DRAFT

TRANSFORMATION AGENDA

REPORT

ON

KEY PRIORITY POLICIES, PROGRAMMES AND PROJECTSOF THE FEDERAL GOVERNMENT OF NIGERIA

(2011-2015)

May 26, 2011

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KEY PRIORITIES OF GOVERNMENT

(2011-2015)Government will focus on the following areas:

Good Governance: Security of lives and property, Law and Order; Anti-Corruption; Public Service Reforms and Enabling Environment

Human Development: Education, Healthcare, Skill Acquisition and Capacity Building

Real Sector: Agriculture, Manufacturing, Oil and Gas

Infrastructure: Power/Energy, Roads, Rails, Water for Irrigation and for Industries i

OUTCOMES: Jobs, Jobs, Jobs; Poverty Alleviation; Better Resource Management; Elimination of Corruption and Sustained Economic Development

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KeyPriorities of Government(2011-2015)

Revised Final

TABLE OF CONTENT

PAGE

EXECUTIVE SUMMARY 6

SECTION ONE : INTRODUCTION 19

SECTION TWO: CHAPTER ONEMACROECONOMIC FRAMEWORK, ECONOMIC PERFORMANCE AND PROJECTIONS

CHAPTER TWO: JOB CREATION 42

CHAPTER THREE: PUBLIC EXPENDITURE MANAGEMENT 47

SECTION THREE: KEY SECTOR POLICIES, PROGRAMMES AND PROJECTS

CHAPTER FOUR: GOVERNANCE 50

CHAPTER FIVE: HUMAN CAPITAL DEVELOPENT 66

CHAPTER SIX: REAL SECTOR 88

SECTION FOUR: INFRASTRUCTURE: KEY POLICIES, PROGRAMMES AND PROJECTS 103

SECTION FIVE: ANALYSIS OF PROGRAMMES AND PROJECTS SUBMITTED BY MDAs 134

SECTOR SIX: ENABLERS FOR SUSTAINABLE GROWTH AND DEVELOPMENT 143

SECTION SEVEN: IMPLEMENTATION AND FINANCING STRATEGIES FOR THE KPPPs 149

SECTION EIGHT: MONITORING AND EVALUATION 160

APPENDIX I:

(a) LIST OF MEMBERS OF THE PC(b) LIST OF MEMBERS OF TWG(c) LIST OF MEMBERS OF THE REPORT DRAFTING COMMITTEE

APPENDIX II:

DETAILED LIST PRIORITY PROGRAMMES AND PROJECTS

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ACRONYMS

ACTs Artemisinin-Based Combination Therapies AfDB African Development Bank AMCON Asset Management Corporation of NigeriaBASA Bilateral Air Services AgreementCBN Central Bank of NigeriaCC&LT Citizenship and Leadership Training CentreCRF Consolidated Revenue FundCSOs Community Service OrganizationsDMBs Deposit Money BanksDOTS Directly Observed Treatment Short Course ECA Excess Crude Account ECOWAS CET Economic Community of West African States Common External TariffEIA Environmental Impact Assessment EPC Engineering, Procurement and Construction EPZ Export Processing ZonesEZ Economic Zones FAAN Federal Airport Authority of NigeriaFCT Federal Capital TerritoryFDI Foreign Direct InvestmentFEC Federal Executive CouncilFGN Federal Government of NigeriaFMBN Federal Mortgage Bank of Nigeria FMF Federal Ministry of FinanceFMOH Federal Ministry of HealthFRA Fiscal Responsibility ActFTHIs Federal Tertiary Health Institutions GDP Gross Domestic ProductHDI Human Development Index ICAO International Civil Aviation Organization ICPC Independent Corrupt Practices and (Other Related Offences) Commission Act ICR Institute for Peace and Conflict Resolution ICT Information and Communication TechnologyIMNCH Integrated Maternal, Newborn and Child Health Strategy IPOs Initial Public Offers IP IPT Intermittent Preventive Treatment IPPs Independent Power ProjectsJPB Joint Planning BoardJVC Joint Venture Cash CallJTB Joint Tax Board KBE Knowledge Based EconomyKPI Key Performance IndicatorsKPPPs Key Policies, Programmes and ProjectsMDA Ministry, Department and AgencyMDGs Millennium Development Goals MoU Memorandum of Understanding M&E Monitoring and EvaluationMPR Monetary Policy RateMPC Monetary Policy Committee MTSS Medium Term Sector Studies

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NA National AssemblyNAFDAC National Agency for Food Administration and ControlNAPEP National Agency for Poverty Eradication Programme NBS National Bureau of StatisticsNCDC National Communicable Diseases Control NDE National Directorate of EmploymentNEITI Nigeria Extractive Industry Transparency InitiativeNEPAD New Partnership for Africa DevelopmentNHAs National Health Accounts NHB National Health BillNHF National Housing Fund NHIS National Health Insurance SchemeNHMIS National Health Management Information System NHPRG National Health Plan Reference Group NHTF National Housing Trust Fund NIDO Nigerians in Diaspora OrganizationNIIA Nigerian Institute for International Affairs NNVS New Nigeria Volunteer Service NIP National Implementation PlanNPC National Planning CommissionNPHCDA National Primary Health Care Development AgencyNSWF National Sovereign Wealth FundNSHDP National Strategic Health Development PlanNV20:2020 Nigeria Vision 20:2020NYEDP Nigerian Youth Entrepreneurship Development ProgrammeNYSC National Youth Service Corps PC Presidential CommitteePERs Public Expenditure Reviews PENCOM Pension CommissionPHC Primary Health CarePHCN Power Holding Company of NigeriaPIB Petroleum Industry BillPPP Private Public Partnership PSR Public Service Reforms PTFP Presidential Task Force on Power RBDAs River Basin Development Authorities R&D Research and Development SMEs Small and Medium EnterprisesSMEDAN Small and Medium Enterprises Development Association of NigeriaSMEEIS Small and Medium Enterprises Equity Investment Scheme SON Standard Association of NigeriaSPFS Special Programme for Food Security TAC Technical Aid Corp Scheme TBAs Traditional Birth Attendants TVET Technical and Vocational Education and Training UNESCO United Nations Education and Scientific OrganisationUNFCCC United Nations Framework Convention on Climate Change VC Venture Capital WHO FCTC World Health Organization Framework on the Convention of Tobacco Control WTO World Trade Organisation

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EXECUTIVE SUMMARY

1.0 INTRODUCTION

Nigeria’s development efforts have over the years been characterized by lack of continuity, consistency and

commitment (3Cs) to agreed policies, programmes and projects as well as absence of a long-term

perspective. The present administration represents a pleasant departure from the disregard to the 3Cs. It is in

response to the need to deepen the efforts and provide a sense of direction for the administration in the next

four years that led to the decision to develop a set of priority policies, programmes and projects for the

period 2011-2015 on which to focus its attention. It was in pursuit of this goal that the President set up the

Presidential Committee (PC) to develop the Key Priority Policies Programmes and Projects (KPPPs) on

which the administration should focus its attention. It is important to emphasize that this document drew its

inspiration from the NV20:2020 and the 1st NIP ( 2011 -2013 ) with which it is consistent and harmonized.

The prioritized policies, programmes and projects were properly scrutinized by the Presidential Committee

assisted by technical experts drawn from the public and private sectors. This exercise does not cover all the

projects in the 1st NIP and the 2011 budget but rationalizes them on the basis of selected criteria to produce

a more compact set of programmes on which the government will deliver in the next four years.

1.1 Composition and Role of the Presidential Committee

The mandate of the Presidential Committee was defined as follows:

Identify the key policies, programmes and projects to be delivered within the next

four to five years.

Phase the projects and programmes to ensure that they inform the Administration’s

future budget proposals during 2012-2015.

Propose a suitable monitoring mechanism for the projects and programmes

including regular presentations by Ministers to the FEC on their relevant areas of

activity.

1.2 The Committee was formally inaugurated on Thursday, February 17, 2011 and is composed as

follows.

Hon. Minister/Deputy Chairman, NPC - Chairman

Hon. Minister of Finance - Member

Hon. Minister of Transport - Member

Hon. Minister of Agriculture - Member

Hon. Minister of Niger Delta Region - Member

Hon. Minister of Works - Member

Hon. Minister of Aviation - Member6

Hon. Minister of FCT - Member

Chief Economic Adviser to the President - Member

Senior Special Assistant to the President on Infrastructure - Member

Special Assistant to the President (Economic Matters) - Secretary

At its inaugural meeting, the Presidential Committee set up a Technical Working Group (TWG) to assist it

in accomplishing the assignment and a Private Sector Working Group (PSWG) to provide private

sector/independent perspective on relevant aspects of the TOR. A drafting team was constituted to

synthesise the reports and produce this final document. The membership of the various committees, working

groups and teams are provided in the Annex.

1.3 Scope

The scope of this report covers issues such as macroeconomic framework and economic direction,

governance, sector priority policies, programmes and projects of the following key thematic areas. (i)

Governance, (ii) Real sector, (iii) Infrastructure, (iv) Human Capital, (v) Enablers (which include private

investment, finance mobilization, external economic relations and diplomacy, etc.),(vi) implementation and

and (viii) Monitoring and Evaluation.

2. MACROECONOMIC FRAMEWORK AND ECONOMIC DIRECTION

Overall real GDP growth rate averaged eight per cent during 1999-2010. There was a structural shift in the

economy during the period from crude oil to non-oil sector, although the oil sector dominance of export

earnings and government revenues persisted. For the period 2011-2015 a baseline GDP growth rate of 11.7

per cent per annum is assumed. This will translate to real and nominal GDP of about N428.6 billion and

N73.2 trillion at the end of the programme period. This is also in line with the NV20:2020 target. The

projected GDP growth for the period will be driven largely by oil and gas, solid minerals, agriculture, ICT

equipment and softwares, telecommunication, wholesale and retail trade, tourism and entertainment,

manufacturing, and building and construction sectors.

A total investment size of N40.75 trillion in nominal terms is projected for the programme period.

The public sector will account for N24.45 trillion or 60 per cent, while the remaining N16.30 trillion or 40

per cent is expected to be invested by the private sector. Overall investment plan is projected at N24.46

trillion made up of N12.86 trillion for federal government and N11.59 trillion for states and local

governments respectively.

2.1 Key Macroeconomic Policy Choices

The key policies to be pursued by government during the programme period are as follows:

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i. Ensuring greater harmony between fiscal and monetary policy. In this regard, the National Economic

Management Team will be reviewed and strengthened to facilitate effective coordination of fiscal

and monetary policies.

ii. Pursuit of sound macroeconomic policies, including fiscal prudence supported by appropriate

monetary policy and measures to contain inflation at single digit.

iii. The budget process shall be reviewed to provide greater clarity of roles between the executive and

the legislature and to ensure that the appropriation bill is enacted into law within the first month of

any year. The direction of policy shall draw inspiration from other democracies and concentrate on

setting allocation priorities rather than micro-budgeting or contesting figures with the Executive. This

will ensure greater cohesion and sustainability.

iv. The existing revenue allocation formula shall be reviewed in the direction of achieving a more

balanced fiscal federalism. This is expected to pave the way for effective implementation of

programmes at the sub national level.

v. Institutionalising the culture of development planning at all levels of government and ensuring that

the annual capital budget allocations take a cue from the medium and long term development plans.

Towards this end, the National Assembly should expedite the passage of the Planning and Project

Continuity Bill in order to strengthen the Plan-Budget link and reduce the high incidence of

abandoned projects.

2.3 Job Creation

The Nigerian economy is experiencing growth without employment as the rate of growth of the labour force

exceeds the employment opportunities that are created. The unemployed population is at present, dominated

by the youth who are mostly school leavers with senior secondary school qualifications and graduates of

tertiary institutions. The composite employment data showed that the rate of unemployment surged from

11.9% in 2006 to 14.6% in 2007 and 21.1% by January 2010. This growing trend is worrisome.

The following policy measures will be pursued during the programme period to reinvigorate various sectors

of the economy and enhance their employment generating potential.

Implementing a youth employment safety net support program that includes conditional cash

transfer and vocational training

Development of Industrial Clusters

Reviewing of university curricula to align with industry job requirements and promotion of

apprenticeship/work experience programmes and joint ventures.

Enforcement of mandatory sub-contracting and partnering with locals by foreign construction

companies

Implementation of mandatory skills transfer to Nigerians by foreign construction companies

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2.4 Public Expenditure Management

The sub-optimality of the expenditure profile of the Federal Government of Nigeria (FGN) has been a major

area of concern. Since 1999, recurrent spending has consistently been crowding out capital expenditure, thus

exacerbating the already abysmal state of infrastructure. Recurrent expenditure as a proportion of total

government expenditure has fluctuated between 47.5% in 1999 to 80.29% in 2003, when capital expenditure

accounted for only 19.71%. It has since increased continually to a high of 38.37% of total expenditure in

2009 but plummeted again in 2011 when government has had recourse to borrowing to finance recurrent

expenditures.

To remedy the situation, government will entrench a culture of accountability by beginning to sanction and

prosecute officers that breach established financial management rules and regulations. The monetization

policy will also be strictly enforced. Other short-term policy measures include: (i) Limiting total recurrent

spending as a percentage of GDP to 6 per cent from the current 8.5 per cent in the first instance, while total

capital expenditure as a percentage of GDP should rise from 4 to 6.5 per cent in 2011 and rising significantly

thereafter. (ii) Aligning recurrent expenditure with non-oil revenue and devoting virtually all revenues from

oil to capital expenditure. In the medium-term, government will (i) show enough political will to tackle the

problem of transparency and accountability in the oil industry, especially the JVC and production sharing

arrangement head-on, strengthening NEITTI and reviewing the policy processes in the sector over the past

25 years, (ii) adopt a whole-life approach to budgeting for assets that will incorporate the cost of operation

and maintenance of the asset during the technical lifetime of the asset and (iii) engage early in budget

preparation processes in order to reduce the current inefficiency in resources utilization arising from the

current practice of protracted delay in budgeting and approval processes. Efforts will also be made to fast

track the operationalization of the National Sovereign Wealth Fund (NSWF) whose bill was recently passed

by the National Assembly.

3. GOVERNANCE

Nigeria’s inability to decisively tackle most of its development challenges such as poverty, unemployment,

security, and deplorable state of infrastructure has been largely attributed to bad governance in all its

ramifications, including political governance, economic governance, corporate governance and the

effectiveness of institutions. During 2011-2015, the policies and programmes directed at addressing

governance will focus on the public service; security, law and order; the legislature; anti-corruption

measures and institutions; the judiciary; economic coordination; and support for private investment. The

critical policy thrust of governance is to maximize the benefits the citizenry derives from governance

through more effective and efficient use of public resources, proper financial management and fiscal

prudence. This entails adequate emphasis on the attainment of law and order, guarantee of safety of lives and

property, more efficient service delivery and the provision of an environment in which people find happiness

and fulfillment.

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3.2 Justice and Judiciary

The Nigerian judiciary is considered one of the most vibrant, especially in terms of quality of decisions of

the higher courts. However, the country also ranks among the countries with the least efficient systems of

enforcing contracts and settlement of commercial disputes. Frequent and prolonged adjournment of cases,

slow police investigations and enforcement of judicial decisions contribute to delays in justice delivery. The

enforcement of court decisions deeply affects the quality of the judicial system, and delays in resolving

disputes may compel citizens to resort to untoward means of resolving disputes, thereby eroding trust in the

judicial system. Successive governments have made several efforts to overhaul the judicial system and

improve service delivery. Though some measure of success has been achieved, the judiciary is still faced

with several challenges including slow reform process which has generally lagged behind current

developments in human rights practices, cybercrimes, terrorism, the prosecution of corruption and financial

crimes, among others.

The policy thrusts of the Justice and Judiciary sector are (i) achieving greater independence for the judiciary

in terms of funding, (ii) improving capacity and efficiency in judicial service delivery, (iii) eliminating all

forms of corruption in the administration of justice , (iv) enhancing the capacity of the justice ministry to

superintend prosecution and law enforcement and (v) improving professionalism in legal practice for better

service delivery.

3.3 Foreign Policy and Economic Diplomacy

In the area of foreign relations Nigeria has made a giant stride although there are still some contending

issues. With globalisation, the interdependence of the countries of the world, especially in trade and

commerce has been strengthened. Trade and commerce are facilitated by various bilateral and multilateral

trade agreements and diplomatic ties between countries. Without the necessary trade agreements, market

information and diplomatic ties, businesses may not be able to operate beyond their shores and, as such,

cannot tap into the opportunities that exist in other countries . The world has become a “global village”

where the actions and reactions in one country can be accessed in another in just a matter of seconds through

Internet and other means of communication.

In order for Nigeria’s foreign policy goals to be achieved it is imperative that Nigerian missions are properly

focused, efficiently manned and well-funded. It may also be necessary to rationalize missions and appoint

honorary consuls to deal with consular issues in areas where Nigeria’s interest does not loom large as

practiced by other countries. This will release resources for allocation to more critical missions

3.4 Legislature

The performance of the legislature, has been relatively less than optimal as evident from its inability to enact

high impact legislation, and its preference to concentrate on executive oversight functions. This has left over

500 bills pending in the National Assembly. Also, prolonged delays in passage of bills, have tended to slow

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down the pace of economic growth and development, and erode public confidence in the ability of the

legislature to perform its duties. The thrust of policy during the period will be to facilitate the creation of a

dynamic, constitutionally effective and public responsive legislature that is, proactive in its legislative duties

and independent but aware of its constitutional partnership with the executive and judicial arms of

government. Other policy measures include regular auditing of its activities and publication of annual

reports of the National and State legislature, to promote greater transparency and accountability in the use

of public funds; promote greater public interest in the scrutiny of legislative actions; and inform public

debate to these ends.

4. HUMAN CAPITAL DEVELOPMENT POLICIES, PROGRAMMES AND PROJECTS

Human Capital Development is strategic to the socio-economic development of a nation. This thematic area

includes education, health, labour and employment , safety nets for vulnerable groups as well as youths and

women affairs. Investing in human capital development is therefore critical as it is targeted at ensuring that

the nation’s human resource endowment is knowledgeable, skilled, productive and healthy to enable the

optimal exploitation and utilization of other resources to be achieved in the effort to engender growth and

development.

4.1 Priority Policies for the Development of Education

- Promote primary enrolment of all children of school going age irrespective of income profile of

the parent

- Provision of infrastructures such as classrooms across all levels so as to ease over-crowding,

increase access and reduce pupil/teacher ratio

- Enhance the efficiency, resourcefulness, and competence of teachers and other educational

personnel through training, capacity building, and motivation.

4.2 Priority Policies and Projects for the Development of the Health Sector

The underpinning policy for the inputs towards achieving the human capital development goal of the Vision

20:2020 strategy is the National Strategic Health Development Plan (NSHDP). The NSHDP is the vehicle

for actions at all levels of the health care service delivery system which seeks to foster the achievement of

the MDGs and other local and international targets and declaration commitments. The Nigerian International

Health Partnerships and other related issues (IHP+) compact signed between the Federal Government and all

development partners in health is seen to be an important mechanism that will rally all development partners

to support the implementation of the NSHDP at all levels.

The priority programmes and projects for the health sector are captured in the Federal Component of the

NSHDP and are presented in the annex.

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4.3 Priority Policies and Projects for Labour and Productivity

During the period 2004 – 2010, the country experienced sustained high growth rates, but employment

responded rather sluggishly. The structure of unemployment remained basically the same during the period

as agricultural self employment continued to dominate the country’s labour market. The most remarkable

employment development was the expansion of jobs in the communication sector as a direct consequence of

the deregulation of the sector.

The key policies to be implemented during the period are as follows.

Implementation of the National Action Plan on Employment Creation (NAPEC) targeted at creating 5 million new jobs annually within the next 3 years;

Establishment of more Skills Acquisition Centers; Implementation of Local Content Policy in all the Sectors especially in the Oil and Gas Industry

in order to boost Job creation in the country; Creation if unemployment registration centres

5. REAL SECTOR POLICIES, PROGRAMMES AND PROJECTS

There are seven sectors considered as the potential growth drivers during the 2011-2015 period. These are

agriculture, water resources, solid minerals, manufacturing, oil and gas, trade and commerce as well as

culture and tourism. Performance in these sectors has been constrained by several challenges, including low

productivity, low level of private sector investment, non-competitiveness, inadequate funding, shortage of

skilled manpower, low investment in research and development, poor development of value chain and low

value addition, poor regulatory environment, poor quality of goods and services and poor state of physical

infrastructure, policy instability and discontinuity, low level of technology, paucity and poor flow of

information and high cost of doing business.

5.1 Key Policies for the Real Sector, 2011-2015

The policies for developing the seven thematic areas in the real sector are summarised below.

5.1.1 Agriculture and Food Security

Secure food and feed needs of the nation Enhance generation of national and Social wealth through greater export and import

substitution Enhance capacity for value addition, leading to industrialization and employment opportunity Efficient exploitation and utilization of available agricultural resources Enhance the development and dissemination of appropriate and efficient technologies for rapid

adoption

5.1.2 Manufacturing

Promotion of the private sector investments through the creation of enabling environment that allows for substantial improvement in efficiency, productivity and profitability

Significantly increasing manufacturing local content and linkages with other sectors of the economy Ensuring the global competitiveness for manufactured goods Making Nigerian manufactured goods major foreign exchange earner and achieving rapid and

sustained economic growth through broadening the nation’s productive base12

5.1.3 Oil and Gas

promotion of private sector investment in both upstream and downstream activities of the oil and gas industry

deregulation of the industry and promotion of environmentally friendly oil and gas exploration and exploitation methods

strengthening capacity building programmes especially in core technical areas provision of funding mechanisms for pre-bidding geosciences and surveys of deepwater offshore Gas flare-down to reduce pollution and increase revenue, promotion of adequate gas supply for

domestic use and power Local content development

Details of the programmes and projects to be implemented in order to achieve the policy objectives in the various sectors are presented in the annex.

6. INFRASTRUCTURE POLICIES, PROGRAMMES AND PROJECTS

The infrastructure deficit in the country is particularly worrisome in key development areas such as power,

transportation, housing, ICT, and Niger Delta. The critical importance of these areas in national

development cannot be overemphasized; but rather than being a boon to development they have been the

bane of sustained growth and development in the country.

6.1 Priority Policies for Infrastructure Development - Power

The total proposed investment envisaged in the power sector during the FY 2011-2015 is about N1,896

billion. This will cover investments in four major areas of power generation, transmission, distribution and

alternative energy with the objective of increasing generation, transmission and distribution capacity .This

will ensure more adequate and sustainable power; intensifying rural electrification efforts in a more efficient

manner; achieving optimal energy mix using the most appropriate technology.

The strategies to be adopted in achieving these objectives include:

Creating a deregulated and competitive electric power sector to attract foreign and local

investments.

Ensuring a viable commercial framework for the electric power sector, including a tariff regime

that promotes transparency, guarantees security of investments and a reasonable rate of return

on investments.

Enhancing the transmission capacity and providing redundancies in the transmission system so

as to ensure a fully integrated network that minimizes transmission losses while s strengthening grid

security.

6.2 Information and Communication Technology

The proposed investment for the ICT sector during the period 2011-2015 is N22.2 billion. During this plan

period, the policy thrusts of the FGN would be the development of a national Knowledge Based Economy

(KBE) 10-year Strategic Plan, Sustained human capacity development in ICT, Creation of a favourable and

friendly investment and enterprise environment through transparency in tax systems, anti-trust laws/ 13

incentives and trade policies that would stimulate local and foreign investments in ICT, and development of

infrastructure, particularly global connectivity as a prerequisite to leveraging the benefits of the global

economy, improving domestic productivity and attracting foreign investments. Other are creation of an

enabling environment through appropriate policies, legal, regulatory and institutional frameworks, and

enhancing Public Private Partnership (PPP) in project funding, financing and management.

6.3 Niger Delta

The proposed investment in the region during the Plan period is N335.05 billion.

The main policy thrust during the Plan period is to entrench peace and stability to drive sustainable socio-

economic development in the Niger Delta Region with the aim of reducing the high incidence of poverty,

high rate of unemployment and high level of insecurity.

6.4 Transport

The estimated total investment for the transport sector during the period 2011-2015 is approximately N4,465

billion. This investment would cover roads, railways, inland waterways, ports and airports development.

The main policy thrust during the Plan period is to evolve a multimodal, integrated and sustainable transport

system, with greater emphasis on rail and inland waterways transportation. An enabling environment for

Public-Private Partnership (PPP) has been created by designing new policies, legislation and institutional

framework that would support the envisaged transformation of the sector. These will be strengthened on a

continuous basis

7. DISTRIBUTION OF KEY PROGRAMMES AND PROJECTS BY SECTOR

The key priority programmes and projects are selected from 20 MDAs/sectors. A total of 1613 projects are

considered for inclusion into the programme; out of which 385 (about 22 per cent) are new while 1361

(about 78 per cent) are on-going. After thorough scrutiny and on the basis of the selection criteria adopted,

685 projects (about 39 percent of the total projects considered) are admitted into the programme during the

2012-2015 period. The number and cost of the projects in respect of each MDA/and thematic group are

presented in the Table VII below.

Table VII: Number of Projects Submitted By Each MDA/Sector

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Projects

S/N Sector New Ongoing

Total Projects

Total Estimated Cost (N'ml)

Number of Projects Admitted to KPPP

Estimated Cost in KPPP (N'million)

1 Water 97 502 599 909,601.80 20 300,000.002 Agriculture 83 244 327 607,296.10 116 500,795.003 Labour 43 52 95 85,205.00 20 58,885.854 Mines & Steel 11 16 28 142,580.00 16 56,880.00

5Commerce & Industry 8 6 14 87,765.46 10 64,080.00

6Science & Technology 10 17 27 131,759.00 20 99,665.00

7 ICT 1 6 7 22,241.76 6 13,836.078 Housing 7 7 200,399.00 4 202,984.009 FCT 4 16 20 378,000.00 19 287,770.00

10 Railways 7 6 13 1,613,700.00 8 498,550.0011 Roads & Bridges 12 183 195 939,150.00 170 695,500.0012 FERMA 132 132 132 250,000.0013 Aviation 6 14 20 397,500.00 16 112,670.0014 Niger Delta 10 10 20 708,000.00 16 349,931.7615 Power 13 4 17 2,550,100.00 6 356,500.0016 Oil & Gas 9 6 15 797,500.00 12 98,500.0017 Education 25 30 55 1,942,854.30 24 344,350.0018 Health 8 62 70 1,153,396.00 35 229,310.00

19Women Affairs & Soc. Dev. 24 45 69 34,687.54 20 28,371.39

20Youth Development 7 10 17 39,789.79 15 35,201.60

Total 385 1361 1,746 12,741,525.75 685 4,583,780.67

8. ENABLERS FOR SUSTAINABLE GROWTH AND DEVELOPMENT

The Enablers are defined to include laws, regulations, policies, public infrastructure, public services and

international trade agreements that facilitate the activities of economic agents, making it possible for them to

be competitive, function optimally and operate profitably. In particular, the laws ensure that businesses can

invest and operate without the fear of losing out on opportunities to grow because of bureaucracy, poor

market access or any other impediments. The rule of law also guarantees property rights and contract

enforcement which provide great impetus for growth of businesses and the contribution of businesses to

economic growth.

The role of government should be limited to creating the enabling environment aimed at facilitating

sustainable growth and development in the country. In this regard, government needs to simplify procedures 15

for doing business. The required actions include: reduction in the length of time and cost of registering a

business; simplification and harmonization of the tax systems and payment channels; reduction in the

turnaround time and cost of obtaining building permits; ensuring easy access to affordable and long-term

finance; expansion of IT infrastructure to facilitate easy access to internet and telecommunications services.

Government also needs to enforce contracts to protect investors. Other actions that government needs to take

to empower the private sector are: encourage both local and foreign investors by improving ports and

customs management (for instance, 48-hour clearance of goods at our sea ports); eliminating immigration

bottlenecks (simplify visa issuance and work permits); improving security of lives and property; complete

the modernization of the transportation system and improve basic critical infrastructure.

9. FINANCING AND IMPLEMENTATION STRATEGIES FOR THE KPPPs

The funding options that have the potential to provide adequate, reliable and timely financing for the KPPPs,

fall into three broad categories namely; 0n-budget Public Funding, Off-budget Public Funding, and Private

Sector Resources. For purposes of assigning funding sources that best meets the objectives of accelerated

delivery to identified projects, they need to be classified as bankable or not bankable. A project is considered

bankable if preliminary financial analysis confirms the ability to establish revenue streams, deliver positive

NPV, allocate risks and has sufficient scale for absorbing transaction costs. In addition, there is a high

probability of success, and be acceptable to institutional lenders or financiers. Such bankable projects are

earmarked for Public Private Partnership funding. These are predominantly in the area of infrastructure

Where sustainable cash flow stream cannot be established for a project, neither is the project capable of

delivering positive NPV, nor risks is allocable, and does not have sufficient scale for transaction costs, such

a project is considered “not bankable”. The probability of commercial success for such a project will be low

and as such will not attract the interest of institutional lenders or financiers. This category of projects that are

admitted into the KPPPs are expected to be funded from the budget and enhanced budget sources. These

criteria are to be taken into consideration in mobilizing resources for funding the priority projects.

9.1 Implementation Strategy

The annual budget is the key instrument for pursuing the goals and /targets of the KPPPs. Policies and

programmes will be executed by MDAs using contract method or through direct labour. Moreover, greater

emphasis will be given to labour-intensive approach in construction and maintenance of projects in order to

create mass employment. Cluster approach will also be employed to promote regional economies and

products where a zone possesses comparative advantage. In this regard, the private sector will be encouraged

to go into clusters where common services will be provided. These clusters will mainly be targeted at the

SMEs.

In implementing the KPPPs, scarce resources of the government will be prudently managed by imbibing the

discipline of planning, transforming the budgeting process and limiting the growth of recurrent expenditures,

ensuring value for money effective project costing and close monitoring and evaluation of progress and

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problems. The government will enforce stiff penalty for misappropriation and implementation failures and

reward success based on evaluation reports.

9.3 Project Preparation and Management

Project preparation and management should be the responsibility of the Minister or CEO of the

MDA/organization. He shall be answerable to the President for the performance of his component of the

KPPPs. In order to fast track the implementation of their mandates, Ministers/CEOs may find it useful to

constitute project delivery teams made up of officials from the relevant MDAs, with specific sector

knowledge and project management skills. Each project team will have a project manager, with the requisite

authority, responsibility, accountability and resources to deliver projects. He/she is to report progress and

challenges directly to the Minister and the accounting officer of the MDA.

9.2 Economic Coordination

Economic Coordination will be undertaken at three levels: Planning, Policy and Programmes At the

institutional level, coordination is required at the level of MDAs ( drawing on the resources of the DPRs)

and the three tiers of government (under the aegis of the JPB, NEC, FEC with the NPC as the institutional

pivot)) and at the States, LGs and at Sector level (SPBs, SECs). All obstacles to effective coordination will

be removed. Effective coordination of KPPPs is vital to ensure skillful collation and analysis of policies,

programmes and projects, harmonisation and the elimination of duplication. The MDAs must work in

concert with State Governments to achieve harmony through the sectoral councils. There is need for Mr.

President to hold a 3 day retreat with Ministers, Permanent Secretaries, Directors of PRS and other relevant

officials within the six weeks of inception of the Administration. This will allow for further exposition on

the KPPPs.

10. MONITORING AND EVALUATION

Monitoring and Evaluation is an essential component of Programme implementation. It is a veritable tool for

tracking developments in policy and programme performance. It attempts to measure inputs, outputs,

outcomes, and the impact of policies, programmes and projects on the economy and the welfare of the

citizenry. In order to perform its role effectively, there should be preset goals and targets along with key

indicators against which performance is measured or assessed. The Nigerian Vision 20:2020 and the 1 st

National Implementation Plan (2011 - 2013 have provided a comprehensive framework for M&E. The next

challenge is capacity to implement the design. The overall goal for the programme period is to have a

harmonised M&E mechanism for all the priority policies, programmes and projects for the generation of an

annual country report under the co-ordination of the National Planning Commission (NPC).

The major agencies and bodies that will undertake programme monitoring in the public sector are the

MDAS, the Ministry of finance, the M&E office the Presidency (Economic Intelligence office) and the

National Assembly. All these efforts are coordinated by the National Planning Commission except that of

17

the NASS under its oversight Committee to monitor further projects. In the monitoring framework, the Vice

President who is the Chairman of the National Planning Commission and the National Economic Council is

at the apex of the hierarchy although in terms of operations, the Minister of Planning and Deputy Chairman

of the Planning Commission is in charge. The President of the Federal Republic and the Governors of the

States have overall responsibility for monitoring outcomes for the entire economy.

10.1 Institutional Framework for M&E

The framework for monitoring will involve institutions at the federal, state and local government levels. The

following institutions will be fully involved in tracking the Programme: The Presidency, The National

Assembly, Civil Society Organizations, The NPC as the secretariat of the M&E structure, National Space

Research and Development Agency (NASRDA), MDAs, Development Partners and PPP collaborators. An

important element in the new M&E framework is the requirement that Federal MDAs must submit M&E

reports directly to the President and the National Planning Commission that would collate and present

holistic Reports to the National Economic Council (NEC). The driver of M&E in the system is the Minister

of National Planning supported by the Secretariat located as a Department in NPC. M and E Reports will be

in the public domain.

10.2 Policy Initiatives/Action Plan

During 2011 and 2012 every effort will be made to place M & E on a sound footing. Emphasis will be on

training, capacity building, strengthening inter-ministerial and intergovernmental relations and properly

defining roles and responsibilities of stakeholders. Funding of M&E activities will be enhanced based on a

convincing work plan agreed with the NPC. Under the auspices of the Commission, reviews of the KPIs

underpinning projects, programmes and policies will be carried out in 2013 and 2015.The use of KPIs to

track priority policies, projects and programme implementation across priority sectors will be enforced.

Phasing of M & E activities will be as follows.

Annual Report for each year from 2011 – 2015

Bi-annual report with effect from 2012 – 2015

Quarterly reports with effect from 2012 – 2015

Implementation of the M & E Action Plan will be in line with NV20:2020. In order to enable the President

keep track of performance of key Priority Policies, Programmes and Projects during 2011-2015, the

President or the National Planning Commission shall constitute Presidential Monitoring Teams as may be

necessary to verify//validate, on sample basis, the progress Reports from the MDAs. Officials of the NPC

may also carry out similar exercises to learn on the field and confirm the monitoring and evaluation

outcomes. The ad hoc Monitoring teams shall draw their membership from a broad spectrum of

stakeholders.

SECTION ONE

18

1.0 IntroductionNigeria’s development efforts have over the years been characterized by lack of continuity,

consistency and commitment (3cs) to agreed policies, programmes and projects as well as absence

of long-term planning. For instance, there has been wide divergence between the annual budgets

and medium-term plans, such as the Medium Term Sector Strategy (MTSS), five-year plans, the 1 st

National Implementation Plan (NIP) and so on. Moreover, significant deviations have

characterized budgets presented to the legislature by the executive arm of government and the

versions approved by the National Assembly. Similarly, sharp variances exist between budget

estimates and actual fund releases, thereby undermining budget implementation.

The present administration represents a pleasant departure from the disregard to the 3cs. The

administration has shown clear resolve to improve economic management in the public sector. It

has also demonstrated commitment to policy consistency, good governance, due process and the

rule of law. The Government has proved this by ensuring that the 2011 budget was anchored on

the priorities and objectives of the 1st National Implementation Plan (NIP) and the National Vision

(NV20:2020). It is the determination of the administration that subsequent budgets would be

largely drawn from these blueprints. The need to deepen these efforts and provide a sense of

direction for the administration in the next five years informed the decision to develop a set of

priority policies, programmes and projects for the period 2011-2015. It is important to emphasize

that this document drew inspiration from the NV20:2020 and the 1st NIP with which it is consistent

and harmonized. The Key Prioritized Policies, Programmes and Projects (KPPPs) contained in this

document were properly scrutinized by a Presidential Committee and closely assisted by technical

experts drawn from the public and private sectors. This exercise does not cover all projects in the 1st

NIP and the 2011 budget but rationalizes them on the basis of defined criteria to produce a more

compact set of programmes on which the administration will deliver in the next four years.

1.1 Background

The development of a blueprint on Key Priority Programmes and Projects (KPPPS) for 2011-2015

is inspired by the need to address the enormous challenges facing the government in the areas of

multiplicity of projects in the face of dwindling resources and the need to articulate a cohesive

programme that is well focused and implementable so as to address the challenges of decay and

inadequate infrastructure and growing unemployment, particularly of youths. Other challenges

include widening disparity in incomes, divergence between annual capital budgets and medium

term plans; lack of diversification of the economy; growing awareness and consciousness of the

populace about inadequacies in national economic management as well as the need to respond to 19

the expectations of the people who delivered overwhelming mandate to the President in the recent

general elections.

This blueprint on Key Priority Programmes and Projects (KPPPs) seeks to provide a framework for

the actualization of Mr. President’s economic growth agenda 2011-2015. The annual capital

budgetary provisions should be derived from the blueprint on KPPPs with effect from 2011. It

should be noted that the KPPPs are in line with the goals of the NV20:2020 and 1 st NIP. While the

1st NIP covers the period 2010-2013, the KPPPs span 2011-2015.

