Monday, October 22, 2018 05.58AM / NESG /
The Nigerian Economic Summit Group (NESG) kick started its its 24th Economic Summit with a pre-summit event in Abuja yesterday – The Start-ups Pitching Event aimed at connecting new ventures seeking to raise funds with potential investors. Ten selected early-stage start-ups that are registered in Nigeria and have been doing business for no more than 5 years were invited to pitch in front of a jury as well as venture capitalists and investors.
The main summit kicks off this morning with a focus on good governance in a bid to address binding constraints to the process of decision-making and the process by which decisions are implemented. This is to be done through its summit themed: “Poverty to Prosperity: Making Governance and Institutions Work”.
Since inception, the Nigerian Economic Summit has been a major catalyst for conversations on rebuilding the Nigerian economy to improve the living conditions of all Nigerians through insightful yearly summits. NESG has tasked itself with the reformation and promotion of the Nigerian economy through research and advocacy.
The economic summits of the past years have successfully done well in instituting change through influence that mobilizes action. Last year, the summit focused on ’Opportunities, Productivity and Employment’, which elicited and adopted solutions-based approach in addressing issues that create opportunities, tackle unemployment and improve productivity. The assessment of impact and execution issues form the work done by policy commissions created along the lines of the sustainable development goals; and this was considered in developing the agenda below.
9:00am – 9:15am Welcome Remarks
Mr. Asue Ighodalo; Chairman, Nigerian Economic Summit Group
9:15am – 9:30am Opening Remarks
Senator Udoma Udo Udoma, CON; Hon. Minister for Budget & National Planning
9:30am – 10:30am Keynote Address
Prof. Peter Lewis; Director, Africa & Middle East Programme; John Hopkins University, USA and Author, Growing Apart: Politics and Economic Change in Indonesia and Nigeria
10:30am – 11:00am Summit Opening Address
His Excellency Muhammadu Buhari, GCFR; President of the Federal Republic of Nigeria
PLENARY I: CORRUPTION & RULE OF LAW
Time: 11:00am – 12:30pm
Venue: Congress Hall
Corruption undermines the rule of law and erodes the effectiveness of public and private institutions and President Muhammadu Buhari has defined it as the greatest form of human rights violation. Corruption has also put Nigeria in a poverty trap. Despite initiatives of the past and present administrations, Nigeria still has a long way to go in addressing the key elements of corruption and the rule of law. The country currently ranks 148 out of 180 on Transparency International’s 2017 Corruption Perception Index and at the UN Declaration of the High-Level Meeting on the Rule of Law, Member States recognized its negative impact such as the obstruction of economic growth and development as well as the erosion of public confidence, legitimacy and transparency thereby hindering the making, administration, enforcement and adjudication of fair and effective laws. Businesses thrive where laws are well defined and clearly applied. Nigeria must create a system that prevents the diversion of public funds, enforce public sector accountability, improve on access to justice, ensure expeditious conclusion of litigations and undertake comprehensive reform of police services. What are the effective methods of overcoming the challenges as done by other countries with high governance rating and how can we localize these methods to Nigeria?
This Opening Plenary will be a Presidential Dialogue with the President of the Federal Republic of Nigeria, His Excellency Muhammadu Buhari, GCFR.
Moderator: Prof. Ngaire Woods (Founding Dean of the Blavatnik School of Government and Professor of Global Economic Governance, University of Oxford).
SPECIAL MEETING - NGF/NESG Economic Roundtable
“Unlocking the Potential for Sub-National Economic Cooperation”
Time: 1:00pm – 2:00pm
Venue: Zuma Grill
Economic cooperation between states generates an equilibrium for cross-country growth trajectories and competitiveness by exploiting the economies of scale created by clusters and corridors. In the wake of dwindling federal revenues and current national challenges, states with specific endowments and comparative advantages can develop an economic cooperation framework. It is within this environment that states can scale up investments and create jobs, thereby reducing over-dependency on monthly federal allocations.
