Nigeria's Economic and Investment Agenda
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Draft Report On the 17 th Nigerian Economic Summit 1 Introduction The Seventeenth Nigerian Economic Summit (NES#17) was held between November 10th and 12th, 2011 at the Transcorp Hilton Hotel, Abuja. The Summit with the theme: “ Attracting Foreign Direct Investments through Global Partnerships ” was a remarkable departure from previous summits which had focused on public private partnerships for Nigeria’s economic growth and development. It was an historic event: First, it coincided with Nigeria’s 51 st independence anniversary and the first of its kind since the inception of President Goodluck Jonathan’s Administration. It was also organized at a time of high public expectations on the need to deliberately stimulate growth that will translate to visible national development. The Summit was declared opened by President Goodluck Jonathan. It was structured to include six plenary sessions, two parallel sessions, a presidential debate and a regulators’ forum. It was attended by 1,552 delegates made up of company executives and policy level participants, including members of the diplomatic corps and foreign delegates. Public sector participants numbered 346 compared to the 293 recorded at NES#16. Discussions at the event centered on the theme and Nigeria’s economic progress, including challenges and opportunities posed by the current national and international socio-economic circumstances, and emphasized the need to sustain public private sectors’ collaborations as a way forward to achieving the National Vision 2020 (NV20:2020) through increased and sustainable global partnerships. Thus, 60 per cent of the resource persons at the Seventeenth Nigerian Economic Summit were acclaimed CEOs; foreign participation was enhanced to the highest yet (100) since the inception of the summit. 2 Recent Milestones S/N Sector Recommendation Impact 1 Economy Sustain economic growth and ° Economic growth rate was stable for ensure it creates employment (NES two consecutive years (2010 /2011) 16 & 17) at 7.8%. ° FG launched Youth Enterprise with Innovation in Nigeria ( YouWiN! ) programme in 2012 to create jobs and support young entrepreneurs to develop business ideas. Adopt a mechanism for the ° The Federal Government in August monitoring and measurement of the 2012 signed Performance Contracts nation’s progress in building a virile with Ministers, and in October 2012 economy (NES#15). adopted it as the basis for career promotions for both Federal and States Civil Service (Servants). ° Mr. President now has a special adviser on Monitoring a Tracking/Monitoring website was also developed. 2 Power, Oil & Gas Create a rallying point for citizens’ ° Power Sector Reform Roadmap buy-in to V20:2020 by delivering on launched in 2011. set targets in the next 12 months on ° Power privatization efforts have power and the deregulation of progressed with the sale of five power downstream petroleum sector (NES generation plants and 11 #16 & 17). distribution companies to private firms. ° Partial deregulation in January 2012. ° PIB is currently in the National Assembly and has passed through first reading. 3 Governance Conduct Credible elections in 2011 ° The 2011 General Election was (NES #16) adjudged the most free and fair election in Nigeria history by the 3 international community. 4 Infrastructure Infrastructure Investment Lagos-Ibadan, Lagos-Kano & Abuja-Kaduna Opportunities in Rail Privatization rail projects awarded in 2012. (NES#17) Track rehabilitation has reached 80% completion. New locomotive engines and Pressurized tank wagons (25) were purchased. Mass transit and tracker servers MTTTS had commenced in the six geopolitical zones. 5 Agriculture and Establish Agriculture Credit Scheme A N200 billion Commercial Agric Credit food Security (NES#14) Scheme was instituted in 2009 by the FG Amend the Land Use Decree In 2009, the Land Reforms Bill was (NES#13) presented by President Yar’Adua to the National Assembly to excise the Land Use Act 1978 from the 1999 Constitution Introduce Biotechnology to boost Adopted by the FG agricultural competitiveness (NES#11) 6 Governance Reform the Nigerian Electoral The Presidential Electoral Reform Institutions (NES#10) Committee was inaugurated in 2007 Enact law on Fiscal Responsibility A Fiscal Responsibility Law was passed in (NES#12) 2007 Enact a Law against Discrimination In 2009, a Prohibition Act against of Persons with Disability (NES#13) Discrimination Of Persons with Disabilities was passed in 2007. E-Government should be introduced Adopted and implemented with the to improve government services and establishment of Nigerian National e- interactions with citizens Government portal. Adopt Public Private Partnership for Adopted by the FG and the Lagos