1.2 Composition and Terms of Reference of the Presidential Committee

The mandate of the Presidential Committee (PC) was defined as follows:

Identify the key policies, programmes and projects to be delivered within the

next four to five years.

Phase the projects and programmes to ensure that they inform the

Administration’s future budget proposals during 2012-2015.

Propose a suitable monitoring mechanism for the projects and programmes

including regular presentations by Ministers to the FEC on their relevant

areas of activity.

Any other issue related to this assignment

The Committee was formally inaugurated on Thursday, February 17, 2011 and is composed as

follows:

Hon. Minister/Deputy Chairman, NPC - Chairman

Hon. Minister of Finance - Member

Hon. Minister of Transport - Member

Hon. Minister of Agriculture - Member

Hon. Minister of Niger Delta Region - Member

Hon. Minister of Works - Member

Hon. Minister of Aviation - Member

Hon. Minister of FCT - Member

Chief Economic Adviser to the President - Member

Senior Special Assistant to the President on Infrastructure - Member

Special Assistant to the President (Economic Matters) - Secretary

20

1.3 Process Adopted for the Work

The process of developing the KPPPs was extensive, and highly consultative and participatory. A

Technical Working Group was set up under the leadership of the Secretary to the National Planning

Commission to provide technical support for the Committee. Nine teams, including private sector

working group were created to focus on the thematic areas of:

Macroeconomic Framework Human Capital Development Governance Infrastructure International Relations and Economic Diplomacy Niger Delta and Regional Development Real Sector Development Monitoring and Evaluation (M&E) Investment and Funds Mobilisation

A Private Sector Working Group was also constituted to provide an independent perspective on

related aspects of the Committee’s TOR while a Drafting Committee was constituted to synthesize

and produce the Report.

1.4 4Structure of the Report

S/No. Description

Executive Summary

Section One Introduction

Section Two Macroeconomic Framework, Economic Performance , Projections and Targets

Job Creation Public Expenditure Management

Section Three Key Sector Policies and Targets Governance Human Capital Development Real Sector

Section Four Infrastructure: Key Policies, Programmes and Projects

Section Five Analysis of Programmes and Projects Submitted by MDAs

Section Six Enablers for Sustainable Growth and Development

Section Seven Implementation and Financing Strategies

21

Section Eight Monitoring and Evaluation

APPENDIX: I a) LIST OF MEMBERS OF PCb) LIST OF MEMBERS OF TWGc) LIST OF MEMBERS OF REPORT

DRAFTING COMMITTEE

APENDIX: II DETAILED LIST OF PRIORITY PROGRAMMES

SECTION TWO

MACROECONOMIC FRAMEWORK AND PROJECTIONS

22

CHAPTER ONE

2.0 Introduction

This section outlines the macroeconomic framework that underpins the Key Policies and

Programmes for 2011-2015. The framework describes the nature of relationships among various

sectors of the economy. The major sectors are identified as: i) Production Account; (ii) Government

Account; (iii) Private Sector Account; (iv) External Account and (v) Money and Credit Account.

The linkages and interactions among the various accounts are encapsulated in the macroeconomic

framework presented in Figure 2.1 below.

This framework is consistent with the NV20:2020 and 1st NIP.

2.1 Review of Recent Economic Developments

23

This review on the performance of the economy during 1999 to 2010 is underpinned by the need to

highlight recent challenges to economic growth and development with a view to flagging policy

directions for economic transformation during 2011-2015.

2.1.1 Output Growth, Sectoral Composition and Employment

Overall real GDP growth rate averaged eight per cent during 1999-2010 (Table 2.2). There was a

structural shift in the economy during the period from the crude oil to the non-oil sector, although

the oil sector dominance of export earnings and government revenues persisted. Specifically, the

relative contribution of oil and gas to GDP declined from 33.8 per cent in 1999 to 15.8 per cent in

2010 (Figure 2.2). Thus, the non-oil sector, propelled by the agricultural sector largely drove

growth in the period. The share of agriculture in the GDP averaged 40.3 per cent, accounting for

73.1 per cent of GDP growth (see Table 2.1 and Figures 2.3 and 2.4). Crop production, which was

buoyed by favourable weather condition, dominated agricultural production with an annual growth

rate of 11.3 per cent. Despite its dominance, the agricultural sector remained largely uncompetitive

owing to the application of traditional modes of production, with associated low productivity, and

the prevalence of rain-fed systems. Significant investments are yet to flow into the sector while

technology and infrastructure remain a challenge as farm loss arising from poor processing and

preservation technologies continue to undermine agricultural performance.

Figure 2.2: Oil and Non-oil Real GDP Growth Rates: 1999-2010

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GDP Oil and Gas Non-oil

Source: National Bureau of Statistics, Abuja

Table 2.1: Average Sectoral Growth Rates and Contribution to GDP, 1999-201024

SECTOR % of GDP

Growth (%)

Contribution to GDP Growth (%)

GDP 8.0Oil and Gas 24.0 1.7 -42.0Non-oil 76.0 10.3 142.0Agriculture 40.3 10.0 73.1Building, Construction and Real Estate

3.4 8.3 6.4

Health 0.0 6.6 0.1Finance and Insurance 4.3 5.0 5.7Manufacturing 4.0 7.9 6.7Mining and Quarrying 24.3 1.8 -41.4Other Services 1.4 11.0 4.7Public Administration 0.8 5.0 0.7Telecommunication and Postal Services

1.7 76.2 7.0

Transportation 2.5 10.1 4.4Utilities 2.9 68.2 5.7Wholesale and Retail Trade 14.4 11.3 27.0Source: National Bureau of Statistics

Figure 2.3: Key Sectoral Growth Drivers, 1999-2010

1999-2010

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

80.063.4

27.0

6.8 6.4 5.4 5.4 5.4

-42.0

Crop ProductionWholesale and Retail TradeTelecommunicationsOther ManufacturingElectricityFinancial InstitutionsFishingOil & Gas

Figure 2.4: Sectoral Contribution to Real Gross Domestic Product, 1999-2010

25

Crop produc-

tion35%

Other agriculture5%

Manufacturing4%wholesale and retail trade

14%

Oil and gas24%

Others17%

The Manufacturing sector recorded an average growth rate of 7.9 per cent accounting for a GDP

share of between 3.6 and 4.3 per cent during the period. However, the sector was constrained by a

hoard of factors including poor infrastructure and difficult policy environment.It achieved an

average industrial capacity utilization rate of 54.2 per cent during the period. In comparison, the

building and construction sector which grew steadily from 3.7 per cent in 2002 to 12.5 per cent in

2008, accounted for an average GDP share of 3.4 per cent during the period. Wholesale and retail

trade ranked next to agriculture and oil and gas sectors in their share contribution to GDP. Growing

at an annual average rate of 11.3 per cent during the period, the sector accounted for 14.4 per cent

of GDP and 27.0 per cent of GDP growth. Notwithstanding the relatively large size and growth rate

of the wholesale and retail sector, much of the goods traded in the sector have little domestic

content as they are predominantly imported.

Finance and insurance sector contribution to GDP averaged 5.0 per cent during 1999 to 2010. The

sector experienced two phases of consolidation during the period which helped it to mitigate the

effects of the global financial meltdown of 2008/2009. Nonetheless, the sector experienced a stock

market crash that eroded assets value of many financial institutions between 2008 and 2010.

Following the establishment of the Asset Management Corporation of Nigeria (AMCON) and the

implementation of a more thorough and prudent lending procedures for deposit money banks by the

Central Bank of Nigeria, stability has been largely restored in the industry.

With regard to the telecommunications and postal services sector, its share of GDP grew eleven-

fold, from 0.1 per cent in 1999 to 4.5 per cent in 2010, representing an average growth rate of 76.2

per cent and accounting for 7.0 per cent of GDP growth during the period. The sector’s impressive

26

performance was due to profound and far-reaching reforms which attracted significant private

capital and competition into the sector.

2.2 FISCAL OPERATIONS

2.2.1 Revenue and Expenditure

Public revenues improved significantly in absolute terms, rising from N920.7 billion in 1999 to

N4.84 trillion in 2009 and further to N7,30 trillion in 2010. This enhanced revenue performance

was due, in part, to improved oil production and soaring prices in the international oil market. As

ratio of nominal GDP, however, public revenues declined from 27.8 percent in 1999 to 25.1 per

cent in 2010. Capital expenditure fell below planned targets for most of the period. In particular,

appreciable fiscal reforms coupled with financial prudence largely brought fiscal operations of the

three tiers of government within the ambit of the Medium-Term Expenditure Framework as from

fiscal year 2005. Specifically, macroeconomic stability has been achieved through fiscal reforms

anchored on the introduction of an oil price-based fiscal rule under which earnings beyond the

budget benchmarks were saved in an Excess Crude Account (ECA) much of which was however

drawn down due to expenditure pressures.

2.2.2 Public Debt

The pursuit of fiscal prudence inspired moderation of fiscal deficits during the period, as federal

budget deficit as ratio of GDP was 3.3 per cent in 2009 and 3.8 per cent in 2010, while states and

local governments’ deficits were also minimal. This was the offshoot of progressive oil revenue

management and implementation of sound monetary policy, complemented by improvements in

debt management through the introduction of new debt instruments with longer maturities. In

particular, the public debt stock declined substantially from 74.8 percent of GDP in 2003 to about

18.0 in 2010, largely due to a successful debt relief deal struck with the Paris Club of creditors.

However, external debt has resumed its rising trend. It increased from $3.65 billion at the end of

2008 to $4.8 billion at the end of 2010 or 31.5 per cent, although 92.5% of these are multilateral

loans which are concessional with low interest rates and long pay-back periods. These loans are

targeted at infrastructure renewal, other capital projects and programmes to enhance the Nigerian

business climate. It is worthy to note however, that the external debt sustainability index (external

debt to nominal GDP) remains within an acceptable margin of 0.1 per cent.

27

Domestic debt has been on the upward trend, rising from N1.3 trillion (US$10.7 billion) in 2004

to N4.7 trillion (US$33 billion) in 2010. Arising from the above, the main challenges in the area of

fiscal policy include:

a. High share of recurrent in total government expenditure;

b. Growing size of budget deficit, public debt and debt service reflecting the emergence of

fiscal dominance;

c. Inefficiencies and ineffectiveness in the budget process including delays in processing the

annual budget;

d. Low level implementation of the capital budget

e. Lack of a performance-based budgeting framework and implementation monitoring;

f. Weak compliance with provisions of the Fiscal Responsibility Act, 2007;

g. Non-passage of the Fiscal Responsibility Act and Public Procurement by many state

governments.

As part of efforts to achieve fiscal consolidation, a high-powered Committee was set up to review

and recommend to the government, ways of reducing recurrent expenditures (in absolute terms and

relative to capital expenditure) and mechanics for shifting more of public expenditure to capital

formation.

2.3 The External Sector

2.3.1 External Trade

There was an improvement in the external trade sector during 1999 to 2010. In particular, external

trade rose by 25% from N11.0 trillion in 2007 to N13.74 trillion by the third quarter of 2010. Trade

was dominated by exports, particularly of oil, which represented 64.5% (N8.86 trillion) of total

trade during the period. This was due mainly to the surge in demand for crude petroleum and the

rise in prices as the world economy began to recover from the crisis of 2007-2010. Moreover, oil

imports accounted for 35% of total merchandise imports, reflecting the poor state of local refineries

during the period. It is believed that this structural defect would be addressed by the proposed

Petroleum Industry Bill when enacted into law by the National Assembly. The current account to

GDP ratio remained positive during the period.

28

2.3.2 Exchange Rate Policy

Foreign exchange management during the period under review was underpinned by the need to

among others, preserve the external value of the naira; diversify the productive base of the

economy by increasing non-oil export and narrowing the arbitrage premium between the official

and parallel markets. Indeed, prior to the global financial crisis in 2008, exchange rate stability was

achieved after many years as the exchange rates in the various markets, including the parallel

market converged in 2006. Significantly, the naira appreciated to N127.2/US$1.0 and

N118.2/US$1.0 in 2006 and 2008, respectively (Figure 2.5). With the onset of the global meltdown,

the exchange rate depreciated in all segments of the market in November 2008 and against all

international currencies by end of December, 2008. Consequently, the end-period exchange rate

swung from an appreciation of 8.9 per cent (year on year) in 2007 to a depreciation of 11.0 per cent

in 2008. Thereafter, the depreciation of the average exchange rate moderated from 20.1 per cent in

2009 to 0.9 per cent in 2010.

Figure 2.5 :Yearly Average Exchange Rate of the Naira per US Dollar

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

0.0020.0040.0060.0080.00

100.00120.00140.00160.00180.00

Official BDC Parallel

2.4 Monetary and Financial Policy Development

2.4.1 Monetary policy

Nigeria’s monetary policy has evolved from direct control to market-based monetary management

during the 1990-2010 period. The major thrust of monetary policy is ensuring monetary and price

stability and achieving non-inflationary growth. A number of steps were taken to strengthen the

financial sector and enhance its capacity to supply credit to the productive sectors of the economy

29

and to create a stable and sound environment for effective monetary policy implementation. These

included the banking consolidation and recapitalization exercise of 2005, which culminated in

reduction of the number of banks from 89 in 1999 to 24 in 2006 and the establishment of the Asset

Management Corporation of Nigeria (AMCON) as a vehicle for resolving the problem of the non-

performing loan assets of banks.

Similarly, the monetary authorities implemented more active, and predictable interest rate and

exchange rate policies during the period. Accommodating monetary policy was largely avoided

while the monetary policy operating target shifted to inter-bank rate with the monetary policy rate

(MPR) as the indicative rate. The MPR was situated within an interest rate corridor of +/- 200 basis

points, at inception, with the upper band serving as the rate for Standing Lending Facility (SFL)

and the lower band for Standing Deposit Facility (SDF). The MPR and its corridor were reviewed

from time to time by the Monetary Policy Committee (MPC) in line with prevailing financial and

economic conditions.

2.4.2 Banking Sector Reform

The capacity of banks to finance big transactions and extend credit to small and medium scale

enterprises has risen significantly. The rapid expansion in banking sector activities (portfolio size

and diversity; and branch network) however, stretched the capacity of the operators and regulators

to the limit. Following the global financial and economic crises, non-performing assets grew

phenomenally such that, by mid-2009, the banking system was under stress. The CBN introduced a

number of initiatives. including special audit, change in the managements of some DMBs, injecting

monetary policy stimulus of N620billion, enforcement of good corporate governance, full

information disclosure and strengthening of prudential regulations, among others to contain the

situation.

2.4.3 Capital Market Developments

The Nigerian capital market witnessed unprecedented growth and development from 1999 to 2010,

as all capital market indicators grew rapidly with the All-Share Index rising from 5,226.4 in 1999 to

24,770.5 at end-December 2010. Similarly, market capitalization increased progressively from

N294.1billion in 1999 to N15.3 trillion at end-March 2008, but falling to N9.9trillion at end-

December 2010. The banking sector consolidation exercise of 2004-2005 and subsequent reforms

implemented in the sector impacted positively on the capital market as most of the DMBs raised

funds from the stock market through initial public offers (IPOs) to achieve the statutory minimum

shareholders’ fund of N25billion prescribed by the CBN. 30

2.4.4 Inflation

Developments in respect of the price level were influenced by monetary and fiscal factors during

the review period. As shown in Table 2.2, the headline inflation rate (12-month moving average)

recorded 12 per cent on average in the period 1999-2010. Money supply growth has also been

relatively stable, averaging 43 per cent in the same period, despite the appreciable GDP growth

rate of eight per cent. It should, however, be noted that a major challenge remained the inability to

achieve single digit inflation rate during the period.

Table 2.2: Growth of Monetary Variables 1999-2003 2004-2010 1999-2010

Inflation Rate (%) 11.9 12.1 12.0

Money Supply (M2) Growth (%) 30.8 46.1 43.3

GDP Growth Rate (%) 9.2 7.2 8.0

Source: Central Bank of Nigeria and National Bureau of Statistics

2.4.5 Employment Situation

The composite employment data showed that the rate of unemployment rose from 13.7% in 2006 to

14.6% in 2007 and 21.1% by January 2010. Unemployment was more endemic in rural

communities than in cities for all age groups. The gap between rural and urban unemployment

rates narrowed in 2010, reflecting a sharp increase in urban sector unemployment rate as growth of

rural unemployment slowed.

Table 2.3: Unemployment Rate by Age Group and Sector, 2010

2006 2007 2010

Age

Group

URBAN

RURAL

NATIONAL

URBAN

RURAL

NATIONAL

URBA

N

RURA

L

NATIONA

L

15-24 31.9 30.3 30.8 16.1 14.7 15.1 31.5 37.3 35.9

25-44 5.1 11.1 8.8 14.1 14.1 14.1 17.8 26.5 23.3

45-59 1.6 6.7 4.8 13.4 15.0 14.6 11.0 20.3 16.8

60-64 4.0 8.3 7.3 20.3 19.8 19.9 10.0 17.1 14.4

65-70 4.2 12.5 7.1 27.2 22.2 23.5 11.6 18.3 16.0

ALL

GROUP

S

10.2 14.8 13.7 14.4 15.0 14.6 10.2 24.2 21.1

31

Source: NBS

Unemployment rate among 15-24 age group was 30.8% in 2006, tumbling to 15.1% in 2007 and

climbing back to 35.9% in 2010. Age group 25-44 had the next highest unemployment rate at 8.8%

in 2006 which surged to 14.1% in 2007 and 23.3% in 2010. Other age groups also recorded rising

unemployment rates during 2006, 2007 and 2010.

2.5 Tracking Progress Towards Achieving The Targets Set in the 1st NIP (2010-2013)

The aim of this section is to assess the extent to which actual performance of the economy in 2010

which is the first year covered by the 1st NIP, compare with the targets set in the Plan for that year.

As may be seen in Tables 2.4 and 2.5, the Nigerian economy recorded modest performance in 2010

in terms of broad macroeconomic and sectoral indicators. However, the performance generally fell

below the targets set in the NV20:2020 and the 1st NIP, especially in respect of sectoral indices.

Real GDP grew at 7.87% in 2010 as against a target of 8.2%. Inflation rate was 12% compared to

the 9% target; fiscal deficits ratio stood at 3.62% in 2010 as against 3 per cent target. Electricity

generation was 4,000MW as against a target of 10,770MW set in the 1st NIP while life expectancy

stood at 48.8 years compared to 51 years that was targeted.

Table 2.4: Macroeconomic Targets and Performance

  2009 2010  

Baseline Actual Target (KPI)

Real GDP (Naira Billion) 719 775.5 780.4Real GDP Growth Rate 6.96 7.87 8.2Nominal GDP (US$Billion) 165.7 194.3 195.9Nominal Per Capita GDP (US$) 1073.8 1219.9 1229.5Collected Total Tax Rev (% of GDP) 5.7 6.8 9External Debt Growth (% of GDP) 0.06 15.95 2External Debt (% of GDP) 2.38 2.36 6.17Foreign Reserves stock (US$m) (number of months of imports) 42.4 (16.6) 32.3 (7.8) 58.6 (23.8) Average Exchange Rates (N/$) 148.9 150.3 147Private Sector Credit (%) 32.454 12.02 36Inflation Rate (%) 15 12.1 9Unemployment Rate (%) 19.7 21.1 Single digit Fiscal deficit GDP ratio (%) 3.62 3.0 

Source: NBS and CBN

32

Table 2.5: Sectoral Targets and Performance

  2009 2010  

  Baseline Actual Target (KPI)

Contribution of Agriculture to GDP (%) 41.7 40.8 35Contribution of Manufacturing to GDP (%) 4.17 4.16 7.5Capacity Utilization (%) 37 52 47Size of farmland irrigated (hectare) 145,000 150,000 200,000employment in oil and gas sector (% of total employment) 0.08 0.08 0.5Electricity generated (Megawatts) <3,000 4,000 10,000Life expectancy (years) 47.9 48.8 51

Source: NBS and CBN

There are major challenges arising from the review above. The macroeconomy still faces several other challenges as enumerated below:

High level of GDP growth that is non-inclusive and non-employment generating; unemployment rate still above 20%; Poverty remains high at almost 50%; Depleting foreign reserves; Lack of diversification of the economic base; Agricultural share of GDP remains over 40%; Manufacturing share in GDP still under 5%;• Infrastructure deficit, especially power and transportation, persists;• Substantial deviation of the 2010 budget from the capital investment target set in the 1st

NIP;• Non-achievement of the investment targets of the 1st NIP;• Rising fiscal deficits;• Rapidly rising recurrent expenditures• Rapidly rising domestic debt.

2.6 Macroeconomic Outlook for 2011-2015

Arising from the foregoing review of recent performance and key challenges, the thrust of

macroeconomic policy for 2011-2015 is to lay the foundation for a Nigerian economy that is

competitive, structurally integrated, vibrant and diversified. This is consistent with the aspirations

of the NV 20:2020 and the 1st NIP.

Macroeconomic Objectives

The main macroeconomic objectives during the programme period are as follows:

a) Reduction in the incidence of poverty and income inequality;

b) Increased employment opportunities in pursuit of full employment;33

c) Price stability - single digit inflation rate;d) Broad based growth, with regional balance and equity;e) External viability;

f) Fiscal viability; g) Increased savings and investment;

h) Effective management of the exchange rate

2.7.1 Goals and Strategies

The key macro-economic strategies to be implemented during the programme period will be

anchored on the NV20:2020 and the 1st NIP, namely: guaranteeing the productivity and well-being

of the Nigerian people; optimising key sources of economic growth; and fostering sustainable

social and economic development. Specifically, the goals will include the following:

Achieving double digit growth rates and maintaining strong economic fundamentals;

Achieving significant progress in economic diversification to ensure an economic structure that is robust and consistent with the goals of NV 20:2020;

Stimulating the manufacturing sector and strengthening its linkage to other sectors especially agriculture, transport, construction and oil and gas, in order to achieve the sector’s growth potentials and make it a strong driver of growth;

Raising the relative competitiveness of the real sector to increase the demand for Nigeria’s non-oil products and services;

Deepening the financial sector and sustaining its stability thus enabling it to finance the real sector;

Focusing and enlarging the scale of investment in infrastructure and human capital;

Creating an enabling environment for private investment; and

Adopting pragmatic fiscal management and implementation of appropriate monetary, trade and debt management policies to support domestic economic activities.

2.7.2 Key Macroeconomic Assumptions

The macroeconomic projections for the period are based on some key assumptions as detailed in

Table 2.6. The major difference between these assumptions and those of the 1 st NIP is the effects

of oil price increases. This is projected to impact several macroeconomic aggregates during the

period.

34

Table 2.6: Macroeconomic Assumptions for 2011-2015ITEM 2011 2012 2013 2014 2015Crude Oil Production (mbd) 2.4 2.5 2.5 2.5 2.5Crude oil Price (US$) 65 65 65 65 65Real GDP Growth Rate (per cent) 8.5 11.0 11.0 13.0 15.0CPI Inflation Rate (per cent) 10.0 9.5 9.0 9.0 9.0Nominal Exchange Rate 154.4 156.7 159.5 157.0 154.0Population Growth Rate (per cent) 3.2 3.0 2.8 2.8 2.8Growth in Non-Oil Exports (per cent) 29.5 30.5 31.0 31.5 32.0External Debt (per cent Growth Rate) 3.5 3.2 3.0 3.0 3.0Monetary Policy Rate (MPR)(per cent) 6.5 6.5 6.5 6.5 6.5Fiscal Deficit (per cent of GDP) 3.0 3.0 3.0 3.0 3.0Source: National Planning Commission

2.7.3 Global Economic Outlook

During the programme period, the Nigerian economy will be impacted by developments in the

international economy. The recovery of the world economy which began in 2010 is expected to

continue into 2011 and beyond. The overall growth of the world economy during 2011 and 2012

are projected at 4.5 per cent and 4.4 per cent, respectively. This represents a moderation from a

stronger growth of 5.0 per cent in 2010. This recovery is expected to be driven largely by emerging

and advanced economies. In this regard, advanced economies are projected to grow by 2.5 per cent

in 2011-2012, while growth in emerging economies and Sub-Saharan Africa are projected at an

average of 5.6% and 6.5% in 2011 and 2012, respectively. Similarly, the envisaged growth of the

world economy will depend heavily on the pace of recovery in the US, Japan and China. Growth

prospects for China and India are bright with output expected to rise from 9.7 per cent and 8.1 per

cent in 2010 to 10.0 and 8.8 per cent in 2013, respectively.

The global inflation during the programme period is expected to be mild, reflecting the adoption of

non-inflationary monetary policies by major developed countries. The consumer price index (CPI)

for advanced and emerging economies are projected at 1.9 and 4.5 per cent respectively in 2012,

compared with 3.2 and 5.2 per cent, respectively in 2009. For Africa, the inflation rate is expected

to decline from 7.5 per cent in 2010 to less than 7.0 per cent in 2012. World trade in goods and

services will experience positive growth during the programme period and the terms of trade is

expected to favour emerging and developing economies. World prices of oil and agricultural raw

materials are expected to turn positive from their negative growth rates of 36.3 per cent and 17.0

per cent in 2009.

35

2.7.4 Overall Growth Prospects

A baseline GDP growth rate of 11.7 per cent per annum is assumed for the period 2011-2015. This

will translate to real and nominal GDP of about N428.6 billion and N73.2 trillion at the end of the

programme period. These projections are informed by the fact that the process for steering and

executing the programme are being re-organised and improved upon drawing on lessons of

experience, while various bottlenecks that have traditionally hampered the achievement of higher

growth rates in the economy are being identified and eliminated. Equally, the envisaged reforms

contained in this Programme as well as steps taken to improve infrastructure, will enhance the

actualisation of these targets. Furthermore, in view of the improved global outlook and

achievement of 7.9 per cent growth in 2010, the assumption of a growth rate of 11.7 per cent per

annum for 2011-2015 which is in line with the NV20:2020 target, can be attained. The details of

the growth rates and structure of GDP are shown in Tables 2.7 and 2.8.

Table 2.7: Projected Growth Rate of GDP by sector for 2011-2015 (%)2010 2011 2012 2013 2014 2015 2011-2015

Agriculture 5.7 5.0 6.2 6.3 6.8 6.8 6.2Building, Construction & Real Estate 11.5 19.0 21.3 21.4 24.5 25.6 22.4Oil & Gas 4.6 3.0 3.4 4.1 4.4 3.6 3.7Health 10.0 10.8 17.9 18.0 21.5 22.3 18.1Finance & Insurance 3.9 9.7 13.8 14.0 15.7 16.8 14.0Manufacturing 7.6 10.4 24.1 24.1 32.2 46.5 27.5Mining & Quarrying 4.7 4.1 4.7 4.8 4.8 4.2 4.5Other Services 10.2 10.6 11.0 11.0 13.0 14.9 12.1Public Administration 4.2 15.6 19.6 13.3 17.4 17.9 16.8Telecommunication & Postal Services 34.5 34.7 34.8 34.8 33.9 36.4 34.9Transportation 6.7 11.4 17.8 17.9 27.6 28.1 20.6Utilities 3.3 13.2 15.7 16.2 16.8 16.9 15.7Wholesale & Retail Trade 11.2 9.5 9.7 9.7 9.6 9.2 9.5GDP 7.9 8.5 11 11 13 15 11.7Non-oil 8.5 9.5 12.3 12.1 14.3 16.6 13.0

Source: National Planning Commission

Table 2.9: Projected Structure of GDP for 2011-2015 (%)2010 2011 2012 2013 2014 2015 2011-2015

Agriculture 40.9 39.6 37.9 36.3 34.3 31.8 36.0Building, Construction & Real Estate 3.7 4.1 4.5 4.9 5.4 5.9 5.0Oil & Gas 15.8 15.0 14.0 13.1 12.1 10.9 13.0Health 0.0 0.0 0.1 0.1 0.1 0.1 0.1Finance & Insurance 3.6 3.6 3.7 3.8 3.9 4.0 3.8Manufacturing 4.2 4.2 4.7 5.3 6.2 7.9 5.7Mining & Quarrying 16.1 15.5 14.6 13.8 12.8 11.6 13.7Other Services 1.7 1.7 1.7 1.7 1.7 1.7 1.7Public Administration 0.7 0.7 0.8 0.8 0.8 0.8 0.8Telecommunication & Postal Services 4.6 5.6 6.8 8.2 9.7 11.6 8.4Transportation 2.7 2.8 2.9 3.1 3.5 3.9 3.2Utilities 3.2 3.3 3.4 3.6 3.7 3.8 3.6Wholesale & Retail Trade 18.7 18.9 18.7 18.5 17.9 17.0 18.2GDP 100 100 100 100 100 100 100.0Non-oil 84.2 85.0 85.8 86.9 87.9 89.1 87.0

Source: National Planning Commission

36

The projected GDP growth for the period will be driven largely by oil and gas, solid minerals,

agriculture, ICT equipment and softwares, telecommunication, wholesale and retail trade, tourism

and entertainment, manufacturing, and building and construction sectors. A gradual structural

transformation of the economy is expected during the programme period. The desired structural

change in output has sectoral implications, particularly for manufacturing, telecommunications and

building, construction and real estate. In particular, the manufacturing sector, telecommunications

and postal services and building, construction and real estate are expected to grow by 27.5 per cent,

34.9 per cent and 22.4 per cent per annum respectively during the period. Other sectors of the

economy such as agriculture, oil and gas and wholesale and retail trade are projected to grow by 6.2

per cent, 3.7 per cent and 9.5 per cent per annum respectively. The shares of manufacturing and

building, construction and real estate in total output are therefore expected to increase from 4.2 per

cent and 3.7 per cent respectively in 2010 to 7.9 per cent and 5.9 per cent in 2015 while agriculture,

oil and gas and wholesale and retail trade are projected to decline from 40.9 per cent, 15.8 per cent

and 18.7 per cent respectively in 2010 to 31.8 per cent, 10.9 per cent and 17.0 per cent in 2015.

The sectoral contribution to overall GDP growth shows that the contribution of agriculture to

growth will decrease from 24.1 per cent in 2011 to 15.4 per cent in 2015 while the contribution of

oil and gas is projected to fall from 5.5 to 2.9 per cent in the same period. Meanwhile contribution

of manufacturing to GDP growth is expected to rise from 5.1 per cent in 2011 to 19 per cent in

2015 (Table 2.10).

Table 2.10: Projected Sectoral Contribution to Overall GDP Growth Rate (%)2011 2012 2013 2014 2015 2011-2015

Agriculture 24.1 22.4 21.8 18.9 15.4 20.5Building, Construction & Real Estate 8.4 8.0 8.7 9.2 9.2 8.7Oil & Gas 5.5 4.6 5.2 4.4 2.9 4.5Health 0.1 0.1 0.1 0.1 0.1 0.1Finance & Insurance 4.1 4.5 4.7 4.6 4.4 4.4Manufacturing 5.1 9.3 10.4 13.1 19.2 11.4Mining & Quarrying 7.9 6.6 6.3 5.1 3.6 5.9Other Services 2.1 1.7 1.7 1.7 1.7 1.8Public Administration 1.2 1.2 0.9 1.0 1.0 1.1Telecommunication & Postal Services 18.3 17.7 21.4 21.4 23.6 20.5Transportation 3.6 4.5 4.7 6.6 6.6 5.2Utilities 4.9 4.7 5.1 4.6 4.2 4.7Wholesale & Retail Trade 20.9 16.7 16.5 13.6 11.0 15.7GDP 100.0 100.0 100.0 100.0 100.0 100.0Non-oil 94.5 95.4 94.8 95.6 97.1 95.5

Source: National Planning Commission

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2.7.5 Projected Structure of Investment

The investment size is derived from the key macroeconomic assumptions in Table 2.11. A total

investment size of N35.51 trillion in nominal terms is projected for the five-year programme

period. The public sector will account for N20.28 trillion or 57.1. per cent, while the private sector

contribution is projected at N15.2 trillion or 42.9% of total investment. This is in accordance with

the aspiration of the 1st NIP which earmarked 59.38 per cent of investment to the public sector and

40.62 per cent to the private sector. This is also consistent with the private sector-led growth

strategy.

Table 2.11: Structure of Gross Investment at Current Market Prices (Naira Billion)

2011 2012 2013 2014 2015 Total Average

Private 1,755.49 2,158.50 2,953.83 3,708.59 4,657.16 15,233.57 3,046.71

Public 2,633.23 3,237.76 3,759.42 4,720.02 5,927.29 20,277.72 4,055.54

Total 4,388.72 5,396.26 6,713.25 8,428.61 10,584.45 35,511.29

Source: NPC

2.7.6 Projected Structure of Public Sector Investment

Overall, investment plan for the public sector is projected at N20.28 trillion. This comprises N10.66

trillion for the Federal Government and N9.61 trillion for the State and local governments as

detailed in Table 2.12.

Table 2.12: Structure and Phasing of Public Sector Investment

Year Total FGNStates & LGs

2010 2,405.84 1,265.47 1,140.37  2011 2,633.23 1,385.08 1,248.15  2012 3,237.76 1,703.06 1,534.70  2013 3,759.42 1,977.45 1,781.96  2014 4,720.02 2,482.73 2,237.29  2015 5,927.29 3,117.75 2,809.54  Average (2011-2015) 4,055.54 2,133.22 1,922.33  Total (2011-2015) 20,277.71   10,666.08 9,611.64  

Source: NPC

2.7.7 Proposed Structure of Public Sector Investment

38

The projected fiscal profile of the Federal Government is contained in Table 2.13. Projected annual

average FG’s retained revenue is projected at N4.411 trillion. Federal government’s annual average

capital expenditure is N2.133 trillion while recurrent annual average expenditure is projected at

N3.357 trillion, resulting in a fiscal deficit/GDP ratio of 2.48% to 3.0% or annual average of 2.83%

during the period. This is within the limit set in the Fiscal Responsibility Act.

Table 2.13: Projected fiscal profile of the Federal Government 2011 2012 2013 2014 2015 Average Total

Federal Government Retained Revenues 3,740.00 4,024.054,392.8

64,700.8

5 5,197.76 4,411.1122,055.5

3

Total Recurrent Expenditure 3,219.64 3,274.013,365.1

03,429.6

7 3,499.03 3,357.4916,787.4

5

Capital Spending 1,385.08 1,703.061,977.4

52,482.7

3 3,117.75 2,133.2210,666.0

8

Aggregate Expenditure 4,408.60 4,771.785,133.8

25,700.3

3 6,401.32 5,283.1726,415.8

5

Overall Fiscal Gap -668.6 -747.73 -740.96 -999.48-

1,203.56 -872.07 -4,360.33

Overall Fiscal Gap as % of GDP -3 -2.9 -2.48 -2.86 -2.92 -2.83  Source: NPC

2.8 Resource Limitation and Policy Trade-offs

In view of the several challenges highlighted above and government limited resources, trade-offs

are inevitable and hard choices must be made. For instance, the size of budget deficits has

implications for other macroeconomic variables. First, budgets financed through money creation

fuels inflationary, thereby exerting pressure on the conduct of monetary policy. Second, high

budget deficit induces high interest rates, crowds out borrowing by the private sector and

undermines real sector production. Thirdly, budget deficits financed through external borrowing

can lead to exchange rate depreciation, external debt accumulation and depletion of external

reserves. All these show that actions taken in one sector (e.g. fiscal sector) have ramifications

across sectors. This is why agreements have to be reached on the broad parameters or assumptions

undergirding the management of the economy in the programme period 2011-2015, including

keeping budget deficits at 3% of GDP which is the international threshold and also in line with the

provisions of the Fiscal Responsibility Act. It is also important that fiscal coordination be achieved

among the three tiers of government and that the number, cost and scope of programmes and

projects be rationalized to ensure that government utilizes its resources efficiently.

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2.9 Key Macroeconomic Policy Options/Initiatives

Accordingly, the key policies to be pursued by government during the Programme period are the

following;

1. Ensure greater coordination and harmony between fiscal and monetary policies. In this

regard, the National Planning Commission, in collaboration with the Ministry of Finance,

the CBN and other economic coordinating institutions will be strengthened to facilitate

effective coordination of fiscal and monetary policies.

2. Pursue sound macroeconomic policies, including fiscal prudence supported by appropriate

monetary policy to bring inflation to single digit.

3. Streamline the budget process to ensure greater clarity of roles between the executive and

the legislature and to ensure that the appropriation bill is enacted into law within the first

month of the year.

4. The direction of policy should draw inspiration from best practices in setting allocation

priorities rather than micro-budgeting or disagreement over figures with the Executive by

the Legislature.

5. Review existing revenue allocation formula to achieve a more balanced fiscal federalism.

6. This is expected to pave the way for effective implementation of programmes at the sub

national level.

7. Institutionalise the culture of development planning at all levels of government and ensure

that the annual capital budget allocations take a cue from the medium and long term

development plans.

8. Towards this end, the National Assembly should expedite the passage of the Planning and

Project Continuity Bill in order to strengthen the Plan-Budget link and reduce the high

incidence of abandoned projects.

9. Eliminate export of unprocessed products.

10. Ensure guided liberalisation and deregulation of the economy. In this regard, efforts should

be made to speed up the privatisation of non-performing government-owned enterprises.

11. Articulate consolidated tariff regime to last for the next seven years.

12. Minimise obstacles to private investment

13. Unlock regional and national growth potentials

14. Institutionalize a system of federal matching grants to reduce direct federal involvement in

the implementation of key national projects contained in the concurrent list of the

Constitution.

