Public Service Reforms in Nigeria (1999–2014)

Public Service Reforms in Nigeria (1999–2014)

Based on the work of an Inter-Ministerial Technical Team led by the Bureau of Public Service Reforms, this website presents the summaries of key public service reform initiatives that have been implemented under the successive administrations from 1999 to 2014.

It aims to provide a succinct overview of the various reform initiatives, their major achievements, key challenges, and proposed next steps. By highlighting what has gone well and what has not gone as expected, the website aims to provide instructive lessons and guidance on where future reform efforts should be focused.

It also aims to provide a qualitative baseline that will facilitate future monitoring and evaluation of ongoing and new reform initiatives.

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Changing The Structure of Government

Background

Although the structure of government, and how ministries and agencies are organised, have remained largely the same since the return of democratic governance in 1999, there have been changes in nomenclature and even attempts to merge and demerge certain ministries. The unwieldiness of such key central bodies like the Office of the Secretary to the Government of the Federation, the Office of the Head of the Civil Service of the Federation, the Federal Civil Service Commission informed the following policies aimed at making all government ministries, agencies and parastatals efficient and effective.

Past Reform and Achievements

The Bureau of Public Service Reforms (BPSR) and the Pension Function were divested from the Office of the Head of the Civil Service of the Federation, to reduce problems with pension administration for the old defined benefits pension scheme and make BPSR more effective. The President began appointing a Special Adviser on Performance Monitoring and\u2028Evaluation. The National Steering Committee on Public Service Reforms, the committee responsible for providing strategic leadership for public service reform, was resuscitated after being moribund since 2009.

Federal Government Agencies, Parastatals and Commissions were restructured and rationalized to reduce the cost of governance and reposition agencies for greater efficiency and effectiveness. The government incorporated communication technology into its workings, and worked at making same available to citizens such that government job applications are now made online, between 1999 and 2012, telephone subscription grew by 16,000% and Internet access by 5% annually. The National Planning Commission was instituted with driving national-level monitoring and evaluation, and it in turn created scorecards for government performance.

Challenges and Next Steps

These reforms have reduced bureaucracy and red tapes to some extent but challenges include their possible attachment to the individuals that drove them, and which makes them subject to new government's policy reversals. It should be ensured that policies in Nigeria become institutional and not attached to specific individuals; that the ongoing reforms are not reversed but built upon; and that performance management is introduced into all levels of public and civil services.

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Reform Of The Office of the Head of the Civil Service of the Federation (OHCSF)

Background

Since independence in 1960, the Nigerian civil service has experienced many a period of instability, that undermined its ability to perform its policy advisory and policy implementation functions. Governments have successively recognised that a country is only as effective as its civil service, and that the vision of a country can only be built through the reinvigoration of its civil service.

Past Reform and Achievements

Two institutional assessments of the OHCSF were carried out in 2008 and 2009. The reports recommended a fundamental restructuring of the OHCSF to reduce the number of offices under it. The transfer of the Bureau for Public Service Reform (BPSR) to the OHCSF from the Office of the Secretary to the Government of the Federation (OSGF), however, further increased the number of offices under the OHCSF.

A 2013-2017 five-year strategic plan was developed based on the evidence from empirical diagnostic studies, and from series of office-wide stakeholder consultations. The Strategic Plan was designed to ensure a repositioned, focused, functional, and effective office that provides leadership for the Federal Civil Service (FCS). It infused the entire OHCSF with renewed vigour and also created a shared understanding of the type of Central Administrative Agency (CAA) that the OHCSF would want to be by 2017. A new three-office management structure was approved in January 2013, reducing the number of departments in the OHCSF from 25 to 12 departments. The reforms have reduced bureaucracy and red tape by divesting the Office of the Head of Service of functions that could

Challenges and Next Steps

The ongoing reforms should be continued, in spite of resistance to it as reflected by the first phase three-year office management structure taking up to a year before agreed upon and approved by the President. ICT should be effectively deployed, to replace existing processes in the OHSCF, which are largely paper-driven. Office spaces and facilities should be increased to accommodate the expanding workforce. Capacity building should be prioritised to enhance effective implementation of the reforms and enable the work required to transform the offices into world-class institutions.

