global Economic Crisis and Nigeria: Taking the Right Lessons, Avoiding the Wrong Lessons”, Eboh said the oil benchmark syndrome confers a mentality of overdependence on the oil sector.
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