The recent partnership between Lagos State and Kebbi State in rice production (LAKE Rice) and Lagos-Oyo Agricultural Initiative is a good example of partnership amongst states to offer their areas of strength to complement each other. Lagos’ huge population provides a huge market for rice production and the purchasing power to stimulate rice production in the country. Other benefits of the Lagos-Kebbi rice partnership are its capacity to renew investors’ interest in agro-based industries and boost for agriculture related cooperative societies. Recent pronouncements to complete the railway infrastructure connecting various trade corridors are encouraging because they will open jobs and opportunities for the informal sector. As an example, the LAKAJI Economic Corridor (a 1,225km corridor that runs from Lagos via Kano to Jibiya) is expected to create jobs and opportunities as well as improve delivery of goods and services within and across the 10 states from Lagos State to Katsina State. It will drive economic activities in agriculture, trade, transport, logistics, storage, etc. The backbone of the Corridor is an integrated transport network of ports [Apapa and Tin Can Island]; inland container depots [Ibadan and Kano]; roads [Lagos ports to the Lagos Metropolitan Area (25 km), Lagos Metropolitan Area to Ibadan (115 km), Ibadan to Ilorin (155 km), Ilorin to Kaduna (485 km), Kaduna to Kano (230 km) and Kano to Jibiya (215 km)] and rail [Lagos-Abeokuta-Ibadan-Osogbo-Ilorin-Minna-Kaduna-Kano Narrow Gauge Line]. A 2015 Study projected that investments in the LAKAJI Economic Corridor can create 67 million direct and indirect jobs. This is another example of economic development that can be unlocked through the creation of an economic corridor connecting states.
What is the private sector outlook for sub-national economic cooperation? How can states diagnose their economic strengths and challenges to identify realistic ways to shape their future through economic cooperation? What are the imperatives for developing economic and policy coordination and collaboration at the sub-national level with matching strategic agenda to build on it? What is the commitment on private sector investments?
This Working Lunch Meeting organized with the Nigerian Governors Forum will be held under the auspices of the NGF-NESG Economic Roundtable. It will be strictly on invitation.
His Excellency Abdulazeez Yari; Executive Governor, Zamfara State and Chairman, Nigeran Governors Forum
Dr Doyin Salami; Board Member, Nigerian Economic Summit Group
Facilitated by Dr. Tayo Aduloju; NESG Senior Fellow; Public Policy & Institutional Development
Mr. Asue Ighodalo; Chairman, Nigerian Economic Summit Group
A Workshop approach will be adopted at each Breakout Session with 2 Group Discussions facilitated by NESG Policy Commissions.
Accelerating Infrastructure Investments
Time: 2:00pm – 4:00pm
Venue: Osun Room
The value of Nigeria’s total infrastructure stock represents only 35% of GDP, which is far below the level of peer emerging market countries where the average is 70%. Nigeria’s gap has been widening in recent years owing partly to lack of capital expenditure in the national budget. Even as government makes promises and commitments towards tackling the infrastructure deficit, the government often does not and indeed cannot source the funds to follow through. The costs of developing physical infrastructure are enormous.
Even the privatised power is presently mired in a liquidity crisis and is unable to attract new investments. The challenge is to turn infrastructure into a domestic political priority as well as a valuable business opportunity. This requires removing obstacles to maximizing the value of infrastructure investments, exploring alternative financing options and putting in place innovative models and partnerships that will accelerate investments in infrastructure. Long-term investors such as pension funds, insurance companies and sovereign wealth funds have expressed a desire to allocate capital in infrastructure but are unable to find bankable projects. Political leaders and private investors will have to take practical steps to accelerate investments in Nigeria’s infrastructure sector for the public good.
The Infrastructure and Energy Policy Commissions will facilitate 2 Group Discussions during this Breakout Session.
Group Discussion I –Alternative Financing Options for Nigeria’s Infrastructure
Across the globe, the landscape of infrastructure financing is changing. Governments are under severe economic pressure and are finding it difficult to fund. infrastructure projects. A number of these countries have turned to Public-Private Partnerships to provide new and well-maintained roads, bridges, airports, railways, ports, waterways as well as in efficient water and sanitation infrastructure. However, the success of PPPs depends largely on putting place a clear PPP delivery framework. In the past few years, governments have explored alternative sources such as long-term bonds to finance infrastructure projects. Only recently, the Federal Government of Nigeria issued a N100 billion Sukuk Bond to fund the construction and rehabilitation of key economic infrastructure projects. Also, there is a growing indication that given the right conditions institutional investors are now considering infrastructure investment because the nature of certain infrastructure projects appears to complement the long-term liability needs of insurance companies and pension funds. On its part, the Nigeria Sovereign Investment Authority (in collaboration with GuarantCo) established InfraCredit to provide guarantees to enhance the credit quality of local currency debt instruments issued to finance eligible infrastructure related assets in Nigeria. With dwindling resources from the state coffers, what are the alternative finance options to fund Nigeria’s infrastructure development?