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Reform of the Federal Civil Service Commission (FCSC)

Background

The Federal Civil Service Commission (FCSC), established through a provision under section 174 of the Nigerian Order-in-Council of 1954, and made responsible for the appointment, promotion and discipling of Nigerian civil servants in the 1999 constitution, degenerated during the military regimes of Nigeria. A 1988 Civil Service Reforms which stipulated Federal Character to be among the criteria for employment and which gave ministers greater responsibility in the appointment, promotion, training and disciplining of staff, has been identified among the factors responsible for the degeneration. It was alleged that appointments into some MDAs were for sale, that foreign and local training opportunities and promotion were sometimes extended only to those in the good books of their bosses, that a racket existed that required civil servants to exchange cash or sex for promotion. As such discipline was difficult to enforce within the civil service.

Past Reform and Achievements

Following the return to democratic governance in 1999, Government took concrete steps to reposition the Federal Civil Service into a competent, professional, development-oriented, public-spirited, and customer-friendly service capable of responding to the needs of the society. In August 2009, the FCSC initiated a new Tenure Policy that reinvigorated the civil service by creating vacancies and ensuring the promotion of qualified and deserving officers who would otherwise have stagnated. Induction courses were developed for all officers newly recruited into the civil service. The FCSC also began automating its core internal processes to reduce costs and allow seamless operations. It has so far employed about 200 physically challenged persons

Challenges and Next Steps

The slow process of automating all FCSC core internal process and building up of staff capacity to work in an automated environment should be quickened. FSCS should compel MDAs to promptly comply with guidelines on appointments, promotion and staff discipline. Promotions in the civil service should be based on the successful completion of mandatory training in the core skills required to function at the next grade level; with promotion exercises conducted only when vacancies are available to ensure that workers are promoted only with recently written promotion examinations. Transfer and secondment into the Federal Civil Service should be limited to critical areas of needs in order not to jeopardize the promotion prospects of serving officers.

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Performance Management

Background

The formulation of the Vision 20:2020 and Economic Transformation Blueprint in 2009, and the development of the 1st National Implementation Plan (1st NIP) (2010 -2013), as well as the Transformation Agenda (TA) (2011-2015), brought to fore the strategic role of the public service in economic development and in aiding the government in achieving its strategic objectives.

Past Reform and Achievements

In 2009, a performance management training workshop covering the topics of setting standards, target setting, monitoring and evaluation, and remedial action was organised by the Office of the Head of the Civil Service of the Federation (OHCSF). In 2010 a National Monitoring and Evaluation Department was established in the National Planning Commission (NPC) to, in conjunction with MDAs, develop Key Performance Indicators (KPIs) to track the performance of ministries and agencies. These KPIs formed the basis of the ministerial performance contracts.

The OHCSF subsequently rolled out in 2012 an integrated performance management system comprising of an institutional and individual framework, and established a new Performance Management System (PMS) department to drive the introduction and institutionalisation of the PMS in the federal civil service. The signing of the performance contracts by the President and all his ministers and other strategic public officials in August 2012 commenced the implementation of the Performance Management System. In 2013 activities of the three key stakeholders in institutionalising and improving the PMS in the Federal Civil Service, Office of the Head of the Civil Service of the Federation (OHCSF), Federal Civil Service Commission (FCSC), and the National Population Commission (NPC) were harmonised.

Challenges and Next Steps

Studies should be carried out to ascertain the changes to KPIs from the introduction of PMS. The NPC, the Federal Ministry of Finance and the Budget Office of the Federation should address the weak linkage between plans and budget. Officers should be trained on monitoring and evaluation to enhance their currently weak capacity. Staff across the civil service should be continuously trained on target setting for optimal performance. The harmonized Performance Management System (PMS) should be adopted as the framework for the implementation of the proposed PMS for the Federal Public Service, with OHCSF serving as the lead implementing agency. Implementation of PMS in the Federal Public Service should be piloted, and outcome in the first year not used as basis for staff promotion.

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Pay Reform

Background

Following growing agitations by labour unions and costly industrial strikes, the Government set up Wages, Salaries and Emoluments Relativity Panel in June 2004 to address the problem of growing disparity in salaries and wages payable within the public service, as well as between the public and private sectors. The panel recommended that workers’ pay should be indexed to inflation and reviewed every two years, and recommended a comprehensive evaluation of jobs in the public service. In November 2005 a Presidential Committee on the Consolidation of Emoluments in the Public further recommended that public sector wage should be increased by 25% in 2007 and a further 10% annually (plus cost-of-living adjustment) for the next 10 years.

