In a bid to further strengthen the implementation of business-enabling reforms across the county, a 3-year performance-based intervention programme on State Action of Business Enabling Reforms (SABER) has been designed by the World Bank, Presidential Enabling Business Environment Council (PEBEC) and the Nigeria Governors Forum (NGF).
The programme which is commencing from 2023-2025 is designed in such a way that will provide incentives through the first programme for results to subnational for the deepening of Ease of Doing Business Reforms and to eliminate constraints in the business environment for micro, small and medium-sized enterprises in Nigeria.
The essence of the program is to incentivise and strengthen the implementation of business-enabling reforms in Nigeria, specifically across the participating states and the FCT.
This programme is similar to the State Fiscal Transparency, Accountability and Sustainability project, which was initiated in 2018. The programme aims to improve the efficiency of land administration, the regulatory framework for private investment in fiber optic infrastructure, services provided by investment promotion agencies and public-private partnership units. It is also targeted at achieving efficiency and transparency of government-to-business services in participating states.
The SABER programme seeks to provide additional incentives, such as using results-based financing targeted at improving the business environment and facilitating crowding-in of private sector investments at scale.
The eligibility criteria for the programme include developing an annual action plan with private sector collaborators to be approved by the State Executive Council (SEC) and published online.
The programme, however proposed US$750 million lending operation, comprising of US$730 million for performance-based financing component for states, to be implemented as a programme for results and a $20 million technical assistant investment project, which basically to support the implementation and capacity building of states actors.
Since inception, PEBEC was seen driven reforms to bridge existing gaps of enterprises, as approved by the National Economic Council in July 20217, meant to replicate PEBEC structure at the subnational level, implemented through the PEBEC-NEC technical working group.
The mandate of ease of doing business was first articulated in the economic recovery and growth plan of 2017-2020 and subsequently retained in the National Development Plan of 2021-2025, which is aimed at generating 21 million full time jobs and lifting 35 million people out of poverty by 2025.
The national development plan, 2021-2025 is the medium term blueprint designed to unlock the country’s potentials in all sectors of the economy for sustainable, holistic and inclusive national development, which include a business environment, trade and competitiveness pillar, with key implementing MDA’s being PEBEC and NIPC at the federal level and their equivalent institutions at the subnational level.
Presenting the programme implementation document at a one-day high level engagement meeting in Lafia, the Nasarawa State capital, the Project Manager of the PEBEC Secretariat, Ayokundu Ojeniyi, said, the programme will focus on a subset of the most critical state level business enabling reforms of the National development plan.
The meeting which was organized by the Nasarawa Investment and Development Agency (NASIDA), with support from the PEBEC, brought together Chief Executives, Technical Officers of Business related MDAs’ and members of the State House of Assembly committee on capital market, commerce and industry in Lafia.
Some of the business related MDA’s in attendance included, the State Urban Development Board (NUDB), the State Geographic Information Service (NAGIS), Vehicle Inspection Officers (VIO), Electricity Power Agency (NAEPA), representatives from the State Inland Revenue Service (NSIRS), the State Ministries of Finance, Budget and Planning; Commerce, Trade and Investment; Information Culture and Tourism are among others at the high level engagement meeting.
Also in attendance were the Chairman State House of Assembly committee on capital markets, industry and investment, and the Commissioners of Agriculture and Water Resources; Lands and Urban development; and Justice.
The meeting was to acquaint MDA’s with their roles in ensuring that the disbursement linked indicators (DLI’s) of the SABER program is up to date and the State meets the deadline ahead of its kick off next year.
This was in line with its goal of instituting reforms to ease the business environment of the State, as creating an enabling business environment is a key priority for the state, which is aimed at improving the business climate to attract new investments and incite the expansion of existing ones.
According to the PEBEC Project Manager, “SABER will build on the success of PEBEC’s programme to accelerate targeted business enabling environment reform actions at the subnational level.”
He further said, “the PEBEC-NEC ease of doing business intervention would deepen subnational business enabling reforms through SABER programme incentives, using results based financing targeted at improving the business environment.