Group Discussion II – Restoring the Financial Viability of the Nigerian Electricity Supply Industry
Despite the success of the power sector privatization programme raising expectations that private sector participation would lead to rapid improvements, not much has been achieved. The issues and challenges still plaguing the power sector are largely reflected in the liquidity crises in the Nigerian Electricity Supply Industry. The main causes of the liquidity crisis include: the inability of the distribution companies to finance infrastructure to expand sales, reduce collection losses, improve services and meter customers; lack of cost reflective tariffs contributing to significant cash deficits accumulating across the sector value chain; a failure to fully implement the Transitional Subsidy Programme; the decision to transfer the CBN-backed Nigeria Electricity Market Stabilisation Facility (NEMSF) to the balance sheets of the distribution companies which has made it difficult if not impossible for banks to advance them additional funds; volatility of key macroeconomic indicators; and an unstable regulatory environment. Even though, the Federal Government of Nigeria approved a Power Sector Recovery Programme (PSRP) in March 2017 aimed at, among other objectives, restoring the financial viability of Nigeria’s power sector. Presently, the electricity market remains illiquid, running out of money and is failing to attract new investments. How can we reverse this situation and restore financial viability to the Nigerian Electricity Supply Industry?
23 Million Nigerian Youth: Turning Risk to Opportunity
Time: 2:00pm – 4:00pm
Venue: Congress Hall
Nigeria’s population is estimated by the National Population Commission to be 198 million and about half of that population comprises young people between the ages of 15 – 35. The National Bureau of Statistics reported in December 2017 that 22.64 million of our young people are either unemployed or underemployed and may not possess the relevant skills for global competitiveness. Business-driven education and skills development initiatives that are anchored on technology and innovation can transform the potential of our youth to become an engine of economic growth and development. Given the scale of the challenge, and the inherent weakness in the education and skills sector, it is apparent that we must look beyond traditional approaches, to find solutions to the problem. Technology, with its ability to reach millions of users and offer self-paced skills development as well as remote jobs and businesses online, provides a way out. As such e- learning may offer a cost-effective way of providing these skills in addition to upgrading the traditional methods. Two key issues pertinent to leveraging on-line learning and skills development are content and access.
The Human Capital Development and Science & Technology Policy Commissions will facilitate 2 Group Discussions during this Breakout Session.
Group Discussion I – E-Learning Content & Credentialing
E-Learning is arguably the best method with which to reach large numbers of learners without the constraints which space often imposes on physical training programmes. Secondly, traditional curricula and teaching methodologies do not result in the kind of skills demanded of today’s work force (such as critical and analytical thinking, problem solving), whereas advances and innovations in the use of technology for learning has been shown to deliver expected results, particularly because the process of training via technology is dynamic, as opposed to the static nature of traditional methodology. Thirdly, the quality of trainers is low, which further compounds the challenge of delivering skills. Technology enabled learning can be self-directed, at least to enable learners gain basic proficiency. Courses need to be created or converted to ensure that the content is relevant. What are the guidelines, standards, credentialing and monitoring that needs to be considered to avoid proliferation by substandard and amoral entities?
Group Discussion II – Meeting the Demands for a Quality and Affordable Broadband Infrastructure
There has been an upsurge in the uptake of internet enabled mobile devices in Nigeria. The country currently has an estimated 103 million internet users, a significant percentage of this being the youth who use this primarily to facilitate their social interactions. There is a need to convert their use of the internet and technology devices to more productive uses that will aid learning, research, innovation, entrepreneurship etc. This would help develop the Science & Technology sector of the country which ultimately translate to higher numbers of gainfully employed youth and ultimately a reduction in social ills. Current internet penetration levels can be leveraged to aid learning and development. As the number of technology services users increase, the demand for data services for businesses, video streaming, social and academic use will all continue to increase significantly. To meet the demand, access, affordability and quality of service are key factors that need to be considered. Broadband penetration is currently at 22% which is below its target of 30% by the end of 2018 (National Broadband Plan). What are bottlenecks and gaps in the system that have slowed the pace of broadband penetration and affordability?
