ACHIEVING COMPETITIVENESS, INCLUSIVE GROWTH AND SUSTAINABILITY IN REAL SECTOR DEVELOPMENT IN NIGERIA: THE TOUGH CHOICES IN AN ERA OF CHANGE Presented By: Mr. Adekunle AbdulRazaq Oyinloye Managing Director, The Infrastructure Bank Plc
Presentation Outline 1 Introduction 2 Global and Nigeria s Competitiveness - Challenges & Way Forward 3 Inclusive Growth and Sustainability for Nigeria An Overview 4 Closing the Gap 5 Conclusion
Introduction Nigeria is the largest economy in Africa. The country lags behind its peers on global competitiveness and other key development and sustainability metrics. Institutions, governments, donors, and NGOs are increasingly talking about inclusive growth with more questions than answers. How do we explore the tough choices that needs to be made to grow the real sector while ensuring inclusive growth and sustainability?
Global Competitiveness Fundamentals of Competitiveness Proximity Vs. Globality Country Competitiveness Ranking Assets Vs. Processes Attractiveness Vs. Aggressiveness Individual Risk Taking Vs. Social Cohesiveness Infrastructure Methodology Business Efficiency Government Efficiency Economic Performance Each of these is divided into five subfactors Source 2015 IMD World Competitiveness Scoreboard USA 1 (China) Hong-Kong 2 Singapore 3 Switzerland 4 Canada 5 Luxembourg 6 Norway 7 Denmark 8 Sweden 9 Germany 10 United Kingdom 19 South Africa is South Africa the highest 53 ranking African Country
Nigeria s Competitiveness - Challenges Huge Infrastructure Deficit high cost of doing business, and non focus on real sector growth Poor Educational & Human Capacity Development System lack of innovation & skilled labour force Inconsistent Fiscal Policies enterprises cannot plan long-term strategies for business efficiency Weak Legal and Regulatory Framework affects corporate governance & sanctity of contracts Innate Distrust & Believe System in Nigeria affects productivity, investments decision & national orientation
Nigeria s Competitiveness Peer review Peer Review - Nigeria vs South Africa vs Egypt Criteria Nigeria South Africa Egypt Estimated GDP (US$'Bn) 522 351 272 Region SSA SSA ME & NA Population 173,615,345 52,981,991 82,056,378 GNI Per Capita (US$) 2,700 7,190 3,160 City Covered Lagos, Kano Johannesburg Cairo Starting a Business 129 61 73 Dealing with Construction Permit 171 32 142 Getting Electricity 2 2 106 Registering Property 185 97 84 Getting Credit 52 52 71 Protecting Minority Investors 62 17 135 Paying Taxes 179 19 149 Trading Across Border 159 100 99 Enforcing Contracts 140 46 152 Resolving Insolvency 131 39 126 Source: The World Bank Group Nigeria still lags behind its peers on Doing Business in Africa despite its status as the No. 1 economy in Africa.
Nigeria s Competitiveness Way Forward The 12 Pillars of Competitiveness Innovation Institutions Infrastructure Business Sophistication Macroeconomic Environment Market Size Competitiveness Health & Primary Education Technological Readiness Higher Education & Training Financial Market Development Goods & Labour Market Efficiency Government Efficiency
Inclusive growth and Sustainability An Overview What is inclusive growth? A concept that allows people in a society to contribute to and benefit from economic growth; tackling inequalities in incomes, health outcomes, education & well-being; and realise their potential to share the benefits of growth and increased prosperity. It advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society. It implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth
Inclusive growth and Sustainability An Overview cont d Important factors for achieving Inclusive Growth Strong Institutions Investment in Human Capital Non-Discrimination, Social Inclusion & Participation INCLUSIVE GROWTH Job Creation Social Protection Structural Transformation Progressive Tax Policies
Closing the Gap Key resource for achieving competitiveness, inclusive growth and sustainability in real sector development in Nigeria include: Source: on Growth and Development The Growth Report
Closing the Gap - Benefits Economic prosperity Improved human capital development Index, & High employment rate Low crime rate & High Productivity Enhanced institutional capacity and regulatory framework Enhanced healthcare Low cost of doing business
Conclusion No country has sustained rapid growth without also keeping up impressive rates of public investment in infrastructure, education, and healthcare. The policy underpinnings of sustained high growth create an environment for high levels of investment, job creation, competition, mobility of resources, social protections, equity, and inclusiveness. In the light of dwindling oil revenues, It is probably time to focus on real sector growth and broader sustainable human development objectives rather than just increasing incomes and GDP