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Memorandum for the Establishment of South East Nigeria Economic Commission (SENEC) Introduction

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Memorandum for the Establishment of South East Nigeria Economic Commission (SENEC) Introduction Introduction Memorandum for the Establishment of South East Nigeria Economic Commission (SENEC) Introduction PREFACE The African Institute for Applied Economics (AIAE) was incorporated in Nigeria in 2000 as a Company Limited by Guarantee. It is not-for-profit, non-partisan, independent and international economic research organization. It envisions a renascent Africa that is democratic, prosperous and a major player in the global economy. The mission of the Institute is to provide intellectual leadership in helping Nigeria and Africa think through the emerging economic renaissance. Our strategy is research, networking and capacity building to promote evidence-based decision-making in public and private sectors. The South-East Nigeria Economic Commission initiative grew from successive policy dialogue facilitated by AIAE under the Enugu Forum, a platform of private sector and civil society groups and individuals devoted to evidence-based debates for sound public policies. By rallying stakeholders for the creation of a sub-national economic development agency for the South-East geopolitical zone in Nigeria, AIAE is fulfilling its niche objective of fostering the use of research knowledge. This objective lies at the heart of the AIAE mission statement. In seizing the opportunity to facilitate creation of the South-East Nigeria Economic Commission, AIAE demonstrates a high level of corporate social responsibility. Cognizant of the enormity of the task, AIAE is deploying the critical mass of its intellectual and Introduction PREFACE The African Institute for Applied Economics (AIAE) was incorporated in Nigeria in 2000 as a Company Limited by Guarantee. It is not-for-profit, non-partisan, independent and international economic research organization. It envisions a renascent Africa that is democratic, prosperous and a major player in the global economy. The mission of the Institute is to provide intellectual leadership in helping Nigeria and Africa think through the emerging economic renaissance. Our strategy is research, networking and capacity building to promote evidence-based decision-making in public and private sectors. The South-East Nigeria Economic Commission initiative grew from successive policy dialogue facilitated by AIAE under the Enugu Forum, a platform of private sector and civil society groups and individuals devoted to evidence-based debates for sound public policies. By rallying stakeholders for the creation of a sub-national economic development agency for the South-East geopolitical zone in Nigeria, AIAE is fulfilling its niche objective of fostering the use of research knowledge. This objective lies at the heart of the AIAE mission statement. In seizing the opportunity to facilitate creation of the South-East Nigeria Economic Commission, AIAE demonstrates a high level of corporate social responsibility. Cognizant of the enormity of the task, AIAE is deploying the critical mass of its intellectual and ACKNOWLEDGEMENTS We would like to thank all persons who contributed ideas and displayed selfless service during the preparation of this document. We specially thank Engr. (Sir) Chris Okoye, Chairman of the Interim Steering Committee, for his outstanding efforts and tenacious devotion. We gratefully acknowledge the vigorous role of Prof. Ukwu I. Ukwu, Coordinator of the Study Subcommittee. Also, critical inputs were provided by other members of the Study subcommittee, including Dr. Ifediora Amobi, Dr. Chinedu Nwoko, Prof. Okey Ibeanu, Mr. Martin Iloh, Mr. Oliver Ujah and Mr. Amaechi Chukwu. We appreciate the secretarial and logistics support provided by Mr. Chiwuike Uba, Mrs. Beatrice Ndibe, Ms. Kobi Ikpo, Mr. Ovo Adagha and Mr. Valentine Alakwe. We thank all individuals and organizations who presented memoranda in response to the call. Our appreciation also goes to all stakeholders who obliged us interviews and encouraging comments in the course of preparing this document. SYNOPSIS Background to South-East Nigeria Economic Commission Initiative The concept of South-East Nigeria Economic Commission emanated from a Stakeholders Forum on Industrial Clusters in South-Eastern Nigeria, organized by the African Institute for Applied Economics (AIAE), on 26th September 2006 in Enugu. The state of industrial clusters was situated against the economic and development performance of the south-east geopolitical zone, in relation to other zones of the country. The Forum observed that the poor state of industrial development in the south-east zone reflects the underlying lack of coordinated economic, institutional and infrastructural development. It recommended that though industrial clusters pose major policy challenges across the zone, they cannot be treated in isolation of the overall economic context of the south-east zone The Policy Forum concluded that holistic and systematic approach is required to harness the full economic potentials of the south-east states, instead of piecemeal disparate measures by individual States. It was reasoned that there is compelling need to explore sustainable institutional mechanisms to generate and deliver common services in order to reap economies of scale for the accelerated development of the entire zone. Among the critical economic areas that are amenable to collective approach are the development of Economic and Development Indicators of South-East zone Economic and development indicators of the south-east zone are mixed when compared to other geopolitical zones in Nigeria. While the south-east zone compares well in national income poverty metrics and general literacy, it performs relatively poor in physical infrastructure (roads, water and electricity), regulatory efficiency and overall business environment. As a result, the zone lags behind in critical economic investments and organized industrial development. The Proposed South-East Nigeria Economic Commission Rationale Currently, the South-East zone lacks a robust institutional framework to drive the development of shared infrastructure, common services and coordinated economic development. The Commission is modeled as a joint independent agency of the five co- operating south-east states, the private sector and the entire people of the zone. Legal Status It shall be established by laws enacted by individual legislatures of the south-east states and incorporated under the relevant provisions of the Companies and Allied Matters Act. It will be a public-private-community partnership organization, to which state governments, private sector and civil society have mutually reinforcing stakes. The Commission shall be a body corporate with perpetual succession and a common seal and may be sued in its Expected Milestone Achievements The milestone achievements of the Commission will be: creation of world-class investments in the south-east zone; development of large physical infrastructural schemes; implementation of programmes for sustainable institutions; creation of centres for human capacity development; and development of coordinated framework for the formulation and implementation of public policies and plans. Specifically, the Commission shall carry out the following objectives/tasks: determine shared zonal development policy goals and strategies; articulate and advance zonal interests within the national framework; facilitate inter-governmental cooperation, policy coordination/synergy and joint programming; advocate for, facilitate and implement strategic zonal investments; and coordinate infrastructural development within the zone. Imperative of the South-East Nigeria Development Fund One of the main tools to catalyze the implementation of the SENEC initiative is the South- East Nigeria Development Fund (SENDEF). The SENDEF will mobilize and deploy investment and development funds from government, private sector stakeholders and other partners, based on pre-determined financing arrangements. Even though the SENDEF would eventually become an investment facility, it should be established as the critical first step towards realizing SENEC. When started, the Fund shall become the legitimate basis for mobilizing seed money for the full establishment of SENEC. CONTENTS PREFACE. ................................................................................................................................. 1 ACKNOWLEDGEMENTS ....................................................................................................... 2 SYNOPSIS ................................................................................................................................. 3 SECTION ONE ....................................................................................................................... 10 INTRODUCTION ................................................................................................................... 10 1.1 Study Sub-Committee ..................................................................................................... 11 1.2 Sensitization and Publicity Sub-Committee ................................................................... 11 1.3 Consultation Sub-Committee .......................................................................................... 12 1.4 Legal and Institutional Framework Sub-committee ....................................................... 12 SECTION TWO....................................................................................................................... 13 4.4 Regional Development Victoria (RDV) (South Africa) ...............................................
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