Exploiting the Potentials of Regional and Global Markets
Time: 2:00pm – 4:00pm
Venue: Niger/Enugu Room
Despite huge arable land as well as agricultural and mineral resources, Nigeria is yet to capitalize on the competitive advantage in agriculture and solid minerals by upscaling production and processing capacity to feed a population of 180 million Nigerians and produce processed metals, for export to regional and global markets. It has become imperative to integrate our agriculture and solid minerals potentials with a production capacity that drives economic competitiveness. So far, the reform of the Nigerian economy that seeks to shift productive resources from agriculture and mining to manufacturing – which has helped many countries achieve greater prosperity – has eluded the country. Nigeria needs is a rebirth of its manufacturing that will be driven by more local value-addition of agriculture and mining resources. This will not only insulate Nigeria from the volatility and shocks from commodities prices but greatly improve the country’s potential to exploit regional and global markets with semi-finished and finished products.
The Manufacturing & Mining and Agriculture & Food Security Policy Commissions will facilitate 2 Group Discussions during this Breakout Session.
Group Discussion I: Mining Our Business
To achieve an effective growth of the mining sector it is important to de-risk the sector in such a way as to allow mining projects to be financed by investors. Clearly, the tough commercial environment translates directly into increased vulnerability to risk challenges thereby heightening the importance of sound risk strategies for bankability of investments in the sector. Despite our huge mineral resources, Nigeria is missing out in the global $2 trillion mining market takes advantage of the value chain – from mining to processing. It is time to use to lay the foundation for the country’s economic diversification by creating the right linkages with the manufacturing sector, which generates the strongest multipliers across the economy. Nigeria has a comparative advantage in developing and expanding mineral linkages: the large market offered by the local and regional mineral industries demand for inputs such as plant, equipment, machinery, consumables and services – economies of scale; feedstock advantage and security of supply for downstream mineral processing and beneficiation industries, such as refining, alloying, fabrication; and opportunities to develop the supplier industries for the extensive resource infrastructure requirements in transport, power and water (construction materials, rail and capital equipment). How can we improve the value chain in the mining business?
Group Discussion II – Local Production, Regional Trade and Global Markets
Millions of smallholder households/farmers and indigenous communities in Nigeria are working to improve their livelihoods in an environment characterized by dwindling government support and increased competition between producers, processing companies and Fast-Moving Consumer Goods Companies (FCMGs) within agricultural markets. Nigeria has huge arable land and recent government initiatives are aimed at boosting agricultural land and farm output. Fortunately for the country it benefits from highly diversified climatic and soil conditions. Despite this, the sector still suffers low yields due to the lack of knowledge about agricultural best practices and limited access to inputs (e.g. seeds, crop protection, fertilizers, irrigation). However, there is a need to shift away from a focus on primary production towards achieving efficiency along the value chain. Nigeria’s primary products are mainly sold in the fresh domestic market. The processing industry represents only a small fraction of the agribusiness value chain. In addition, better post-harvest transport and storage of crops is an important piece of the puzzle: a major proportion of losses in agricultural products occur during storage and transit. Improved back-end supply chain processes and better cold-chain facilities could reduce food loss and save up billions of naira annually, apart from securing billions of dollars in additional export revenue. In the value chain structure, several issues of vulnerabilities associated with bankability of investments in the sector, backward and forward linkages, environmental factors as well as supply chain peculiarities need to be considered and addressed. How can we create an integrated framework for ensuring that farmers can access new markets and develop business in a coherent and sustainable manner?
$196 Billion Investments By 2020
Time: 2:00pm – 4:00pm
Venue: Benue/Plateau Room
The Federal Government requires $245 billion to fund the Economic Recovery and Growth Plan out of which about $196 billion private sector investments are needed. Economic growth, improvements in macroeconomic stability, increase in external reserves and a better business environment should make Nigeria an attractive investment destination. Investments remain a key driver of economic growth. With the size of the Nigerian economy growing in recent years, traditional patterns and trends in investing have evolved. The challenge is to ensure that the right investment strategy is in place and that regulatory framework keep up to reflect the diversification in the economy: the growing shifts towards a digital economy, the rise of the services sector and the spread of evolution of agriculture and manufacturing in response to a growing population and global market. We therefore need to remove barriers to investments and create a strong financial system to deploy a robust strategy that will attract $196 billion of private sector investments by 2020.