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15. The system shall be institutionalized in 2012 after developing an appropriate framework in

collaboration with the states.

16. Pursue appropriate policy measures contained in the report of the committee set up to

address the challenge of unemployment.

17. Transform the six geopolitical zones over time into economic zones or regional hubs as part

of efforts to fast-track balanced economic growth, development and integration.

18. Introduce part time services to the National Assembly in order to reduce overall cost of

governance.

19. Align the remunerations and allowances of political office holders with the structure in the

civil service and link it to the minimum wage.

20. Enlarge the scope for stakeholder participation in policy formulation, implementation and

monitoring.

21. Reinforce the platform for continued dialogue with the private sector in search of solutions

to critical socio-economic challenges.

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CHAPTER TWO

JOB CREATION: POLICY OPTIONS, PRIORITY PROGRAMMES AND PROJECTS

1. Introduction

The Nigerian economy is experiencing growth without employment as the rate of growth of the labour force exceeds the employment opportunities that are being created. The unemployed population is at present, dominated by the youth who are mostly school leavers with senior secondary school qualifications and graduates of tertiary institutions. Indeed, what counts as employment is largely disguised unemployment because many of the jobs available are of poor quality. The problem is not confined to the urban centres as rural unemployment has also been rising. These various dimensions of the unemployment problem reflect the undiversified nature of the economy which restricts the scope for job creation. Official statistics released by the National Bureau of Statistics show that the unemployment rate stood at 21.1% in March 2010. The recent global economic crisis has worsened the unemployment situation consequent upon massive job losses especially in the finance and banking sector. Wage employment has also declined, as downsizing across key sectors exacerbates the unemployment crisis with social, political and economic consequences. Some estimates have it that 5-6 million job seekers go into the labour force every year. That poses a huge challenge.

2. Major causes of high unemployment in Nigeria

The unemployment problem reflects previous slow growth of the economy relative to population growth, the lack of diversification of the economy which has seen growth in most sectors not generating commensurate employment. Another major cause is inadequate infrastructure which leads to high cost of doing business, high business failure rates and poor country competitiveness. The unattractive investment climate, including inadequate incentives to promote domestic and international private sector investments in industry and low tariff on imported finished products that can be/ produced locally as well as inadequate access to finance as a result of short term nature of banking intermediation, also contribute to engender unemployment. Nigerians’ poor formalised saving culture, limited capacity of the microfinance sector, slow pace of credit market reforms, insufficient credit facilities to the real sector and high interest rates have negative impact on growth ans employment.

Unemployment is also fuelled by skill shortages occasioned by dearth of skilled personnel and entrepreneurial competence, inadequate capacity of vocational skill centres and the non-orientation of the educational system to the production of vocational skills that are aligned to industry requirements. Similarly, weak regulatory institutions, including poor accountability for failure, proliferation and poor co-ordination of regulatory agencies has also contributed to the unemployment crisis.

3. Sector Issues

The prospect of generating more employment in the Nigerian economy depends largely on addressing a range of sector issues. For instance, there is acute lack of access to affordable capital and absence of capacity building for small and medium scale enterprises (SMEs) as well as

42

infrastructural constraints . Nigerian agriculture is characterised by dependence on rain-fed shifting agriculture. The key issues in the sector include operation and efficiency of the River Basin Authorities, the policy on procurement and distribution of fertilizers, preservation and storage of farm produce, post harvest losses, ineffective price stabilization policy and lack of export-oriented development strategy to promote value chain in the sector.

The challenges facing the manufacturing sector include lack of technological base, preference for foreign made products arising from the lack of competitiveness of domestic products (in terms of price and quality), high cost of doing business occasioned by infrastructural deficiencies, multiple taxation, smuggling and dumping and poor access to finance.

This building and construction sector is confronted with problems of inadequate local value addition in the sector and manpower constraints in terms of quality and quantity. The housing sector is characterised by critical shortage of decent and affordable housing in Nigeria’s major cities, high cost of inputs in the housing industry, non-accessibility and non-affordability of long term mortgage financing, bottlenecks in land ownership, including the acquisition of certificates of occupancy. For Public Works Programme, the main issues are lack of maintenance culture (in the areas of public schools, highways, hospitals etc.) and low awareness in terms of environmental consciousness (public sanitation and waste management etc).

The sports sector is beset by inadequate sports infrastructure, poor administration and weak value chain in the sports industry. The entertainment sector faces inadequate funding, poor infrastructure and inadequate protection of intellectual property rights.

The core considerations in terms of technical and vocational education include inadequate technical manpower in terms of quantity and quality and lack of access to seed capital for self employment. The challenges in the health sector include inadequate access to primary health care especially in rural communities, high cost of health care services and appalling state of health infrastructure (equipment and supplies).

Finally, there is a general lack of employment information and reliable unemployment statistics to enable planners effectively respond to the unemployment challenge.

4. Policy options and programmes

Since the demand for labour is a derived demand, the implementation of the following policy options to reinvigorate various sectors of the economy will enhance their employment generating potential.

In micro, small and medium size enterprises, equipment leasing outfits will be incentivized as a veritable funding source for SMEs and government development finance Institutions will be strengthened to support SMEs. In this regard, SMEEIS will be transformed into Private Equity Fund leveraging on the over N37 billion accumulated Fund in the Scheme.

In the agriculture and agro-allied sector, the constraints to economic activities in the existing clusters of economic activities will be addressed. This will spur growth and create jobs in those areas, which exist in all the geo-political zones of the country. The value chains in these activities will be deepened by encouraging backward and forward integration. This will help to evolve new economic activities that will create jobs, promote wealth creation and enhance income generation. In addition, relevant infrastructure to link rural economic activities with those of the growth poles

43

will be provided. The clusters of economic activities will be connected to each other, thereby greatly enhancing logistics. The corridors created in the process of providing road, rail and waterway infrastructure will also make new communities and economic activities to evolve.

The fertiliser delivery programme will be repositioned to reduce rent seeking and other leakages and enhance access by intended beneficiaries. Similarly, all River Basins Authorities in the country will be privatized/outsourced to allow for efficiency and private sector investment flow from within and outside the country. More silos (strategic reserves) will also be constructed.

There will be periodic government intervention to mitigate obstructive price gyrations during bumper harvest and a viable and operational Commodity Exchange will be established to enhance produce marketing. Effective liaison will also be initiated with the Ministry of Works to improve motorability of feeder roads for easy evacuation of agricultural produce.

For the manufacturing sector, the government will pursue a realistic stable exchange rate regime and single digit interest rates, and continuously review the tariff regime especially in conformity with ECOWAS CET. It will promote Export Processing Zones (EPZ), Economic Zones (EZ) and industrial clusters, speed up implementation of 24 hour clearing of cargo at ports (i.e. ports facilitation/import-export clearing) and upgrade critical infrastructure.

In the Building & Construction Sector, locally produced building materials will be actively employed for construction activities without compromising on quality, Moreover, all road designs must be done in-country in line with the Local Content Act. In addition, all culverts/drains in major projects would be subcontracted to Nigerian companies. Emphasis will be placed on labour intensive technologies to promote employment while Nigerian engineers will be attached to foreign engineers with well defined minimum exposure and practical training. Employment criteria will be added as margin of preference in contract awards and an equivalent of the Petroleum sector’s Local Content Act will be enacted for the building and construction sector. All these have the potential to increase employment of Nigerians.

For the housing sector, the Federal Ministry of Housing will provide site and services in all parts of the country in collaboration with states and local governments. On their part, states and local governments will provide low cost housing within the range of 100,000 to 200,000 units annually in major cities across the country. Local contents such as bricks will be encouraged in the construction of housing while all inputs used in delivering housing will be obtained from the locality to create jobs and add value.

Schools modernization and other public buildings renovation will also be undertaken. This involves painting of public primary/secondary schools, clinics and hospitals and renovation of public primary/secondary schools. Similarly, waste management,/environmental works will be executed leveraging on improving the general sanitary condition and beautification of rural and urban communities across the country through:

• Clearing of weeds/ on the street, roads,/pavements,/parks etc• Opening of blocked drainages• Construction of mini culverts• Provision of public toilet facilities

Job centres will be created in the 774 local government areas in the country to capture both rural and urban unemployment statistics and employment opportunities. It will be mandatory for

44

establishments to make returns to NBS and the Ministry of Labour on their job situation on a monthly basis while enterprises that are able to increase the number of their employees in the middle and upper categories will be granted some incentives. In this regard, the employment baseline in various enterprises will be established and discussions will be entered into between government and trade groups to agree modalities for implementing this programme.

Other policy options for developing the various sectors and promoting their employment generating capacities are:

Strengthening of SMEDAN to be able to discharge its technical support to SMEs including business advisory and preparation of bankable feasibility study.

Implementing a youth employment safety net support program that includes conditional cash transfer and vocational training

Undertaking systematic evaluation of existing youth employment programmes and developing evidence-based best practice guidelines to improve future interventions.

Development of Industrial Clusters

Expedition of the review of the Land Use Act.

Promotion of extensive irrigation farming

Promotion of Commercial agriculture

Elimination of multiple taxation

Curbing smuggling

Strengthening of NAFDAC and SON

Easing of access to sources of finance such as the Credit Guarantee Scheme

Establishment of a Nigeria Trade and Competition Commission

Reviewing of university curricula to align with industry job requirements and promotion of apprenticeship/work experience programmes and joint ventures.

Implementation of Government White Paper of 2005 which is a strategic plan for engineering development and control in Nigeria to be targeted at engineers, artisans and unskilled labour

Enforcement of mandatory sub-contracting and partnering with locals by foreign construction companies

Implementation of mandatory skills transfer to Nigerians by foreign construction companies

Restructuring and recapitalization of the Federal Mortgage Bank to play its primary role in the mortgage industry

45

Creation of additional mortgage institutions to provide access to capital for building

Expedition of passage of the Land Reform Bill

46

CHAPTER THREE

PUBLIC EXPENDITURE MANAGEMENT

The sub-optimality of the expenditure profile of the Federal Government of Nigeria (FGN) has

been a major area of concern. Since 1999, recurrent spending has consistently been crowding out

capital expenditure, exacerbating the already abysmal state of infrastructure. Recurrent expenditure

has fluctuated between 47.5% in 1999 to 80.29% in 2003, when capital expenditure accounted for

only 19.71% of total government expenditure. It has since increased continually to a high of

38.37% of total expenditure in 2009. It grew much worse in 2011 when government has had

recourse to borrowing to finance recurrent expenditures. Recurrent expenditure from 1999 to 2009 has

averaged 149.4% of total Federal Government non-oil revenue. The Nigerian public expenditure profile

does not compare favourably with those of peer economies such as Brazil, India, Indonesia, and South

Africans as well as the bottom 5 of the top 20 most developed economies, a club to which Nigeria aspires to

join by year 2020.

A review of the expenditure profile in Nigerian undertaken by a special Economic Management

Team Committee reveals that: trends in oil revenue appear to drive public expenditure behavior. Worse

still is the observation that over time, deficit financing has become a feature of FGN’s public expenditure

profile, often without justifications. In 2011, borrowing had to be undertaken to finance recurrent

expenditures. This has been of serious concern in an environment of dilapidated infrastructure. Furthermore

there is little relationship between growth in total public expenditure and economic growth. Indeed,

available evidence indicates that growth in public expenditure is inversely related to the rate of change in

human welfare. The representative political system in Nigeria since 1999 has escalated the recurrent

expenditure profile, and underlined the paradox that Nigerians grew progressively poorer and unemployed in

the same period that oil revenues were at historically unprecedented high levels. Revenue supplementation

from excess crude account was not only being spent on recurrent expenditure, but actually led to sharp

increases therein beyond the extent of such supplementation.

This position has been partly attributable to:

a) The jettisoning of integrated national planning since the 1980’s which has thrown up the

culture of ad-hoc and revenue-driven budgeting.

b) Lack of political will to resist the pressure to spend

c) Poor or inadequate project preparation.

d) Lack of effective machinery for the enforcement of rules, regulations and circulars designed

to contain expenditures such as the monetization policy, use of official vehicles, overhead

expenditure guidelines etc.

47

e) Government will review the Report and implement those aspects of the Report that will lead

to containment of the growing rate of fiscal expansion.

These include:

a) Streamlining of all standing Committees and Commissions with a view to eliminating or reducing

overlap or redundancies.

b) Immediate compliance with the monetization policy with regard to transportation, accommodation

and other related items.

c) Entrenching the culture of accountability by beginning to sanction and prosecute officers that breach

established financial management rules and regulations.

d) Strictly implement the monetization policy of the Federal Government and sanctioning all breaches

of its provisions.

e) Visitation panels shall be established to monitor and enforce compliance.

Other policy measures include:

1. Limiting total recurrent spending as a % of GDP to 6% from the current 8.5% in the first instance,

while total capital expenditure as a % of GDP should rise from 4 to 6.5% in 2011 and significantly

higher thereafter.

2. Aligning recurrent expenditure with non-oil revenue and devoting a substantial proportion of oil

revenues to capital expenditure. Eventually the goal is to devote all proceeds from oil the financing

capital projects

In the Medium Term

1. Government should show enough political will to tackle the problem of transparency and

accountability in the oil industry, especially the JVC and production share arrangement head-on, by

reviewing the policy processes over the past 25 years.

2. Government to adopt a whole-life approach to budgeting for assets that will incorporate the cost of

operation and maintenance of the asset during the technical lifetime of the asset.

3. Both legislative and executive arm should engage early in budget preparation processes in order to

reduce the current inefficiency in resources utilization arising from the current practice of protracted

delay in budgeting and approval process.

48

LONG TERM INTERVENTIONS

Constitutional amendments to reduce waste are inevitable in the Long Run. For instance, a

restructuring of the current Consolidated Revenue Fund into a Capital Fund, replenished from Oil

and wasting assets, and Revenue Fund tied to receipts from non-oil sector, and devoted to the

funding of recurrent expenditure will be pursued. Efforts will also be made to fast track the

operationalization of the National Sovereign Wealth Fund (NSWF) whose bill was recently passed

by the National Assembly. The Fund is expected to be divided into three separate components

namely: (a) stabilization component for protecting the budget against a fall in oil price, an

infrastructure component for key areas of public investment and a savings component for the

transformation of part of Nigeria’s oil wealth into a portfolio of financial wealth. In addition, the

current Concurrent Legislation List and projects will be revisited to eliminate duplication of efforts

and redundancies by the different tiers of government. The FGN may develop a system of

matching grants to promote national priority programmes.

49

SECTION THREE

KEY SECTOR POLICIES, PROGRAMMES AND PROJECTS

CHAPTER FOUR

GOVERNANCE

3.1.1 Introduction

Governance has been defined as the process of exercising political, economic and administrative

authority, especially over a State.. Specifically, it is: (i) the process by which governments are

formed, held accountable, monitored, and replaced; (ii) the capacity of governments to manage

resources efficiently, and to formulate, implement, and enforce sound policies and programs; (iii)

the capacity to formulate laws and regulations that define interpersonal relations; ; and (iv) the

respect for the institutions that govern economic and social interactions.. Good governance is a

prerequisite for political stability, rapid progress and sustainable development through the

implementation of sound policies and programmes. The elements of good governance include:

openness, transparency and accountability; fairness and equity in dealings with citizens; efficient

and effective service delivery; clear and transparent laws and regulations; consistency and

coherence in policy formulation; respect for the rule of law; and inculcation of high standards of

ethical behaviour. God governance is participatory, consensus oriented, accountable, transparent,

responsive, effective and efficient, equitable and inclusive and follows the rule of law. It ensures

that that corruption is not tolerated, the views of minorities are taken into account and that the

voices of the most vulnerable in society are heard in decision-making. It is also responsive to the

present and future needs of society. Bad governance arises from mismanagement of resources,

especially through corruption, waste and economic crimes. Where is Nigeria in all of these.

The administration is committed to the pursuit of good governance and it is taking appropriate

measures on several fronts.

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3.1.2 Dimensions of Governance

There are three main dimensions of governance.

These are:

(a) Political Governance and human rights such as (i) stronger adherence to constitutionalism;

(ii) increased adoption of multi- party political system and broad based participation; (iii)

more transparent and credible electoral process.

(b) Economic Governance and public financial management bordering on (i) improvements in

macroeconomic outcomes; (ii) better public financial management; and (iii) greater

independence for the central bank;

(c) Corporate Governance and private sector development aimed at more stable

macroeconomic environment; and institutional effectiveness and accountability, including

more separation of powers; more independent legislature and judiciary; and a growing

private ownership of the media.

3.1.3 Situation Analysis of Governance

Nigeria’s inability to decisively tackle most of the development challenges such as poverty,

unemployment, security, and the parlous state of infrastructure has been largely attributed to bad

governance, especially in respect of the various dimensions identified above.

As regards political dimension, Nigeria’s 1999 Constitution contains several provisions geared

towards good governance. The first amendment of the constitution took place in 2010 with the

expectation that more fundamental amendments will follow. Although the country has been able to

operate uninterrupted democratic governance over the past one decade, political governance still

leaves much to be desired. The multi-party democratic system has witnessed warped electoral

process, gross abuse of the rule of law and of the electoral system and collusion in the exercise of

political power rather than separation of powers among the three arms of government. There has

been reform of the electoral process and democratic principles are gaining ground in the resolution

of political issues in the country. Although there is still room for further reform, the gains of the

recent electoral reforms as exemplified by the 2011 general elections have been widely acclaimed

within and outside the country.

Economic governance and public financial management has attracted more attention over the past

ten years in terms of reforms and capacity building. This dimension of governance is also a major

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component of the peer review mechanism under NEPAD. In addition to reforms, there is also

articulation and vigorous pursuit of “anti-corruption” policies, including the enactment of anti-

corruption legislations such as the Independent Corrupt Practices and (Other Related Offences)

Commission Act (ICPC Act), the Economic and Financial Crimes Commission (EFCC) Act,

Money Laundering (Prohibition Act) as well as the prosecution and conviction of high ranking

public officials; confiscation and repatriation of all proceeds of corruption by the Government

between 1999 till date. Although substantial improvement has been achieved, critical attention is

still required in many areas such as in budgeting, accounting and financial reporting, legal and

regulatory framework, public procurement systems and social accountability. For instance, the cash

management system for effective budget execution has to be overhauled for improved performance.

Furthermore, in spite of the provisions of the Fiscal Responsibility Act (FRA), annual cash plan

and fund disbursement schedules are still not prepared on a regular basis and this has had

deleterious effects on the predictability of cash availability for budget execution. The poor budget

performance over the years, fund leakages, wasteful spending and virtual collapse of funding of

capital projects clearly reveal the weakness in economic governance and public financial

management in the country.

Moreover, the issue of fiscal federalism remains highly challenging in the management of national

revenue for sustainable development of the economy. There is need for cooperative federalism

rather than competitive federalism regarding the perspective of the Federal and State governments

in managing the economy and stabilizing it economically and politically. It is expected that the

legal framework provided by the National Sovereign Wealth Fund will be helpful in solving some

of the problems associated with fiscal federalism.

The developments in the financial and capital markets in recent times have shown that corporate

governance in the country is far from being fully effective. The widespread corporate scandals and

failures especially in the banking sector had their root in dishonest management decisions and non-

compliance with stipulated regulations as well as weak regulatory framework. The private sector

and corporate organizations must function to protect the interest of shareholders, customers and

other relevant stakeholders. Against this backdrop there is now a global commitment to pursue and

promote good governance practices in corporations all over the world and with it came the

establishment of standards, which corporations and countries are encouraged to adopt. Nigeria must

demonstrate compliance, especially in view of the need to attract private investors to participate in

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the development of the economy. The private firms need to commit to the highest standard of

corporate governance to justify their recognition and continued patronage.

Along with corporate responsibility, corporate governance provides the foundation of market

integrity. Good corporate governance involves setting the rules and practices that govern the

relationship between managers and shareholders of corporations, as well as stakeholders like the

public, employees, pensioners and local communities while at the same time ensuring transparency,

fairness and accountability. Striking an appropriate balance between various stakeholders’ interests

is a prerequisite for the integrity and credibility of market institutions. It facilitates the building of

confidence and trust that allows corporation access to external finance and to make reliable

commitments to creditors, employees and shareholders. It is this business relationship that

underpins economic growth in a market economy. Fortunately, the regulatory framework is now

being strengthened and appropriate institutions and rules are being put in place to ensure effective

corporate performance in various sectors of the economy.

During 2011-2015, the policies and programmes directed at addressing governance will focus on

the public service; security, law and order; the legislature; anti-corruption measures and

institutions; the judiciary; economic coordination; and support for private investment. These will

be addressed through the implementation of the recommendations made in this document in the

areas of public service reform, judicial reform, anti-corruption initiatives, electoral reforms, land

use reform, fiscal management reforms, power sector reforms, police reforms, financial sector

reforms, infrastructural development strategy reforms, and information and communication

technology. Strategic thrust.

The public sector is still characterised by low level of manpower, lack of capacity in many critical

areas; collapsing human resource management systems; stagnation and mediocrity; and inefficiency

in the delivery of services with the potential to undermine the commitment of the administration to

improve the well-being of the people. In the area of service delivery, the Public Sector has been

weak and despite the introduction of ServiCom, gaps still exist. In several MDAs, the capacity to

deal with complex management issues, particularly in the area of economic and policy analysis is

very weak. Concerns have also been expressed about the coordination of the activities of the

various MDAs and the inability of the Public Sector to compete with the private sector for high

level manpower.

3.1.4 Policy Thrust

The critical policy thrust of governance is to maximize the benefits the citizenry derives from

governance through more effective and efficient use of public resources, proper financial 53

management and fiscal prudence. This entails adequate emphasis on the attainment of law and

order, guarantee of safety of lives and property and the provision of an environment in which

people find happiness and fulfillment.

To achieve the objective during the plan period, measures will be taken to eliminate corruption,

enhance transparency of government operations, embrace e-governance and build capacity to

deliver public goods and services.

3.1.5 Key Policy Measures

Below are some of the key policy measures that will be strengthened or adopted during the

programme period:

Institutionalisation of an accountability framework which enables government to track its

expenditures and allow the citizens to monitor government performance in the area of

financial management. These could be achieved through the vigorous pursuit of the on-

going Public Service Reforms, institution of a performance management system for all

public servants, (as well as elected and appointed political officers;) introduction of

performance contract in the Public Service; establishment of a national integrated

monitoring and evaluation system; as well as regular production and dissemination of

annual country reports by the National Planning Commission.

Removal of all obstacles that hinder effective participation of civil society groups in

governance.

Improve the image of the civil service, enhance incentive framework and make the service

generally competitive so that it can attract the needed manpower that can increase its

capacity to perform.

Encourage the system to deepen the democratic process and values.

Embark on value re-orientation to engender improvement in civil behaviour and social

order. To achieve sustainability, there will be need to integrate democratic values and

principles into the academic and non-academic curricula of the schools and academic

institutions, at the primary, secondary and tertiary levels.

Raise the minimum requirements for the registration of political parties, including an

ideology driven political system that ensures internal democracy, and constructive

opposition. This should lead to substantial reduction in the number of political parties.

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Indeed, there will be criteria for deregistering very weak parties to improve the political

landscape.

Adhere to the principles of separation of powers among all tiers of government in relation to

functions, responsibilities and resource allocation such that they operate coherently and

independent of one another.

Create an enabling environment for effective and proper participation of women in

democratic governance (on the basis of enhanced opportunities for women), including

election and appointment into political offices at all levels. This will be achieved during the

period by removing current financial and other obstacles for inclusive, participatory,

gender-fair and gender balanced democratic system of governance; provision of mentorship

opportunities for women political aspirants to equip them for effective participation in

politics and good governance.

3.1.6 Sectoral Priorities

Ensure that the provisions of the constitution, all laws and regulations are apply to all i citizens equally regardless of status and political standing.

Fully implement the Fiscal Responsibility Act at both federal and state levels Institutionalize an Accountability Framework Review the Public Procurement Act Strictly enforce public sector rules and regulations, especially those on monetization,

accountability, performance basede promotion etc

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Security, Law and Order

This relates to the:

Armed Forces

The Police

Civil Defence

Road Safety Corps

States Security Services

Immigration

Customs

Judiciary

This broad categorization brings out the important role security plays in governance, economic

development and the welfare of society in general. The administration commits to guaranteeing the

territorial integrity of the nation, internal security surveillance and ensuring that Nigerians and all

of those who live in Nigeria go about their lawful duties without fear and have complete trust in the

judicial system to safeguard their lives, properties and legitimate interest.

Government will continue to give high priority to security matters and accord high priority to their

programmes as reflected in this document.

Policy Thrust

The policy thrust is to build a modern well equipped armed forces capable of defending the

country’s territorial integrity and contribute to research and support for technological growth.

Government will work to reduce incidence of robberies, lawlessness and guarantee all who live in

Nigeria, peace and justice.

Policies and programmes have been designed to improve on the state of security in the country as a

necessary pre-requisite for promotion of investment and attainment of good governance.

3.2 Justice and Judiciary

3.2.1 Introduction

The Justice system in Nigeria has grown over the years. However, it still faces serious challenges

that should be addressed in order to raise the level of public confidence in the judiciary and

governance institutions. A complex and costly judicial system is often prone to abuse and limits

citizen’s accessibility, particularly the poor, to justice. A simplified judicial system that dispenses

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justice timely, reliably and affordably, increases investors’ confidence in the economy and also

promotes the confidence of the common man on his nation

3.2.2 Situation Analysis

The Nigerian judiciary is considered one of the most vibrant, especially in terms of quality of

decisions of the higher courts. However the country also ranks among the countries with the least

efficient systems of enforcing contracts and settlement of commercial disputes. Slow police

investigations and enforcement of judicial decisions contribute to delays in justice delivery. The

level and speed of enforcement of court decisions deeply affects the quality of a judicial system,

and delays in resolving disputes may compel citizens to resort to untoward means of resolving

disputes, thereby eroding trust in the judicial system. Successive governments have made several

efforts to overhaul the judicial system and improve service delivery. Though some measure of

success has been achieved, the judiciary is still characterised by outdated legal proceedings, manual

recording processes that slow down justice, unkempt court premises and attitudinal and ethical

issues that encourage unnecessary adjournments and delays that have continued to erode public

confidence. Delay in judgments cause suspects to be remanded in prison, sometimes even longer

than the maximum terms for the offence assumed to have been committed. There are cases where

the punishment of high profile offenders is perceived to be rather lenient leading to suspicion of

unequal application of the law.

3.2.3 Issues and Challenges

The judiciary is faced with several challenges including (i) lack of financial independence which

may encourage executive interference that erodes public confidence in the system; (ii) poor

appreciation of the demands of the rule of law, due process ad respect for human rights amongst the

populace in general and the law enforcement agents in particular; (iii) slow reform process which

has generally lagged behind current developments in human rights practices, cybercrimes,

terrorism, the prosecution of corruption and financial crimes among others; (iv) poor investigation

capacity leading to high and unacceptable population in prisons; (v) poor inter-agency coordination

and co-operation among the various agencies in the justice sector; (vi) inadequate funding of law

enforcement and law regulating institutions such as the Federal Ministry of Justice; (vii) delays in

justice delivery especially at the low level of the court system; (viii) lack of appropriate legal

framework for Private Public Partnership (PPP); (ix) poor state of the court system; and (x) lack of

ICT penetration and usage in record keeping and delivery of justice.

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3.2.4 Policy Thrust

The policy thrusts of the Justice and Judiciary sector are (i) achieving greater independence for the

judiciary in terms of funding; (ii) improving capacity and efficiency in judicial service delivery;

(iii) eliminating all forms of corruption in the administration of justice in Nigeria; (iv) enhancing

the capacity of the justice ministry to superintend prosecution and law enforcement; (v) improving

professionalism in legal practice for better service delivery; (vi) eliminating corruption, inefficiency

and enhancing operational capacity of the Police for law enforcement; (vii) improve justice

delivery through promotion of speedy resolution of disputes by courts; (viii) promote the use of

other dispute resolution mechanisms in order to enhance public confidence in the justice system;

and (ix) encourage obedience of court orders and payment of judgment debts incurred by

government to promote public confidence in the rule of law.

3.2.5 Objectives

In order to address the issues and challenges identified above, the sector will during the period

2011-2015 pursue the following objectives: (a) enhancement of the independence and efficiency of

the judiciary; (b) entrenchment of the rule of law as a pre-condition for social harmony and

progress so as to attain at least the rank of 43 in the Global Rule of Law compliance index; (c)

enhancement the rule of law, respect for human rights and adherence to due process in the

administration of justice; (d) updating of sundry economic legislations to facilitate economic

growth and development; (e) reposition legal education and practice to achieve higher level of

competence and professional ethics; (f) define and formalize the hierarchy of courts in the judicial

system to achieve jurisdictional certainty; (g) promote efficient and speedy judicial service

delivery.

3.2.6. Key Programmes

Establishment of a special ICT network for online filing, service and retrieval of court

processes

Creation of specialized courts/divisions and multi door systems

Restructuring and expansion of the appellate court system for all cases and matters by 2012

to remove delays at that level of litigation

3.3. Foreign Policy and Economic Diplomacy In the area of foreign relations Nigeria has made giant strides although there are still some contending issues. With globalisation, the interdependence of the countries of the world, especially in trade and commerce has been strengthened. Trade and commerce are facilitated by various bilateral and multilateral trade agreements and diplomatic ties between countries. Without the necessary trade agreements and diplomatic ties, businesses may not be able to operate beyond their shores and, as such, cannot tap into the opportunities that exist in countries other their own.

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The world today has become a “global village” where the actions and reactions in one country can be accessed in another in just a matter of seconds through Internet and other means of communication. This phenomenon has become the defining principle in International relations. Nation states strive at all cost to use this information super highway to advance their national interest in economic, political, cultural, technological, diplomatic relations, military capability, management of domestic affairs, and effectiveness of external propaganda, strategic positioning, and circumstances of the other countries to enhance their positions within the comity of nations and among the nationals of other countries. Such respect and acceptance derives in turn from the core values which a nation upholds, the effective management of her domestic affairs and the promotion of her peoples interests as well as the conduct of her external relations. The economic and technological strength of a nation also bears a direct relationship to her standing and influence in the international arena. Towards this end, the Foreign Policy of a nation must be a balance between national interest and concern for the image she creates in the international arena. In this regard, it is expected that in the next four years, Nigeria’s external relations should be geared towards the cultivation of international friendship and goodwill and use of same as a platform to strengthen its quest for economic self-sufficiency and flow of direct foreign investment and technical aid flows to the country.

3.3.1. Foreign Policies challenges that need to be addressed

Nigeria’s foreign policy has always had Africa as its centre piece. Globalisation has made it imperative to continuously adapt foreign policy and diplomacy to match global trends. Economic diplomacy is now key in defining international relations and national interest.While afro-centrism remains the main thrust of Nigeria’s foreign policy, it should not be at the expense of Nigeria’s strategic economic, political, socio-cultural and technological, etc interests. One of the challenges of economic diplomacy is the need to facilitate the attraction of foreign investors into Nigeria, through a more relaxed visa regime. In this regard, non-effective implementation of both bilateral and multilateral Agreements has remained the norm in Nigeria’s foreign policy and international relations calculation. This has seemingly diminished Nigeria’s international status. Similarly, lack of a structured and consistent policy on candidature and internships in International Organizations/Agencies to which Nigeria holds membership has become a drawback to the fulfillment of national interest and foreign policy objectives. The non-fulfillment of obligations to International Organizations/Agencies in respect of payments of Nigeria’s subscription and statutory contributions as at when due also has become a drawback to her international image.

The concentration of diplomatic, political and economic dialogue with Europe, North America and Asia to the exclusion of other critical regions like Latin America and Australasia has in some way, been counter-productive to the pursuit of economic diplomacy and international relations. Furthermore, non-effective trans-border cooperation between Nigeria and her immediate neighbours on global and sub-regional issues such as immigration, human and drug trafficking, human rights and renewable energy sourcing tends to undermine Nigeria’s leadership role.

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Some Nigerian competitors, are expanding their diplomatic missions and personnel, in order to enhance their strategic interest, including the quest for permanent seat at the UNSC.

3.3.2 Programmes and Projects

In order for Nigeria’s foreign policy goals to be achieved it is imperative that Nigerian missions are

properly focused and well-funded. It may also be necessary to rationalize missions and appoint

honorary consuls to deal with consular issues in areas where Nigeria’s interest does not loom large

as practiced by other countries. This will enable Nigeria to properly equip and fund missions that

are critical to the achievement of its economic and political goals

The development of virile Human Capital remains central to the success of carrying out effective

economic diplomacy. In this regard, the training of officers of all cadres in the Ministry both

locally and internationally has become imperative as that would enhance job performance and

ensure improved service delivery. It is necessary for adequate funding to be made available to

meet the training needs of officers.

Other key policies, programmes and projects are:

- Deliberate government policies structured in incremental manner for sponsorship in

candidature and internship into positions in International Organisations/Agencies to

which Nigeria is an active member.

- Develop a critical bent towards multilateralism, given the objectives of the Vision

20:2020 vis-à-vis the realities of globalization.

- Economic Integration at the national, sub-regional, and regional levels and global

Financial Institutions

- Human Capital development of skills in Bilateral and Multilateral negotiations,

including International languages and ICT.

- Establishment of Nigeria’s physical presence in Central America and Australasia sub-

regions and emerging economies to leverage economic diplomacy would make Nigeria

one of the leading twenty (20) economies in the world by the year 2020;

- Explore beyond the usual bilateral cooperation, the possibility of initiation of trans-

border cooperation with Nigeria’s neighbours on critical global and sub-regional issues

like – immigration, human & drug trafficking, human rights, terrorism , proliferation in

small arms, energy etc.

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Other areas where the foreign policy actions should be strengthened include:

Technical Aid Corp Scheme - Better coordination and re-organization of the entire scheme

through training of officers to man the Agency.

Ensure effective implementation of extant regulation on issuance of visas, within 48hours,

especially for investors coming to Nigeria, and students;

Effective deployment of TAC Volunteers based on assessed and expressed needs of

beneficiary countries should be aligned with the NV: 20.2020.

Ensure Nigeria’s domestication and compliance with bilateral and multilateral obligations

and treaties.

Promotion and timely implementation of bi-lateral agreements and joint commissions,

MOUs and related instrument.

Collaboration and liaison with critical MDAs on regular basis to ensure prompt and early

implementation of all the subsisting Agreements

Articulate a better image and improve the country’s relations with the outside world by

cultivating goodwill for Nigeria. This would require huge capital investment;

Seek closer and better relations with the major and emerging powers across the world;

Facilitate rapid and sustained economic growth and development through the provision of

modern infrastructures ;

Ensure that Nigeria’s leadership role in Africa and the ECOWAS sub region is sustained

and safeguarded jealously.

Pursue the acquisition and transfer of technology, the promotion of trade; investment and

cultural relations to boost Nigeria’s ailing industries;

Assist Nigeria to achieve systemic equilibrium, peace, stability and good governance;

Use of diplomacy in harnessing the resources of Nigerian professionals abroad, through

efficient management of Nigerians in Diaspora Organization ( NIDO) and the New Nigeria

Volunteer Service (NNVS) to be part of Nation building.

Adequate funding of the Institute for Peace and Conflict Resolution (IPCR) to enable it

carry out its duties.

Adequate funding of the Nigerian Institute for International Affairs (NIIA).

Need for Nigeria to manage her image very well and to promote policies that will enhance

its economic diplomacy.

Removal of multiple Agencies, except Customs and Immigration from all the entry points

into Nigeria and the improvement of port facilities at the airports and sea ports and the

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reduction of red-tape involved in clearing of goods would encourage prospective investors

into the country.

Full implementation of the existing Agreements on Bilateral cooperation and Joint

Commissions as a sine-qua-non to the achievement of NV20:2020 and beyond.

Ensure that, notwithstanding the afro-centric thrust of Nigeria’s foreign policy, Nigeria’s

strategic economic technological, defence, political, etc. interests are always safeguarded.

3.4 Legislature

3.4.1 Introduction

The legislature is a critical partner in achieving the nation’s development objectives. This is in

view of its mandate of making new laws, reviewing existing laws, reviewing the Constitution,

approving the annual national budget, and other oversight functions that foster peaceful and

harmonious coexistence of Nigerians and advancing socio-economic growth and development.

However, there are numerous obsolete and inappropriate laws that inhibit socio-economic growth

and development which Nigeria is saddled with due to the long absence of the legislature in Nigeria

arising from protracted military rule. Thus the legislature has an important role to play in revising

extant laws and amending the Constitution where necessary.

3.4.2 Situational Analysis

The performance of the legislature, has been relatively less than optimal as evident from its

inability to enact high impact legislation, and its preference to concentrate on executive oversight

functions. This has left over 500 bills pending in the National Assembly. Also, prolonged delays in

passage of bills, have tended to slow down the pace of economic growth and development, and

eroding public confidence in the ability of the legislature to perform its duties.

3.4.3 Issues and Challenges

Apart from prolonged military rule that undermined the development of a strong legislative culture,

other constraints hampering the effective performance of the legislature include: (i) inadequate

legislative capacity to draft bills of a technical nature. This requires that adequate capacity support

be provided to the legislature to facilitate their work; (ii) tedious and lengthy legislative procedures;

(iii) unnecessary delays due to the lengthy and cumbersome processes for the passage of bills; (iv)

inadequate statistical data and studies to support effective legislation; (v) lack of effective feed-

back mechanism that would enhance legislature’s responsiveness to public needs; (vi) executive

interference in Legislative issues particularly at the State level of government; (vii) poor excessive

delays in passing the appropriation bills with dire consequencies on the economy and government

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business; and (viii) the increasing disconnect between the legislature and public needs and

increasing discontentment with the legislature over the perceived drain of public resources to

maintain members of the legislature through self prescribed allowances There is an image problem

that must be addressed.