Past Reform and Achievements

Salaries were consolidated in 2007. A pay rise of 15% was implemented in 2007. Two years later, in 2009, a tripartite presidential committee reviewed the national minimum wage. The minimum wage was then increased to ₦18, 000 in 2011, through the New National Minimum Wage Act. Estacodes and duty tour allowances were also increased. Four new allowances, namely, Job-Specific Allowance (JSA) (recurrent); Risk-Related Allowance (RRA) (recurrent); Relocation Allowance (RA) (one-off) and Scarce-Skills Allowance (SSA) (one-off/recurrent), were also introduced. It was also stipulated that the increases in pay should be extended only to MDAs that had carried out reforms in eliminating overlaps and duplications in job roles, improvement in the quality and reduction of the quantity of the skills in the public service, improvement in revenue generation from non-oil sector, company income tax, VAT, etc., and automation and centralisation of public sector payroll.

Challenges and Next Steps

The increase to the payroll component of the federal government budget that the pay reforms had engendered makes policies that will make the MDAs more commercially-oriented, to generate revenues, essential. The gap between the salaries received by civil servants and political office holders, which is brewing agitation in the labour unions, need to be bridged by the reduction of the amounts received by the latter. The perception that the pay reforms are in favour of some parastatals over others need to be addressed by making the amounts received by all MDAs more equal. A comprehensive pay policy should be enacted that would clearly identify for better transparency which allowances are built into salaries, which ones are paid annually, and which ones are paid every few years.

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Monetisation Policy

Background

The Monetisation of Fringe Benefits in the Nigerian Public Sector was carried in 2003 to cut the cost of governance and entrench efficiency in the allocation of resources. Residential accommodation, utility allowance, motor loan, transport allowance, medical allowance, leave grants, medical subsidy, and entertainment allowances, included all that were monetised, as applicable to the annual basic salary of each worker.

Past Reform and Achievements

After calculation of the monetisation costs revealed costs between ₦300 and ₦500 billion, the government chose to spread the monetised benefits over the 12 calendar months of a year, instead of an earlier decision to pay it lump sum. Workers who desired vehicle loans were directed to get them from commercial banks, and of their own accord. Government parastatals that were self-financing e.g. NMA, NNPC, and CBN were directed to pay the monetisation of benefits of their own staff. Workers at the lowest grades, including gardeners, cleaners, drivers, and clerical assistants, were mass retrenched. Workers at Grade Levels 08 and above who had consistently failed promotion examinations and those who had had disciplinary issues were also mass retrenched.

All of these reduced the cost of governance (compared to what it was before). The consolidated salaries enhanced the personal emolument of workers, and possibly reduced the need for increasing meagre salaries through corruption. The reform further curbed the excesses of public officers in the use of government resources for private comfort; encouraged efficient allocation of resources and equity in the provision of amenities for public officers; encouraged public servants to plan for a more realistic post-service life in terms of living within their means; strengthened and improved the delivery of basic services through the outsourcing of services such as gardeners, cleaners, drivers, and security; and stopped the culture of waste in the guise of maintaining government housing estates.

Challenges and Next Steps

The policy in terms of housing near office needs to be reviewed for such workers as doctors, nurses, and officials of the emergency services who need to respond quickly and at the earliest convenience to work. Government should develop a preferential mortgage scheme for public servants that would make it possible for them to own houses in, or near, the city at discounted mortgage rates; thus allowing workers to be able to come early to work and stay late also. As many workers still do not receive enough to be able to afford their own cars, the policy on official vehicles should be reviewed to allow the purchase of vehicles for official purposes and for the use of all staff and not just the executives. Efforts to improve public transportation, for instance, through the use of rail transport, should also be intensified.

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Tenure Policy

Background

By 2009, following the abuse of the Decree 49 of 1988, the federal civil service had a generation of officers who had been Permanent Secretaries and Directors for between 10 and 12 years and were not due for retirement for at least another 5 years; making many directorate-level officers to have stagnated as deputy directors or assistant directors. There was a pervading loss of morale, growing frustration and growing apprehension among a large number of officers overdue for promotion and who felt that some of their superior officers lacked the requisite qualification and capacity to supervise them.