The Trade, Investments and Competitiveness and Finance, Financial Markets and Financial Inclusion Policy Commissions will facilitate 2 Group Discussions during this Breakout Session.
Group Discussion I – Investing in Nigeria: From Opportunities to Realities
The Presidential Enabling Business Environment Council (PEBEC) is working hard to improve the Nigerian business environment. In addition, the efforts of the Nigerian Investment Promotion Council (NIPC) are encouraging. Yet, much more is required to realize a value-added national investment drive of $196 billion as required by the ERGP. There is an urgent need for an intense focus on the actual tangibles that will turn investment opportunities to realities. Further, a wholistic thinking around investment climate policy advocacy, country FDI promotion strategy, image building/sector branding, investment targeting, facilitation (during investment decision-making process through provision of business information, and during investment set-up process through timely licensing and non-bureaucratic approvals), investor aftercare & reinvestment incentivizing, etc. needs to be mainstreamed into an integrative investment strategy that builds investors’ confidence in the economy and serves as a good will for attracting substantial amount of long-term investments (both domestic and foreign). In April, the South African President, Cyril Ramaphosa launched an aggressive investment drive to hunt down $100 billion investment for the country’s economy. This is clearly an audacious move with far-reaching implications on the quality and quantity of foreign direct investments we can attract into Nigeria. What steps must be taken to scale up investments in Nigeria and turn investment opportunities to realities?
Group Discussion II – Enhancing the Absorptive Capacity of Nigeria’s Financial System
A country’s capacity to absorb capital flows is greatly influenced by the depth and efficiency of the its financial system. The level of financial development will also determine the extent to which the country can benefit from capital flows in terms of spill-overs from targeted sectors to the rest of the economy as well as the overall growth effects. Capital flows between investors, governments (federal and state), businesses and consumers will depend on an efficient and inclusive financial structure. In 2007, Nigeria launched a Financial System Strategy 2020 to among others, develop and transform Nigeria’s financial sector into a growth catalyst and engineer Nigeria’s evolution into an international financial centre; strengthen and deepen the domestic markets; enhance integration with the external financial markets; and promote sustainable economic development. As Nigeria seeks $196 billion private sector investments by 2020, it underscores the imperative to have strong financial system that performs other functions that are vital to the proper functioning of a market economy such as information production, price discovery, risk sharing, liquidity provision, promotion of contractual efficiency, promotion of corporate governance, and facilitating global integration. All in all, an efficient financial system leads to lower transactions costs and better information systems, all of which facilitate investment operations. How can we sustain (or enhance) the absorptive capacity of Nigeria’s financial system to receive huge capital flows and investments?
Creative & Sports Industries
Optimizing Business Opportunities in the Talent Economy
Time: 2:00pm – 4:00pm
Venue: Lagos/Kogi Room
Globally, industry has created an entire business around the talent economy especially the creative and sports industries and this is reflected in the high growth rate in revenues in these sectors. Nigeria’s creative industry has been growing in recent years while sports as a business is an emerging industry. The emergent prospects of creating enterprise from the business of talent and creativity has become dominant across the world contributing immensely to the GDP of developed countries. In 2016, the Arts, Entertainment and Recreation Sector contributed 2.3% (N239biliion) to Nigeria’s Gross Domestic Product (GDP). Nigerian film industry popularly referred to as Nollywood is reputed to be the second largest film producer in the world. And the Federal Government anticipates a $1billion in export revenue by 2020. On its part, the sports industry is serviced by other ancillary sectors such as tourism, entertainment, real estate, manufacturing, content development, broadcasting, marketing, IT, fashion, etc. As these businesses grow, new players became part of the industry: radio, television, commercial endorsers, licensees and sponsors. For sports as a business, the primary revenue source is no longer limited to just the fans that buy tickets and Nigeria is yet to tap these potentials. However, there are other factors beyond domestic consumption that can drive business interest in Nigeria’s talent economy.
The Tourism, Hospitality, Entertainment, Creative and Sports Industries Policy Commission will facilitate 2 Group Discussions during this Breakout Session.