3.4.4 Policy Thrust

The thrust of policy during the period will be to facilitate the creation of a dynamic, constitutionally

effective and public responsive legislature that is, proactive in its legislative duties and independent

but aware of its constitutional partnership with the executive and judicial arms of government.

Other policy measures include regular auditing of the activities and publication of annual reports of

the National and State legislatures, to promote greater transparency and accountability in the use of

public funds; promote greater public interest in the scrutiny of legislative actions; and inform public

debate to these ends. Promote the image and perception of the legislature in the eyes of the public.

3.4.5 Objectives

During the program period, the objectives to be pursued in respect of the legislature include:

- Strengthening of the practice of separation of powers between the legislative and executive

arms of government;

- Building public confidence in the parliamentary process and system

- Increasing legislature’s responsiveness to the public needs through effective feedback

mechanisms

- Improving the sanctity of the budget process through enhanced supervision and monitoring

- Enshrining costs and time efficiencies to the discharge of legislative duties

- Enhancing the quality and dynamism of representation through periodic infusion into the

legislature of persons with new perspectives.

3.4.6 Priorities

The following priority issues will be implemented during the period:

Provision of training to both legislators and support staff to enable the acquisition of skills

to strengthen the practice of separation of powers between the arms of government

Creation of awareness campaigns on the scope of responsibilities of each arm of

government at federal and state levels;

Engaging constituencies to articulate their specific needs periodically as focus points of

legislators’ responsibility

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Creation of a unit with full departmental status to monitor and evaluate budget performance;

set budget performance targets

3.5 The Public Service

The Public Service is the machinery of government responsible for implementing government

initiatives, as well as the enabler and regulator of the private sector and civil society. The Public

Service is an essential pillar in the realization of the government’s development goals.

Therefore it is central to the realization of development goals enunciated in this program. This

underscores the importance of having an effective, efficient, highly skilled, merit driven and

integrity-based Civil Service.

3.5.1 Situation Analysis

The public Service has gone through various reforms. The most recent is the Public Service

Reforms (PSR) of 2004-2009. The reforms helped to right-size the public service and eliminate

ghost workers; restore the professionalism of the service; restructure and re-orientate the public

sector; tackle corruption and improve transparency in government transactions; reduce waste

and improve efficiency of government expenditure; and enhance economic coordination.

Despite, the marginal gains recorded by the reforms, the need to accomplish and fully entrench

the national goal of good governance requires that more reforms be pursued to develop a

professional and apolitical public service, in which improvements will be progressive and self-

propelled, The Service must be manned by public officers of impeccable character and

integrity, with the right skills-mix, sufficiently challenged and motivated to be efficient

managers of resources and talents. The objective is to transform the public service into a

competent and virile one, providing policy advice and guidance for a rapidly growing economy.

3.5.2 Issues and Challenges

The public service still faces many challenges that inhibit effective performance. These

include: (a) aging workforce predominantly constituted by unskilled junior officers; (b)

stagnation at middle management and directorate levels; (c) leadership inadequacy at all levels

arising from opportunistic career advancement and selection; (d) overlaps and duplication of

functions of MDAs, resulting in huge resource wastage; (e) improper placement, wrong

deployment and succession planning crisis; (f) erosion of public service values, ethics and

integrity; (g) the lure of rent seeking (h) weak work incentive system, poor remuneration and

working conditions; (i) fundamentally flawed performance management system; and so on.64

3.5.3 Policy Thrust

Arising from the above, the policy thrust for the Public Service during the period, include the

following: (i) promote service-wide intra-and-inter-sector linkages; (ii) reduce corruption and

enhance the transparency of public procurement; (iii) embrace e-governance; (iv) extend reform

to states; (v) promote network of alliances in support of and to institutionalize integrity; (vi)

encourage PPPs that have built-in accountability systems; (vii) compulsory continuing

education and training for the Public Service.

3.5.4 Sectoral Priorities

The following sectoral priorities will be pursued during the period:

Accelerated adoption of e-governance tools

Development of performance management tools

Establishment of a well-equipped and staffed department of Monitoring and Evaluation

under the National Planning Commission.

Fully implement the NEITI Act, 2007 to reduce corruption and loss of national revenue

in the extractive industries sector

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CHAPTER FIVE

HUMAN CAPITAL DEVELOPMENTIntroduction:

Human capital refers to the stock of competences, skills knowledge and personality attributes

embodied in the ability of labour which enables it to produce goods and services. The effectiveness

of human capital is largely dependent on how well it is developed. This has made human capital

development a critical success factor in the development process. Human Capital Development is a

process of building a productive, competitive and functional human resource base for economic

growth and social advancement.

The major sectors included under Human Capital Development are education, health, labour and

women affairs, youths and vulnerable groups. Investing in Human Capital Development is critical

as it is targeted at ensuring that the nation’s human resource endowment is productive, healthy

knowledgeable, skilled to aid the optimal exploitation and utilization of other resources to engender

growth and development. Human beings occupy the centre of the production, distribution and

consumption chain.

Human capital plays a critical role in economic growth and development. It is people that drive the

economy. Improving the productivity of people, protecting the vulnerable in the society and

enhancing their well-being and quality of life are, therefore, at the heart of human development.

From a macroeconomic perspective, the accumulation of human capital productivity, facilitates

technological innovations, increases returns to capital, and makes growth more sustainable. Thus,

human capital is regarded as a key factor of production in the economy and human beings

constitute the reason for producing.

6.11 Key Policies, Programmes and Projects for Human Capital

The development of virile Human Capital remains central to the success of carrying out effective

economic diplomacy. In this regard, the training of officers of all cadres in the Ministry both

locally and internationally has become imperative as that would enhance job performance and

ensure improved service delivery. It is necessary for adequate funding to be made available to

meet the training needs of officers.

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Other key policies, programmes and projects are:

- Deliberate government policies structured in incremental manner for sponsorship in

candidature and internship into positions in International Organisations/Agencies to

which Nigeria is an active member.

- Develop a critical bent towards multilateralism, given the objectives of the Vision

20:2020 vis-à-vis the realities of globalization.

- Economic Integration at the national, sub-regional, and regional levels and global

Financial Institutions

- Human Capital development of skills in Bilateral and Multilateral negotiations,

including International languages and ICT.

- Establishment of Nigeria’s physical presence in Central America and Australasia sub-

regions and emerging economies to leverage economic diplomacy would make Nigeria

one of the leading twenty (20) economies in the world by the year 2020;

- Explore beyond the usual bilateral cooperation, the possibility of initiation of trans-

border cooperation with Nigeria’s neighbours on critical global and sub-regional issues

like – immigration, human & drug trafficking, human rights, terrorism , proliferation in

small arms, energy etc.

Education

In human capital development, education and health are critical. Education is concerned with the

development of “the whole person,” including intellectual, character and psychomotor. It is for this

reason that it occupies an important place in most plans for economic and social development.

Moreover, it opens up opportunities for both individual and group empowerment. Education is

particularly important in human development as a supplier of trained manpower which is a

prerequisite for the accomplishment of other development goals. It is a vital tool for transformation

and the key to the sustainable development of a nation. Education is the most crucial instrument

for empowering young people with knowledge and skills which in turn provide them access to

productive employment. The goal of the education sector is to ensure that children, irrespective of

ethnicity, gender, or physical state, complete a full course of basic education.

Situation Analysis

Nigeria’s education system is categorized into three main vertical segments: basic education, post-

basic education, and tertiary education. There is also the Early Childhood Care and Development

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Education for younger children who are not yet of primary school age. Similarly, nomadic

Education is part of basic education for the special group of migrants. Primary education is free and

compulsory in Nigeria, although not all eligible children are in school. Despite the considerable

progress made with the Universal Basic Education Scheme, only fifty per cent of eligible children

are in school due to problem of access and other socio-cultural factors.

The private sector participates strongly in primary education but government still remains the

dominant provider of education at this level. In Nigeria, education is on the concurrent legislative

list. The States Governments are largely in charge of primary and secondary level education while

the Federal Government features more prominently at the tertiary level. These lines are

nonetheless hard drawn as State Governments also own and operate tertiary institutions just as

individuals and private/religious groups do.

Education expenditure as a percentage of total expenditure is low in Nigeria. The budgetary

allocations for the formal education system also have the shape of an inverted pyramid in which

secondary and tertiary education receive more than four times as much public resources as primary

education. In many cases, the infrastructures in the primary schools are grossly inadequate. The

schools are starved of funds, and this leads to paucity of teaching and instructional materials,

overcrowded classrooms, poor hygiene and sanitary conditions and dearth of qualified and

competent teachers. Also, the majority of the population, particularly the poor, may lack adequate

educational facilities, or may find that the opportunity cost of attending school exceeds short run

private benefits, while the children from middle and upper class backgrounds benefit from

comparatively generously financed university education. This is one reason for the low gross

enrolment of thirty percent in the secondary schools. However, effective youth empowerment and

harnessing of the enormous endowment of this segment of the population cannot be realized

without proper education and skills acquisition.

Issues and Challenges

The main issues that need to be addressed in the next four years include working towards complete

access to education by all school-age children and implementing measures that would improve

access to post-basic and tertiary education. It is imperative to provide opportunities for

professional development of existing teachers and recruiting more qualified teachers to man the

growing number of institutions and expanding student population. The appropriate learning and

teaching environment with all requisite equipment to improve quality and standards are also

necessary. Funding is also likely to be a major challenge, given the inadequate infrastructure in 68

many public schools. Other challenges include: inadequate funding and untimely release of funds;

(iii) brain drain and human capital flight; (iv) Poor staff development schemes; and (v) inadequate

and inaccurate education sector data for planning.

Policy Thrust of the Education Sector

The policy thrust of the Education Sector includes:

- Consolidation of the gains achieved in the past years in education

- Promotion of primary enrolment of all children of school-going age irrespective of

income profile of their parents

- Provision of infrastructure such as classrooms across all levels so as to ease over-

crowding, increase access and reduce pupil/teacher ratio

- Enhancement of the efficiency, resourcefulness, and competence of teachers and other

educational personnel through training, capacity building, and motivation.

Other policy thrusts of the sector are: (a) improve access and equity at all levels; (b) assure quality

and standards of education; (c) promote Technical and Vocational Education and Training (TVET)

at formal and informal levels; (d) improve Teacher Education and Development; and reposition

education to make its products resourceful, productive and globally competitive; (e) strengthening

the institutional Management of Education and promoting girl child as well as adult education.

Health Sector

Introduction

Health is wealth, the saying goes. Therefore, the nation's wealth comprises not only physical capital

but also human capital which is an independent factor of production required to achieve high and

sustainable economic growth. In recognition of this, developing nations have, in varying degrees,

made effort to stimulate the accumulation of human capital through spending on health and related

social services.

The centrality of health to national development and poverty reduction is self-evident, as improving

health status and increasing life expectancy contribute to long term economic development. The

robustness of any national health system depends on how best it serves the interest of the poorest

and most vulnerable citizens for whom improvements in their health status contribute towards the

realization of poverty reduction goals. Recent evidence shows that Nigeria is presently not on

course to achieving the health-related Millennium Development Goals (MDGs). This poses a

major developmental challenge, which can impede and undermine economic growth and

development. Though several policies and strategies have been developed over the years to achieve

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the vision of the Federal Government on health, the persistent poor national health indices indicate

that a lot of work still needs to be done. These indices include high infant and maternal mortality

rates, low life expectancy at birth and high ratio of population per physician. It is in the light of this

that the Federal Government evolved a uniform national health development framework, putting in

place the first ever truly National Health Plan [National Strategic Health Development Plan

(NSHDP)] through an associated Results (Targets/Indicators) framework that is consistent and

elaborate on the Vision 20:2020 Human Capital Development aspirations. The NSHDP reflects

shared aspiration to strengthen the national health system and to vastly improve the health status of

Nigerians. This, it is hoped, will serve as a standard against which the progress from 2010 to 2015

will be measured- in the first instance- and beyond. The attainment of these goals demands

stewardship and leadership by the Federal Ministry of Health. For now, this is weak and is

demonstrated by the poor coordination of vertical health projects (by programmes and donors),

numerous and sometimes conflicting policies from different departments and agencies, lack of

clarity of roles and responsibilities amongst key players and poor regulation of public and private

health services providers. Federal level service delivery which is mostly at the tertiary level is not

up to desirable standards as a lot of Nigerians still travel out of the country to access tertiary

healthcare services. These and a lot of other problems made it imperative for the development of a

federal level SHDP that will drive the development, implementation, monitoring and evaluation of

the federal level health development efforts between 2010-2015.

The Federal plan articulates strategic interventions that will be delivered by the various agents

under the Federal Ministry of Health towards achieving its vision and mission. These institutions

include all the departments in the FMOH, its agencies (NPHCDA, NHIS and NAFDAC), Federal

Tertiary Health Institutions - FTHIs (Teaching Hospitals, Specialist Hospitals and Federal Medical

Centers) and Research Institutes (NIMR, NIPRD). The plan seeks to improve good governance in

the health system at all levels through the application of a National Health Law which will seek to

entrench a system where governance responsibilities are shared between the three arms of

government; strengthen the stewardship and technical responsibilities of federal level /institutions

towards integrated service delivery. It also seeks to improve the efficiency of the federal level

health workforce through the implementation of comprehensive human- resources- for- health

agenda; ensure increase in availability of and access to financial resources for health including

appropriate risk pooling and exemption mechanisms. Furthermore, the framework seeks to:

improve the use of routine health information for programme/service performance monitoring and

evaluation at all levels by strengthening the National Health Management Information System 70

(NHMIS); improve community ownership and participation in the implementation of the National

Health Agenda through a purposeful engagement of Community Service Organizations (CSOs) in

health planning and project/programme implementation among others. These are elaborated in the

eight priority areas of the federal plan which are shared across all the other SHDPs.

Situation Analysis

Nigeria is still at the first stage of the epidemiological transition; communicable diseases are the

major causes of mortality and morbidity in the country. In children, the major causes of mortality

and morbidity are malaria, diarrhea, Acute Respiratory Infections (ARI), measles and other vaccine

preventable diseases, as well as malnutrition. Despite this, the Federal Ministry of Health had over

the years recorded some milestone achievements in the underlisted areas as follows:

PHC focused-health policy was adopted by the Federation with the latest review in 2004

to provide direction. The National Primary Health Care Development Agency has been

restructured to better provide stewardship and leadership for PHC. To increase coverage

of PHC services, the NPHCDA established 547 model PHC centres, renovated 354 PHC

centres and established 354 drugs revolving funds systems between1999 and 2008.

Other notable achievements recorded within the period under review are:

The development of the National Health Bill (2008)

The take-off of the National Health Insurance Scheme which has enrolled over

4.5million people.

The rehabilitation of 14 teaching hospitals under the Federal Government of

Nigeria/amid rehabilitation projects.

Government budget allocation to ARV drugs increased from N8.5 million in 2003 to

N2.4 billion in 2007, and the number of patients on treatment in government supported

sites has increased to 300,000.

Development and ongoing review of the HIV/AIDS strategic plan and framework

The Development of Malaria control strategic plan, 2006-2011.

Change in Malaria treatment policy to Artemisinin-Based Combination Therapies

(ACTs).

Distribution of over 13 million insecticide-treated nets (ITNs).

ITN coverage increased from one per cent in 2001 to 6.5 per cent in 2005 and a survey

of nine LGAs indicated that 70 per cent of household had ITNs, 43 per cent of

Household with ITNs had them hanging in sleeping areas, and 38 per cent of children

under five years actually slept under ITNs.

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Number of Intermittent Preventive Treatment (IPT) doses distributed to pregnant women

rose from zero in 2005 to three million in March 2009.

All the 36 states and the Federal Capital Territory now implement Directly Observed

Treatment Short course (DOTS),.The number of LGAs implementing DOTS strategy

increased from 300 to 650, TB case detection rate increased from 13 per cent to 30.3 per

cent, and number of DOTS treatment centres rose from 1500 to 2219 between 2003

and 2007

Development of an MDR TB programme and establishment of TB culture and

sensitivity laboratories

Registered cases of leprosy declined from over 7000 cases in 2000 to about 5000 cases

in 2005 and prevalence rate declined from 0.5/10 000 in 2000 to 0.39/ 10 000 in 2005.

Change from Oral Polio Vaccine-driven National Immunization Days (NIDs) to

Immunization Plus Days (IPDs)

Increase in routine immunization (RI) coverage example, with DPT3 coverage

increasing from 38.2 per cent in 2003 to a national average of almost 75 per cent in

2007.

Development of the Integrated Maternal, Newborn and Child Health Strategy (IMNCH).

The performance of NAFDAC in reducing the prevalence of substandard drugs by 60%

is one of the success stories of recent times. The strategies have included publishing the

list of fake/substandard drugs and unlicensed products, creating consumer awareness,

pharmacovigilance, prosecution of fake drug merchants, engagement with governments

of drugs producing countries and better monitoring and supervision.

Key Challenges

- Inadequate budgetary/allocation

- Untimely release of funds

- Migration of health professionals due to poor remuneration

- Unequal distribution and skills mix of health professionals

- Access to skilled health care workers

- coordination problems amongst the three tiers of government in this area of concurrent

legislation and shared responsibilities

- Inadequate human resource and equipment

- Circulation of fake and counterfeit drugs and unwholesome foods

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- Universal access to essential package of healthcare includes: (a) size and diversity of the

country; (b) governance; (c) service delivery; (d) resource generation; and, (e) health

care financing.

Key Policies

The underpinning policy for achieving the human capital development goal of the vision 20:2020

strategy is the national strategic health development plan (NSHDP). The NSHDP is the vehicle for

actions at all levels of the health care service delivery system which seeks to foster the achievement

of the MDGS and other local and international targets and declaration commitments. The Nigerian

International Health Partnerships and other related issues (IHP+) compact signed between the

Federal Government and all development partners in health is seen to be an important mechanism

that will rally all development partners to support the implementation of the NSHDP at all levels.

The priority programmes and projects for the health sector (see Table 3.1) are articulated in the

Federal Component of the NSHDP. However, following a secondary re-prioritisation, a total of 38

projects have been selected out of 71 for this initiative. These projects were selected based on their

importance, their potential for fast implementation and thus, potential to fast-track the achievement

of the goals and targets of the NSHDP.

Table 3.1: These projects are well aligned with the NSHDP priority areas and are summarized in the table below

S/N Priority Health Project

1. Fast-tracking the passage of the National Health Bill and its implementation

2. Institutionalizing the notification of maternal deaths in the communities and health care facilities through appropriate policy guidelines and legislation

3. Involve the Public Health Departments of medical schools in M&E of health interventions at community level

4. Adaptation & mitigation process on Climate Change on Health. This is in line with the United Nations Framework Convention on Climate Change (UNFCCC)

5. Domestication of World Health Organization Framework on the Convention of Tobacco Control (WHO FCTC)

6. Strengthen effective regulation of food and drugs through the establishment of inspectorate offices at Land Borders

7. Review of Nigerian Standard of quality for drinking water and draw up the Strategic Plan of Action for the Community based water surveillance scheme

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8. Strengthen SERVICOM Unit to improve attitude to work among health professionals

9. Accelerate pre-qualification of Nigerian Pharmaceutical Companies and certification by WHO

10. Fast track implementation of the Integrated Malaria Management Strategy: (this includes promotion of local production of LLINs, procurement of drugs, and local production of larvicides in partnership with ECOWAS)

11. Fast track the implementation of the HIV/AIDs National Service Frameworks and the HIV/AIDs strategy and the WHO HIV/AIDs Rapid Advice (guideline for increasing coverage of ARTs) to reduce burden of the scourge

12. Commissioning of the National Communicable Diseases Control (NCDC) Centre

13. Upgrading existing tertiary health institutions to world class quaternary hospitals

14. Registration of Traditional Birth Attendants (TBAs) and re-orientation to serve as mobilizers of the community to access MNCH services

15. Improving Human Resources for Health situation through the revitalization of the Collaborating Centres on Health to build critical capacity in health planning, information and economics at all levels

16. Provide support to Schools of midwifery through motivation of nursing tutors, upgrading of their facilities to increase uptake and also making the education of midwives free.

17. Institutionalize in-service training as a mechanism for continuous quality improvement in the health sector (as part of comprehensive HR planning. 30% of salaries of each staff will be budgeted for this per institution)

18. Strengthen the National Health Management Information System (strengthen State and LGA level systems, strengthen sub-systems and commissioning of alternative household and health facility surveys)

19. Support States to pilot results based financing mechanisms – conditional cash transfers and contracting to improve access of identified vulnerable groups to health care services

20. Institutionalizing mechanisms that will improve transparency and accountability in the health care delivery system through the conduct of National Health Accounts (NHAs) (2006-2009) Public Expenditure Reviews (PERs) involving the Federal and 6 States (one from each geo-political zone)

21. Establishment of a Federal Government-Guaranteed Healthcare Investment Fund

22. Diaspora Matters

23. Establishment of model specific PPP Projects at Tertiary, Secondary and Primary levels of health care

24. Establishment of specific PPP projects within Federal Tertiary Hospitals

25. Midwifing at least five of the Unsolicited Proposals received by the FMOH into specific PPP Projects

26. Commissioning of health and health systems researchers in priority areas in research institutes and

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tertiary health institutions for improved service delivery

27. Conducting a “Microscopic Domestication” of the BUSINESS OF HEALTH IN AFRICA Study (An Africa-wide study which broadly identified and quantified opportunities for investment in the health sector.

Key Performance Indicators

The key indicators of the priority projects and programmes are derived from the NHSDP results matrix. These were further drawn from the current global and national agreements that are articulated in the Health Chapter of the Vision 20:2020 and the eight United Nations Millennium Development Goals from which the health related goals and indicators were reviewed. Aside from these key indicators that are known as the IMPACT indicators, there is a list of process and output indicators that can be found in the Plan.

Key NSHDP Indicators and Targets

S/N Indicator Baseline Targets

2011 2013 2015

1. Life expectancy at birth 47 years 55 years 63 years 70 years

2. Under-five mortality rate 157/1000 LBs (NDHS, 2008)

130/1000 LBs

103/1000 LBs

75/1000 LBs

3. Infant mortality rate 75 (NDHS, 2008) 60/1000 LBs

45/1000 LBs 30/1000 LBs

4. Proportion of 1 year old immunized against measles

41.4 (NDHS 2008) 60% 80% 95%

5. Prevalence of children under five years of age who are underweight

27.1 (NDHS, 2008)

24% 20% 17.90%

6. Percentage of children under 5 sleeping under insecticide-treated bed nets

5.5 (NDHS, 2008) 24% 42% 60%

7. Maternal mortality ratio 545/100,000 LBs (NDHS 2008)

409/100,000 LBs

273/100,000 LBs

136/100,000 LBs

8. Adolescents Birth Rates 126 per 1000 114/1000 102/1000 90/1000

9. HIV prevalence among population aged 15-24 years

4.2 (SS) 3.2% 2.1% 1%

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Overall coordination framework

The overall implementation of these priority projects/programmes will be coordinated by the

Department of Health Planning, Research & Statistics. The same structures put in place for the

implementation of the NSHDP and the FSHDP will be utilized. The department has the overall

mandate for coordination of all government health plans and policies. As part of the

implementation arrangements of the NSHDP, a Core Group for the Federal SHDP has been

constituted to provide guidance for the implementation of the FSHDP and report on its progress.

There is an NSHDP coordinating secretariat in the DHPRS which provides support to all the

implementing parties of the NSHDP. In addition, a National Health Plan Reference Group

(NHPRG) will be inaugurate soon to provide overall guidance and support for the implementation

of all the SHDPs.

Supported by the NSHDP secretariat, the FSHDP Core Group will collect data on status of

implementation of work plans that are based on the FSHDP from all implementing agencies

including development partner agencies and present same to the NHPRG. The NHPRG will assess

the progress reports and make recommendations as necessary. The NHPRG will report to the Top

Management Committee of the FMOH for their information and action.

Actual implementation

Each department, programme, agency or institution will be responsible for implementing its own

component of the FSHDP. Donors and implementing partners will support implementation

according to their mandates, capacities and resources. Established implementation strategies such

as direct implementation, contracting, out-sourcing and public private partnerships will be

employed according to the peculiarities of the interventions and implementing bodies. In

implementing the plan efforts should be made to carry along CSOs at all times.

Labour & Productivity

During the period 2004 – 2010, the country experienced sustained high growth rates, but

employment responded rather sluggishly. The structure of unemployment remained basically the

same during the period as agricultural self employment continued to dominate the country’s labour

market. The most remarkable employment development was the expansion of jobs in the

communication sector as a direct consequence of the deregulation in the sector.

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Employment response to economic growth in other sectors was weak. This may be explained in

terms of the quality of growth that the country has experienced in recent times. The growth in the

agricultural sector reflected the expansion in crop production derived from expansion of farmlands,

rather than increased productivity . Although sustaining and improving upon the recent expansion

in economic activity is important, strengthening both forward and backward linkages among the

sectors is a more critical requirement for pro-poor growth and poverty reduction through increased

employment and income generation.

Nigeria’s labour force has continued to grow in line with the growth in population and natural age-

specific transition in the economy. The labour force is estimated to be 47 million. Aggregate wage

employment in industries and businesses increased from 3.66 million in 1990 to about 4.52 million

in 2005. Overall aggregate employment in Nigeria grew at 3.76 per cent per annum between 1999

and 2005. It has also been observed that in 2004 Nigeria’s unemployment rate of over 11 per cent

was higher than the average rate of 9.5 per cent for Sub-Sahara Africa.

There are two major characteristics of those unemployed in Nigeria: youthfulness and high level

education. The youth account for roughly one-third of the labour force, which represents between

60 and 75 per cent of the unemployed labour force. The high incidence of youth unemployment is

a result of their lack of requisite skills and poor quality of education. Unemployment has also

increased among graduates of tertiary institutions in Nigeria. The government had established the

National Directorate of Employment (NDE), Small and Medium Enterprises Development Agency

(SMEDAN) and National Agency for Poverty Eradication Programme (NAPEP) to address the

issues of unemployment and poverty. However, the poor performance of the economy in providing

opportunities for significant proportion of the working population is arguably one of the most

striking manifestations of the socio-economic crisis and development failure in Nigeria. It is

notrworthy that as a stride towards boosting jobs creation, Government recently earmarked the

sum of N50 billion for the creation of 1.5 million jobs. This will involve making entrepreneurs out

of the teeming unemployed graduates from our tertiary institutions.

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Issues and ChallengesThe major issues and challenges in the sector are:

Lack of functional education system that is responsive to the needs of the labour marketThe Nigeria education system does not prepare graduates to become employers of labour as entrepreneurship development has not been mainstreamed in schools curricula.

Inadequate Managerial SkillExecutive capacity is low, as most of the employees have inadequate professional and requisite technical skills.

Poor health statusThe debilitating effects of malnutrition, poor sanitation, HIV/AIDS and other communicable diseases affect labour productivity adversely.

Poor state of infrastructural facilities, especially energy and transportThe deplorable state of the nation’s infrastructure has continued to raise cost of doing business resulting in high rate of mortality among SMEs, which increases unemployment.Lack of Requisite Skills:The inability of the nation to formulate a national skills development policy has continued to affect the productivity of labour adversely as most workers lack appropriate skills required to enhance productivity.

Inadequate financial intermediation:Lack of access to credit limits the ability of firms to expand businesses and grow.

Low technology base of the industrial sector:The very poor technology base has continued to hinder the creation of high value, new products that generate employment and high income, as obtained in high performing economies. This diminishes Nigerian firm’s global competitiveness.

Poor Incentives structure:The relative poor incomes reduce the ability to save, as well as invest in profitable enterprises that help to generate employment in Nigeria. The poor savings culture, coupled with poor financial intermediation, ensures that the rate of new start-up enterprises remains low.

Poor work ethics:The increasing poor attitude to work, arising from bad governance, cultural issues and poor value orientation affect labour productivity adversely. To be competitive, Nigeria needs to match wage and productivity rates in Asia which are in the same category of developing countries and compete in global markets

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Structural rigidity in the economy:This has been partly responsible for the poor performance of the industrial sector, as dependence on oil and gas for over 90 per cent of the nation’s revenue, has led to the neglect of the other sectors of the economy such as manufacturing and agriculture.

The Labour mandates are in the following areas: Employment Generation; Labour Administration and Inspection; Skills Development; Productivity Enhancement; Promotion of Industrial Peace and Harmony; Social Security Coverage.

A highly skilled, flexible and mobile labour force, produces higher value of goods and services due

to its adaptability to labour market demands and the rapidly changing technology. Although

Nigeria is blessed with abundant human resources with a population of 150 million (NPoC), of

which the labour force constitutes over 33 per cent, over the years, the labour market has remained

inflexible and unresponsive to the demands of the global market.

In the context of the Vision, the nation’s labour force is an asset, in the sense that it has a vibrant

youth population of age 16 – 35 estimated to be 60 per cent of the labour forces. Given the right

environment and with appropriate policies, this young work force can be easily transformed to

enhance their productivity and to create wealth for the nation.

During the programme period, Government will mobilize and harness the potentials of the labour

force to engender accelerated economic growth and development through the creation of the

enabling environment for expansion of economic activities, skill development and appropriate

training. It is envisaged that employment generation will derive from two main sources: expansion

of activities in existing production units and new investments in agriculture, infrastructure, ICT,

industry, SME, trade and public works.

Policy Thrust

The strategic objectives during the programme period are:

Promoting industrial peace and harmony;

Facilitating social security and safety nets;

Creating high quality job opportunities;

Promoting occupational safety and health protection of workforce and infrastructure.

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In line with the policy thrusts, government will pursue the following key initiatives:

Implementation of the National Action Plan on Employment Creation (NAPEC) targeted

at creating five million new jobs annually within the next three years;

Establishment of more Skills Acquisition Centres;

Upgrading of existing Skills Acquisition Centres;

Increase in-take into Vocational Training Schemes;

Implementation of Local Content Policy in all the sectors especially in the oil and gas

industry in order to boost Job creation in the country;

Intensification of Workplace Inspection and Enforcement Services;

Implementation of the Employees Compensation Act 2010;

Enactment of the National Policy on Productivity.

Creation of a more organized unemployment registration centres

Support for the establishment of six vocational centres in the six Geopolitical zones of

the country in collaboration with relevant state governments

Women Affairs and Social Development

Introduction

Nigeria has a population of about 150 million people, out of which about 49.1% are women, while

the total number of vulnerable groups (women, children, the aged, and persons living with various

forms of challenges and disabilities) constitute about 70% of the entire population. The Federal

Ministry of Women Affairs and Social Development, founded on 14 th January 1995, is charged

with the mandate of promoting and protecting the rights of these vulnerable groups and integrating

their issues and concerns into the nation’s development plan.

Review of Policies, Programmes and Project initiatives in Human Capital Development

(2004- 2010)

Policy Thrust

The thrust of government policy in the area of women and social development is to build a

Nigerian society devoid of gender discrimination and guarantees equal access to political, social

and economic wealth creation opportunities, develops a culture that places premium on the

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protection of the child and focuses attention of both public and private sectors on issues that

promote full participation of Women, children, the aged and persons with disabilities in the process

of national development.

Key Achievements:

Government has made significant gains since the adoption of an institutional framework for the

development of women and the girl-child. For example, the national gender policy has been

developed and is in use, while the OVC baseline survey and the preparation and circulation of 3rd,

4th, 5th, 6th periodic country report on the implementation of the convention on the elimination of all

forms of discrimination against women has been completed. Other key achievements include:

Stakeholders Consultative Forum on Girl Child Education held

Survey on Girl Child Education Interventions carried out and the Report on the

Survey produced;

Awareness Creation/Advocacy through the production of four types of jingles in

English and three other major languages which were aired on both national radio and

television particularly in the area of gender equality;

Completion of 19 skills acquisition centres in the following states of the Federation

achieved. They are: Mabugi Langtang, Plateau State; Abeokuta South, Ogun State;

Nkwere, Imo State; Ihiala, Anambra State; Egbeda Ibadan, Oyo State; Lere, Kaduna

State; Michika, Adamwa State; Orlu, Imo State; Ogbuno Nnewi South, Anambra

State; Yauri, Kebbi State; Abogunde, Oyo State; Alasa, Ogbomosho North, Oyo

State; Onicha Uku North, Delta State; ADO-Ekiti, Ekiti State; Owerri, Imo State;

Ikoyi Ogbomosho, Oyo State; Bende, Abia State; Wurno, Sokoto State; Osun Itapa,

Ekiti State.

Implementation of programms/projects aimed at reducing child mortality in the

states of the Federation.

Completion of the National Baseline Survey on Persons With Disabilities in Nigeria

in the twenty-three States of: Adamawa, Abia, Borno, Cross River, Delta, Edo,

Ebonyi, Enugu, Ekiti, Gombe, Imo, Kaduna, Kano, Katsina, Kebbi, Kwara, Lagos,

Niger, Osun, Oyo, Rivers, Taraba, Plateau.

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Policy Goal:

In the years under review, the subject of gender equality occupied a more prominent place at the

various levels leading to concrete engagements at high levels of Government and within

development agencies.

The finalization of a gender policy as a tool for advocacy and gender mainstreaming is one of the

concrete strategies Nigeria is employing to achieve the MDGs, which by extension, encompasses

the principles of Human Rights. Since 2006, a high level of understanding of the concept of gender

could be said to have emerged, with significant mobilization for its mainstreaming into policy

frameworks and institutional mechanisms in order to guarantee the achievement and monitoring of

gender equality agenda.

In addition, the following activities were also carried out especially in the areas of advocacy and

awareness:

i) National Women Political Summit/Rally held in Abuja. About 10,000 women

participated in the Summit/Rally where key Resolutions on women participation in

politics and governance were adopted

ii) Honourable Minister’s Advocacy Visits to 12 States, to address specific community

relevant issues (Maternal Mortality Rate, Girl-Child Education, Women Economic

Empowerment, Non-formal Education for Women, Street Children and Concerns of

Other Vulnerable Groups).

iii) Conducted Situation Analysis of the selected PHCs in 13 States of the Federation,

iii) Procurement and distribution of 49 Ambulances to 16 States of Ogun, Ekiti, Abia, Edo,

Kogi, Plateau, Oyo Adamawa, Gombe, Yobe, Kebbi, Kaduna and A/Ibom while the

remaining states including FCT received theirs in September 2010.

iv) Procurement and distribution of Essential items: Anti Shock Garments (NASG),

MgSO4, Mama Kits, etc. to the 13 States of the Federation while the remaining states,

including FCT will receive theirs in Sept. 2010.

v) Procurement and distribution of Aids and appliances such as vulcanizing equipment,

sewing and grinding machines, wheel chairs, white canes, Braille Machines, talking

calculators, watches and typewriters etc to one hundred and twenty four (124) Persons

With Disabilities and Institutions undertaken.

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These activities and programmes have increased:

i) Women’s participation in Politics/Decision-Making

ii) Increased Empowerment of Women Entrepreneur on the use of ICT.

iii) Parliamentarians sensitized on the contentious issues against CEDAW Domestication.

iv) Improved understanding/analysis of Gender Issues.

v) Increase recognition of the effect of Gender Based Violence and poor perceptions of

Women’s Rights.

Other activity outcomes include:

Key Government functionaries and Parliamentarians sensitized on the need for Gender

Mainstreaming in the National Budgeting processes

i) Increased income generation activities for Women and Persons with Disabilities.

ii) Women and Persons with Disabilities who are the beneficiaries of Federal Government

interventions and support have been empowered to be self reliant and independent.

iii) Increased understanding of Gender Issues and Women Empowerment at National and

State levels.

iv) Increased advocacy/sensitization programme for gender and development.

v) Increased advocacy geared toward reduction of maternal mortality

vi) Increased resource allocation for women empowerment and gender development

vii) Increased understanding of gender as a development approach

viii) Completion of baseline study on child health indicators

ix) Child rights act advocacy guide developed and printed.

Key Challenges

Despite the progress that has been made over the years both at Federal and state levels to ensure

that gender equality in all sectoral policies and programmes, there remain challenges that are

attributable to patriarchal, deep rooted traditional beliefs and customs, low level of female

involvement and participation in creating change has contributed immensely to the perpetuation of

gender inequality in the country. These are issues that government will focus on during the

programme period.

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The policy goal for the next five years include:

i) Facilitating the promotion of Gender Equality and advancement of women as an integral

part of all political, social, economic and cultural development initiatives undertaken by

the country;

ii) Undertaking policy formulation and harmonization on women, children, less privileged

persons and people with disabilities;

iii) Serving as the central policy-coordination point for the country in social development;

iv) Developing appropriate indicators for effective monitoring of the social sector among

others.

Key Programmes

The key interventions include:

i. Development of national gender policy

ii. Advocacy through electronic and print media on safe motherhood, women’s

right/empowerment and changing negative social norms on reproduction

iii. Domestication and popularization of regional and international instruments on children

iv. Programme/project on reduction of maternal and infant mortality, capacity building and

women empowerment in collaboration with state ministries of women affairs

v. grants to women and children focused NGOs for programme/project geared towards

achieving

gender equality and women empowerment

vi. Political empowerment of women

vii. Baseline study of child and maternal health indicators

viii. Girl child education-task force

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Youth Development

Introduction:

In order to address the overall development of the youth, the Government created the Ministry of

Youth Development in January, 2007. The Ministry has two Agencies – National Youth Service

Corps (NYSC) and the Citizenship and Leadership Training Centre (C&LTC).