Past Reform and Achievements

Government enacted a new tenure policy for permanent secretaries and directors on 1 January 2010. The new policy allowed permanent secretaries to hold office for a term of four years, renewable for only a further term of four years, subject to satisfactory performance. Directors are to compulsorily retire upon serving eight years on post. Permanent secretaries and directors were retired that had by the enactment date spent eight years in their posts.

The tenure policy created vacancies, and ensured the promotion of qualified and deserving officers as at when due; raising morale within the service.

Challenges and Next Steps

Clear criteria for assessing the performance of permanent secretaries, directors-general, and executive secretaries at the end of the first four-year term of office needs to be established to ensure only capable individuals hold such offices. Future restructuring needs to followed a thought-out plan to prevent the loss of talent such as in the previous reform. Office buildings need to be made accessible to the physically challenged officers in the workforce to effectively tap their talents. Irregular transfer of officers from state civil services into the federal civil service should be regulated and monitored, to ensure accordance with the stipulation of the paragraph 5(iv) of the ‘Guidelines for Appointment, Promotion and Discipline’ that ‘serving officers accepted on transfer into the federal civil service from state governments and other government agencies shall be placed on the post they would have attained by normal promotion, as provided in the schemes of their cadre, if they had joined the federal civil service in the first instance.” Capacity-building for the workforce should be prioritised with on-the-job training, so that promoted officers have the capacity to fill their new offices.

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Pension Reforms

Background

In 2003, government's pension liabilities from a fully funded 'Pay-As-Go' defined benefits pension scheme was ₦2 trillion; as the amount budgeted annually for pensions was often cut, funds to pay pensions were untimely and inadequately released, and as there was no way of investing and increasing funds accumulated in some schemes instituted by some government parastatals, and as the pensioner-active worker ratio was unstable. Lack of a pensioners database, which allowed fraudulent individuals to be receiving pensions, made its contributions.

Past Reform and Achievements

On 25 June 2004, the federal government enacted the Pension Reform Act 2004. It came into effect on 1 July 2004. The Act provided for a contributory and mandatory pension scheme with contributions from both employees and employers. The scheme is privately managed by strictly supervised and regulated Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), with the assets having a 100% asset backing. The newly established National Pension Pension Commission (PENCOM) provides the supervision and regulation.

The Pension Transitional Arrangement Department (PTAD) was established in to continue to administer the affairs of pensioners, who retired before the implementation 1 July 2007 start day for the new scheme. In less than 2 years the department weeded out 15,000 ‘ghost pensioners’ and saved the government N2 billion. The contributory pension scheme, wherein employers and staff make fixed percentage contributions towards the staff's retirement, on the other hand drastically reduced the cost of pensions to government, with anyone who works for the government however briefly entitled to receiving pensions - in direct contrast to the old scheme which requires 10 years of work to be eligible.

Challenges and Next Steps

A comprehensive database of pensioners needs to be established. MDAs that are currently in the practice of delaying paying the pension deductions from staff's salaries, should be sanctioned. A national mortality data-driven model that could more accurately inform calculations about pension duration and annuities should be worked upon. Workers and pensioners should be made aware of the rights and processes the contributory pension scheme, towards checking underhand practices by some PFAs. MDAs refusing to move to the new scheme should be compelled to do so. Pension accounts should be transferred to the Central Bank to reduce corruption in pension administration.

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Integrated Payroll and Personnel Information System (IPPIS)

Background

Government used to operate a manual, file-based personnel system which could not give accurate and reliable information about the size and nature of the workforce. Non-existent 'ghost workers,' whose salaries fraudulent public servants collect, were in large number on the payroll. Some public servants collected salaries from multiple establishments. Some connived with others to receive salaries that were higher than due to them. Other consequences included disappearance of loan records so the worker debtors would not pay them back; and the tampering with personnel birth and state of origin records to obtain undue advantage.