Group Discussion I – Unlocking the Untapped Potential for Growth in the Creative Industry
The Global Entertainment Industry accounts for approximately 2.5% of global GDP, compared to Pharmaceuticals (1.28%) and Hospitality (0.68%). The sector is expected to grow by an average of 5.5% annually to reach a market size of $2.2trn by 2021. The entertainment industry continues to record astronomical growth and the sport business is gaining traction. Nigeria’s national accounts rebasing in 2014 revealed that motion pictures, sound recording and music production alone, account for 1.42% of our GDP. In past two years, while the entire economy plunged into recession and slowdown, the Arts, Entertainment and Recreation Sector recorded a growth of 3.72% (2016) and 4.72% (2017). The industry contributed N152.63bn to Nigeria’s GDP in 2017, comparable to Chemical and Pharmaceuticals (N153bn), Oil Refining (N148bn). According to the World Economic Forum, Nollywood’s model of rapid production and home consumption is now being exported across the continent, with countries such as Cameroon, Ghana, Kenya, and Mali adopting this model over traditional American or European features. Even with its recorded success, there is a need to analyse progress to unlock the untapped potential for growth as the private sector provides market insight to the public sector to help shape public policies and measures to suit market conditions and realities. What must we do to achieve it?
Group Discussion II –Maximizing the Value of Sports as a Business
With a growing youth population, high interest in sports and the need to move from a mono-economy to a more diversified economy, it is quite clear that there is an opportunity for sports to contribute significantly to Nigeria’s economic growth. The prospects for the future with regard to the Global Sports Industry is predicated on greater engagement and participation by companies and investors, and commercial opportunities. These projections are driven by: continuous growth of youth participation in sports in the next 5-10 years; TV and Marketing that are still central to the growth of the industry, and will continue to experience increase in rights and media revenues; innovation as a factor in changing expectations due to changing fan behaviour; the phenomenal growth of social media engagement over the next 5-10 years, and the involvement of social media platforms in the sports rights market. In addition, technology is driving growth and development of sport and changing business models as the world increasingly witnesses the influence of mobile media in enabling the creation of virtual stadia to accommodate and engage fans far from the stadium environment. Asia Pacific is projected to be the next growth area while Africa and the Middle East are second in the reckoning ahead of Western Europe with ite ageing population – youth is the main driver of this trend. Countries that have effectively harnessed the full potentials of sport as a contributor to the economy, and as a social and community 12 development platform, achieved these objectives through a public-private partnership framework. The underperformance of the sports industry as a business in Nigeria arises from the country’s inability to harness the potentials of the sector and inadequate funding to maximize the value of these potentials. How can we reverse this?
Business & Growth
New Frontiers for Business and Economic Growth
Time: 2:00pm – 4:00pm
Venue: Kano Room
Rapid economic growth has increased the pressure on the planet’s ecosystem. As a result, businesses are expected to adopt innovative and profitable solutions that drives growth and create jobs while contributing positively to the environment. The challenge is for businesses to balance environmental and societal contributions while maintaining profitability. The World Economic Forum describes such companies as ‘Sustainability Champions’. However, to sustain and attract new investments there is need for an institutional framework that navigates the multiple policies guiding Nigeria’s Nationally Determined Contributions (NDC) for businesses to deliver outstanding financial performance while placing environmental sustainability at the core of their operations. Presently there are companies in Nigeria that are responding to this challenge and are turning the constraints imposed by the need to preserve the earth into opportunities through innovation thereby opening new frontiers – going green while satisfying shareholders expectations. They are Nigeria’s ‘Sustainability Champions’ and some of them are also leveraging sustainability approaches for new commercial opportunities through re-use of products, creating new markets with good returns on investments and rethinking product designs to promote the three R’s – reduce, reuse and recycle – to create a circular economy which aligns with the sustainable development goals (SDGs). The benefits of such a transition include new pathways to profitability and new jobs through substantial waste reduction and improved land productivity; mitigated supply risks and net material/cost savings; and innovations and creativity for long-term resilience. The private sector requires a combination of incentive pull and regulatory push to forge into this new frontier of business and economic growth.
The Sustainability and Governance and Institutions Policy Commissions will host 2 Group Discussions at this Breakout Session.
