‘Bureaucratic reforms should blossom private sector-led growth, not shrink it’

Former Prime Minister of Georgia and special adviser to Mackinzy, Nika Gilauri, said the dwindling oil resources currently being faced by the Nigerian government were the perfect time for the public sector reforms to take place.

He said the kind of reforms to be driven by the government should prepare the ground for the private sector to thrive, advocating for critical reforms in public finance, citizens service and public institutions, as key components.

He made the assertion while making presentation at the ongoing #NESG21, acknowledging that Georgia had faced similar experience currently being faced by Nigeria in its public sector but confronted it with institutional reforms that prepared the ground for a private sector-led growth to blossom.

Citing example with Georgia’s reforms, he said, “we focused on business climate, citizens service and public finance, while allowing private sector to grow and flourish, according to our instituted reforms.

“Taking out the bureaucracy and allowing the private sector to grow and evolve in a more simplified bureaucratic process,” he said.

On creating impactful budgetary system, he said: “When we do budgeting for public institutions, we ensure public institutions have a clear-cut objective of what they intend to do with the money they are getting.”

While recalling Georgia’s experience prior to its reforms, he said: “Georgia faced similar challenge like Nigeria but embarked on reforms. Prior to now, for instance, 124-Nigeria-Georgia-136 ranking on corruption index.

“Prior to the reforms, tax revenue earnings was 7 percent and the reforms appreciated it to 23 percent, and we did this by eradicating corruption, and increasing administrative reforms in the taxation.

“In the past, for you to do any kind of business, you need licence, but now, we have addressed that and the bureaucracies have been removed for ease in doing business and encouraging the private sector.

“Simplifying business process was a major process that assisted us in curbing corruption in Georgia. We also introduced good salaries to public institutions, while cutting down the size to encourage those that are doing the work. We focused on performance based bonuses for those agencies of government that work according to its vision and direction.”