State the development of Infrastructure in Government Nigeria (NES#12) 7 Infrastructure Accelerate enactment of Electric The Electric Reform Act 2005 was enacted power reform law (NES # 11) Improve safety in the Aviation sector Adopted, led to TRACON project and the through procurement of navigational raising of domestic airlines capital base and safety equipment and a from N20 million to N500 million regulatory framework for minimum capacity for domestic airlines (NES#12) Accelerate Enactment of Pension The Pension Reform Act of 2004 was 4 Reform Law (NES#10) enacted. Reduce transaction costs in the 50% reduction in transaction cost in 2008 capital market (NES#11) Privatize the Nigerian Ports Some ports were concessioned by the FG Authority (NES#11) Privatize the Nigerian Electric Power Adopted and led to the creation of Authority (NES#11) generation, transmission and distribution companies Establish an Infrastructure FG established the Infrastructure Development Agency Concession Regulatory Commission (ICRC) in 2008 Recapitalize and consolidate the 100% increase in capital requirement for insurance sector (NES#11) the establishment of insurance companies. 5 SECTION ONE 6 Day One: Thursday November 10, 2011 Preamble The Summit opened at 10.00am with a Welcome Address by Mr. Foluso Phillips. This was followed by Dr. Shamsuddeen Usman’s presentation titled “Transformation Agenda as a Vehicle for Achieving Vision 2020” and a Documentary “Destination Nigeria: A New World of Investment Opportunities” . There was the Presidential Policy Dialogue with Global CEOs and the Formal Opening Ceremony performed by President Goodluck Ebele Jonathan, GCFR. Subsequently, there were two plenary sessions: “ Nigeria’s Place in the Global Economy” and “Attracting Foreign Direct Investment through Global Partnerships ”. The day’s activities dove-tailed into a Dinner , where participants were entertained by various comedians and artistes preceding an Address “Only in Nigeria is our Story Even Possible ”, delivered by Mr. Tony Elumelu, Chairman, Heirs Holding and Founder, Tony Elumelu Foundation. SESSION 1 7 Welcome Address - Foluso Phillips, Chairman, NESG The arrival of President Goodluck Jonathan and his entourage – including FEC members and 32 State Governors – signaled the commencement of the Seventeenth Nigerian Economic Summit (NES#17), with an Address by Mr. Foluso Phillips, Chairman, NESG. Present at the first session were heads of MDAs, public and private sector leaders, captains of industry, delegates and invited guests. The NESG Chairman welcomed Mr. President Goodluck and his team to the Summit which was the first since elected as President. According to him, this signifies his commitment to the development of the Nigerian economy. He also welcomed the international business community for defiling the security scares and the NES partners for their support over the years. He charged all present to do more for the development of the Nigerian economy so as to create jobs, enhance the quality of life, conquer poverty and redefine the future of the nation. He saluted the patriotism of the Nigerian community for shaking-off the national holiday mood to be counted, in the course of attracting Foreign Direct Investments (FDIs) into Nigeria. Whilst noting the uniqueness of the Summit, Mr. Phillips expressed optimism that the Nigerian economy was set to witness more investments since it offers investors not just good ready market, but handsome returns on investments as well. He therefore urged the Government to ensure good business environment that will translate into employment opportunities for the nation’s large youth population since it was set to be discovered by international investors, premised on the (positive) growth outlook of the economy, consistent growth in GDP and increasing domestic market size. Nigeria has become a green field for foreign investments. Still on the positive outlook, he noted that Nigeria’s development strength no longer lies in its market; despite the age-long deficiencies in power, roads, rails, aviation, agriculture, mining health, education, etc, the economy has 8 (surprisingly) remained resilient. He therefore solicit Government’s adoption of the PPP model for developments, needed to resuscitate and manage some of the government-owned establishments, hence, the need to globalize investments and guarantee returns. These explained the rationale behind the choice of the theme for the NES#17: “ Attracting Foreign Direct Investment through Global Partnerships”. It took cognizance of Nigeria’s peers; with a population of more than 167 million, an energetic workforce, a GDP growth rate of 7.85 per cent (2010), a positive economic output rating, Nigeria was ready for investments. Reminiscing on the achievements of the Nigerian Economic Summit (NES)