Past Reform and Achievements

In October 2006, the federal government conceived the Integrated Payroll and Personnel Information System (IPPIS). In April 2007, it was launched. It was piloted in six ministries which include Education, Foreign Affairs, Works, Information and Communications (as it was then known), and the National Planning Commission. The system vastly improved personnel management. Thus two years later, in 2009, it was expanded to cover another 11 ministries, departments and agencies. Still building on the successes of these phases, in 2011 government began deploying the system across its offices, so that by the end of 2014, all 585 government MDAs, made up of the mainstream Civil Service and other Agencies in the Public Service drawing personnel cost from the national budget would have been covered. At the moment the system covers 359 MDAs which comprise of 237,917 staff, and has weeded out 60,450 ‘ghost workers’. It has saved the government ₦185 billion from the time of its deployment to December 2014.

Challenges and Next Steps

The system has to be fully utilized, such that the other six modules - which include the human resource modules that could be used to manage posting and promotion of staff - on the software are used in addition to the effective payroll module. Having done only part of the contract, the current vendor has to be made to complete it. Issues with connectivity to the system over secure Virtual Private Networks (VPNs) need to be resolved. IPPIS staff, most of which have not been well trained in Oracle software, need to be so trained, while adhering to the policy that trained IPPIS Role Players can only be posted within MDAs and only after spending three years on the desks. The Secondary Data Replication Centre which exists in Gombe should explore virtual data replication using ‘Cloud Computing.’

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Revenue Administration and Taxation Reforms

Background

Tax administration in Nigeria changed dramatically in 2007 with the granting of financial and administrative autonomy to the Federal Inland Revenue Service (FIRS) after the passage of the Federal Inland Revenue Service (Establishment) Act 2007.

Past Reform and Achievements

The Study Group (2002) on the Nigerian Tax System, and the subsequent Working Group (2003) which reviewed the work of the former, helped to develop a new national tax policy. In 2004 the reorganization of the FIRS to ensure efficiency and effectiveness was commenced. Departments and units were created for effective management of tax operations. In June 2007, the ‘group system’ structure in which roles and functions pass from the group levels to departmental levels down to unit levels and finally to individual levels, was introduced.

A presidential committee was inaugurated in 2005 to drive the recommendations of the Study and Working Groups on the development of a national tax policy. The Committee appointed a Technical Sub-Committee on the National Tax Policy and charged it with the responsibility of developing the background policy document. In 2010, the final draft of the National Tax Policy was submitted. The National Tax Policy was adopted on 20 January 2010.

Between 2005 and 2011, six recommendations of the Presidential Technical Committee were assented to by the National Assembly. One of such is the autonomy of the FIRS from the civil service bureaucracy in the areas of funding and human resource management. The Federal Inland Revenue Service (Establishment) Act 2007 established the Tax Appeal Tribunal to settle disputes arising from the operations of the Act. In March 2012, the Corporate Development Group (CDG) was renamed Modernization Group, so as to focus on modernization projects and ensure processes are technology-enabled. Prior to reform, there was no policy framework of ethics or values defining the operations of FIRS staff. However, in 2005, the Values and Doctrine Division, built on the foundations laid by the ‘Whistle blower’ blueprint, was established.

In 2008 the collection of ₦2.972 trillion was over and above the cumulative collection for the ₦2.682 trillion collected in the eight-year period 1996–2003. The tax collected would further increase to ₦4.8 trillion by 2013.

Challenges and Next Steps

The many corporate organizations yet to be captured in the tax database should be urgently listed. Those in the database that do not pay their taxes should be compelled to do so. The Tax Identification Number system should be operationalized across the nation. Transparency should be built into the operation of Government waivers. FIRS should be increasingly strengthened.

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Public Financial Management Reforms

Background

Poor fiscal management characterised the military governments of Nigeria. Thus in 1999, the new civilian government inherited large external debt and unpaid arrears to civil servants and pensioners, years of unprepared financial statements, and barely audited government accounts.

Past Reform and Achievements

One of the first steps of the new civilian government was to restore rule-bound financial management. Between 2003 and 2007, significant progress was made in increasing the transparency of the budget process, ensuring efficient cash management, and reforming procurement processes. These efforts were largely pushed through with the enactment of the Fiscal Responsibility Act (2007) and the Public Procurement Act (2007). Nigeria additionally became an active member of the Nigerian Extractive Industries Transparency Initiative (NEITI) that commits member countries to higher standards of transparency in the management of natural resources revenues. Foreign exchange reserves grew as a result; external debts were also reduced.

