The focal point of the
evaluation by the global apex bank is premised on the policies government put
in place to guarantee business start-ups, a seamless process in getting permits,
or licenses depending on the sector of investment. Power, loan, land permit,
payment of multiple taxes, bureaucracy bottle necks, among others. Important to
note is Nigeria’s minimal rise to 169, quite insignificant in relation to other
African countries with impressive rankings: Mauritius (32), Rwanda (62),
Botswana (72), South Africa (73), to mention a few.
Nonetheless,
the sharp decline and prompt decision by the current administration to
re-evaluate the ease of doing business policies, points to the fact that
existing investment policies have not been optimal in performance and need a
‘reset’ with the view of attracting the desirable investors into the country.
There is therefore an exigency to
discern the challenges and redirect Nigeria’s investment policies, such that
our present national revenue generation will improve beyond its present stage
for it to forge ahead and take its rightful position in the global economic
relations. Being the largest economy in Africa and one of the most vibrant in
the world, Nigeria has no option than of course make its economy less dependent
on oil and more independent on her immense human capital reservoir, which cut
across all sectors of the economy.
This constitutes the policy drive
and focus of the nouvelle Presidential Enabling Business Council (PEBEC)
chaired by Vice President, Professor Yemi Osinbajo (SAN) with the minister of
Industry, Trade and Investment, Okechukwu Enelamah serving as vice chair. Nine
other ministers: Budget and Planning, Environment, Finance, Foreign Affairs,
Interior, Attorney General of the Federation, Power, Works and Housing,
Transport, Information, Culture and Tourism, the Head of the Civil Service of
the Federation, Governor of the Central Bank of Nigeria and representatives of
the National Assembly, the private sector are all members of the council
established to expand the scope of investment opportunities in Nigeria and
review the previous investment policies to identify weaknesses and justify the
establishment of the council.
The council is coordinated by Dr
Jumoke Oduwole, the Senior Special Assistant to the President on Industry,
Trade and Investment. The vision of the council is to drive improvement in
Nigeria’s business environment and ensure Nigeria ranks 100 in the World Bank ‘Ease
of Doing Business’ by 2019.
Consequently, President Muhammadu
Buhari, while in Kenya for the Tokyo International Conference on African
Development (TICAD VI) utilized the forum to showcase the commitment of his
administration in the establishment of the PEBEC whose sole aim is total
removal of all forms of bottlenecks that stifle the inflow of FDI and potential
economic activity in Nigeria.
The partnership between the
Executive and Legislative was on display during the expanded meeting of the
PEBEC, it had the Senate President, Dr Bukola Saraki and Speaker of House of
Representative Rt. Hon Yakubu Dogara in attendance. The aim is the speedy
passage into law, bills seeking to reduce impediment experienced by local and
foreign investors.
The bills in question are - Credit
Bureau Bill to enable easy and fast access to credit for entrepreneurs, reduce
default risk and improve allocation of new credit, the second bill - National
Collateral Registry Bill would be a register of all collaterals used to
facilitate loans by creditors, the bill when passed will eliminate customers
from giving one collateral to secure multiple loans.
Former Prime Minister of Georgia,
Mr Nika Gilauri who during his tenure Georgia moved his country from 116 to 8
on World Bank’s ‘Ease of Doing Business’ attended the PEBEC meeting and said
‘Nigeria faces an urgent need to increase competitiveness to utilize its
gigantic potential, to accelerate growth by creating opportunities for private
sector through smart regulation and reduction of red tape’
The PEBEC endorsed a detailed 60
day reform plan followed by 504 comprehensive actions already being
implemented. Osinbajo had visited the Murtala Muhammed International Airport
(MMIA), Lagos, for an unscheduled on the spot assessment of Nigeria’s major
window to the world. In the course of his assessment of facilities he noted “as
part of our work on the Ease of Doing Business, on making the environment
friendly, not just for local business …… the airport obviously is one of the
major places where we need to ensure that facilities are working and that
things are being run properly”. Forty-eight hours after his visit, the Managing
Director, Federal Airports Authority of Nigeria (FAAN) instructed engineers to
begin repair works on all facilities at the MMIA with immediate effect.
The current administration has
exhibited a determined political will, to bring succour for foreign investors
and teeming army of entrepreneurs. It should be noted that, during the last
PEBEC meeting, the council looked at three broad areas to improve the business
climate in Nigeria, which are the entry and exit of goods, the entry and exit
of persons into Nigeria and general government transparency and efficiency in
agencies and parastatals of government. Another target of importance is the
single digit lending to the real sector, with the aim of increasing access to
small businesses that constitute a huge percentage of the Gross Domestic
Product (GDP).
As highlighted, fruits of this
reform are being felt already, the upgrade of the Corporate Affairs Commission
(CAC) online portal to enable investors register their business without
visiting CAC office has commenced, seven forms needed to fill at CAC for
company incorporation has been reduced to just one. An investor can now get his
Tax Identification Number (TIN) online without visiting the Federal Inland
Revenue Services (FIRS).
Additionally, work is ongoing to
reduce the number of agencies operating in the ports to only six. The Single
Window Initiative at the ports will soon be coming on stream. Nigeria
Immigration Service (NIS) Visa on Arrival and forty-eight hours visa processing
are functional, the NIS has effected a harmonized departure and arrival form
for Nigerians and non-Nigerians.
To acclimatize all this laudable
policies, the Foreign Affairs Minister Geoffrey Onyeama via the Economic
Diplomacy policy thrust, initiated a Match-Making data base Platform in the 119
Foreign Missions for international businesses to have an inter-connectivity and
hitch-free investments entrance. The missions will serve as a one stop-shop
through which investors can find suitable information, an aperture for Nigeria
to showcase her products to the world market, and enable foreign investors an
all-encompassing access to bring in FDI and export promotion for the growth of
the Nigerian economy.
Joining forces with PEBEC in the
ease of doing business in Nigeria, the ministry of Foreign Affairs is
marshalling a blueprint for Nigerian entrepreneurs who want to export their
products and furnishing foreign investors with the full information needed
about investment in Nigeria. This will also help Nigerians in the Diaspora to
search for partners in Nigeria and other countries using the data from the
various missions.
It is evident that the economic
policy of government is repositioning the Nigerian economy towards the right
direction. Nigeria’s recent Euro bond of $1 billion was oversubscribed; this
signals investors’ confidence in Government’s economic policy. With the PEBEC
completing its set targeted 60 days action plan, we can expect a good ranking
from the World Bank for the Nigerian economy to rebound unto the global map,
attracting both foreign and local investors.
Sequel to the PEBEC policy, an
international consortium made up of Fortune 500 companies; Power China, South
Korea’s GSE&C, Dubai-based AGMC are investing a whopping $20 billion to
develop the Gas Revolution Industrial Park (GRIP). This Public Private
Partnership (PPP) is projected to generate 250,000 direct and indirect jobs.
The just released ambitious
Economic Recovery Growth Plan (ERGP) by the Buhari led administration, a
strategy document projected to achieve seven percent GDP growth spanning 2017
to 2020, will tremendously make the country attractive to foreign investment
into Nigeria in the medium to long term.
Akanji, a public affairs analyst, wrote this
piece from Abuja.
Source: Daily trust
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