“The delivery of wholesale technical assistance to all states and the FCT to support gaps in reforms implementation will provide opportunities for structural development and institutionalization of reforms across the country leveraging on the PEBEC-NEC implementation structure”.
Ojeniyi said the programme will ride on the back of SFTAS to create a mutual accountability platform between the federal and the state governments, whereas the SABER will further consolidate and deepen gains from the business reforms implemented across the country.
He added that, the enabling business environment, which is in line with the national development plan, will also facilitate crowding in private investment at scale that is needed to achieve Nigeria’s development priorities.
He called for more collaboration among the various MDAs for the state to meet targets for disbursement, as this is one area to deliver the dividend of democracy to the people.
The Project Manager then commended Nasarawa state for effective participation and coordination obtainable, saying, “for the programme result, the state has started well and all that is needed is to accelerate towards finishing line”.
“As far as this programme implementation is concerned, Nasarawa State is one of the leading states in the country”, he added.
The Managing Director, Nasarawa Investment and Development Agency (NASIDA), Ibrahim Abdullahi, said the government will continue to ensure that the input and participation of all stakeholders, the formal and informal private sector, and the civil society are reflected in the reform processes.
He said the business reform interventions were designed to enhance stakeholders’ capacity for ongoing and future reforms.
“The most significant role of Government at all levels is to create an enabling business environment with the required incentives. Creating an enabling environment for businesses to thrive is a key priority to the present administration, ably led by His Excellency Engr. Abdullahi A. Sule.
“To this end, we have initiated far-reaching reforms to ensure an improved business climate to attract new investments and encourage existing businesses to expand.
“A healthy business environment is essential for economic growth, wealth and employment generation, as well as poverty reduction. Business reforms are required where inappropriate regulation, excessive and uncoordinated taxation, lack of fair competition, and unstable policy environment impede investment and the development of markets, stifle entrepreneurship, and compel businesses to operate in the informal economy”.
The NASIDA Boss said, agency was established by Governor Abdullahi Sule to interface and provide handholding services to investors seeking to do business or expand in the state, with the mandate to ensure that new and old businesses strive seamlessly.
“To achieve our mandate, we have taken a number of measures such as digitization of business-related MDAs and reforms in the procedure, time and requirements for business registration, construction permits and land title to ensure that services are obtained in the most friendly and seamless manner.
“NASIDA shall continue to ensure that the inputs and participation of all stakeholders, including officials, the formal and informal private sector, and civil society, are reflected in the reform processes. Reform interventions shall be designed to enhance stakeholder capacity for ongoing and future reforms.
According to Abdullahi, “Nasarawa Means Business is the motto that sets the tune for action for robust efforts in the ease of doing business in the pursuit and achievement of clear targets with impactful outcomes that are capable of boosting investors’ confidence in the State, and as well, generate job opportunities for our teeming youths.
The state investment MD further, “the disbursement to participating states will be in line with certain disbursement-linked indicators, which means the states are meant to achieve certain criteria to be qualified for each disbursement under this programme.
“We should also note that the state process is a very important one, and I hope that, we will be able to spend individually, a fair amount of time trying to work out how this will work in actual practice in our various MDA.
He therefore, encouraged all the MDAs in the state to take full advantage of this program, as state governments and their agencies have a significant role to play in ensuring an enabling environment for businesses to thrive.
Abdulkarim Abubakar Kana, state Attorney General and Commissioner for Justice, pledged to work towards the realization of the SABER program in the state.
He recalled when the Nasarawa Enabling Business Council was inaugurated by the vice President, Yemi Osinbajo in 2020, said the idea was to ensure that ease of doing business in the country is entrench into government activities so the government will be more business friendly in delivery of its responsibility and functions.
The Attorney-General maintained further that, government agencies, whose responsibility is to enhance business activities in the state are identified to attract investors to the state, adding that the enabling business council was supported by the world bank with additional targets and timeline to deliver on its mandate.
He expressed happiness that the meeting offered them the opportunity to assess the level of participation, action plan put in place and to prepare for 2023.
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