The efforts were sustained by subsequent civilian governments. In 2010, a corruption-reducing Government Integrated Financial Management Information System (GIFMIS) was implemented to start managing the financial transactions of government in 447 MDAs. Government further implemented a Treasury Single Account (TSA) for the better consolidation of cash balances. The TSA commenced with 92 MDAs. By November 2014 it had been established in 447 MDAs, to be accounting for 70% of the Federal Government Budget. To buffer external shocks from commodity markets on the budget, the government also inaugurated the Nigeria Sovereign Investment Authority (NSIA) to manage a Sovereign Wealth Fund (SWF), which had an initial amount of US$1 billion.

Challenges and Next Steps

Laws should be passed to compel all MDAs to be remitting the revenues they generate into the TSA. The constitution should be amended to make SWF an integral part of public finance, remove the federal versus state tussles over saving into it, and adequately protect the country from economic shocks; and to set the roles and responsibilities of major budget stakeholders at each stage of the budget process towards ensuring complete implementation of the budget every year.

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Public Procurement Reforms

Background

Out of inflation of contract cost, lack of procurement plans, poor project prioritisation, poor budgeting processes, lack of competition and value for money, award of contracts for non-existent projects, over-invoicing, diversion of public funds to foreign banks, and low project quality because of the use of inexperienced contractors, procurement costs in Nigeria were unduly high and by 1999 government was losing 60 Kobo of every ₦1.00 spent on procurement.

Past Reform and Achievements

In 1999, the World Bank and private sector specialists were commissioned to study the general procurement-related activities in the country. A Country Procurement Assessment Report (CPAR), which identifies the problems of the procurement system and possible solutions, was published in 2000. In June 2003 a Budget Monitoring and Price Intelligence Unit (BMPIU) for the procurement of capital, minor capital projects, and associated goods and services, was set up to operate independently. It was headed by a Senior Special Assistant to the President. Its objectives included determining whether or not due process has been observed in the procurement of services and contracts, establishing and updating pricing standards and benchmarks for all supplies to government, monitoring the implementation of projects, and ensuring that only projects that have been budgeted for are admitted for execution.

In 2007 Public Procurement Act was enacted, and a Bureau of Public Procurement (BPP) established to replace BMPIU. The efforts promoted an open tender process, competitive bidding process, and reduced the cost of governance. By 2014, after just seven years, the procurement reforms had saved the government more than ₦618 billion. A Public Procurement Research Centre (PPRC) was also established at the Federal University of Technology, Owerri to further improve the system, while training procurement staff.

Challenges and Next Steps

The mismatch between budgetary provisions and actual releases, which makes procurement planning difficult, need to be addressed by making the yearly budget give priority to ongoing and long-term projects. Circumvention of some provisions of the PPA need to be checked by prosecuting all public officials involved, to deter others. The National Council on Public Procurement (NCPP) which is in line with the procurement act should be inaugurated to make the process more efficient.

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Privatisation of Government Enterprises

Background

Aided by the oil price boom of the early 1970s, government in massive state corporations. Over time, however, it became evident that the corporations could not drive industrialization nor achieve other objectives towards which they were established. Annually it was estimated that they were consuming about US$3 billion of national resources, while - because of corruption - not serving their customers, their employees, or the taxpayers well.

Past Reform and Achievements

Government commissioned several studies, which included Adebo (1969), Udoji (1973), Onosode (1981), and Al- Hakim (1984), to identify the reasons why the state corporations had failed. Factors identified often included inefficiency, corruption, misused monopoly powers, heavy dependence on the treasury, defective capital structure, and incessant political interference. In 1999, the federal government enacted the Public Enterprises (Privatisation and Commercialisation) Act that established the National Council on Privatisation (NCP), and the Bureau of Public Enterprises (BPE); with the BPE implementing the policies directives of the former. About 122 enterprises were privatized from 1999-2014, and a sum of ₦251.5 billion was realised as gross proceeds (excluding power).

The removal of monopoly power in the telecoms and licensing of several service providers created many new jobs, and revolutionised the country’s telecom sector; such that from a teledensity of 0.42% teledensity grew to 82% by June 2013. The Debt Management Office (DMO) has been able to curtail arbitrary borrowing by government agencies, keeping the countries debts under control. The transport and power sector reforms unbundled complex bodies and transfer the various constituents to various concessionaires for enhanced operational efficiency. Moribund cement, agro-allied, and other industries were resuscitated.