Vision & Mission

The vision is to empower the Nigerian youth to become self- reliant and socially responsible. The

mission on the other hand is to provide a sustainable framework for integrated planning and

collaboration among stakeholders for the development of policies and programmes, laws and other

initiatives that promote and enhance the development of the Nigerian youth and the protection of

their interests.

Challenges:

• Insufficient and late release of funds:

• There is a disconnect between what MDAs are allocated and what they require to

achieve their annual targets for achieving Vision 2020. For instance, National

Assembly allocated the sum of N1.04billion to the Ministry in 2011, whereas the

Ministry (excluding her Agencies) requires N6.7 billion in 2011 if we are to work

towards achieving the Vision 2020, leaving a shortfall of N5.66 billion.

• Problems associated with land allocation within areas where centres are to be built.

• Policy continuity and coherence

• Funding

• Land availability

Policy Thrust and Key Achievements:

Opening of Zonal Offices: Government has commenced the construction of six zonal offices to

monitor and evaluate youth development activities in each of the geo-political zone.

Building Youth Development Centres: Government is constructing six national youth

development centres in the six geo-political zones to serve as a platform for vocational training,

entrepreneurship development, referral/counselling and out of school training for young people.

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Out of these, two centres (Katsina, and Ode-Omu, Osun State) have been commissioned while

work has reached between 40 per cent and 60 per cent completion on the others.

To effectively respond to contemporary challenges, the Ministry will register the youth centres with

the National Board for Technical Education as providers of vocational education to facilitate the

certification of trainees in the various trades by the Centres.

Review, Adoption and Approval of the New National Youth Policy:

The Federal Executive Council has approved the new policy and the document has become

operational. The policy makes specific provisions to address the problems of street youth, jobless

youth, female youth, youth in drug and other areas.

Ratification of African Youth Charter: Closely related to the above was the issue of the African

Youth Charter which the African Union directed all member nations to ratify. The continental

benchmark for youth development was ratified by President Umaru Musa Yar`Adua and the details

of the charter are already integrated into the National Youth Policy.

Reform of the National Youth Service Corps (NYSC): Established in 1973 to serve as a

veritable tool to instilling discipline, patriotism, unity, self-reliance and also promoting integration

among fresh graduates of tertiary institutions, the NYSC has served as a very reliable channel for

Community Development Programmes. The scheme has been reformed to respond to the

challenges of our contemporary times.

Professionalisation of Youth Development Work: In realization of the importance of training of

youth development workforce, the Ministry, in collaboration with the African Regional Office of

the Commonwealth Youth Programme and the University of Abuja, is running a diploma

programme on youth work for Youth Development Officers which is designed to raise an army of

youth workers as well as help to professionalize youth work by developing well trained youth

workers. The first batch of trainees has graduated.

NATIONAL YOUTH EMPLOYMENT ACTION PLAN:

In view of the worsening unemployment crisis among our youth, the Ministry, in close

collaboration with the International Labour Organization, developed the National Youth

Employment Action Plan in 2008 to address the issue of unemployment among the youth. 86

The action plan has been endorsed and approved by the Federal Executive Council and is now the

basis of the ongoing multi sectoral efforts of the present administration to provide millions of jobs

for the youth.

Nigerian Youth Entrepreneurship Development Programme (NYEDP): In partnership with the

Commonwealth Youth Programme, Africa Centre, Zambia, the Ministry has designed a

comprehensive intervention strategy that is expected to provide employment for 10,000 Nigerian

youth in three years (2012 - 2014) during the pilot stage.

National Youth Development Fund: Just like the Youth Development Act, the Ministry has

concluded work on the establishment of a National Youth Development Fund which has also been

approved in principle by the Federal Executive Council.

National Youth Development Report: Documents the progress in youth development initiatives

at all levels of governments as well as those of the non-governmental, non-profit sector.

Introduction of Youth Mainstreaming: This programme is aimed at ensuring to ensure that all

MDAs and other stakeholders consider the implications of governmental decisions on the youth

and their development. This will result in a collective national response to youth issue, making the

sector a national priority for all leaders in all sectors of the society.

Establishment of Youth Parliament: To expose our youth to leadership training and provide a

platform for youth participation in decision making and governance.

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CHAPTER SIXREAL SECTOR

Introduction

The real sector refers to that part of the economy in which production of goods and services takes

place through the combined utilization of raw materials and other factors of production. The real

sector in Nigeria covers primary sectors such as agriculture , manufacturing, small and medium-

scale enterprises, oil and gas, trade and commerce, culture and tourism as well as the film and

entertainment industry. These sectors have been identified as growth drivers of the economy in the

Nigerian Vision 20:2020 and its 1st National Implementation Plan.

Situation Analysis

Situation Analysis of the Agricultural Sector

Agricultural policy in the country seeks to ensure food security and sustainable access , availability

and affordability of quality food to all Nigerians, production of agricultural raw materials to meet

the needs of the expanding industrial sector and export market and ensure that the country is a

significant net exporter of food to the global community. This is to be achieved through promotion

of agricultural development and management of natural resources in a value chain approach, to

ensure sustainable food security, enhance farmer’s income, create employment and reduce poverty

in the country. The Federal Government in collaboration with the African Union, the Economic

Community of West African States and development partners embarked on a comprehensive

African Agricultural Development Programme which focused on the promotion of commercial

agriculture in Nigeria and other African countries through the design of quality investment

programmes. The project aims at improving agricultural production, processing and marketing of

output among participating small and medium-scale commercial farms and agro-processors.

Nigeria must be a beficiary of this Programme

Some of the development programmes that Government has embarked upon include Special

Programme for Food Security (SPFS); Fadama II& [[[ Programmes; Fertilizer Revolving Fund;

Presidential Initiative on Cassava, Rice, Vegetable Oil, Tree Crops and Livestock; restructuring

and recapitalization of the Nigerian Agricultural, Co-operative & Rural Development Bank. Other

complementary policies and programmes implemented include Value Added Tax Exemption for

locally produced agricultural inputs such as fertilizer, and agricultural machinery, storage and

processing facilities. Also, there are agricultural development and marketing initiatives resulting in

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the establishment of the Livestock Development and Marketing Company and the Arable Crop

Development and Marketing Company. The Central Bank of Nigeria also adopted new measures on

credit delivery including the Trust Fund Model which reduced risk faced by farmers. These

policies, programmes and projects tend have had positive effect on agricultural production in the

country.

Key Issues And Challenges

Issues and Challenges in the Agricultural Sector

The main constraints on agricultural development are low productivity, low level of private sector

investment, non-competitiveness, inadequate funding as well as underdeveloped land ownership

and tenure system. Associated with low productivity are issues of ageing farming population and

continued reliance on rudimentary tools and cultural practices. Other challenges are persistent drift

of population from rural to urban areas, weak linkage to agro-industrial sector, resulting in

wastages of surpluses, and low prices during harvest period, poor research co-ordination and weak

linkage between research and extension, persistent problems of access to credit particularly in the

rural level, poor state of rural infrastructure, especially roads, resulting in increased costs of

farming operations and transportation of produce, problems of development of appropriate farm

implement and poor technology transfer as well as weak marketing structure.

Situation Analysis for the Water Sector: 2004 – 2010

Nigeria is blessed with abundant water resources. The surface water resources potential of the

country is estimated at 267.3 billion cubic metres while the groundwater potential is 51.9 billion

metres. Despite this abundant water endowment, a large percentage of the country’s estimated 150

million population does not have access to potable water. According to Multi-indicator cluster

survey of 1999 by the National Bureau of Statistics, only 52% of the urban (48% of semi-urban

areas are included) and 39% of rural dwellers have access to potable water.

Issues and Challenges in the Water Sector

Water Resources

Water, particularly clean, safe and potable water is vital to human existence. The human body of 70

kilograms in weight, is made up of 42-60 per cent of water. In order to maintain this balance, an

average human being needs about 2.5 litres of water every day. In spite of its indispensability to

life, water in its clean, pure and safe state exists only briefly in nature. In Nigeria, such factors as 89

environmental degradation, social infrastructural decay, poor maintenance culture and persistent

rural-urban migration, combine with fast growth on population make portable water scarce. Until

the recent entrance of multinationals, blue chip local companies and the pharmaceutical companies

in the industry, the gap in the supply of portable water in urban areas was largely met by water of

dubious purity otherwise known as “pure water”.

Water is important in public health, agriculture and food security. The planting time and crop yield

are both determined by the onset, duration and the amount of rain that is recorded in a rainy season.

Government recognizes the fact that potable water supply is indispensable for sound and healthy

living and to improve infant and maternal mortality.

Water remains one of the major primary drivers of public health. Agriculture and food security are

also critically dependent on water availability as planting and crop yield are both determined by the

onset, duration and amount of rain. Government recognizes the fact that potable water supply is

critical for sound and healthy living and also reduces infant and maternal mortality rate.

Challenges

Many factors inhibit growth and development of water resources in Nigeria, the major ones of

which are lack of basic planning data, flood and erosion, manpower shortage and paucity of funds.

It is difficult to assemble reliable and adequate technical and socio-economic data for the

assessment, planning, design, construction and maintenance of various development projects. Flood

has particularly been devastating in the coastal areas of the country, sometimes leading to severe

erosion and consequent loss of agricultural soils and lands, and damage to engineering structures

including those for water resources.

The proper planning, implementation and management of water resources programmes and projects

depend principally on the availability of competent personnel. The professional and sub-

professionals are very few in number and some of them inexperienced. The few available ones have

been spread too thin on the existing projects. In order to cope with the challenges in the next

decade, there is need to step up manpower training and development.

Also, the non-availability of funds has always posed a major problem to the development of water

resources programmes and projects. Most of the developments in this sector are government-

financed. The dwindling resources at government’s disposal have also adversely affected

successive allocations of money to water resources projects.

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Situation Analysis of the Manufacturing Sector

Although the manufacturing sector is crucial for the country’s economic transformation, it has been

difficult for the sector to demonstrate its capacity in this regard. It has remained structurally and

technologically weak. The deterioration of the sector is evident from its contribution to GDP which

averaged only four per cent between 2004 and 2009. However, value added grew at an average of

8.8 per cent between 2005 and 2009 while capacity utilization rose from 34 percent in 2005 to 50

per cent in 2009. The low capacity utilization rates have been blamed on epileptic power supply,

lack of working capital, and reduced demand for locally manufactured goods.

Furthermore, many small-scale enterprises have closed down while rationalization and staff layoffs

are being experienced in many medium- and large-scale establishments. Available data in the 1st

NIP indicates that 30 per cent of firms have closed down, 60 per cent are ailing and only 10 per

cent are operating at a sustainable level. Companies that have closed down cut across all sector, but

the most affected are textile, dry cell, automotive batteries, matches, and candles sub-sector.

Issues and Challenges in the Manufacturing Sector

The major challenges in the sector include poor state of physical infrastructure, policy instability

and discontinuity, lack of funding and financial services, weak local raw materials supply base,

shortage of skilled manpower, low level of technology, absence of core industrial base. Others

include low investment in research and development, competition with sub-standard imports,

difficult business environment as well as paucity and poor flow of information.

Situation Analysis of the Trade and Commerce Sector

The trade liberalization policies of the 1990s marked a clear departure from the era of import-

substitution and widespread trade restrictions. Under the liberalized trading regime, a number of

initiatives were introduced. They include tariff reforms, harmonization of waivers, port reforms,

concessions and incentives and introduction of FTZ to boost exports. There were policies and

programmes put in place to enhance international competitiveness, export diversification, greater

utilization of preferential trade arrangements and Nigeria’s increased participation in international

trade negotiations. The adoption of the ECOWAS Common External Tariff (CET) in 2005

improved the predictability of its tariff regime and provided a strong signal of Nigeria’s

commitment to a competitive level playing field and strengthening of sub-regional integration.91

With a view to expanding the nation’s export base, government under a catch phrase “Commerce

44” is pursuing the diversification of exports to the USA. To achieve this goal, government has

identified 11 agricultural commodities, 11 solid minerals and 11 manufactured products whose

quality and standards would be significantly improved to position them for export. Government has

also identified 11 countries and regions where the export of these products will be targeted for

maximum benefits.

Situation Analysis of the Culture and Tourism Sector

The culture and tourism sector has recently been recognized as a critical sector for wealth creation

and economic development. In this connection, government has reviewed existing culture policy

and launched a National Tourism Policy. Many state governments have focused attention on the

development of tourism and have reaped substantial gains in terms of wealth creation and

employment generation in the process. The enlistment of the Sukur World Heritage site in

Adamawa State and the Osun Osogbo Sacred groove into the World Heritage List is a major

development in the sector in recent times.

Issues and Challenges in the Oil and Gas Sector

The major challenges that have continued to undermine development aspirations in the oil and gas

sector include, (i) unrest and agitation in the Niger Delta region over the past five to ten years

which tend to discourage investment, (ii) loss of revenue due to interruption of production

operations and theft of crude oil from pipelines and tank farms, (iii) escalating operational and

development cost arising from the turbulent business environment and unreasonable demand for

reparations by groups and individuals in oil producing communities and (iv) high incidence of

delayed and abandoned projects in communities where companies are unable to sustain a licence to

operate.

Moreover, there is no fiscal framework for natural gas in Nigeria. Gas supply remains a major

issue, particularly with regard to the Nigerian power sector. Eleven of PHCN’s 14 generation units

and 22 of the 23 licensed IPPs are gas-fired. Only approximately 30 per cent of the required gas is

effectively delivered. In recent times, the generating capacity of the 10 principal power stations

dropped drastically such that on the average, they were operating at only 30 per cent of installed

capacity with the exception of Okpai plant in Delta State, built and run by Italy’s Agip, which was

running at 90 per cent capacity.

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Issues and Challenges in the Trade and Commerce Sector

The major challenges of the sector include low productive/trade capacity for effective participation

in the global market, poor quality of goods and services and failure to meet international standards,

non-diversification of export base, poor development of value chain and low value addition to

exports, high cost of doing business. Other challenges include poor regulatory environment,

uncoordinated informal trade as well as inadequate specialized support institutions and awareness

for exporters on the opportunities provided by various preferential trade schemes.

Issues and Challenges in the Culture and Tourism Sector

Despite the determination of the government to use culture and tourism sector as a major driver of

growth, the performance of the sector is below expectation. The poor performance of the sector is

due to several factors including infrastructural inadequacies, weak regulation and inadequate

funding, weak product packaging and marketing approaches, security and safety issues, neglect and

under-development of tourism assets, underdeveloped hospitality industry and non-competitive visa

regime.

Policy Thrusts During 2011-2015

Agricultural Sector

The policy thrust in agriculture and food security will include the following.

Secure food and food needs of the nation

Enhance generation of national and social wealth through greater export and import

substitution

Enhance capacity for value addition leading to industrialization and job creation

Efficient exploitation and utilization of available agricultural resources

Enhance the development and dissemination of appropriate and efficient technologies for

rapid adoption

Achieve self sufficiency in rice production

Achieve self sufficiency in fertilizer production

Water Sector

The relevance of water to our national development has progressively increased over the years with

rapid population growth, urbanization, agricultural and industrial development. In recognition of

this, the government has identified programmes and initiatives capable of transforming the water

sector and encouraging private sector participation in the management of water resources. Some of

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these strategies are tailored towards the construction of dams, irrigation, water supply projects and

other related projects across the different states of the Federation. In this regard, government has

developed a roadmap for water resources development to put the nation back on track in achieving

the Vision 20.2020, Millennium Development Goals (MDGs) and Africa Water Vision in 2025.

The Key policy thrusts during the 2011 – 2015 period are:

Harnessing the current and potential opportunities and addressing operational challenges

within the water resources sector with a view to ascertaining the nature of investment

required in the sector.

Supply of adequate and potable water for domestic and industrial uses.

Provision of adequate sanitation and maintenance of water quality.

Development and support for irrigated agriculture for food security

Establishing the means to acquire, collate, manage and disseminate hydrological, hydro

meteorologically and hydro geological information for each of the River Basins in

Nigeria.

Harnessing the power generation potentials of dams across the country for better

improvement of electricity supply.

National Water Supply Access to be increased form 54% to 65%;

National Sanitation Access to be increased from 35% to 65%;

Available reservoir capacity to be increased from 34bm3 to 35bM3

Total irrigable land to be increased from 80,000ha to 150,000ha, an increase by 100%;

Solid Minerals

The policy thrusts aimed at making Nigeria a destination for capital (local and foreign) for the

profitable exploitation of the nation’s mineral resources are:

Development of an effective mechanism for consistent and systematic generation of quality

and reliable geosciences data to support detailed exploration of mineral resources. This will

require mandating and empowering the Nigerian Geological Survey Agency (NGSA) to

prepare 20 maps of 1:100,000 per annum to achieve 100 per cent coverage by 2020, and

providing improved funding for NGSA to accelerate progress in its geological and

geophysical mapping programmes.

Facilitation of access to capital for expansion and development of the solid minerals sector.

In addition to other funding sources, the Solid Minerals Development Fund provided for in

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the Nigerian Minerals & Mining Act of 2007 will be fully utilised for this purpose, and will

be fully operational by the end of 2010.

Provision of specialized funding for key institutions in the solid mineral sector such as

(NGSA, COMEG, NMDC, Department of MMSD, School of Mines, NSRMEA) and the

development of industry-wide capacity building programmes for both small and medium

scale mining companies, entrenching sustainability as a fundamental principle in the

exploitation of all minerals resources with a view to preserving the physical environment,

protecting the rights of host communities, and ensuring that mining activities lead to greater

economic empowerment of the people.

Manufacturing

The policy thrust for the manufacturing sector will be the promotion of private sector investments

through the creation of enabling environment that allows for substantial improvement in efficiency,

productivity and profitability. This is to significantly increase local content and linkages with other

sectors of the economy, ensure global competitiveness for manufactured goods, make Nigerian

manufactured goods a major foreign exchange earner and achieve rapid and sustained economic

growth through broadening the nation’s productive base.

Oil and Gas

The policy thrusts for the sector include the promotion of private sector investment in both

upstream and downstream activities of the oil and gas industry, deregulation of the industry and

promotion of environmentally-friendly oil and gas exploration and exploitation methods,

strengthening capacity building programmes especially in core technical areas and provision of

funding mechanisms for pre-bidding geosciences and surveys of deepwater offshore. Priority will

be given to gas flare-down to reduce pollution and increase revenue, promotion of adequate gas

supply for domestic use and power generation and diversification of the mode of transportation of

petroleum products – pipeline, railway and road haulage.

Trade and Commerce

The policy thrust for the sector is to encourage the production and distribution of goods and

services especially within the context of “Commerce 44” initiative to satisfy the domestic and

international markets to achieve accelerated growth and development. Himdrances to the free flow

of goods persons and services will be removed, including road blocks.

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Culture and Tourism

The policy thrust for this sector is to ensure that tourism is private-sector driven while the

government provides the enabling environment for the industry to flourish. The sector will play a

crucial role in wealth creation, employment generation and poverty reduction. Tourism

development will be underpinned by sustainable environmental practices with effective community

involvement. As a matter of policy, Nigeria’s cultural heritage will be an important resource for

driving tourism.

Key Programmes and Projects Agricultural Sector

The priority Programmes and Projects are as follows:-

(i) Livestock

This deals with effective control and management of vectors of animal diseases and migratory pest

as well as encourages Private Sector participation in all aspects of livestock production, processing

and marketing. Some of the key sub programmes are:

Intensification and diversification of research in livestock;

Breeding to ensure availability of improved seed stock;

Dairy development;

Grazing reserve development;

Ensure improved animal public health;

Pest control services and development of the value chain and overall quality control.

Crop Sub-Sector

Government is determined to increase the current level of production and productivity of the crop

sub sector through strategies such as adoption of improved agricultural technology, price

stabilization mechanism, improved irrigation scheme and efficient extension schemes. The core

programmes and projects include:

Implementation of agriculture cadastre programme in 36 states and FCT;

Clearing of 240,000 ha of land in collaboration with the 36 states and FCT will be

vigorously pursued;

Production of 62,500 MT of certified seeds and 275 MT breeders, 508 MT

foundation seed and establishment of agric seed centres in the 36 states and FCT;

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Construction and completion of on-going silos to increase the number of silos to 44

with storage capacity of three million MT;

Implementation of programmes of community warehousing which is aimed at

achieving 700,000 MT storage to store excess farm harvest;

Generation and rehabilitation of old cocoa and oil palm plantations.

Value chain development in agriculture

Fisheries

The priority of Government is to achieve increased domestic fish production from various sources

on a sustainable and remarkable basis to level of self sufficiency and fish export in medium and

long term. Government is to pursue a deliberate policy of increasing production of fish and

fisheries products by 25% annually. By 2013 it is projected that the current production of 700,000

MT will increase to about three million MT.

Key priority projects include:

Establishment of 120 fish farm estates across the geo-political zones;

Construction of ornamental fish development centres;

Fish seed and feed certification and standardization, shrimp farm development,

establishment of feed mill;

Local fish seed production is expected to increase from five million to about four

billion annually.

Research Development

The plan will focus on the intensification of applied research, thus strengthening the Agricultural

Research Council of Nigeria. The establishment and equipment of additional research institute.

Water Resources

Programmes and Projects for the Water Sector

(i) Completion and rehabilitation of existing irrigation schemes and dams

(ii) Development, Production of Water Resources Act, Water Allocation Licences & Guidelines and

Water Resources Statistics.

(iii) Provision of Matching Fund For Technical Cooperation with IUCN, NBA / GEF, LBC/GEF,

NNJC & Multilateral Agencies.

(iv) Pilot construction, channelization and stabilization of Nigeria's rivers in eight catchment areas

as models for the regulation, maintenance of sound ecosystem and quality control.97

(v) Drainage and erosion control

(vi) Hydrogeological mapping

(vii) National hydrometric Network.

(viii) Procurement of pressure loggers and gage plates for the establishment of hydrological stations

on major rivers nationwide.

There is the need to:

Ensure provision of sufficient and equitable access to potable water to all Nigerians in an

affordable and sustainable way.

Create the enabling environment, build capacity and ensure effective and efficient deployment

of human and material resources that would fast track the repositioning of the sector for

accelerated attainment of the MDGs and Vision 20: 2020 targets.

SUMMARY OF SELECTED WATER RESOURCES PROJECTS

Unique ID

Project Title Status Total Cost (N b)

WATER & SANITATION 1 Dasin Hausa Dam

in Adamawa State (Multi Purpose Dam)

New 0.2

2 Ishiagu Water Supply Scheme.

New 3.0

3 Yedsaram Dam in Adamawa (Earth Dam)

New 5.4

4 Zungeru/Wushishi Water Supply Project

New 3.6

5 Aba Water Supply Rehabilitation

Ongoing 2.4

6 ABU Zaria Water Supply Scheme

Ongoing 0.8

7 Biu Water Supply Scheme

Ongoing 7.2

8 Completion of Okpilla Water Supply Scheme

Ongoing 0.8

9 Dadin Kowa Irrigation in Gombe State (rehabilitation of existing Canal)

Ongoing 0.1

10 Greater Onitsha Ongoing 4.2

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Water Supply Scheme

11 Port Harcourt Water Supply Project

Ongoing 6.4

TOTAL 34.1

The complete listing may be seen in the appendix to this report

Implementation Strategies

The policy thrust for the Water Resources sector during the period FY 2011-2015 will be to

increase the service level and coverage for water supply in urban and small towns as well as rural

areas by 2013, establishment of legal and regulatory framework as well as institutional mechanism

for quality standards of potable water.

Promotion of capacity building, research and development of projects and programmes with

respect to the outputs/results of investment and the impact on intended beneficiaries.

Data and information management, assessment of water supply as well as monitoring and

evaluation.

Promotion of community participation and other stakeholders, especially water users and the

private sector

Strengthening of the institutions responsible for water supply. The water Research Institute in

Kaduna should be properly positioned for capacity building as well as research and development.

The following strategies have been developed to assure the attainment of stated objectives.

Ensure availability of baseline and recurrent data for proper planning and management in GIS

platform.

Expand the existing urban water supply in state capitals to double their production capacity.

Construct new water schemes in the rural areas in each senatorial district.

Ensure sustainable optimal performance of water supply schemes, facilities and services.

Encourage community and private sector participation as well as Public Private Partnership

[PPP] in the provision of water supply services.

Ensure stable, reliable and affordable power source for small town water supply schemes and

facilities.

Ensure sustainable and optimal performance of water supply schemes, facilities and services.

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Promote the improvement of traditional sources of water supply and ensure sustainable optimal

performance of water supply schemes and services.

Promote the construction of Small Town Water Supply in all local government areas.

Ensure adequate and sustained investments in the sector.

Attract the Development Partners support for the sector.

Key Performance Indicators

The KPIs for Water Resources during the period 2011-2015 are:

Increase national water supply coverage from the current47% to 50% by the year 2015.

Increase urban water supply coverage and the minimum basic human water requirements from

65% to 70% and 60% to 80% respectively by the year 2015.

Increase small town water supply coverage and basic human water requirement from 65% to

70% by the year 2011.

Increase rural water supply coverage and minimum basic human requirement from 30% to 40%

by the year 2015.

Ensure adequate and sustained funding for the sector.

Programmes and Projects for the Solid Minerals and Steel Sector

The priority programmes and projects are:

(i) Formalization of artisanal small scale mining operations

(ii Establishment of extension services performing and registered ASM cooperatives,

(iii) Construction and equipping of environmental analytical laboratories

(iv) Reclamation of high risk critical abandoned mine sites

(v) Establishment of Information Management System (IMS) of the mining sector.

(v) Decisive action on the Ajaokuta and Delta Steel Plants

Programmes and Projects for the Manufacturing Sector

(i) Provision of $3 billion special fund for the rehabilitation of ailing industries and promotion of

core industries for rehabilitation

(ii) Recapitalization of Bank of Industry

(iii) Establishment of industrial clusters in the states to boost value chain processing and production

of exportable products

(iv) Provision of common facilities for seven priority clusters

(v) Credit guarantee scheme for MSMEs100

(vi) Upgrading of industrial development centres to include business support services

(vii) Establishment of four model enterprise zones

(viii) Establishment of mini sugar plants and implementation of National Sugar Road Map

Programmes and Projects for Trade and Commerce Sector

(i) Commerce "44"" Initiative

(ii) Establishment of transnational border markets in six geopolitical zones

(iii) Investment promotion and production agreement with 25 countries

(iv) Procurement of weights and measures calibration materials

(v) Agricultural produce processing including industrial linkages

(vi) One local government one product

(vii) Development of production of liberalized WTO compatible trade regime

Programmes and Projects for Culture and Tourism Sector

(i) Establishment of Culture and Tourism Fund to promote culture and tourism financing

(ii) Upgrade Abuja carnival to international standards

(iii) Development of two UNESCO World Heritage sites in Nigeria: Oshun Oshogbo sacred

groove in Osun State and Sukuru Cultural Landscape in Adamawa State.

(iv) Establishment of a National Theatre and National Gallery of international standard in Abuja.

Zonal Cluster Approach For Real Sector Development

The strategy of regional clusters concept will be adopted for the implementation of KPPPs. The

cluster strategy aims at placing various parts of the country into economic zones with emphasis on

areas of comparative advantage. The strategy will involve identifying key projects and activities,

commencing with existing industrial clusters and expanding to new clusters of products It will

largely be private sector driven with government providing infrastructure and promoting linkages.

The clusters will form the focus for provision of infrastructure and development incentives while

also generating employment. This will eventually cover the whole country (see Table 4.1 below).

Table 4.1 Zonal Clusters for Promotion of Real Sector Activities

S/N Cluster Major Produce of Cluster

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1. Niger-Kwara Crops, Fish, Power (Commercial Agric)

2. North West (Kano/Kaduna) Textiles, leather and leather products, rice, wheat/tomatoes/onions/groundnut / livestock, etc.

3. Lagos/South West Pharmaceuticals, household consumer goods4. Plateau/Benue/Nassarawa Tubers/Grains/Fruits/Vegetables/Tin/

Columbite/Solid Minerals

5. Edo/Delta/Akwa Ibom Oil Palm, Timber and Rubber6. South East (Nnewi/Aba/ Onitsha) Machine tools and parts fabrication/textiles 7. Port Harcourt/Sapele Oil and Gas, Fertilizer, Refinery8. Sokoto Rima Rice, cotton, hides & skins, millet, guinea corn

9. Mambilla (Taraba) Livestock, crops, power10. Bauchi-Gombe Cotton, cereals, textiles

11. Maiduguri/Yola Livestock/cowpea, grains, sugar cane

SECTION FOUR

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INFRASTRUCTURE: KEY POLICIES, PROGRAMMES AND PROJECTS

INTRODUCTIONInfrastructure forms the foundation of all development in a country. The lack, or inadequacy, of

infrastructure restricts productivity and limits competitiveness. Despite Nigeria’s position as a

major oil producer and exporter for over four decades, its stock of basic infrastructure falls far short

of the minimum required for meeting the demands of a 21st-century global economy. The country’s

infrastructure has remained grossly inadequate, obsolete, dilapidated and poorly maintained. Water

supply, sewerage, sanitation, drainage, roads, electricity, waste disposal and most urban

infrastructure, have not kept pace with population growth and rapid urbanization. Periodic and

routine maintenance, arguably the most cost-effective infrastructure spending, is largely lacking.

The impact of Nigeria’s infrastructure deficit has been enormous and quite devastating. The

country’s challenge with the delivery of critical infrastructure continues to impact negatively on the

cost of doing business, investment and capital inflow into the country. According to the Debt

Management Office (DM0), Nigeria requires capital investments of over US$100 billion, excluding

routine maintenance and operating costs to close this yawning infrastructure gap. The country is

currently investing about 7% of Gross Domestic Product (GDP) in infrastructure development.

While this figure is clearly above the sub-Saharan Africa’s average, it however pales in comparison

with such emerging economies as China with 12% of GDP investment in infrastructure and

services.

SITUATION ANALYSIS OF KEY SECTORS. POLICIES, PROGRAMMES AND PROJECTS

Power

The broad vision for the power sector is to meet the demand for adequate and sustainable power in

all sectors of the Nigerian economy and in all parts of the country at affordable costs. During the

Plan period, Government will invest in direct electricity generation as well as provision of

appropriate legal and regulatory environment for private sector participation.

Of the estimated 150 million Nigerians, less than 40% have access to electricity power

characterized by very frequent blackouts and brownouts. With an installed capacity of only 6,654

MW for Nigeria’s burgeoning population (compared to about 40 MW for South Africa’s 23 million

people), it is not difficult to see why electricity power is the bane of Nigeria’s economy.

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The thrust of the Federal Government’s current reform effort in the power sector is to reverse this

trend by strengthening the weak and inadequate transmission network, un-bundling and privatizing

of the State’s electricity company, Power Holding Company of Nigeria (PHCN), increase of

installed generation capacity to 10000 MW by 2011, introduction of an independent regulator and

various tax and investment incentives to private investors in the sector.

Efforts by the Nigerian government in this direction include commissioning independent power

producers (IPPs) to generate electricity and sell it to PHCN. IPPs currently under construction

include the 276-MW Siemens station in Afam, Agip's 450-MW plant in Kwale, ExxonMobil's 388-

MW plant in Bonny and Eskom's 388-MW plant in Enugu. The River State Government has

contracted Shell to expand the 700-MW Afam station. Other power plants likely to come on stream

are four thermal power plants with a combined capacity of 1,234 MW to meet its generating goal of

6,500 MW. Geregu, Alaoji, Papalanto, and Omotosho all recently came on stream. Fourteen other

hydroelectric and natural gas plants are planned for completion by 2013.

Under a recently released comprehensive electricity reform plan, encompassing short and long-term

measures to resuscitate the crippled sector, the Government , will gradually deregulate the power

sector and attract private sector investment of $3.5 billion annually in a bid to move power

generation from the current 3,500 megawatts to 40,000mw by the year 2020. In the interim,

government hopes to attain the 7,000mw by April 2011, given recent moves to make the price of

gas attractive to enable oil companies invest in gas processing and transmission projects.

Government will also invest $3.5 billion in the construction of transmission lines that could

evacuate 14,000mw of electricity to the national grid when independent power plants currently

under construction come on stream by 2013.

This roadmap would commence with the privatization of generation and distribution arms of the

electricity supply chain. The transmission arm would still be in government hands, but its

management might have to be contracted out to private firms. The FGN does not intend to make

any further investment in thermal power station. Investment in this area will be left to the private

sector as IPPs. As regards hydro power plants, the FGN will fund the basic infrastructure and

concession the plants to the private sector for O&M and further expansion. Government hopes that

Nigeria might attain regular power supply by the end of 2013.

Housing

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The demand for housing in Nigeria is significant and growing at a fast pace. The supply gap for

low and middle income groups is very high, reaching a crisis level in some cities in the country,

which is exacerbated by the rapid urbanization of the population. The problem of housing will

become even more acute, as has been predicted by the World Bank, resulting in a housing crisis by

2020 if adequate ameliorative measures are not taken.

Housing is a key component of economic growth and development. It is important in the

calculation of the Human Development Index (HDI).In addition to other factors, such as access to

basic infrastructure, which is used as the measure for current living standards; housing satisfies one

of the basic human needs. It is a durable consumer item that significantly increases workers health

and wellbeing. Housing is also part of the critical infrastructure to accelerate economic

development, and forms a substantial part of the Gross Domestic Product (GDP) of most developed

countries.

Nigeria, with an estimated population of 150 million, requires at least additional 720,000 housing

units per annum (based on an estimate of 9 dwelling units a year per 1,000 of population), not only

to replenish decaying housing stock, but also to meet rising demand and avert a housing crisis by

2020. Successive efforts to meet this target have failed as housing deficit now stands at over 17

million units in Nigeria. Most urban dwellers in Nigeria today, according to studies, live in shanty-

towns, dilapidated houses, and unsanitary conditions without basic amenities such as running

water. Consequently, at least N60 trillion is required to provide 17 million housing units at N3.5

million per unit.

The dearth of affordable housing is further exacerbated by the rate of population growth and the

rapid urbanization on Nigeria. The urban population over the past 3 decades has been growing at

the rate of 5.8 per cent per annum. The urban population which currently stands at 48.2 percent is

projected to rise to 60 percent of the population by 2025. Today, there are more than 840 urban

centres, and ten cities, with their population at over one million. Clearly this trend poses a great

challenge to policy makers.

Although private home ownership received a boost with the recent auctioning of Federal

Government houses in Abuja and Lagos, through a combination of individual savings and limited

mortgage finance from FMBN, the exercise was a mere drop in the bucket, given the size of current

demand. The delivery of decent housing accommodation has been under-developed in Nigeria. In

the same vein, the forward and backward linkages associated with housing had suffered the same

fate. Public sector driven housing development has created substantial challenges to the delivery of

affordable housing in the country, resulting in substantial housing deficit.

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Information and Communication Technology

ICT is applicable to every human endeavour from food security, commerce and industry, physical

and social infrastructure to the entertainment industry among others. The increasing globalization

driven by ICT makes it imperative for Nigeria as an emerging market to consider the application

and promotion of ICT to facilitate rapid growth and development. This will involve the

development of a vibrant ICT sector to drive and expand the national production frontiers in

agriculture, manufacturing and service sectors. It would also require the application of new

knowledge to drive the soft sectors such as governance, entertainment and public services among

others.

Niger Delta

The Niger Delta region is of significant importance to the national economy being the oil and gas

base of Nigeria. Unfortunately, past development planning efforts had failed to adequately address

the region's needs due to implementation lapses. In order to ensure sustainable development in the

area, the Government will intensify action on proper coordination of efforts of all stakeholders

towards the realization of NV 20:2020 objectives of bringing peace and stability to the region and

eignificantly enhance the living standards of the people

FCT

Abuja, the capital city of Nigeria, is a well-planned city set down on 8000-square-kilometer of

rolling hills, isolated highlands and a picturesque view with other endearing features that make it

the delight of a first time visitor. It is an ultra-modern city with a scenic landscape that can easily

compare with any other modern city in the developed world.

Initially intended to house diplomatic missions, ministries, the headquarters of the civil service, and

the three branches of the federation’s government, namely executive, legislative, and judicial, all

three rooted at the foot of the impressive Aso Rock. Its design provided for a four-phase

development with the city divided into sectors, and further subdivided into districts. It was

projected that each sector would accommodate between 100,000 and 250,000 people. Thus the city

would have a population of 1.60 million people and a total of 3.1 million people at the end of

phases one and two.

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Oil and Gas

Situation Analysis for the Oil and Gas Sector

The country relies heavily on this sector for the revenue required for national development. As at

2009, the sector accounted for about 16 per cent of GDP, 95 per cent of total foreign exchange

earnings and 85 per cent of total government revenue. The country has the largest reserves in sub-

Sahara Africa, with a total of 36 billion bbls onshore and offshore, and total production output of

approximately 2.3bn bbls per day. Once the two new LNG plants at the Bonny Island are

completed, Nigeria’s LNG output is expected to quadruple to about 40 million tpa. When the

Bonny Island LNG plant came on stream in 1999, Nigeria became the third largest African LNG

exporter after Algeria and Egypt. Despite this, Nigeria remains one of the least exploitative gas-

producing nations. Following a series of government-amended targets, current production, at

approximately 615,000 bpd equivalent, remains lacklustre given the 2010 target of 4.5mn bpd

equivalent. With estimated untapped proven reserves of gas (260trn cubic feet, or three times the

nation’s crude oil resources), domestic demand growth is effectively capped by production. It is

estimated that domestic demand could grow at 2.5 percent per annum if it could be met by supply.

