• Saturday, May 04, 2024
businessday logo

BusinessDay

Moving ahead with critical collaboration on sports industry reform

Sports-industry

For sports in Nigeria, 2019 ended on a promising note with the collaboration of the Nigeria Economic Summit Group and the Federal Ministry of Sports on a reform of the sports industry. The effort entered high gear during the Nigerian Economic Summit in October 2019 and continued unto December with workshops and sessions featuring the two parties in talks with the many stakeholders of the sports sector. It sounds exciting at first glance, but the litmus test would be in the implementation of the agreed workplan and timeline in 2020.

The Sports Industry, Reform, Repositioning and Development Agenda is a ten-year plan (2020-2030) that seeks to “position sports as a viable contributor to the Nigerian economy through job creation, new revenue streams and social development.” Its ambitious objectives include contributing to the economic agenda of the Federal Government under the ERGP as well as to the goals of the UN Sustainability Agenda.  It also wants to tie-in to the goals of the African Union Agenda 2063.

The Sports Industry Agenda 2020-2030 promises to deliver significant economic outcomes. These include ten million jobs composed equally of direct and indirect, annual revenues of N2 Trillion and contribution of three percent to GDP. Underlying the agenda is the concept of Public and Private Sector Partnership.

The concept revolves around incentives, investment, infrastructure and policy.  The Federal Ministry of Youth and Sports Development will represent the public sector while the Nigerian Economic Summit Group will lead the private sector. Within the public sector, the Youth and Sports Ministry will collaborate with and lead other MDAs of Finance, Education, Budget and National Planning, Industry, Trade and Investment, Women Affairs as well as Information and Culture.

The public sector would develop an industry-specific policy framework and supporting initiatives to drive investment into the sports industry while the private sector would then implement the strategies. According to the 2020 work plan, both parties should establish a Sports Industry Working Group to run operations and coordinate the activities of the players. The Sports Industry Working Group is one of five outcomes expected in 2020.

Others are agreeing MOUs on inter-ministerial collaboration on sports development in February; outlining the incentives package for reform and development of the National Sports Industry in April as well as a business and investment summit and road shows for the national sports industry between July and September. The private sector led investment and infrastructure development platform would kick in August 2020.

The plans speak to a recognition of the significant role and contributions of sports now run in most countries as a serious business. Alongside results of games are discussions of the economics of sports. Sports is a significant contributor to economics, urban planning, education, citizens welfare and youth development. It is salutary that Nigeria is working out plans for developing the sector.

The collaborative nature of the planned development is a critical enabler. Public-private sector partnership is an imperative. At commencement in 1945, the then Nigerian Football Association was an association of independent clubs. They ran the game. In the years of state control, this hitherto private sector organ became a government agency. Today, the Football Federation has independence de jure but is de facto still an agency of government.

Nigerian sports currently run on state subsidy whereas across the world governments count sports as one of the areas to generate taxes and other income to the state. There are many knots to unravel on this long journey of redefining Nigerian sports.  Commence early as 2020 beckons.