Group Discussion I – Innovation, Growth and Environmental Sustainability: Turning Constraints to Opportunities
Most businesses now operate in countries with growing populations and economic prosperity that puts a heavy demand on the earth’s resources such as water, arable land, fossil fuels, minerals, arable land and fish stocks. This leads to environmental constraints for companies and this makes it more difficult for them to remain profitable without causing further environmental degradation. A sustainability imperative requires companies to often adopt measures in their business operations that will utilize of cost-saving technologies to improve their production processes and financial performance while “staying green”. Companies are now devoting time and resources to the effort to reduce waste, restrict or clean up emissions, decrease energy consumption, increase recycling, and shift to renewable energy. In agriculture, 30-40% of the food produced in Nigeria is wasted. Such increasing volumes of waste food presents an opportunity for innovative technologies and profitable business practices to address the utilisation of agricultural wastes, by-products and co-products. The country also produces around 500,000 tonnes of e-waste every year from many everyday objects such as car batteries to washing machines and mobile phones. An estimated 50,000 tonnes of mobile phones are discarded in Nigeria annually, which contain up to 5 tonnes of gold - a more than 100 times higher concentration than in gold ore. In a few years, there could be commercial production of alternatives to plastics from organic raw materials such as sugar cane however, this may not be sustainable as it would compete with food resources and land use. With the right technologies, they present opportunities for businesses in Nigeria simply by integrating sustainability into business. Can we turn the constraints to opportunities?
Group Discussion II – Unlocking Incentives for Nigeria’s ‘Sustainability Champions’
It is the responsibility of the government to unlock incentives for companies that are investing in innovation, technology, research and processes aimed at protecting the environment as part of the business operations in Nigeria. This can be done through laws, taxes, subsidies, regulations, etc. Tax incentives might take the form of property tax reductions, sales tax exemptions, income tax credits, etc. Government can also provide discretionary grants, low-interest financing, or one or more of many other incentive programs. Nigeria’s Nationally Determined Contributions (NDC) contains multiple policies for businesses it requires an institutional framework that enables companies navigate them. For these to happen, businesses must step up and engage with regulators and policy makers on the right incentive tools that can encourage them to protect our environment and maintain profitable financial performance. The Federal Government of Nigeria can utilize a combination of incentive pull and regulatory push through several government agencies such as the Federal Inland Revenue Service, National Environmental Standards and Regulations Enforcement Agency, Nigerian Maritime Administration and Safety Agency, among others. However, these incentives do not apply to big businesses alone. Governments, financial institutions and businesses can also work together to support financing models that encourage SMEs to upgrade their production processes to comply with sustainability standards in global value chains. What are these incentives and who will provide them?
PLENARY II: EFFECTIVE PUBLIC INSTITUTIONS
The Unfinished Business of Reforms
Time: 4:00pm – 6:00pm
Venue: Congress Hall
Why should the governance status of the public institution concern us within the context of the current socio-economic realities that underpin moving Nigeria from poverty to prosperity? The Nigerian public institution is the very centre of governmental power and legitimacy. All over the world today, democratic governance is measured in terms of the capacity of the state to generate enough service delivery efficiency in a manner that the citizens can associate with it. Whereas the public institutions do not initiate policies by themselves without the political class, they play critical role in determining what will get done, what would not and through execution, they ensure that policy decisions eventually culminate in concrete achievement of what the government wants for the people. The public institution is therefore the engine room that translates policy to impact. If the public institutions of government are so central to decision making processes and if good or bad decisions are significant to development, why has the emergence of effective public institutions evaded us? Why have Nigerians failed to see the true consequences of well-intended policies over in Nigeria since the 80s? What do we have to get done to reverse this trend?
Opening Presentation by Mrs. Winifred Oyo-Ita (Head of the Civil Service of the Federation) to provide Background and Overview of the 2017 – 2020 Federal Civil Service Strategy and Implementation Plan).
Moderator: Dr. Tayo Aduloju; NESG Senior Fellow; Public Policy & Institutional Development
8:00pm – 10:00pm
Venue: Congress Hall
National Assembly Business Environment Roundtable: “Progress & Impact: The Journey So Far”
The impact of specific economic priority bills identified by the National Assembly Business Environment Roundtable (NASSBER) is to improve the business environment, expand opportunities and create jobs. The bills are in the areas of markets & competition, access to finance for MSMEs, ease of regulations for businesses and investments and development of transport infrastructure. What is the progress on the passage of these bills? Is there any measurable impact of the legislations that are operational?
Moderator: Mr. Boason Omofaye; Head (Business News) Channels TV
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