Although available resource potentials remain huge, the current level of exploitation and

development of the sector need to be re-aligned with the yearnings and aspiration of the people

with a view to achieving sustained growth and balanced development. Despite the gas potentials for

instance, the level of gas penetration and utilization in the country for both domestic and industrial

purposes remains abysmally low. The downstream oil industry is so poorly managed that Nigeria

continues to rely on imported petroleum products to meet domestic demand.

In recent times, the sector has been undergoing some reforms. The Oil and Gas Sector

Implementation Bill which envisioned a drastic reform of the sector have been with the National

Assembly. There is also the Petroleum Industry Bill which has passed through several stages of

scrutiny at the National Assembly but has remained work in progress. It is only the Local Content

Law that has been enacted. Consequently, the Local Content Commission has since been

established and appropriate institutional framework has been put in place to ensure strict

compliance with the provisions of the law.

The oil industry dominates Nigeria’s economy and accounts for 95% of export earnings. The

country has the largest reserves in Sub-Sahara Africa, with a total of 36 billion bbls onshore and 107

offshore, and total production output of approximately 2.3bn bbls per day. Once the two new LNG

plants at the Bonny Island facility are completed, Nigeria’s LNG output is expected to quadruple to

about 40milliontpa.

When the Bonny Island LNG plant came on stream in 1999, Nigeria became the third largest

African LNG exporter, after Algeria and Egypt. Despite this, Nigeria remains one of the least

exploitative gas-producing nations. Following a series of government-amended targets, current

production, at approximately 615,000 bpd equivalent, remains far below the 2010 target of 4.5mn

bpd equivalent. With estimated untapped proven reserves of gas (260 trncubic feet, or 3x the

nation’s crude oil resources), domestic demand growth is effectively capped by production. It is

estimated that domestic demand could grow at 2.5 per cent per annum if supply is adequate.

Transport Infrastructure

Investments in the transport subsector are strategic to national development and economic growth.

The development of a world class infrastructure that will support other sectors of the economy,

particularly the productive sector is a necessary precondition for achieving Nigeria's Vision

20:2020. There is no doubt that an efficient transport system facilitates the movement of people and

goods, reduces the cost of production and thus, enhances global competitiveness.

Agriculture Infrastructure

River Basin Development Authorities (RBDAs) across Nigeria came into existence following the

promulgation of Decree 25 of 1976. There are 12 RBDAs nationwide but only 11 are known by

law. This was as a result of the split of the old Niger Basin Authority into upper and lower RBDAs

without a corresponding amendment of the law. There is also presently a bill before the National

Assembly to correct this anomaly and to split the present Anambra-Imo RBDA into two, thus

bringing the total to 13.

The RBDAs were conceived as a vehicle for attaining a pan-Nigerian programme of water

resources development vested with legal powers to undertake a comprehensive development of

both surface and underground water. They are also to construct and maintain dams, irrigation and

drainage systems; supply water to all users and to construct and maintain infrastructural services

including roads and bridges across project sites. RBDAs are ideally public administrative bodies

endowed with civil personality and financial independence. Their main objective is to promote

activities related to the basin which are of public interest.

The RBDAs spread across the country include: Anambra-Imo River Basin Development Authority,

Benin-Owena River Basin Development Authority, Cross Rivers Basin Development Authority,

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Chad Basin Development Authority, Hadejia–Jama’are Basin Development Authority, Lower

Benue Basin Development Authority. Others are Niger Basin Development Authority, Niger-Delta

Basin Development Authority, Ogun-Osun Basin Development Authority, Upper-Niger Basin

Development Authority, and Sokoto Rima Basin Development Authority.

Key Challenges

Power

Only 40% of Nigerians have access to electricity, while supply shortages are responsible for the

three percentage point decrease in economic growth per year. Nigeria has vast reserves of

petroleum and natural gas, and the potential to be one of Africa’s richest nations. However, reliable

power supply remains a challenge. With a population of 154mn and estimated GDP of $206 billion

at 2010, installed capacity stands at only 7,000 MW, with only 37.4% of it in operable condition.

The average per capita electricity usage is 125 kWh. To put this into context, Kenya has a

population of 34million, a GDP of $18.7bn, average per-capita usage of 5,866 kWh, and installed

capacity of 17,000 MW. An even starker contrast is South Africa, with a population of 45 million

and GDP of $235 billion, which has installed capacity of 40,000 MW.

TABLE 1: AVERAGE PER CAPITA ELECTRICITY USAGE

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Housing

Housing requires huge capital outlay, which cannot adequately be met by the epileptic funding

through budgetary allocations at the federal, state and municipal levels. Government’s policy has

therefore shifted to the mobilization of private sector funds. The strengthening of the FMBN and

establishment of such specialized institutions such as Primary Mortgage Institutions, Federal

Mortgage Finance Limited, and National Housing Trust Fund (NHTF), and provision of

infrastructure and research have not bridged this gap. According to records, as at April 2005,

FMBN has delivered 13,672 housing units at various locations in the country through the NHTF.

This pales in significance when compared with the estimated housing deficit of over 17 million

units, and further accentuates the urgent need for a paradigm shift in the funding for the housing

sector.

FCT

The Phase One area of the city is divided into five (5) districts: Central Area, Garki, Wuse,

Maitama, and Asokoro. There are also five districts in Phase 2:Kado, Durumi, Gudu, Utako and

Jabi; and the Phase 3 districts are Mabushi, Katampe, Wuye and Gwarimpa. There are also five

suburban districts, which include Nyanya, Karu, Gwagwalada, Kubwa, and Jukwoyi. Along the

Airport Road are clusters of satellite settlements, namely Lugbe, Chika, Kuchigworo and Pyakassa.

Other satellite settlements are Idu (The Main Industrial Zone), Mpape, Karimu, Gwagwa and Dei-

Dei (housing the International Livestock market and also International Building materials market).

Growth in social infrastructure in FCT through national programmes must be complemented with

the development of physical and economic infrastructure because of its status as the administrative

headquarters of Nigeria. Thus the development efforts in the Abuja Municipality must be

complemented with the development of the satellite towns within the FCT in order to minimize the

problems of urbanization and the emergence of urban slums

Oil and Gas

There is no fiscal framework for natural gas in Nigeria. Gas supply remains a major issue,

particularly with regard to the Nigerian power sector. Eleven of PHCN’s 14 generation units and 22

of the 23 licensed IPPs are gas-fired. Only approximately 30% of the required gas is effectively

delivered. In recent times, the generating capacity of the 10 principal power stations dropped

drastically, such that on the average, they were operating at only 30% of installed capacity, with the 110

exception being the Okpai plant in Delta State, built and run by Italy’s Agip, which was running at

90% capacity.

INFRASTRUCTURE DEVELOPMENT: Policies, Programmes and Projects 2011 - 2015

Overview

Infrastructure plays a critical role in promoting economic growth through enhancing productivity,

improving competitiveness, reducing poverty, linking people and organizations together through

telecommunications and contributing to environmental sustainability. Indeed, Nigeria’s lack of

competitiveness could be directly attributable to the abysmal level of infrastructure development in

the country. Despite her position as a major oil producer and exporter over four decades, and an

expenditure of over 14 trillion naira, Nigeria’s stock of basic infrastructure remains obsolete,

dilapidated and poorly maintained. Where they exist, they operate as monopolies with inadequate

and limited coverage. Water supply, sewerage, sanitation, drainage, roads, electricity, waste

disposal and most urban infrastructure, all suffer from years of neglect and under-funding. Periodic

and routine maintenance, which ought to be the most cost-effective infrastructure spending, is

almost zero. There is limited private sector participation due largely to weak or non-existent legal,

institutional and regulatory framework.

Recent studies have located the challenges to infrastructure development in three critical areas:

(a) Project Preparation: The dearth of capacity by public authorities to carry out economic

appraisal of projects, undertake development of a long-term investment strategy which will provide

a planning tool for the development of infrastructure, irrespective of the financing source,

significantly reducing the speed at which bankable projects are brought to the market.

(b) Project Delivery: Faulty project execution framework, together with the dearth of project

execution capacity and competencies has been identified as primarily responsible for poor project

execution in Nigeria.

(c) Project Funding: Concessional funding by multilateral and bilateral development institutions

are perhaps the most viable sources of funding for infrastructure development. Not only do they

meet the requirements of fiscal responsibility, they do not exert undue fiscal pressure on the budget.

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Proposed key policies, programmes and critical projects

Power Projects and Programmes

The total proposed investment envisaged in the power sector during the FY 2011-2015 is about

N2,550 billion. This will cover investments in four major areas of power generation, transmission,

distribution and alternative energy, but do not include estimates for the rehabilitation of Kainji,

Shirirro and Jebba Hydropower stations. Cost estimates for their rehabilitation was not readily

available. This expenditure will be with the object of increasing generation, transmission and

distribution capacity in order to provide adequate and sustainable power; intensifying rural

electrification efforts in a more efficient manner; achieving optimal energy mix using the most

appropriate technology. There are the additional objectives of improving the billing and collection

efficiency of power distribution companies, promoting the effective utilization of coal to

complement the nation's power needs; and pursuing the development and exploitation of nuclear

energy for peaceful purposes.

Three Hydro Dam Projects, with a total generating capacity of 30.275 MW of electricity have been

completed and tested but not yet connected to the National Grid. These are Gurara 1 Hydro Dam

Project (30 MW), Waya Hydro Dam Project (0.15 MW), and Mbowo Hydro Dam Project (0.125

MW). The transmission line to Gurara 1 is currently being addressed by the Presidential Task Force

on Power (PTFP), and the cost has been accommodated in the 2010 Budget. However, the lines to

Waya Hydro Dam Project and Mbowo Hydro Dam Project respectively requiring N17.1 million

and N14.25 million respectively, are yet to be addressed.

Studies have been completed for the Zungeru (700 MW) Hydro Power Plant and an Engineering,

Procurement and Construction (EPC) Contract awarded, but the contract is yet to commence. The

Environmental Impact Assessment (EIA) study is still outstanding and is currently in the process of

being procured. The project is estimated to cost N115 billion. A provision of 10% of this amount

has been made to cover future contract preparation costs.

Detailed studies are expected to commence shortly on the coal powered electric plants to be located

at Enugu, Benue, Nasarawa and Gombe. The envisaged coal plants together have an estimated

generating capacity of 3000MW. These coal projects are expected to attract pre-contract

preparatory cost of about N3.5 billion. Studies are at various stages on the Mambilla, Gurara II, and

Itisi dam.

Implementation Strategies 112

The strategies to be adopted in achieving these objectives include:

Creating a deregulated and competitive electric power sector to attract foreign and local

investments.

Ensuring a viable commercial framework for the electric power sector, including a tariff regime

that promotes transparency, guarantees security of investments and a reasonable rate of return

on investments.

Enhancing the transmission capacity and providing redundancies in the transmission system so

as to ensure a fully integrated network that minimizes transmission losses while strengthening

grid security.

Intensifying rural electrification efforts in a more efficient manner.

Increasing the utilization of alternative energy in the national energy mix; and

Introducing demand side management principles, embarking on public enlightenment

campaigns, advocating for the use of energy saving equipment to reduce power demand at

home and industry.

Other strategies to be adopted are:

Providing incentives to encourage local manufacturing and production of consumables used in

the power sector, initially for relatively low tech power equipment such as conductors,

insulators, cables, transmission and distribution structures etc.

Ensuring local manpower development by establishing effective training institutions and

programmes as well as enforcing minimum local content components of power sector

development and operational activities

Completely privatizing distribution assets in order to provide efficient billing and collection

infrastructure, and ensure international best practices in electricity distribution.

Promoting the production of coal for power generation by creating a favorable business

environment for coal-to-power investors.

Intensifying the search for more coal reserves to make coal a sustainable and reliable alternative

energy source.

Establish unambiguous policy guidelines for the nuclear energy sector, clearly defining the role

of relevant governmental organizations and the private sector as the main drivers of the nuclear

power programme.

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Intensify manpower training and development and the provision of adequate infrastructure for

nuclear science and technology. Utilize mini and micro hydropower schemes to extend

electricity to rural and remote areas.

Government would in addition, strive to create enabling regulatory fiscal and administrative

environment to attract private investment into hydropower plants, utilize wind power plants to

extend electricity to rural and remote areas, especially in the northern part of the country,

aggressively drive the optimization of the components of wind water pumping and electricity

generation and to de-emphasize diesel powered water pumps wherever the wind speed will allow

wind water pumping. Other possible strategies include actively supporting research and

development activities to cater for site specificity of designs for all parts of the country, creating an

enabling environment to attract private investments in manufacturing, establishing and operating

solar energy systems, supporting demonstration and pilot projects to ensure that the general public

is aware of the potentials of solar energy technologies which will as well assist in creation of

markets for solar energy systems, promoting R&D activities in biomass energy technology that will

facilitate the realization of Biomass-to-Power target of 1000MW electricity in the long term,

developing extension programmes and establishing pilot projects to facilitate the general use of

new biomass energy technologies. Finally, there is need to create a sustainable institutional and

commercial framework to encourage private sector investments in the sector.

Key Performance Indicators

The Key Performance Indicators set for the power sector during the period [2011 - 2015] are as

follows:

Achieve 16,000MW generation by 2015.

Strengthen the transmission network to wheel 16,000MWby 2015.

Increase electricity access to 50 per cent by 2015 from the current 40 per cent

Achieve electricity generation mix of 11,800MW gas fired plants and 4.200MW renewable.

Increase the utilization of alternate energy in the National Energy Mix.

Increase the average load factor in the power sector from 31 per cent to 50 per cent in 2015.

Produce one per cent of material inputs for the power sector locally by 2015.

Achieve billing and collection efficiencies of 95 per cent and 80 per cent respectively for power

consumed by 2015.

Commence the development of coal to power plants by 2010.114

Commence the development of nuclear power plant.

Achieve a 25 per cent contribution of hydroelectricity to the nation's electricity generation mix

by 2015.

Achieve a 10MW contribution from wind energy to the nation's electricity generation mix by

2015.

Housing

Projects and Programmes

The proposed investment in the housing sector for the Plan period is N194.31 billion. Details are

disclosed in Table 4 below

TABLE 4: SUMMARY OF HOUSING PROJECTS

Implementation Strategies

During the FY 2011-2015, the policy thrusts would focus on creating an enabling environment for

private sector investments in housing development, providing adequate public building policy for

effective service delivery, and establishment of National Housing Data Bank. The Committee on

Alternative Funding Arrangements for Capital Project Final Report 28 harmonization and

standardization of land administration process nationwide through a national technical development

forum, together with working with States and Local Governments to produce and implement a

unified and integrated infrastructure development for housing with a view to opening up new

layouts and provide site and service for private sector to develop affordable and decent mass

housing, would add impetus to seamless housing delivery. This will be in addition to working with

financial sector operators and regulators to develop an effective primary housing finance system

and facilitate linkage of that market to the capital market with a view to providing long term

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Priority Projects Total N(bn)

1 Recapitalization of FMBN 17.23 2 Construction of 600,000 Housing

Units under PPP arrangement 104.74

3 Construction of 240,000 affordable housing units by FHA

72.35

TOTAL 194.31

affordable and sustainable liquidity for housing, and embarking on land reform to facilitate private

sector investments in housing.

The objectives sought to be achieved by the FGN on the housing sector in Nigeria for the period

2011-2015 are to:

Develop an efficient land administration system to make land ownership available/ accessible

and easily transferable at affordable rate.

Provide adequate and affordable housing finance to all Nigerians by developing an efficient

primary and secondary mortgage markets.

Establish an efficient legal and regulatory framework to enforce the control and monitoring of

housing delivery.

Develop professional and skilled manpower and build adequate capacity through training and

skills acquisition to support the housing sector.

Reduce the cost of production of houses by developing and promoting appropriate designs and

production technologies in the housing sector.

Add 10 million new homes to the current national housing stock.

Possible strategies to ensure attainment of the objectives include conferring secured registerable

and marketable title on land, establishing efficient and transparent land title transfer system,

simplifying existing land procedures for effective title and consent delivery, as well as developing

efficient national land information system. Others are providing infrastructure for site and services

to open up new urban layouts, providing funding for detailed empirical research for the

establishment of a viable primary mortgage market, and enforcing the National Housing Fund

[NHF] contributions as enshrined in the enabling Act.

Recapitalize the Primary Mortgage Institutions (PMIs) to a minimum of N100 billion, together with

ensuring that PENCOM invests sizable part of the pension fund in primary mortgage products, are

possible strategies to ensure affordable housing in Nigeria. MDAs could be encouraged to place

fund deposits with the capitalized PMIs, Government could establish a body to regulate the housing

sector. Other possible strategies include:

Committee on Alternative Funding Arrangements for Capital Project Final Report 29

Design appropriate incentives to facilitate home ownership for lower income groups.

Establish a mortgage and title insurance system that will mitigate credit risks.

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Establish an efficient foreclosure system that will give more guarantees to lenders in the cases

of default.

Design and implement measures to encourage investment in affordable rental housing.

Review the Land Use Act to ease the process of acquiring and disposing landed property.

Rehabilitate all existing technical and vocational training centres and also build new ones.

Review the certification and registration of all skilled manpower through Trade Test.

Appoint qualified building industry professionals to head housing institutions

Key Performance Indicators

The KPIs set for the housing sector during the period [2011 - 2015] are as follows:

Develop an efficient land administration system to make land ownership available/ accessible

and easily transferable at affordable rate.

Provide adequate and affordable housing finance to all Nigerians by developing an efficient

primary and secondary mortgage markets.

Establish an efficient legal and regulatory framework to enforce the control and monitoring of

housing delivery.

Develop professional and skill manpower and build adequate capacity through training and

skills acquisition to support the housing sector.

Reduce the cost of production of houses by developing and promoting appropriate designs and

production technologies in the housing sector.

Add 10 million new homes to the current national housing stock.

Communication

Projects and Programmes

The proposed investment for the Information and Communications sector during the period 2011-

2015 is N48.39 billion. Details are shown in Table 5 below.

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TABLE 5: SUMMARY OF ICT PROJECTS

Implementation Strategies

During this plan period, the policy thrusts of the FGN would be the development of a national

Knowledge Based Economy [KBE] 10-year Strategic Plan, Sustained human capacity development

in ICT, Creation of a favourable and friendly investment and enterprise environment through

transparency in tax systems, anti-trust laws incentives and trade policies that would stimulate local

and foreign investments in ICT, and development of infrastructure, particularly global connectivity

as a prerequisite to leveraging the benefits of the global economy, improving domestic productivity

and attracting foreign investments. Others are creation of an enabling environment through

appropriate policies, legal, regulatory and institutional frameworks, and enhancing Public Private

Partnership [PPP] in project funding, financing and management.

The objectives of Government’s ICT interventions are numerous and include:

Developing sufficient, efficient and affordable ICT infrastructure to ameliorate and sustain

economic growth and development.

Engendering rapid ICT penetration and diffusion for efficient and affordable services across the

socio-economic sectors of Nigeria.

Developing globally competitive indigenous human capital and knowledge base products and

services in targeted areas of ICT e.g. software, hardware, networks, and technologies/

security/biometrics, web and digital content development etc.

118

S/No

Priority Projects Total

N(Billion)

1 ICT Infrastructure 11396.612 Multimedia Super Corridor 91.013 Local content Development 30.254 Information security 156.595 Research & Development in 1CT 286.226 Postal Services 1875.397 ICT projects 8405.69

TOTAL (ICT) 22,241.76

Deploying ICT in Government for transparency and accountability as well as enhancement of

efficiency, effectiveness and also increased government capacity to deliver citizen centered

services to attain national competitiveness.

Promoting Research and Development [R&D] activities to stimulate and sustain innovation in

ICT solutions.

Developing the ICT Industry for the production of software and hardware to global standards.

Implementing the Strategic Action Plan [ICT 4D] to mainstream ICT policies, ICT based

processes and ICT products and services into different sectors of the economy.

Putting in place, a national fibre-optic backbone infrastructure that ensures high bandwidth

availability, universal access, internet connectivity and telecommunications.

Strategies aimed at providing conducive policy and regulatory environment include to:

Provide recognition for non-formal and distance e-Learning modes of education

Enact enabling legislation for e-Government, e.g. Digital Signature Act.

Incentivize the commercial production and provision by the private sector of Nigerian

digital content and online databases in English and Nigerian languages,

Provide policies and fiscal incentives to encourage ICT hardware manufacturers to invest

towards improving the amount of local content in their products and services.

Promote local adaptations of foreign ICT systems and solutions that do not infringe patent

rights through support and incentives.

Enact enabling legislation for e-Government e.g. Digital Signature Act

Undertake institutional reforms in the institutions in specialized and targeted research and

development activities,

Facilitate linkage between national research institutes and tertiary institutions with

internationally recognized ICT based research institutions abroad.

Facilitate the linkage between ICT based companies and research institutes in targeted areas

of ICT solutions.

Establish legal and institutional framework for the protection of copyright and other

Intellectual Property Right Issues.

Formulate and implement an appropriate enabling ICT local content policy.

119

Provide legal, regulatory and institutional frameworks to create investment friendly and

responsive environment for sustainable transition to KBE.

Provide policies and fiscal incentives to encourage ICT Hardware manufacturers to invest

towards improving the amount of local content in their products and services.

Capacity building strategies include:

Put in place national standards for software, hardware and other ICT products and services and

a framework to ensure compliance with the standards.

Facilitate increased awareness of potential of ICT by literate people in rural and urban areas of

the country.

Put in place functional education curricula for ECCDE, primary, secondary and tertiary levels

with appropriate ICT skills content philosophy by 2015.

Carry out Skills Gaps Analysis to assess ICT skills deficiencies.

Conduct intensive training programmes and workshops to develop relevant ICT skills for

workers.

Provide incentives for the workforce to acquire ICT skills, equipment and connectivity.

Make use of basic and specialized work-related ICT skills a requirement for employment and

advancement in MDAs by 2015.

Create ICT cadre in the public service and ICT departments in all MDAs to be headed by a

Director with ICT background.

Strengthen the competencies and capabilities of researchers and research institutes and tertiary

institutions to be globally competitive in targeted ICT areas.

Other strategies include:

Promote citizens online access to Government information.

Encourage private operators to roll out nationwide high speed broadband and data

infrastructure.

Promote the personal acquisition and ownership of computers by pupils, students, employees

and households.

Partner with local manufacturers to produce affordable and functional computer systems at

subsidized rate.

120

Promote the development of local software that interface with Nigerian languages in either

voice-text or text-voice modes.

Promote the development of local software that interface with Nigerian languages in either

voice-text or text-voice modes.

Create enterprises architecture documents at the different levels of Government to guide the

acquisition, deployment, operation and maintenance of interoperable technology systems.

Provide high tech equipment and internet connectivity for all institutions.

Key Performance Indicators

The following are the KPI set for the ICT sector during the period [2011 - 2015]:

Attain 55 per cent coverage of the fibre optic backbone infrastructure of the country from the

current coverage of 10 per cent by 2015.

Achieve computer density of 1:30 [national], 1:10 [rural], 1:5 [urban primary and secondary

schools], 1:3 [tertiary institutions],

Attain tele-density of 65 per cent from the present 47 per cent by 2015.

Achieve a ratio of computer scientists, engineers and technologists to population of 1:10,000 by

2015.

Achieve 30 per cent of Nigerian content in ICT hardware, software and services by 2015. Build

the capacity of 40 per cent of the work-force to acquire basic and work relevant ICT skills by

2015.

Achieve 1:5 ratios of personnel to computer for 40 per cent of the work force by 2015.

Achieve a ratio of computer scientists, engineers and technologists to population of 1:10,000 by

2015.

Achieve a ratio of researchers to population of 1:15,000 by 2015.

Achieve the commercialization of 5 per cent of annual R&D output.

Achieve 30 per cent of Nigerian content in ICT hardware, software and services by 2015,

Achieve a 3 per cent contribution by the ICT sector to GDP by 2015.

Achieve at least 0.1 per cent of GDP investment in ICT R&D annually to improve local

software and hardware capacity.

Attain 30 per cent transition to Knowledge Based Economy [KBE] input in Flagship subsectors

such as Agriculture, Manufacturing, Industry and services by 2015.

121

Niger Delta

Projects and Programmes

The proposed infrastructure investment in the Niger Delta region during the Plan period is N2,

050.50 billion. A breakdown of this figure is shown on Table 6 below.

TABLE 6: SUMMARY OF NIGER DELTA PROJECTS

Project Title Status Total Cost (N b)

1 Construction Of Bodo-Bonny Road With A Bridge Across The Opobo Channel. C/No. 5662

New 2.6

2 Construction of Modern Coastal Railway Line (from Benin – Calabar) 423km Cutting across Niger-Delta States-Studies

New 3.2

3 Construction of modern coastal railway line from Calabar across 6 Niger Delta States

New 690.00

4 Construction of river Ports in Degema New 1.75 Construction of skills acquisition centers in

the nine states of the Niger Delta regionNew 6.2

6 Equipping and operations of skill acquisition centres

New 0.7

7 Land reclamation, shoreline protection and flood/erosion control for seven states: Azumni - abia States, IbakanNsit-Akwa Ibom State, Odi -Bayelsa state, Essien town - Cross River State, Ijaghalla - Delta State, OkhelenAwo -Edo State and AmadiAma - Rivers State

New 2.8

Dualization of East-West Coastal road project

On-going 45.3

Feasibility Studies and design on land reclamation, shoreline protection and flood/erosion control for 10 sites in Niger Delta region

On-going 0.1

Construction of Niger delta coastal road connecting the Niger Delta through the coast linking Ibaka through Oron and ikotAbasi ail in (AkwaIbom) to Bonny in (Rivers), Brass (Bayelsa), Forcados and Escravos in (Delta), and Aiyetoro and Atijere in (Ondo State) along the coastline

1,800.0

Total 2,050.5

Implementation Strategies

122

All the new projects shall first be subjected to exhaustive feability studies prior to admission

into the capital budget for execution. The feasibility study results shall be presented to the

NPC and the Budget Office for evaluation. There should be close harmonization of the

projects with those of the NDDC and the relevant state governments.

The main policy thrust during the Plan period is to entrench peace and stability to drive sustainable

socio-economic development in the Niger Delta Region with the aim of overcoming the following

issues and challenges:

High incidence of poverty caused by oil extraction activities in the areas.High rate of

unemployment. Deplorable physical and social infrastructure.

Environmental degradation and pollution.

Inter and intra ethnic/communal conflicts.

Disruption of oil extracting activities.

The objectives of these intervention measures are to entrench social stability and accelerate the

socio-economic development of the region, in addition to protecting and conserving the

environment. The strategies that the FGN will be adopting to ensure the attainment of its stated

objectives are to:

Ensure social justice and equity in the sharing of federal collected revenues.

Registration and coordination of all persons dislodged by oil production activities.

Job placement of all persons dislodged by oil production activities.

Increase the private sector contribution to the region's economic growth and development from

the current average of 25 per cent to 75 per cent.

Matching economic goals with environmental conditions.

Key Performance Indicators

For the Niger Delta the KPI set for the MDA during the period [2011 - 2015] include:

50 per cent reduction in poverty level in the region [relative to 2009 level] by 2015.

Reduce social tension to the absolute minimum by 2012. [No more than other parts of the

country.

50 per cent reduction in unemployment in the region [relative to 2009 level] by 2015. 123

50 per cent remediation and rehabilitation of the Niger Delta environment

Federal Capital Territory

Projects and Programmes

The proposed investment in the FCT during the Plan period is N162.90billion and the details are

shown in Table 8 below.

TABLE 8: SUMMARY OF FCT PROJECTS

Unique ID

Project Title Status Total Cost (N b)

1 Construction of inner southern expressway(ISEX) phase ll from the southern parkway

Ongoing 8.6

2 Development of Idu Industrial area IB Engineering Infrastructure

Ongoing 40.8

3 Extension of outer southern expressway from ring road 3 to Abuja A2 in Gwagwalada

Ongoing 6.0

4 Rehabilitation and expansion outer Northern Expressway Lot 11 (19km-39+400km)

Ongoing 60.8

5 Rehabilitation and expansion outer Northern Expressway lot II (Murtala Mohammed Expressway North Lot I)

Ongoing 46.7

TOTAL 162.9

Implementation Strategies

The thrust of Governments intervention in FCT is to open up new districts in the FCT by

constructing and completing access to new districts. The private sector will be incentivized to

provide site and services within the districts. Government’s emphasis will be to provide the policy,

legal regulatory environment for seamless private sector participation in the development of the

districts.

Key Performance Indicators

The Key performance Indicator for the FCT is open up at least 10 new districts by 2015.

Oil and Gas

Projects and Programmes

124

The investment proposed for the development of Oil and Gas infrastructure during the Plan period

is N797.49 billion.The does not include the estimated cost of GTS1 Cathorn Channel - Alakiri -

Owarza Gas Pipeline due to incomplete information. Details of the investment are disclosed in

Table 9 below.

TABLE 9: SUMMARY OF OIL& GAS PROJECTSUnique ID

Project Title Status Total Cost (N b)

OIL & GAS INFRASTRUCTURE 1 Abeokuta City Gate Oben New 7.30 2 Calabar - Umuahia - Ajaokuta – Kaduna-

Kano Gas Pipeline New 465.00

3 ELPS Abeokuta - Ekiti Gas Spur Line New 37.80 4 Expansion of Escravos - Lagos Pipeline

(ELP) New 90.90

5 Gas supply from Obigbo North-imo River

New 3.80

6 Gas Supply from Oso-QIT New 29.0 7 GTS1 Cathorn Channel - Alakiri -

Owarza Gas Pipeline New -

8 Obiafu - Obrikom Gas Pipeline New 96.75 8 Trans-Sahara Gas Pipeline - studies New 27.00 10 Gas Supply to PHCN Power Piant at

Oiorunshogo formerly Papalanto. Ongoing 4.70

11 Gas Supply to PHCN Power Plant at AlaoJi

Ongoing 4.30

12 Gas Supply to PHCN Power Plant at Geregu

Ongoing 29.50

13 Gas Supply to PHCN Power Plant at Omotosho

Ongoing 1.70

TOTAL 797.5

The new Oil & Gas projects are in respect of the Obiafu/Obrikom Northern Option Gas pipeline,

which is an 80km gas pipeline link between Obiafu/Obrikom Option Gas plant and the Northern

option gas pipeline. It is designed to enable wet gas from new sources in the Eastern area to be

processed to pipeline specification at the gas plant and then fed into the Eastern Network through

the Northern Options Line.

Three Oil & Gas projects namely Escravos Lagos Pipeline Systems Expansion (N57.00billion) and

Northern Options pipelines Link (N57.00 billion) are currently ongoing. The Northern Options

pipelines Link is a 60km pipeline to provide a vital link between the numerous new gas supply

sources in the East and the Eastern domestic network. There is currently no link in the Eastern

125

Network sufficient to handle the increased gas supply development. This line is crucial to the full

delivery of gas to Alaoji power plant and other Eastern demand centres.

Seaports & Inland Waterways

The estimated total investment for seaports, and inland waterways and river ports during the period

2011-2015 is approximately N13.70 billion. This investment would cover 4 projects in inland

waterways and river ports, and 3 in seaports. A breakdown of this amount is shown in Table 10

below:

TABLE 10: SUMMARY OF SEA AND RIVER PORT PROJECTS

Unique ID Project Title Status Total Cost (N b)

1 Construction Of River Ports At Oguta ,

New 2.70

2 Construction of Koko and Sapele ports

New 3.0

3 Lekki Deep Seaport New - 4 AkwaIbom Deep seaport New - 5 Procurement And Installation

Of 5 Self Recording Marine Buoys

New 1.50

6 Baro Inland River Port Ongoing 3.60

7 Onitsha Inland River Port Ongoing 4.20

8 Degema Inland River Port Ongoing 1.70

TOTAL 16.70

Implementation Strategy

All the new projects shall be undergo detail feasibikity studies and design. They shall be

cleared with the NPC and Budget Office prior to admission into the capital budget’

The main policy thrust during the Plan period is to evolve a multimodal, integrated and sustainable

transport system, with greater emphasis on rail and inland waterways transportation. An enabling

environment for Public Private Partnership [PPP] has been created by designing new policies,

126

legislation and institutional framework that would support the envisaged transformation of the

sector.

In general, the objectives set for the transport sector during the period [2011 - 2015] are to provide

adequate transport infrastructure and services for even economic development of the country;

ensure the provision of safe, efficient and cost effective transport services for the country; develop

the capacity to sustain and continuously improve the quality of transport infrastructure and service

delivery in the country; create an enabling environment for private sector participation in the

provision of transport infrastructure; and develop a seamless intermodal transport system;

As regards inland Waterways, the strategies include rehabilitating the rail tracks at the seaports and

completing the link to Onne Port. The Strategies to accomplish the objectives set for seaports are as

follows:

Development new deep seaports atEpe,Lekki Brass, Bonny and Badagry.

Dredge the harbors in Lagos and Bonny to accommodate large ocean liners and provide

standard facilities including RORO facilities in Bonny by 2011.

Develop Calabar Port to support free trade zone.

Key Performance Indicators

The KPI for the transport sector are as follow::

Water ways

Increase navigable routes on the inland waterways to 3,000kms.

Increase inland waterways cargo and passenger traffic substantially

Introduce private sector participation in the provision of inland waterways services

Rehabilitate and construct key river ports, jetties and wharfs at Baro, Lokoja, Onitsha, Oguta,

Degema and Yenagoa by 2015.

Dredge and reclaim River Niger and Benue.

Concession routes to the private sector operators.

Seaports

Reduce the turnaround time of ships at ports.

Reduce tariffs to create competition at the ports.127

Improve safety and security at the ports.

Rail Transport

Projects and Programmes

The investment expected in the rail transport subsector during the period 2011-2015 is

approximately N1,613.70billion. This investment would cover 13 projects of which2 projects are

for the rehabilitation of the existing narrow gauge line, while the remaining are in the main new

standard gauge lines. A breakdown of this amount is shown below:

TABLE 11 SUMMARY OF RAILWAY PROJECTS Unique ID Project Title Status Total Cost (N b) Existing Narrow Gauge 1 Lagos - Kano

Narrow Gauge Rehabilitation

Ongoing 12.20

2 PH - Maiduguri Narrow Gauge Rehabilitation

Ongoing 67.30

New Standard Gauge 3 Construction of East - West

railway from Calabar -Eket- Warri- Gelegele - Lagos

New 5.00

4 Aba-Enugu-Asaba-Agbor-Ajaokuta (323km)

New 225.00

5 Ajaokuta-Jakura-Baro-Abuja (360km)

New 48.00

6 Lagos - Ife-Ilesha-Owo-Benin-Onitsha-Enugu (650km) Standard Gauge

New 97.50

7 Lagos-Ibadan Standard Gauge Line

New 229.50

8 Construction standard gauge Abuja - Kaduna

Ongoing 243.00

9 Zaria-Kaura Namoda - Sokoto - Ilela (604km)

New 50.90

10 Abuja Rail Mass Transit LOT 1 And 3

Ongoing 85.70

11 Completion of the 22km standard gauge from Ovu to Warri

Ongoing 7.60

12 Construction of Abuja light Railway Project LOT 2

New 66.30

128

13 Construction of 6 stations between Itakpe and Warn

Ongoing 475.70

TOTAL 1,613.70

Implementation Strategy

The objectives set for the transport sector during the period [2011 - 2015] are as stated in 4.2.8

above. The strategies envisaged in respect of rail transport are:

Concession of the Lagos to Kano and Port Harcourt to Maiduguri rail lines.

Construct rail lines to inland container depots. Construct mass transit rail lines in Lagos and

Abuja.

Rehabilitate the rail links at the ports.

Construct rail lines to Lagos and Abuja airports.

Key Performance Indicators

The KPI for the rail transport sub-sector are as follow:

Complete the rehabilitation of 3,500kms of the existing narrow gauge rail line.

Complete the Itakpe-Ajaokuta-Warri standard gauge rail line

Increase the tonnage of freight transported from 50,000 metric tonnes to 1 million metric

tonnes.

Transport 4 million passengers per year.

Achieve 5000,000 daily trips via mass transit.

Introduce private sector participation in the provision of rail services.

Complete rail network that have reached 50 per cent completion as at December 2009.

Commence Abuja/Idu to Kaduna standard gauge rail line.

Link Abuja by rail to the seaport of Lagos, Warri and Port Harcourt as follows:

Minna to Abuja [for Lagos Port]

Kafanchan to Abuja [for Port Harcort Port]

Itakpe to Abuja [for Warri Port]

Aviation

Projects and Programmes

The major ongoing expansion and remodeling projects in the Aviation Sector relate to: 129

(a) Murtala Mohammed International Airport, Lagos. (N20.848 billion),

(b) Dr. Nnamdi Azikiwe International Airport, Abuja (N27.9 billion),

(c) Aminu Kano International Airport, Kano (N13.50 billion),

(d) Akanu Ibiam International Airport, Enugu (N10.52 billion)

(e) Port Harcourt International Airport, Port Harcourt (N17.30 billion).

(f) Calabar International Airport, Port Harcourt (N14.20 billion).

For these projects, adequate and timely capital flows will ensure air safety, security and passenger

comfort as envisioned in the National Vision 20: 2020. Details of the projected infrastructure

investment amounting to N125.52 is shown in Table 12.

Implementation Strategies

Upgrade and maintain the four major international airports located in Lagos, Kano, Abuja and Port

Harcourt to ICAO standard and recommended practices.

FAAN presently owns or operate on 22 Airports (including 3 airports owned by State

Governments), with support to several airstrips across the country. However, despite achieving

Category-1 status awarded by the United States, most airports in Nigeria are currently uncertified

and would only be certifiable with significant investment of capital. Many of the airport facilities

have not been maintained properly over the years, and have in many cases exceeded their design

life or capacity.

Direct Government budget is limited and cannot meet the required capital investment, maintenance

and replacement backlogs in the aviation sector. The realization that some airports in Nigeria can

pay for themselves while adding significant socio-economic value, justifies the need for alternative

sources of funding airport development. The use of Public Private Partnership (PPP) for the

funding and management of commercially viable Airports can take off the funding burden from the

Government, leaving budgetary allocation and other sources (e.g. the Bilateral Air Services

Agreement, BASA) for the funding of commercially non-viable Airports. Success models of

‘creative’ airport solutions abound in the world, through PPPs and other approaches, and some

airports in Nigeria have highly attractive investment asset class with fairly predictable cash flows

and relative long term stability.

130

TABLE 12: SUMMARY OF AVIATION PROJECTS

Unique ID

Project Title Status Total Cost (N b)

1 Construction 2nd runway Abuja International airport New 5.30 2 Installation of 4 Doppler weather radar New 1.10 3 Procurement and installation, maintenance of ALSIM,

Thales radar and visual tower simulators New 1.40

4 Remodelling of Abuja International Airport New 27.90 5 Remodelling of Enugu International Airport New 10.52 6 Remodelling of Kano International Airport New 13.50 7 Remodelling of MMIA New 20.85 8 Remodelling of Port Harcourt International Airport New 17.30 10 Remodelling of Calabar International Airport New 14.20 10 Construction of Bayelsa airport Ongoing 1.96 11 Resurfacing of runway at Maiduguri, Benin, Calabar,

Akure, and taxiway at Kano and MMIA Ongoing 0.90

12 Fencing of all major airports Ongoing 10.60 TOTAL 125.52

A study by the International Civil Aviation Organization (ICAO) for the Federal Ministry of

Aviation, on options for concessioning of four Airports in Nigeria, identified the need for

considerable investment in the airports in Nigeria, to obtain appropriate certification and to address

decades of under investment, not only in the physical assets such as taxiways, runways and

terminal buildings, but also in fire and safety equipment, training, lighting and power generation.

The MMIA in Lagos in particular is operating beyond its design capacity, and none of the airports

has a Master plan or capital investment plan in place.

Concession of viable Airports in Nigeria will aim to improve services in our airports, and create

commercially viable hubs as follows:

Abuja Airport – National Hub

Lagos – hub for West Coast Africa

Kano – hub for Sahel Africa

Port Harcourt – hub for Gulf of Guinea Oil and Gas Industry

Calabar – hub for Tourism

Therefore the initially identified four (4) viable airports can be rebuilt and managed through

concessions and other forms of PPPs, while other strategic Airports among the Eighteen (18) other 131

FAAN operated airports can be funded through Government budgetary allocation and other sources

like the Bilateral Air Services Agreement (BASA) fund.

Key Performance Indicators

The Key performance Indicators for the Aviation subsector are:

Upgrade and expand the international airports to ICAO standards and recommended

practices.

Concession the five international airports.

Roads & Bridges

Projects and Programmes

During the Plan period 2011-2015, Government plans to upscale the roads infrastructure in the

country with an investment of N841.50 billion, the details of which are shown in Table 13 below.

TABLE 13: SUMMARY OF ROADS & BRIDGES PROJECTS

Unique ID Project Title Status Total Cost (N b) 1 Construction And Dualisation Of Owerri -

Eiele Road Merelu Section) New 14.50

2 Construction Of 2nd Niger Bridge Across River Niger At Onitsha/Asaba

New 80.00

3 Dualisation Of Ibadan - Ilorin Section 1 New 17.60 4 Dualisation Of Obajana Junction - Benin New 2.90 5 Dualisation Of Onitsha - Owerri And Onitsha

Eastern Bypass C/No 5660 New 7.00

6 Kano -Kazaure-Daura-Mai Adua Road In Katsina State, C/No. 5997

New 87.00

7 Kano Western Bypass C/No 5960 New 10.00 8 Loko-Oweto Bridge New 54.00 9 Panyam - BokkosWamba C/No5944 New 60.00 10 Abuja-Lokoja Road Ongoing 68.30 11 Borom-Nasarawa Abaji Road Ongoing 0.80 12 Construction Of Kano Western By Pass Ongoing 7.00 13 Construction Of Main Carriage Way Of FCT

HW 106 From KusakiYanga(OSEX) To Kuje Ongoing 6.00

14 Construction Of Panyam - BokkosWamba Road

Ongoing 2.90

15 Dualization Of Onitsha - Owerri Road And Onitsha Eastern By Pass

Ongoing 5.60

16 Jakuru Access Road Ongoing 0.20 17 Kaduna - Kano (140km) Ongoing 66.30 18 Kano-Maiduguri Road Ongoing 139.90

132

19 Rehabilitation Of Maiduguri-Dikwa-Gamboru Road Section Ii: Dikwa-Gamboru In Borno State

On-going 47.50

20 Rehab Of Okene -Ajaokuta Road Ongoing 1.50 21 Rehabilitation Of Apapa - Oshodi Express

Way In Lagos Ongoing 5.60

22 Rehabilitation Of Enugu-Port Harcourt Road Section Ii (Umuahia-Aba-Port Harcourt)

Ongoing 24.00

23 Rehabilitation Of Funtua - Yashi - Dayi - Kano State Border Road. C/No. 5264

Ongoing 11.20

24 Rehabilitation Of Lafia-Obi-Awe-Tunga Road In Nasarawa State

Ongoing 80.00

25 Shagamu-Benin Expressway Ongoing 41.70 TOTAL 841.50

Implementation Strategies

The thrust of Governments intervention in Roads and Bridges is to complete roads that have

reached 50 per cent completion as at December 2011, rehabilitate and reconstruct the major trunk

roads, and concession major and viable routes. In addition, Government will secure funding from

both the private and public sectors for the remaining 40 per cent of the bad roads, and introduce

private sector participation in the upgrade and maintenance of roads.

SECTION FIVEANALYSIS OF PROGRAMMES and PROJECTS SUBMITTED BY MDAs

133

5.1 Introduction

A total of 1,746 programmes were submitted by relevant federal MDAs for implementation during

2011-2015. This consists of 1361 ongoing and 385 new projects. However, this excludes projects

under Governance, General Administration and Defence and Security. Out of the total number of

programmes, 685 projects were admitted in the KPPPs using the following criteria:

Projects that:

(a) are currently existing capital projects under the NIP (2011-2013) of the NV2020 Blueprint;

(b) would make significant economic impact;

(c) are already ongoing or under development;

(d) are essential to the attainment of sector goals; and

(e) could achieve significant progress within the next four years;

(f) will attract private investment, donor funds or soft loans;

(g) impact on employment and welfare.

Other criteria that were applied include (i) clarity of justification for budget commitment; (ii)

alignment with clearly stated policies; (iii) likelihood of completion in 2012-2015 (iv) clear

implementation arrangements (v) MDG-funded projects; (vi) projects with feasibility reports; (ix)

interlinkages with other sectors and projects (x) projects with measurable targets, KPIs and

outcomes.

The distribution of the projects by MDAs is presented in Table 5.1 below.

The size of programmes and projects submitted by MDAs is N12.74 trillion excluding the

progammes of Defence and Security, Governance and General Administration and the Capital

Budget for 2011. In the allocation of resources, the share of infrastructure and governance was

substantially increased as well as the share of water compared with what they have under the 1st

NIP. Priority was also made for non-priority projects which government must necessarily keep

alive. The programmes are rationalised and prioritised to fall within the N8.5 trillion investment

derived from the macroeconomic framework for 2012-2015. Thus a sum of N7.2 trillion is

allocated for the programmes and projects of the MDAs, while the balance of N1.3 trillion is

reserved for other capital expenditure and marginal provision for capital supplementation (see

Table 5.2 for allocation by sector).

Those projects not covered in the top priority list that cannot be accommodated within the above funding

categories face the following options: Projects

134

To sell them off to private concerns

To discuss them with state and local government with a view to transferring them to the sub-

national governments if they fall within rge the concurrent list

To abandon or lock them up until the next planning cycle when they will face fresh

considerations.

Those that cannot be jettisoned for political reasons may be “drip-fed” with minimum

allocation to keep them afloat.

Table 5.1: Number of Projects Submitted By Each MDA

S/N Sector

New

Ongoing

Total Projects

Total Estimated Cost (N'ml)

Number of Projects Admitted to KPPP

Estimated Cost in KPPP (N'million)

1 Water 97 502 599 909,601.80 20 300,000.00

2 Agriculture 83 244 327 607,296.10 116 500,795.00

3 Labour 43 52 95 85,205.00 20 58,885.85

4 Mines & Steel 11 16 28 142,580.00 16 56,880.00

5 Commerce & Industry 8 6 14 87,765.46 10 64,080.00

6 Science & Technology 10 17 27 131,759.00 20 99,665.00

7 ICT 1 6 7 22,241.76 6 13,836.07

8 Housing 7 7 200,399.00 4 202,984.00

9 FCT 4 16 20 378,000.00 19 287,770.00

10 Railways 7 6 13 1,613,700.00 8 498,550.00

11 Roads & Bridges 12 183 195 939,150.00 170 695,500.00

12 FERMA 132 132 132 250,000.00

13 Aviation 6 14 20 397,500.00 16 112,670.00

14 Niger Delta 10 10 20 708,000.00 16 349,931.76

15 Power 13 4 17 2,550,100.00 6 356,500.00

16 Oil & Gas 9 6 15 797,500.00 12 98,500.00

17 Education 25 30 55 1,942,854.30 24 344,350.00

18 Health 8 62 70 1,153,396.00 35 229,310.00

135

19 Women Affairs & Soc. Dev. 24 45 69 34,687.54 20 28,371.39

20 Youth Development 7 10 17 39,789.79 15 35,201.60

Total 385 1361 1,746 12,741,525.75 6854,583,780.6

7

Note: The data above reflects those obtained from submissions by MDAs. The total allocation of N4,583.8 billion covers the selected projects. Added to these are allocations to Defence and security, bloc allocation to other critical projects of less priority as well as bloc allocation for capital supplementation, and feasibility studies and government support for bankable PPP-destined projects for which N900 billion is earmarked. This is approximately 12% of the cost of those projects which have to be studied/designed and put up for concessioning and other forms of PPP. A sum of N500 billion is also set aside for top priority projects that may emerge in the course of further fine tuning the KPPPs and preparing the capital budgets for the various years.. All of these allocations amount to about N8.5 trillion for the KPPP period 2012-2015. All the consolidated sums in the table are expected to be spread equally over the four years with appropriate adjustment in line with the fiscal profile and programme phasing.

The weights of proposed allocations are similar to those in the 1st NIP but share of physical infrastructure is raised to reflect Government’s emphasis on power, transport, water supply, housing and regional development. Table 5.2 below contains the weights and allocations based on the total capital programme for the period. They will change as the programmes are rationalized. To this extent, they are tentative.

Table 5.2: Nigeria: Allocation By Sector & MDAs under KPPP (2012-2015)

  Total %age share

 2012-2015(N’million)  

Real Sector 1,020,255.67 14.17%

- Agriculture & Rural Development 500,795.59 6.96%

- Water Resources 300,000.08 4.17%

- Commerce & Industry 64,080.00 0.89%

- Mines & Steel Development 56,880.00 0.79%

Physical Infrastructure 2,023,520.00 28.10%

- Transport 1,568,520.00 21.79%

Roads & Bridges 695,500.00 9.66%

FERMA (for Maintenance of Roads) 250,000.00 3.47%

Ports 11,800.00 0.16%

Aviation (excluding BASA Funds) 112,670.00 1.56%

Railways 498,550.00 6.92%

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- Oil & Gas 98,500.00 1.37%

- Power 356,500.00 4.95%

Regional Development 840,538.87 11.67%

- Housing 202,984.34 2.82%

- Federal Capital Territory 287,770.00 4.00%

- Niger Delta 349,784.53 4.86%

Knowledge-Based & ICT 113,456.07 1.58%

Science and Technology 99,620.00 1.38%

Information Communication Technology (ICT) 13,836.07 0.19%

Human Capital Development 696,118.82 9.67%

- Education 344,350.00 4.78%

- Health 229,310.00 3.18%

- Women & Social Development 28,371.39 0.39%

- Youth Development 35,201.58 0.49%

- Labour & Productivity 58,885.85 0.82%

General Administration 224,263.11 3.11%

Defence & Security 748,800.00 10.40%

Sub Total 5,666,952.54 78.71%

Government Contribution to Bankable Projects** 911,660.00 12.66%

Funds for Other Priority Projects not Listed*** 621,387.46 8.63%

Sub Total 7,200,000.00 100.00%

Other Provisions    

a) Non-priority projects and Capital Supplementation 2,200,000.00  

Sub-Total 2012-2015 9,400,000.00  

Provision for 2011 1,300,000.00  

Grand Total (2011-2015) 10,700,000.00  

Infrastructure Projects

With reference to infrastructure, a total of 139 infrastructure projects spread across 11 economic

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sectors were drawn from the National Implementation Plan (NIP) of the National Vision 20: 2020 and

additional projects submitted by the MDAs, harmonized with the Federal Government’s MTSS, and

subsequently screened and prioritized against an agreed set of criteria to produce a list of prioritized

projects. From this data set, about 51 or 37% of these infrastructure projects were determined to be

Critical and Urgent. The rest were classified as neither top priority nor Urgent.

Projects are classified as Top Priority and Urgent if they are: (a) currently existing capital projects

under the NIP (2011-2013) of the NV2020 Blueprint; (b) would make significant economic impact; (c)

already ongoing or under development; (d) essential to the attainment of sector goals; and (e) could

achieve significant progress within the next four years.

In the Report submitted by the Committee on Alternative Funding Arrangements for Major Capital

Projects (May 2011), the 51 Critical and Urgent projects, requiring an outlay of N8,582.24 billion

during the FY 2011-2015, comprise Aviation (8), Housing (3), Power (11), Roads (11), Railways (9),

and Ports & Inland Waterways (6). Of this figure, a total of 21projects are currently ongoing. These

projects require an outlay of N1,664.25 billion. The new projects are 30 in number, and require a

projected outlay of N6, 917.99 billion. A bankability analysis undertaken on these 51 critical and

urgent projects, reveal that 36 or 71% 0f these projects are indeed bankable. About 20 of these 36

projects are new, while 16 are either ongoing or undergoing development. Of the 15 projects are

considered “not bankable”, 10 are new while five are currently ongoing.

Neither Top Priority or Urgent Projects

The 81 projects that are classified as neither Top Priority nor Urgent are made up of 41 Ongoing projects requiring an outlay of N907.72 billion, and 40 new projects that require financial outlay of N827.40 billion during the Plan period. All ongoing projects classified as neither Top Priority nor Urgent, should be accommodated within the Regular Annual Budget, while entirely new projects considered as neither Top Prioritynor Urgent should be deferred to a future Plan Period.

Bankable Projects

There are 37 infrastructure projects classified as bankable, estimated to cost N7.5 trillion. These projects are in the following sectors: Power (6); Roads and Bridges (7); Railway Projects (9); River Ports (4); Aviation (8); Oil & Gas (3). Some N9 billion or 12% of the total cost has been set aside as Government contribution and are earmarked for use to prepare, design and pay government portion of the PPP funding. (see Table 5.3 below)

Table 5.3: BANKABLE PROJECTS BY SECTOR

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S/No: Name of Project

Estimated Cost (N'billion)

Contribution by Government from Budget (N'billion)[at 12% of total estimate]

      0.121 Mambilla (2,600 MW) 390.00 46.82 Zungeru (700 MW) 330.00 39.63 Gurara (350 MW) 52.50 6.34 Rehabilitation & Extension of Terminal Lines 315.00 37.85 Super Grid Project 1,000.50 120.066 Small Hydro Power Plants 0.00  

  Total (Power Sector Projects) 2,088.00 250.56  Roads and Bridge Projects    S/No: Name of Project    

1 Loko-Oweto 54.00 6.482 Abuja-Lokoja 59.00 7.083 Niger Delta Coastal Road 1,800.00 2164 Ibadan-Ilorin-Jebba 18.00 2.165 Kano-Maiduguri 140.00 16.86 Apapa-Oshodi 5.60 0.6727 Ajaokuta Access Roads 2.50 0.3

  Total (Roads & Bridges Projects) 2,079.10 249.49  Railway Projects    S/No: Name of Project    

1 Kano-Lagos Narrow Guage Rehabilitation 12.20 1.4642 PH-Maiduguri Narrow Guage Rehabilitation (Onging) 67.30 8.0763 Lagos-Ibadan Standard Guage Line 229.50 27.544 Abuja-Kaduna Standard Guage Line 243.00 29.16

5Lagos-Ife-Ilesha-Owo-Benin-Onitsha-Enugu (650 km) Standard Guage 900.00 108

6 Ajaokuta-Jakura-Baro-Abuja Standard Guage 432.00 51.847 Abuja Rail Mass Transit LOT 1 & 3 152.00 18.248 Abuja Lite Railway Project LOT 2 0.08 0.0099 Benin-Calabar through 6 Niger Delta States 629.00 75.48

  Total (Railway Projects) 2,585.58 310.27  Seaports & Inland River Ports    S/No: Name of Project    

1 Onitsha Inland River Port 4.20 0.5042 Baro Inland River Port 3.60 0.4323 Oguta River Port 2.70 0.3244 Degema River Port 1.70 0.204

  Total (Seaports & River Ports) 12.20 1.46  Aviation Projects    S/No: Name of Project    

1 MMIA International Airport Terminal Remodeling 21.00 2.52139

2 Abuja International Airport Terminal Remodelling 20.80 2.4963 Kano International Airport Terminal Remodelling 13.50 1.624 Enugu International Airport (Terminal Remodeling) 10.50 1.265 Port Harcourt Internatonal Airport (Terminal Remodeling) 17.30 2.0766 Bayelsa Airport 1.96 0.2352

7Maiduguri, Benin, Calabar, Akure, and taxiway at Kano and MMIA 0.90 0.108

8 Calabar International Airport (Terminal Remodelling) 14.20 1.704  Total (Aviation Projects) 100.16 12.02  Oil & Gas Projects    S/No: Name of Project    

1 Calabar-Ajaokuta-Kano Gas Pipeline 465 55.82 Obiafu-Obriko Gas Pipeline 96.7 11.6043 Expansion of Escravos-Lagos Pipeline (ELP) Phase 1 & 2 90.9 10.908

  Total (Oil & Gas Projects) 652.6 78.312  Gross Government Contribution to Bankable Projects 7,517.64 902.12  Number of bankable projects 37  

5.4 Programme Rationalisation Procedure

The rationalization of programmes for the 2012-2015 period followed three main principles:

Step 1: Identification of projects that may be exclusively implemented by FGN Projects that may be earmarked for PPP Projects for financing by the private sectorStep 2: Scrutiny/Rationalisation of the programmes submitted by MDAs Several of the programmes are over-bloated compared with their submission for 1st NIP e.g.

Water Resources, Ministry of Agriculture, Ministry of Foreign Affairs, while others are duplicated.

Step 3:Rationalization of the scope and cost of the individual projects. These require additional information from MDAs.

5.5 Phasing of Programmes and Projects of the MDAs

The phasing of programmes and projects for the period 2012 to 2015 is detailed in Table 5.4. The detailed list of projects is attached in the Appendix of this report. The Budget Office will adopt this phasing during the capital budget review.

Nigeria: Allocation By Sector & MDAs under KPPP (2012-2015)            

  2012 2013 2014 2015 Total%age share

      (N'million)   2012-2015  

             

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Real Sector 228,519.80 251,450.73 267,722.37 272,562.77 1,020,255.67 14.17%

- Agriculture & Rural Development 112,007.72 120,841.69 136,221.85 131,724.33 500,795.59 6.96%

- Water Resources 70,325.41 77,612.00 75,768.00 76,294.67 300,000.08 4.17%

- Commerce & Industry 14,534.90 16,156.17 16,413.36 16,975.56 64,080.00 0.89%

- Mines & Steel Development 12,901.77 14,340.87 14,569.16 15,068.20 56,880.00 0.79%

             

Physical Infrastructure 419,550.00 479,680.00 540,310.00 583,980.00 2,023,520.00 28.10%

- Transport 322,800.00 372,180.00 420,560.00 452,980.00 1,568,520.00 21.79%

Roads & Bridges 150,000.00 170,000.00 185,000.00 190,500.00 695,500.00 9.66% FERMA (for Maintenance of Roads) 45,300.00 55,150.00 74,550.00 75,000.00 250,000.00 3.47%

Ports 2,750.00 2,980.00 3,210.00 2,860.00 11,800.00 0.16%

Aviation (excluding BASA Funds) 35,000.00 45,850.00 17,500.00 14,320.00 112,670.00 1.56%

Railways 89,750.00 98,200.00 140,300.00 170,300.00 498,550.00 6.92%

- Oil & Gas 18,750.00 22,500.00 24,750.00 32,500.00 98,500.00 1.37%

- Power 78,000.00 85,000.00 95,000.00 98,500.00 356,500.00 4.95%

Regional Development 229,113.71 243,315.74 193,186.77 174,922.65 840,538.87 11.67%

- Housing 41,647.71 47,615.74 54,183.24 59,537.65 202,984.34 2.82%

- Federal Capital Territory 142,466.00 105,700.00 35,600.00 4,004.00 287,770.00 4.00%

- Niger Delta 45,000.00 90,000.00 103,403.53 111,381.00 349,784.53 4.86%

Knowledge-Based & ICT 17,155.48 25,314.61 32,485.98 38,500.00 113,456.07 1.58%

Science and Technology 13,060.00 20,555.00 27,505.00 38,500.00 99,620.00 1.38%Information Communication Technology (ICT) 4,095.48 4,759.61 4,980.98 0.00 13,836.07 0.19%

Human Capital Development 89,420.75 186,140.51 194,910.58 225,646.98 696,118.82 9.67%

- Education 9,850.00 100,000.00 106,500.00 128,000.00 344,350.00 4.78%

- Health 45,310.00 54,000.00 60,000.00 70,000.00 229,310.00 3.18%

- Women & Social Development 7,103.45 7,519.03 7,129.33 6,619.58 28,371.39 0.39%

- Youth Development 11,833.61 10,270.42 6,285.14 6,812.41 35,201.58 0.49%

- Labour & Productivity 15,323.69 14,351.06 14,996.11 14,214.99 58,885.85 0.82%

General Administration 50,077.42 55,986.32 57,357.45 60,841.92 224,263.11 3.11%

Defence & Security 169,846.06 188,791.21 191,796.57 198,366.15 748,800.00 10.40%

GRAND TOTAL1,203,683.2

31,430,679.1

2 1,477,769.72 1,554,820.47 5,666,952.54 78.71%Government Contribution to Bankable Projects**         911,660.00 12.66%Funds for Other Priority Projects not Listed***         621,387.46 8.63%

Total Funds available         7,200,000.00 100.00%

**Note: Government contribution to the bankable projects shall be managed by the Capital Budget Office and disbursed as advised by the National Planning Commission based on successful justification of proposed activities and M&E Reports.The bloc allocation is neant for exhaustive feasibility studies, project design, other pre investment expenditures and all other government contribution to PPP projects.

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SECTION SIX

Enablers for Sustainable Growth and Development

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6.1 Introduction

Enablers relate to those activities that enhance private investment and strengthen the public sector to deliver quality service that engender economic growth. In particular, the Enablers include laws, regulations, policies, public infrastructure, public services and international trade agreements that facilitate the activities of economic agents, making it possible for them to be competitive, function optimally and operate profitably. In particular, the laws ensure that businesses can invest and operate without the fear of losing out on opportunities to grow because of bureaucracy, poor market access, lack of a level playing field or any other impediments. The rule of law guarantees property rights and contract enforcement which provide great impetus for investment and business expansion. Similarly, the right regulatory framework provides a level playing field and a competitive environment for businesses. Competition plays an important role in encouraging efficiency, innovation and growth. Equally, public policies should point a clear direction for all businesses, and leave no one in doubt as to the opportunities and also the threats in the system. Public infrastructure also provides the foundation upon which businesses base their decisions. If public infrastructure is adequate, businesses can build on it and flourish, but if it is not, businesses suffer and become unprofitable; or even collapse.

6.2 Situation Analysis

Clearly, therefore, the Enablers whether in the form of laws, policies and regulations, public infrastructure or trade agreements, international relations, etc determine to a large extent the quantum and quality of contribution that economic agents in the public and private sectors can make to economic growth. The Enablers are particularly critical in our country where the private sector has been challenged to be the main driver of the economy, especially in the march towards the year 2020 – when we have envisioned that Nigeria’s economy will be among the top 20 in the world.

The preeminence of the private sector in our efforts to realize Vision 20:2020 derives from the popular belief that the private sectors will be efficient and effective in delivering on those projects and programmes that will lead to a fast-paced growth of the economy. It is only with fast-paced growth possibly in the order of two digits that Nigeria can realize Vision 20:2020.

Over the years, Government has made several efforts towards the provision of necessary enabling environment to facilitate growth and development. However, the success story so far seems to be only in telecommunications and partially, aviation. Since 2001 when government deregulated the telecommunications sector, it has witnessed a revolution that has made Nigeria a destination of choice for foreign investments in that area. Beyond this and, perhaps, more importantly, telephone and internet services which were before that time an exclusive reserve of only a few rich people are now at the beck and call of every Nigerian, including those who live in the remotest parts of the country. The reform of the aviation sector has also been largely successful. The reform led to the emergence of private airlines whose customer orientation has made nonsense of the lacklustre services of the defunct government-owned Nigeria Airways. The port reforms which has placed the commercial bit of the ports operation in the hands of some private sector operators has also been successful to the extent that the ports now generate more revenue for the government and the stress associated with clearing of goods has reduced drastically. Whatever has happened in these sectors, especially telecommunications needs to be replicated in Energy, Roads, Rail, Education, Health and Agriculture. The underlying principles are essentially to put in place the following:

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o Robust regulatory frameworko Technical expertise and executive capacity of the chief regulatoro Level playing fieldo Incentives to enable pioneer investors (where applicable)

6.3 Key Challenges that Need to be Addressed

The enablers, either in the form of social overhead capital or government policies, regulations and legislations have remained grossly inadequate. Over the years, infrastructure deficit has been a recurring feature in the country while policy formulation and implementation have been characterised by reversals and inconsistency. A significant part of the reforms aimed at providing enabling environment for the private sector have not been fully implemented. The status quo has been the continued government funding of viable projects that are good candidates for pure private sector funding. Such investments result in continued depletion of needed funds for those projects that only the government can fund. This needs to be redressed in order to provide policy direction for businesses and placing the private sector in firm control of all commercial activities.

6.4 Actions Needed to be taken by Government

The role of government should be be to create the enabling environment aimed at facilitating sustainable growth and development in the country. In this regard, government needs to simplify procedures for doing business. The required actions include: reduction in the length of time and cost of registering a business; simplification and harmonization of the tax systems and payment channels; reduction in the turnaround time and cost of obtaining building permits; ensuring easy access to affordable and long-term finance; expansion of IT infrastructure to facilitate easy access to internet and telecommunications services. Government also needs to enforce contracts to protect investors. Other actions that government needs to take to empower the private sector are: encourage both local and foreign investors by improving ports and customs management (for instance, 48-hour clearance of goods at our sea ports); eliminating immigration bottlenecks (simplify visa issuance and work permits); improving security of lives and property; complete the modernization of the transportation system and improve basic critical infrastructure.

Similarly, Government needs to sustain its current effort in fighting corruption. One globally tested strategy for combating corruption is to eliminate rent seeking opportunities such as the non-transparent and discretionary issuance of licences and waivers which make the playing field uneven. This can be achieved through the institutionalization of proper governance systems as well as appropriate transparent processes and sanctions that act as deterrent for corrupt practices. These require direct, clear and forceful support of the President. The process of dealing with corruption therefore requires the emplacement of high standards of governance practices in both the public and private sectors. Increasing adoption of e governance is also a step in the right direction.

Relatedly, a vibrant Public Service remains an essential pillar in the development of a globally competitive nation. The government’s engagement with the private sector can only yield the desired result if the nation’s public service is alive to its responsibilities and develops capabilities that will enable it to provide the support to the private sector. To bring about the necessary improvement in the public service, the following sets of actions need to be taken in the short to medium term:

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Effectively optimize the size of the service through a credible and transparent process and retain the right number of those having relevant skills and those who are

easily trainable.

Develop and introduce a new performance management system and introduce Performance contracts

Implement a continuous training programme to improve capacity within thepublic service;

Develop and adopt a National Anti-corruption Strategy; Explore exchange programmes between the Public and Private Sector; Implement a living wage with complete integration of Payroll and Personnel

Information System (PIS) by end of 2011.

6.5 The Role of Private Sector

The private sector is that part of the economy, which is run by private individuals or groups, usually as a means of enterprise for profit. To achieve Nigeria’s Vision 20:2020, therefore, one of the eight areas identified for immediate policy focus is fostering private sector-powered non-oil growth to build the foundation for economic diversification. It is expected that Nigeria will begin to witness rapid private sector investment in response to public sector interventions in critical sectors of the economy. Its role therefore would include:

o Direct investments in viable sectorso mobilize resources that will promote wealth creation and serve as a catalyst for job

creationo Provision of expertiseo Promoting innovations and expanding the knowledge economyo Public-private partnershipso Staff exchange programmeso Providing feedback to the public sector.

6.6 Policy Direction

Given that the projects listed in the 1st National Implementation Plan (NIP), implies a continued government funding of viable projects that are good candidates for pure private sector funding, the Federal Government should work closely with the private sector towards fast tracking the prioritization of projects which will encourage investment in sectors where t prospects of earning returns are greatest. This would in turn enable Government reallocate its resources to the provision of social services and execute other projects which are public goods or those which may not be of interest to the private sector. The underlying pillar in prioritizing government projects are:

- projects to be exclusively funded by the private sector; - projects for pure public sector funding and - projects for public-private partnership.

The guiding principles for the selection of the projects should be:

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- Projects that impact upon the creation of an enabling environment;- Projects that the Private Sector can participate in; and - Projects that impact directly on the MDGs.

In order for the PPP model to work, there is a need for a broad-based platform empowered by law. This platform is for public-private engagement and continuous dialogue on the implementation of prioritized policies and projects for the purposes of ensuring congruency of goals between and reduction in policy inconsistency and reversals while also creating a more competitive business environment. This can be achieved through the reinforcement of existing platforms for public-private dialogue in Nigeria to promote broader consultation between the public and private sectors or indeed the establishment of new structures with similar objectives.

6.7 Financial MobilisationInternational investment flows are playing an increasingly important role in the economic transformation plans of many developed and developing countries. To speed up economic development therefore, governments are embarking on programmes to reform their investment policy framework, empower their Investment Promotion Agencies and generally reposition their economies for global competitiveness. Nigeria must leverage on this.

6.8 Policy ObjectivesPast and current Government reforms were aimed at improving the investment climate and creating opportunities for private investments thereby creating wealth, building human capacity, creating employment and most importantly reduce poverty in the economy.

Nigeria’s competitiveness is hinged on the following: Abundant Resources: Nigeria has enormous resources – mineral, agricultural and human . Large Market: A population of about 150 million people which stretches into the growing

West African sub-region. Political and Macroeconomic Stability: A predictable macroeconomic management

accompanied by stable political environment. Fast Growing Financial Sector: This offers a well-developed banking and financial sector

with easy access to working capital and other credit facilities. Robust Private Sector: A dynamic private sector with growing responsibilities in the

emerging economic environment. Free Market Economy: Administrative and bureaucratic procedures have been greatly

streamlined to guarantee a free market economy. Free flow of Investment: Unrestricted movement of investment capital and returns through

authorized means. Skilled and Low Cost Labour: Abundance of skilled and trainable workforce. Attractive Incentives: Competitive incentives package to attract investment.

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Infrastructure: Rapid development of socio-economic infrastructure transportation, communications, electricity and water supply.

To transform this competitive edge into massive investment inflow that would stimulate the attainment of the targeted double digit growth rate, the implementation of sustainable policy that would make the environment attractive is imperative. Consequently, government shall pursue a policy that:

a) promotes and projects Nigeria as a safe, profitable and investment friendly destination;

b) strengthens and empowers the national Investment Promotion Agency for effective coordination of investment processes ( the one stop shop);

c) proactively introduces policv/reform designed to improve Nigeria’s business climate and global competitiveness;

d) substantially removes legal and administrative barriers to doing business in Nigeria;e) promotes rapid and sustainable industrialization of Nigeria;f) diversifies FDI from Oil and Gas to Non-oil Sectors at an annual minimum of US$5

billion;g) promotes MSMEs as the engine of growth of the economy;h) promotes and ensures linkages between domestic enterprises and multinationals;i) targets and attracts FDI into critical priority sectors of the economy: Infrastructure,

Agriculture, Solid Minerals, Manufacturing and Tourism and Hospitality;j) encourages innovations that ensure effective utilization of resources for economic

growth;k) takes advantage of bilateral, regional and multilateral integrations to expand Nigeria

business abroad;l) promotes and supports Nigerian investments outside the country;m) introduces and implements attractive incentives.

6.9 Strategy for Improving Nigeria’s Business ClimateGovernment in its drive to create a friendly business environment has decided to implement the following reforms that are capable of facilitating fhe flow of FDI into relevant priority programmes with incremental growth potentials for rapid and sustainable development of Nigerian economy in line with Vision 20:2020:

a) Government shall facilitate access to loanable funds at single digit for the industrial/manufacturing sector of the economy;

b) Provide predictive, consistent and level playing National Investment Policy to enhance the competitiveness of the business environment;

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c) Proactively provide competitive and attractive incentives to attract private sector into industry;, especiallt manufacturing value chain, agriculture, mining and construction

d) Consider initiatives that would attract funds for the implementation of priority projects and programmes;

e) ncourage private investment through Public-Private-Partnership arrangement(s) for the execution of infrastructure projects.

6.10 Areas of Synergy between the Tiers of GovernmentIn Nigeria, fiscal federalism has long been an important and central feature of inter-governmental relations. Consequently, the framework provides government at all tiers to collectively and individually perform three main roles: guiding against various forms of market failure, ensuring an equitable distribution of income and seeking to maintain stability in the macroeconomy at full employment and stable prices.

This system comes with attendant challenges and consequent impact on the prevailing investment climate. The World Bank Doing Business Report: Sub-National Level clearly reflects this challenges and the varying response level within the country by sub-national governments. Against this backdrop, maintaining a competitive investment climate is the responsibility of the three tiers of government.

It is therefore imperative that issues that cut across government need to be identified and treated harmoniously. In this perspective, one of the issues that has been identified is taxation. The Joint Tax Board (JTB) was to established to streamline prevailing tax regimes across the tiers of government in order to eliminate incidence of multiple taxation. Efforts in this direction still need to be intensified.

Other areas needing attention and similar collaboration are:

a) Investment Promotion and Facilitation mechanism – synergy between the State IPAs and the National IPA for effective mobilization of private capital into the economy;

b) Asset Registration – making property registration and transfer easier and less expensive through computerization/streamlining of processes;

c) Enforcing the effectiveness of the one-stop-strategy of the NIPC and Federal Ministry of Commerce.

SECTION SEVEN

IMPLEMENTATION AND FINANCING STRATEGY FOR THE KPPPs148

7.1 Programme Implementation Strategy

The annual budget is the key instrument for pursuing the goals/targets of the KPPPs. Policies and programmes will be executed by MDAs using contract method or through direct labour. Moreover, greater emphasis will be given to labour-intensive approaches in implementing construction and maintenance projects in order to create mass employment. A Cluster approach will also be employed to promote regional economies and products where a zone possesses comparative advantage. In this regard, the private sector will be encouraged to go into clusters where common services will be provided. These clusters will mainly be targeted at the SMEs.

7.2 Implementation Imperatives

Key to the successful implementation of the KPPPs is the need to ensure that the

scarce resources of the Government are shrewedly managed. In order to guarantee that this is attained, the following strategic measures must be r4elentlessly pursued namely:

Imbibing the discipline of planning;

Transforming the budgeting process and limiting the growth of recurrent expenditures

Changing the implementation strategy, especially with regard to financing options;

Effective project costing and close monitoring to enhance value for money must take place; and

Enforcing stiff penalty for misappropriation and implementation failures and rewarding success.

7.4 Plan Discipline

This requires that all stakeholders should work within the plan. Projects that are admitted into this Programme must be those to be implemented within the limit of available resources and no project shall be abandoned without the approval of the appropriate authorities. Leadership commitment, consistency of policies and programmes are key requirements.

7.5 Modification of the Approach to Implementation

(i) In line with Government policy to promote public private partnership, this model will be adopted where:

a) The private sector can contribute to funding because they find it worthwhile to doso;

b) The private sector can provide managerial and technical expertise under appropriate cost effective arrangements;

c) Turnkey contracts.

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(ii) There will be direct labour construction projects aimed at promoting employment.

.(iv) ensuring that funds voted for capital projects do not lapse, especially where they are not

sourced from deficit financing. Where they lapse, they must be the first charge on the

capital budget in the subsequent financial year except where M & E findings dictate

otherwise

7.6 Monitoring of Implementation

This is treated exhaustively in the chapter on Monitoring and Evaluation. Within Six months of the approval of this checklist of priority programmes, all projects contained in it shall establish their targets and agree on the KPIs with the NPC which is the coordinating apex institution for M&E. The priority programmes shall be intensively monitored. Special monitoring teams may be set up by the President to monitor critical projects which will be identified in the course of implementation. These Presidential Monitoring Task Forces shall work to ensure that timelines and cost regimes are kept and that implementation bottlenecks are removed or minimised.

The task forces shall work in close collaboration with the Ministries. Programme monitoring must be well situated in the Departments of Planning, Research and Statistics of the MDAs whose staffers shall be functionally linked to the M&E Department of the NPC. The issue of absorbing the PRS Departments in MDAs into the NPC will be given appropriate attention in the course of implementing this Programme.

7.7 Reward and Sanctions

A market system thrives on incentives for good performance and sanctions for failure. This will be implemented as part of the implementation strategy. Heads of MDAs (i.e., Ministers and CEOs) shall be held accountable for the performance of their programmes.In this regard, modified Performance contracts will be put in place and enforced.

7.8 Delivery Framework for Key Priority Programmes and Projects (KPPPs)

The Key Policies, Programmes and Projects (KPPPs) are specifically designed to be implemented within a specified timeframe (2011 to 2015), using the most efficient ways of achieving results at minimum cost and time. The critical areas that have to be optimally managed in the project environment for accelerated delivery include:

1. Project preparation2. Project Management3. Project financing4. Overall Project Coordination5. Project Monitoring, Evaluation and Reporting

7.8.1 Project Preparation and Management

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Project preparation and management should be the responsibility of the Minister or CEO of the MDA/organization. He shall be answerable to the President for the performance of his component of the KPPPs. In order to fast track the implementation of their mandates, Ministers/CEOs may find it useful to constitute project delivery teams made up of officials from the relevant MDAs, with specific sector knowledge and project management skills. Each project team will have a project manager, with the requisite authority, responsibility, accountability and resources to deliver projects, and who will report progress and challenges directly to the Minister, the Infrastructure Concession Regulatory Commission (ICRC), and the Private Sector partners.

7.8.2 Economic Coordination

One of the draw-backs of effective implementation of policies, programmes and projects is the lack of clear-cut coordination. This leads to waste of resources and institutional conflicts leading to ineffectiveness of policies and programmes.

Economic Coordination will be undertaken at three levels in the programme formulation to implementation cycle, namely; Planning, Policy and Programmes . At the institutional level, coordination is required at the level of MDAs ( the DPRs or similar outfits feeding the NPC) and the three tiers of government (NPC,as the Secretariatof the JPBM NEC,FEC) and at sector level ( Sectoral Councils and at sub national level adapting the national type coordination structure. ( DPRs,SPBs, SECs).

All obstacles to effective coordination will be removed. Cooperation collaboration among planning and budgeting institutions is a key requirement for effective coordination. The Office of Heads of Service, Secretaries to Governments are also key for effective coordination To this end, one of the existing coordinating economic institutions will be designated to handle overall coordinationof the implementation of the KPPPs However, the designated establishment should be strengthened for effective performance.

7.8.3 Programme Coordination

Effective coordination of KPPPs is vital at several critical stages namely:

• Collation and analyses to ensure harmonisation and the elimination of duplication

• Ensuring that common problems are resolved in a holistic manner and that the President is regularly briefed.

• The MDAs must work in concert with State Governments to achieve harmony in sector policirs and programmes through the sectoral councils.

• Need for Mr. President to hold Retreats with Ministers, Perm Secs, Directors of PRS and other relevant officials to sensitise, dialogue and assess implementation performance.. This would make KPPPs a living document.

It is important that the NPC coordinates this process

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7.9 FINANCING STRATEGY

The funding options that have the potential to provide adequate, reliable and timely financing for the KPPPs, fall into three broad categories namely:

On-budget Public Funding; Off-budget Public Funding; and Private Sector Resources.

Figure 1 below summarizes these funding sources and the funding mechanism associated with them.

FIGURE 1: SOURCES OF FUNDING FOR THE KPPPs

On-Budget Funding

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Statutory Allocation

This option has been the traditional method of funding capital projects in Nigeria, but its efficacy has been rather limited. Indeed, this mode of financing is perhaps the precursor or necessary concomitant to capital project shortfalls or slippages and to the poor maintenance of public assets. Funding capital projects through regular budgetary allocation has been volatile and rarely meet crucial project expenditure requirements in a timely and adequate manner. For instance, a priority road project designed for completion within three years, could take up to 10 years to complete and ultimately cost multiples of the original estimate, as a result of the drip-fed funding from the annual budget. This is exacerbated by prevailing budget constraints, which may mean that critical projects will only be partially funded or outrightly sidelined. With current funding stream, it will take an unacceptably long period of time, with significant hike in cost, before some of the ongoing construction and rehabilitation projects would be completed, thus depriving the nation of corresponding expected economic and social benefits.

At present, bloated recurrent expenditure has drastically squeezed resources available for capital projects. This is further exacerbated by dwindling fiscal resources, which together with competing requirements for social and other needs, have constrained Government’s spending space for capital projects, yet many of these projects are critical for propelling growth.

7.9.1 Off-Budget Funding

7.9.2 Excess Crude Account/Sovereign Wealth Fund

The Excess Crude Account1 (ECA) is for revenue derived from Crude Oil Sales, Petroleum Profit Tax (PPT) and Royalties over and above the budgeted benchmark of the Federal Government of Nigeria for each year.

The ECA acts as a stabilization fund, mitigating the effect of boom-bust cycle of crude oil revenue on the budget, and potentially could be a funding source for domestic capital investments. Arrangements are currently underway to replace the ECA with a National Sovereign Wealth Fund (NSWF), as the ECA has no legal backing. The NSWF will henceforth manage Nigeria's excess earnings from crude oil. While the ECA provides a viable option for funding critical projects that would impact on the economy, that account has dwindled in the recent past, from as high as USD20 billion in May 2007 to about USD4 billion in July 2010. Besides, it requires buy-in of all stakeholders, particularly state government, for it to be deployed.

7.9.3 Special Intervention Funds

The FGN, through the CBN has already taken steps to provide access to funding at concessional rates and to galvanize private sector interest in the Power and Agriculture sectors. Under the N500 billion Real Sector Intervention Fund, the CBN has invested N500 billion in debentures issued by the Bank of Industry (BOI), the proceeds of which are for on-lending through Deposit Money Banks (DMBs) to qualified borrowers at concessional interest rate of not more than 7%, and for tenors of 10-15 years. The target borrowers are those from power, small-scale manufacturing and airline sectors that meet well-defined eligibility criteria, Power projects of the state and federal governments are covered under this facility subject to their structuring as commercially viable projects on which banks are willing to take credit risk. There is also the N200 billion Agriculture Fund established for promoting commercial agricultural enterprises. The scheme managed by the

1

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CBN and Federal Ministry of Agriculture created the Commercial Agriculture Credit Scheme (CACS) to be financed from the proceeds of the N200 billion in 7-year bonds raised by the DMO which are being lent to DMBs for on-lending to agricultural project. In line with the above intervention measures, the FGN could set up a special intervention fund for major capital development programmes particularly in the domain of infrastructure.

7.9.4 FGN Bonds (through the DMO)

As an additional source of short term and medium term response to the development challenge in Nigeria, the Federal Government through DMO could raise funds in the domestic capital market through the issuance of FGN bonds, and apply the proceeds to fund critical capital projects. The potential limitation of FGN bonds is that it relies solely on the Federal Government for funding.

The Federal Government's policy on borrowing and the Fiscal Responsibility Act 2007 provide only for concessional borrowing by all tiers of government (Section 4.1(1) (a), except in special cases where approval would have to be obtained from the National Assembly (Section 4.1(2). The Act also stipulates that the level of public debt must be sustainable and fiscal deficits pegged at 3 per cent of GDP.

7.9.5 Low-Interest Concessional Loans

These are funding sources, which could be accessed by the public and private sectors for capital project execution. They are usually provided by bilateral/multilateral development institutions such as the World Bank Group, African Development Bank (AfDB), Islamic Development Bank and Agence Française de Dévelopment (AFD), the French Development Agency, and the European Investment Bank. These funds are long-tenured and have both concessionary and market determined terms, depending on the sponsors and the projects fulfilling certain eligibility criteria.

A number of private and government-supported development finance institutions (DFIs) have at various fora, offered to help raise the requisite special supplemental funding in the international markets at concessionary interest rates of between 1-3%, inclusive of agency fees. In support of this initiative, the DFIs will require the CBN or FMF to provide a Sovereign Guarantee that will permit these institutions source and provide the funds on competitive terms. Under this scheme, the DFIs will take project risks that will ensure that the proposed projects are completed and on time, while the Federal Government will only take the credit risk of the DFIs and foreign exchange risk for the duration of the loan.

7.9.6 Monetary and non-Monetary Grants

Financing for preparing feasibility studies, business plans and in some cases pilot projects, have largely been provided through loans and grants directly from government or bilateral and multilateral agencies. Agencies such as USAID, DFID, EC, JICA and the World Bank have been in the forefront of these types of assistance. On the other hand, a project could receive non-monetary finance through the FGN, as in the case of a highway or railway. These come as tax breaks, pioneer status and other incentives for private sector participation. A land grant, for example, could be used to incentivize the private sector to build a rail line.

7.9.7 Private Sector Resources

Pension Fund

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Long term financing is attractive to pension funds owing to long maturity, stable earnings and diversification. At present, investment can only be in structured and regulated instruments that are rated and possibly listed in a recognized Exchange to mitigate risks. In addition, the securities should have clear maturity dates, and periodic/terminal payouts.

The National Pension Commission (PenCom) is currently reviewing its regulations with a view to making capital projects in the area of infrastructure development a separate asset class with specific asset allocation. However, the instruments should be hedged against inflation where the tenors exceed seven years in order to make them attractive, in view of the inflationary trend in Nigeria. This is a viable source of infrastructure funding. 7.9.8 Long-term Corporate/Commercial Bonds

Corporate entity issues bond in its name and apply proceeds to fund capital projects. The issue could be by a local entity for the local market (denominated in Naira) or USD denominated bond for offshore markets. It could also be a Naira denominated bond listed offshore with Principal plus Interest serviced in naira. As will be expected, these instruments require credit enhancements like risk rating, FGN guarantee, insurance, FDI backing, etc.

Commercial banking groups have expressed desire to raise long-term (10-15 year) commercial bonds in the domestic or foreign market on commercial terms to provide relatively longer term financing for infrastructure development. In support of this initiative, commercial banks will require the CBN to provide credit enhancement in the form of credit guarantees that will permit the banks to issue long-term infrastructure bonds at competitive interest rates for the benefit of the FGN, similar to the United Kingdom Government's 2008 Credit Guarantee Scheme.

Under this plan, commercial banks will take project risks that will ensure that the proposed project are completed and on time, while the Federal Government will only take on the credit risk of the commercial banks. As with local bond issue, there is very limited local absorptive capacity. However, this option is usually very attractive to foreign investors who have unlimited absorptive capacity and should be pursued.

7.9.9 Export Credit Finance

Export Credit Agencies or Investment Insurance Agencies are perhaps the world’s largest financers of big capital projects in developing countries. All industrialized nations have these national agencies that provide financing for projects and programmes in poorer developing countries. They are public institutions, operating in a discrete fashion, that subsidize foreign exports and investments of wealthy nations by providing government backed loans, guarantees and insurance to their oil companies, engineering firms and other domestic corporations that want to do business in developing countries.

Export Credit Agencies currently finance or underwrite about $430 billion of business activity abroad - about $55 billion of which goes to project finance in developing countries - and provide $14 billion of insurance for new foreign direct investment, dwarfing all other official sources combined (such as the World Bank and Regional Development Banks, bilateral and multilateral aid, etc.). As a result of the claims against developing countries that have resulted from ECA transactions, ECAs hold over 25% of these developing countries' US$2.2 trillion debt.

7.9.9.1 Private Equity and Infrastructure Funds155

Start-up funds are usually available from venture capital (VC) groups and special purpose international investment funds. Venture capital companies such as Actis and African Capital Alliance specialize in providing funding for new enterprises and infrastructure projects. Financing from traditional VCs for new projects is not usually available for international infrastructure projects, due to the high cost of due diligence and limited exit options for these firms. Typically high rates of return, often 25-50%, are also required.

Large pensions and insurance firms have created a number of special purpose international investment funds for infrastructure projects, a number of which operate in Africa including the Africa Infrastructure Investment Fund (AIIF), Actis Infrastructure Fund (AIF), AIG Africa Infrastructure Fund (AAIF), and Emerging Africa Infrastructure Fund (EAIF). Others are Pan-African Infrastructure Development Fund (PAIDF) and EU-Africa Infrastructure Partnership Trust Fund. Discussions have been ongoing for the activation of Gulf of Guinea Infrastructure Fund (GoGiFund). Pension Funds from the 23 nations of the Gulf of Guinea, including PENCOM, will be investing in this Fund. Indications are that these institutions collectively hold in excess of US$12 billion.

7.9.9.2 Public Private Partnerships (PPP)

Partnerships between the public sector and private companies for the financing, design, building and maintenance of capital projects and delivery of associated services are the preferred means by which the present administration intends to meet the need for modern and efficient capital projects and for reliable cost effective delivery of public services as envisioned in National Vision 20:2020.

The private sector, both locally and internationally, has a large pool of resources from which they can fund projects, which governments may not have access to, or have the capacity to access. For this reason, there has been a marked increase in recent times, in cooperation between the public and private sectors (often referred to as Public Private Partnership – PPP) in the development and operation of projects covering a wide range of economic activities. Besides bridging the resource gap in project delivery and operation, governments all over the world have come to recognize that the collaboration between public and private sectors is crucial to securing dependable and sustainable funding for capital projects and reducing the pressure on fiscal budgets. PPP arrangements have engendered acceleration of capital project provision, faster implementation of projects, and reduced whole life costs of project. Besides, it offers better risk allocation between public and private sectors, better and sustainable incentive to perform, engender accountability in fund utilization, and improve the overall quality of service. Evidence also abound that it leads to the generation of additional revenue and overall value for money for the entire economy.

An appropriate framework for Public Private Partnerships (PPP) in Nigeria is already in place and activated, and is expected to contribute to addressing the capital project challenge and operational constraints. However, the urgency of the need to re-build some critical but rapidly deteriorating projects makes PPP inappropriate, at least in the near term. While advocacy for the use of PPP mechanisms as part of the solution for funding commercially viable projects continues, there is a pressing need to develop other sources particularly of short and medium term funding to respond to the challenge, as the PPP mechanism can only augment FGN’s resources.

In determining a project’s suitability for PPP funding, the following criteria were used:

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Existence of appropriate policy, legal, and institutional frameworks for PPP in the sector;

Ability to establish captive revenue stream from the project; Ability to deliver a positive rate of return for investors; Scale of the project is sufficient to justify the additional transaction costs of

procuring it as a PPP project; Ability to appropriately allocate project risks.

7.9.9.3 Financial Intermediary Loan Scheme

Under a PPP support programme for Nigeria, the World Bank has agreed to provide US$200 million as seed money to set up a Financial Intermediary Loan Scheme for purposes of providing long-term funding for capital project development in Nigeria. Under this Fund, into which a number of DFIs have agreed to contribute, eligible participating financial intermediaries (FIs) particularly commercial banks with AFC as the lead, will on-lend to qualifying private sector partners in a PPP project at the FI’s risk.

Projects that will be eligible for the funds are priority public investment programmes/projects of the FGN, which accord with the Federal Government’s National Policy on PPP and captured in the FGN’s Medium Term Sector Strategies and the NIP of the National Vision 20:2020.

7.9.9.4 FUNDING OF KEY PRIORITY PROJECTS

7.9.9.5 Criteria for assigning a funding source(s) to Projects

For purposes of assigning funding sources or group that best meets the objectives of accelerated project delivery to identified priority project, capital projects have been categorized as follows:

Critical and urgent; Critical but not urgent; and Neither critical nor urgent.

Critical and urgent projects would require adequate, reliable and timely funding that ensures expedited completion. Where possible, Enhanced Budgetary allocation should be the preferred first line of funding for these projects. Front-loading the budgetary allocation to these projects for the next 2-3 years, during which the projects are expected to be completed, with allocations of the next 5-7 years, will provide sufficient funding for accelerated completion of the projects.

Special Intervention Fund, Infrastructure Bonds, and Bilateral and Multilateral Concessionary Loans, will provide more reliable and adequate funding for critical projects. Where such funds are not readily available or would require appreciable period of time to put in place, the Excess Crude Account or NSWF as the case may be could provide the initial take-off funding for these projects in the near term, while more permanent funding arrangements are instituted.

PPP/Project Finance are best suited for the development of green field projects and services, but their processes are complex and require considerable length of time to put in place. This makes PPP clearly unsuitable for critical and urgent projects but should be the preferred financing method for

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projects which are critical but not urgent. It would clearly be the method of choice where the financial outlay is considerable but the projects are neither critical nor urgent. Such financing methods as Export Credit Guarantee Schemes (ECGS), Commercial Bonds, Term Borrowing, including Financial Intermediary Loans (FILs) Scheme, all provide dependable funding especially where PPP/Project Finance is the preferred funding option.

Funding Scheme for Priority Projects

Based on the above premise, funding sources have been assigned to identify priority projects in such a manner as is likely to meet the objective of accelerated project delivery.

Ongoing Projects

The funds required to bring these completed projects into operation totaling N0.03 billion, could be sourced through regular budgetary allocation. The funding mechanism that is most likely to ensure the speedy completion of the Abuja-Lokoja highway is Enhanced Budgetary Allocation. A US$500 million concessional loan from the China Exim Bank is already providing funding for the Lagos-Ibadan and Abuja-Kaduna standard gauge lines. The rehabilitation of the West-North Narrow Gauge line and the completion of the Ajaokuta-Warri lines, together with the rehabilitation of NIOMCO at Itakpe, are already accommodated in the regular budget.

The suggested method for funding the ongoing aviation sector rehabilitation and extension in Dr. Nnamdi Azikiwe International Airport, Abuja and the Murtala Mohammed International Airport in Lagos is through PPP. These projects contain components that impact on operations, safety and security and to that extent considered critical and urgent. As such, the critical components could be funded through the VGF after proper OBC studies have been carried out. The international airports in Kano, Enugu, Port Harcourt and Calabar could be accommodated in the regular budgets until their commercial viability is established after necessary studies.

The cost of rehabilitation and extension of Margaret Ekpo International Airport Calabar could not be included in the funding requirement as information for computing this has not been obtained from the Federal Ministry of Aviation.

New Projects

Studies have been completed on the Second Niger Bridge and the Loko – Oweto Bridge and the contracts are presently awaiting award. These project will respectively cost N80 billion and N55 billion. But for the urgency attached to this project due in part to the very poor maintenance condition of the 1st Niger Bridge and the fear of imminent collapse, a PPP/Project Finance model would have been more appropriate for providing requisite funding for this project. A concessional loan from such institutions as AfDB would ensure speedy completion of the 2nd Niger Bridge, while Enhanced Budgetary Funding could be applied to Loko-Oweto Bridge expected to cost N55 billion and for which budgetary appropriation of N6.39 billion have already been made.

The Ajaokuta Steel Project could be revitalized through the regular budgets as the required amount of N500 million could be easily accommodated in the budget. Projects such as the Zungeru HEP

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that involve heavy capital outlay should ideally be funded through a concessional loan, possibly from institutions such as the Islamic Development Bank or other international development agencies.

Due to the very heavy financial outlay (N618.6 billion) required for the development of the four gas pipelines namely East West (Obiafu/Obrikom) Gas Pipeline, Ose - QIT Pipeline, Calabar - Ajaokuta pipeline, and Ajaokuta - Kano Pipeline, only concessional funding is likely to provide adequate and timely funding for these projects.

Except for the Itisi Dam project, whose studies are now at the completion stage, and for which the suggested method of funding is Enhanced Budgeting, the recommended funding method for the 16 other hydropower projects after proper project preparation is concessional loan from such institutions as IDB, AfDB and the Nordic countries. PPP arrangement would also be perfect for the development of the following projects: Mambilla Hydro Electric Power, Gurara II Hydro Electric Power Project, Ikere Gorge Small Hydro Power, Oyan Small Hydro Power, Bakalori Small Hydro Power, and Tiga Dam. Others are Dadin Kowa, Kiri Dam, Chalawa Dam, Jabiya Dam, Doma Dam, Owena Dam. There is also the Goronyo Dam, Kampe Dam, Zobe Dam, Kashimbilla Dam and Ogwashi-Ukwu Dam .

For all the other projects at the planning stage, irrespective of preferred funding options, a provision of 10% of the projects estimated cost has been made for proper project preparation. For the five new road projects to provide raw material to and evacuate finished products from Ajaokuta namely Jakuru Access Road, Osara Access Road, Oza - Nagogo-Agbor-Benin Road, Borom-Nasarawa-Abaji Road and the rehabilitation of Okene-Ajaokuta Road, the funding option that is likely to expedite their construction is Enhanced Budgetary Allocation (EBA).

It is recommended that funding for the Niger Delta Coastal Road be sourced from international development partners including the AfDB and IDB. This will be augmented with funding from other stakeholders as NDDC, MNDA, OPTS, Brass LNG, Bonny LNG, Olokola LNG, NNPC, etc.

All the options will be intensively explored to finance the KPPPs.

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SECTION EIGHT

MONITORING AND EVALUATION

8.1 Monitoring and Evaluation

Monitoring and Evaluation is an essential component of Programme implementation. It is a veritable tool for tracking developments in policy and programme performance. It attempts to measure inputs, outputs, outcomes, and the impact of policies, programmes and projects on the economy and the welfare of the citizenry. In order to perform its role effectively, there should be preset goals and targets along with key indicators against which performance is measured or assessed. The Nigerian Vision 20:2020 and the 1st National Implementation Plan. 2011 - 2013 have provided a comprehensive framework for M&E. The next challenge is capacity to implement the design.

While monitoring has not been effectively undertaken in the past, post implementation evaluation of policies and programmes has fare much worse, very negligible indeed. When projects are completed and launched, there is jubilation but hardly does any follow-up assessment of time and cost spillages take place nor quality and durability of work done evaluated. This Priority Programme must face the challenge of ensuring that monitoring and evaluation are given greater focus. “Nigeria will only be able to attain & sustain its lofty vision of becoming one of the 20 largest economies by the year 2020, when an effective Monitoring and Evaluation mechanism is accorded high priority and backed by the necessary political will and resources”. The government has demonstrated its commitment to enthroning an effective M&E regime.

8.2 Situation Analysis:

Since the adoption of Vision 2020, an exhaustive national M&E framework has been developed and approved by government and the harmonisation of all existing framework on M&E in federal MDAs is in progress. Key Performance Indicators (KPIs) have been identified for most programmes and projects, which are in line with the government’s five strategic thrusts. In addition Ministries, Departments and Agencies (MDAs) are already reporting on their programmes based on the M&E action plan. The first Progress Report for the Federal MDAs for 2010 has been considered by the FEC. The adequacy and effectiveness of the framework and mechanisms is being assessed.

8.3 Policy Goal

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The overall policy goal for the programme period is to have a harmonised M&E mechanism for all the priority policies, programmes and projects for the generation of an annual country report under the co-ordination of the National Planning Commission (NPC).

The major agencies and bodies that will undertake programme monitoring in the public sector are the MDAS, the Ministry of Finance, the M&E office of the Presidency (Economic Intelligence office) and the National Assembly. The MDG agency also monitors the mdg programmes and projects. All of these efforts are coordinated by the National Planning Commission, except that of the NASS which is done under its oversight function. A similar framework and structure exist at sub-national levels. Below is the chart that illustrates the framework.

In the diagram, the Vice President who is the Chairman of the National Planning Commission and the National Economic Council is at the apex of the hierarchy although in terms of operations, the Minister of Planning and Deputy Chairman of the Planning Commission is in charge supported by the Secretary of the Commission who is the Chairperson of the Joint Planning Board. The President of the Federal Republic and the Governors of the States have overall responsibility for monitoring outcomes for the entire economy.

8.4 Key Challenges

M&E still faces significant challenges. Nigeria has been undertaking the monitoring of its Plans, Budgets, and Programmes since independence but more so since the adoption of the country’s 2nd

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4. THE M&E FRAMEWORK FOR NIGERIA. 4/2

MINISTER & DEP. CHAIRMAN

VP CHAIRMAN

Nigeria Monitoring and Evaluation Department

M&E liaison officer

M&E liaison officer

Other M&E

M&E liaison officer

M&E liaison officer

M&E unit situated within the Department of Planning, Research & StatisticsCoordinate M&E process within MinistryPrepare ministry scorecard (Quarterly)Submit ministry scorecard to the NPC

MINISTRIES STATES

State-level M&E capabilityCoordinate State level M & EPrepare State scorecard (Quarterly)Submit State scorecard to the NPC

Nigeria M&E Office of NPCAnchor the overall coordination of the national M&E systemPrepare national report (yearly) and submit report to:Office of the PresidentThe National AssemblyPublish executive summary (Yearly)

OFFICE OF MINISTER

M&E

OFFICE OF MINISTER

M&E

OFFICE OF GOVERNOR

M&E

OFFICE OF GOVERNOR

NPC

LOCAL GVT

LOCAL GVT

M&E

Note: M&E units within Ministries will continue to perform operational monitoring, ensuring projects are implemented as planned by assessing % completion, spending, conducting site visits etc. (example: is the planned hospital built as per specifications, within the expected budget etc.)The National M&E “System” complements the operational monitoring by assessing the aggregate impact of the projects and programs (ie is the hospital having a positive impact on the health of the population)

National Development Plan, 1970-74 but its effectiveness as an economic management tool has been far from desired. Many public sector agencies undertook project monitoring without co-ordination. The coordinating Ministries of Planning and Economic Development on the one hand and the Ministry of Finance, on the other, also undertook the monitoring of capital projects but these approaches were ad hoc and not harmonised. The data and information generated were largely not properly preserved and utilised to influence policy formulation, project articulation and resource allocation. These shortcomings have largely remained with the system. The action plan to address M&E capacity issues, ICT interface and policy coherence are yet to be systematically developed and implemented. There is the absence of a comprehensive M&E costing framework as well as baseline data on socio-economic indicators. Perceived by some as a “a whistle blower outfit” but more so due to inadequate appreciation of its role, M&E is yet to receive adequate and consistent funding for its activities. There are knowledge gaps such that the relationship amongst inputs, output and outcomes are not well comprehended or appreciated. The operational guidelines and general code of ethics for M&E officials and indeed all of those who participate in project monitoring are yet to be developed. Equally, the allocations of resources are not based on monitoring results. The relevant outfits in the MDAs (Departments of Planning, Research and Statistics) are poorly staffed and M&E is yet to be given proper focus. These are but a few of the problems confronting the institutionalization of M&E in the country while monitoring has been practised, that cannot be said of post implementation programme/project evaluation. The various shortcomings will be addressed during the programme period.

8.5 Institutional Framework for M&E

The framework for monitoring will involve institutions at the federal, state and local government levels. At the federal level, the following institutions will be fully involved in tracking the Programme:

The PresidencyThe National AssemblyCivil societyCommittee for the management of results or a National Monitoring and Evaluation Committee as the sounding board of the Monitoring and Evaluation system.The NPC as the secretariat and national coordinator of the M&E structure National Space Research and Development Agency (NASRDA)The MDAs The development partners andPPP partners

An important element in the new M&E framework is the requirement that Federal MDAs must submit M&E reports directly to the President and the National Planning Commission that would collate and present holistic Reports to the National Economic Council (NEC). The driver of M&E in the system is the Minister of National Planning supported by the Secretariat located as a Department in NPC.

8.6 Policy Initiatives/Action Plan

During 2011 and 2012 every effort will be made to place M & E on a sound footing. Emphasis will be on training, capacity building, strengthening inter-ministerial and intergovernmental relations

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and properly defining roles and responsibilities of stakeholders. Funding of M&E activities will be enhanced based on a convincing work plan agreed with the NPC.

Under the auspices of the Commission

Two reviews of the KPIs underpinning projects, programmes and policies will be carried out in 2012 and 2014.

Use of KPIs to track priority policies, projects and programme implementation across priority sectors will be enforced.

8.7 Phasing of M&E Initiatives

There will be

Annual Report for each year from 2011 – 2015

Bi-annual report with effect from 2012 – 2015

Quarterly reports with effect from 2012 – 2015

Implementation of the M&E Action Plan in line with NV20:2020

The charts below reflect the work programme from 2011 to 2015.

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  IMPLEMENTATION

PROPOSED SCHEDULE FOR THE MONITORING AND EVALUATION COMPONENT OF THE NV 20:2020 1ST PLAN

    2010       2011       2012       2013   2014 2015

Monitoring and Evaluation Milestone

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

             

Establish NPC National M & E Office            

              Training and Orientation for National M & E Department                      

              Establish States' M & E Offices and States' Statistical Offices              

             

Training and Orientation for States' M & E and Statistical Offices              

Inauguration of Stakeholder Committee/Committee

             

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on Managing for Results

Inauguration of Stakeholder Committee/Committee on Managing for Results              

Annual Training for Federal & States' M & E Offices

                                         

               

Validation of Key Performance Indicators, Sector Targets, etc

             

ICT Solutions – set up and integration with MDAs & States              Establishing Baseline Data of M & E Indicators - M & E Office, NBS, SSOs              

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              Publication of federal MDAs Scorecards by M & E office                      

             

Annual Country Report                  

             

Review of KPIs, Policies, scorecards to enhance policy coherence

State's Scorecards              

 

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8.8 Establishment and Constitution of Adhoc Monitoring Committees

In order to enable the President keep track of performance of key Priority Policies, Programmes and Projects during 2011-2015, the President or the National Planning Commission shall constitute Presidential Monitoring Teams as may be necessary to verify/validate, on sample basis, the progress Reports from the MDAs. Officials of the NPC may also carry out similar exercises to learn on the field and confirm the monitoring and evaluation outcomes. The adhoc Monitoring teams shall draw their membership from a broad spectrum of stakeholders.

Other Key components of the Action Plan include:

Integration of ICT solutions

Defining Clear roles and responsibilities for each stakeholder.

Key components of the Action Plan also include:

Appropriate costing and funding for M&E activities across sectors & MDAs at all levels of government.

Sustained M&E capacity building for federal MDAs and states.

Establishment of an enabling working environment with tools for M&E officers across sectors and MDAs at all levels.

Institutionalising M&E policy review mechanisms to inform the thrust of future government M&E direction.

Strong advocacy for M&E at all levels of government.

Basing the allocation of resources to MDAs as well as priority programmes and projects should be based on performance

Putting M&E reports in the public domain to encourage public assessment of performance. The private sector and civil society will be involved in the process. A national committee on monitoring and evaluation will be established in 2011/2012 under the chairmanship of the minister of planning to consider the annual Progress Reports, recommend reward and sanctions and consider inputs into the state of the nation address.

Developing and enforcing a code of ethics that will be prescribed to guide monitoring and evaluation functions at all levels especially the prescription of reward and sanctions, transparency and ensuring the accuracy of information and data.

Ensuring that quarterly reports inform the release of funds to ongoing projects.

Information contained in M&E scorecards shall be validated on a basis by officials of Planning Commission in collaboration with a broad based monitoring team drawn from civil society, private sector, etc.

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8.9 Roles and Responsibilities of Key M & E Institutions

Functions of the National Committee on Monitoring and Evaluation or Committee for Management of Results

The committee shall perform the following functions:

Review all reports submitted by the M&E department including the score cards from

the MDAs;

Undertake targeted monitoring of selected projects to validate the submissions of the

MDAs

Adopt and enforce a code of ethics for M&E functions and exercise. For example,

those who execute projects should not be called upon to provide accommodation and

other fringe benefits. Information/data generated must be reliable and accurate,.

there should be strict transparency in dealing with those implementing projects, no

gifts should be solicited or accepted etc

Recommend rewards for high performance and sanctions for failure and

disinformation

Recommend measures that will expedite plan implementation

Functions of The M&E Department of the NPC should cover M&E exercises performed by all arms of government

Anchor the overall co-ordination of the National M&E System Establish the results framework for the Programme and Ensure that reports from the MDAs and states are synchronized and harmonized. Constantly review/upgrade the KPIs

It will also ensure consensus on the performance indicators and the methodology to be adopted as well as prepare the Nigeria annual country report for the President and the Nigerian public.

8.10 Quarterly and Annual Score Cards

The Federal Ministries, Departments and Agencies (MDAs) will be responsible for tracking and reporting progress in the implementation of their projects and programmes and submitting quarterly and annual reports to the NPC for collation and forwarding to the NEC and the FEC. It is a requirement that Chief Executives and Accounting Officers should sign all scorecards. The States and local government are also to replicate the structure and functions of the Central M&E framework of the federal government

National Bureau of Statistics (NBS): The NBS will continue to be strengthened to enable it collect data and, administer surveys in accordance with its mandates. The NBS’ infrastructure shall form the central data access platform for all M&E-related data. In this respect, the NBS will work closely with MDAs and the states to ensure data collection, production and quality assurance. The NBS shall also provide a web-based data/ information portal, which will network all the States and Federal MDAs for online data sharing and reporting.

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150

Appendix

LIST OF MEMBERS OF THE PRESIDENTIAL COMMITTEE (PC)

1. Hon. Minister/Deputy Chairman, NPC - Chairman

2. Hon. Minister of Finance - Member

3. Hon. Minister of Transport - Member

4. Hon. Minister of Agriculture - Member

5. Hon. Minister of Niger Delta Region - Member

6. Hon. Minister of Works - Member

7. Hon. Minister of Aviation - Member

8. Hon. Minister of FCT - Member

9. Chief Economic Adviser to the President - Member

10. Senior Special Assistant to the President on Infrastructure - Member

11. Special Assistant to the President (Economic Matters) - Secretary

151

LIST OF MEMBERS OF TECHNICAL WORKING GROUP (TWG)

1. Secretary to the Commission - Chairman

2. Senior Special Assistant to the President on MDGs - Member

3. Special Assistant to the President(Economic Matters) – Office of the COS - Member

4. Permanent Secretary (Ministry of Transport) - Member

5. Permanent Secretary (Ministry of Agriculture) - Member

6. Permanent Secretary (Ministry of Niger Delta Affairs) - Member

7. Permanent Secretary (Ministry of Works) - Member

8. Permanent Secretary (Ministry of Aviation) - Member

9. Permanent Secretary (FCT) - Member

10. Permanent Secretary (Ministry of Water Resources) - Member

11. Permanent Secretary (Ministry of Solid Minerals) - Member

12. Permanent Secretary (Ministry of Power) - Member

13. Permanent Secretary (Ministry of Petroleum) - Member

14. Permanent Secretary (Ministry of Environment) - Member

15. Permanent Secretary (Ministry of Women Affairs) - Member

16. Permanent Secretary (Ministry of Health) - Member

17. Permanent Secretary (Ministry of Education) - Member

18. Permanent Secretary (OSGF) - Member

19. Director General (Budget office of the Federation) - Member

20. Director General (ICRC) - Member

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21. Director General (NACCIMA) - Member

22. Director General (NIPC) - Member

23. Director General (NESG) - Member

24. Director General (MAN) - Member

25. Director (Research/CBN) - Member

26. Ag. Director (Macroeconomic Analysis/NPC) - Member

27. Ag. Director (PPC/NPC) - Member

28. TA/Hon. Minister (NPC) – Dr. Yemi Kale - Member

29. TA/Hon. Minister (NPC) – Mr. Yakubu Bello - Member

30. Representative of Private Sector 1 - Member

31. Representative of Private Sector 2 - Member

32. Representative of Private Sector 3 - Member

33. Representative of Private Sector 4 - Member

34. Representative of Private Sector 5 - Member

35. Representative of Private Sector 6 - Member

36. National Planning Commission - Secretariat

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LIST OF REPORT DRAFTING COMMITTEE

1. Prof. Sylvester Monye, MFR - Chief Coordinator

2. Mr. M. A. B. Akpobasah - Chairman

3. Prof. Akpan H. Ekpo - Member

4. Mr. Stanley Egbochuku - Member

5. Prof. Ade S. Olomola - Member

6. Mr. Louis Chete - Member

7. Mr. Ray Echebiri - Member

8. Mr. Greg Nzekwu - Member

9. Dr. Ochi Achinivu - Member

10. Mr. Babatunde Lawal - Member

11. Mr. Greg Onu - Resource Person

12. Mr. Auwal Mohammed - Resource Person

13. Mrs. K.A. Adenekan - Secretariat

14. Mr. Akeem Salami - Secretariat

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