Challenges and Next Steps

Future privatisation efforts from 1999 onwards need to be institutionally transparent to prevent review of sales and policy in constituency. Sales should be made to bidders with ascertained capacity to pay the full amount bidder, and with track record of respecting contract stipulations. Labour issues should be better managed to prevent further clogging of the privatisation process. Important bills needed for more privatization efforts need to be quickly passed by the National Assembly.

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Transparency and Accountability

Background

Nigeria's military governments ruled by decrees and had little regard for transparency, rule of law and accountability. Thus by 1999, when Nigeria returned to military rule, the country's public and civil service was characterised by zero transparency, weak accountability, lack of responsiveness, and inefficiency. Citizens had restricted access to only untimely, irrelevant, inaccurate information that was of little use. Citizen participation in national decision-making processes (in policy-making, prioritising issues, accessibility to public goods and services etc.) were limited.

Past Reform and Achievements

Since 1999 efforts have been made to inject transparency, rule of law and accountability into government processes. These efforts included diagnostic studies to identify specific areas where corruption arising from the lack of accountability, transparency, was having high negative impacts on the treasury in Nigeria; and then anti-corruption measures in a comprehensive reform programme.

Watershed in the efforts was the establishment of the Nigeria Extractive Industries Transparency Initiative (NEITI) in May 2007, to follow due process towards achieving transparency in the payments made by the extractive industry to governments and government-linked entities. The Federal Ministry of Finance set up a fund for safeguarding windfall revenues resulting from high petroleum price, and began a regular publication of the details of funds from oil sales that are allocated to the federal, states and local governments. To improve public expenditure management, it began the ministry also began publishing monthly allocations from the Federation Accounts to the three tiers of government in newspapers and on its website.

Furthermore on 28 May 2011 The Freedom of Information (FOI) Act was enacted to guarantee citizens the right of access to information held by public institutions, irrespective of the form in which it is kept. The Act was also made applicable to private institutions whenever they handle public funds, perform public functions, or provide public services.

Challenges and Next Steps

Accurate record keeping should be mandated in all government offices. Audit reports should become periodical and their recommendations always acted upon. State and local governments should make efforts towards transparency and accountability, which are almost completely absent in their operations.

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Servicom

Background

To improve service delivery to Nigerians, a service research team of the government of Nigeria investigated in December 2003 the process undertaken by the British government to improve service delivery to its citizenry. A ‘diagnostic audit’ of service delivery reflecting on people’s view and experiences of services and examining the institutional environment in Nigeria was then conducted and a list of suggested key actions and institutional arrangements to ensure effective service delivery developed. The report on Nigerian service delivery released in 2004 found that services were not serving people and that they were inaccessible, poor in quality and indifferent to customer needs, as a result of years of military rule and political instability characterised by systematic corruption, duplications and conflict of responsibility among public offices which made them deflect work to one another, and negative incentives of low enumeration and lack of performance management for the workforce.

Past Reform and Achievements

On 21 March 2004 the president, vice president, ministers, Secretary to the Government of the Federation, Head of Civil Service of the Federation, special advisers, presidential aides, and permanent secretaries signed the basis for SERVICOM, a compact with Nigerians ‘dedicating themselves to providing the basic services to which each citizen is entitled in a timely, fair, honest, effective and transparent manner.' SERVICOM is a service agreement between the federal government and the Nigerian people that gives Nigerians the right to demand good service. Details of this right are contained in SERVICOM charters, and included information on what the public should expect and what to do if the service fails or falls short of their expectations. SERVICOM has initiated the establishment of Ministerial SERVICOM Units (MSUs) and Parastatal SERVICOM units in 84 ministries, parastatals, and agencies; and from inception to date, it has supported the development of qualitative service charters in over 80% of MDAs. The SERVICOM Institute, established to train public servants in service delivery, has also to date trained over 10000 civil servants in various aspects of service delivery.

Challenges and Next Steps

Government should continually affirm support to the initiative through an annual presidential retreat and adequate funding. Senior level civil servants should be posted to SERVICOM offices to increase its technical capacity. A SERVICOM Bill should be passed stipulating sanctions for service failure. To make MDAs more customer-focused, MDA SERVICOM compliance outcomes should be reflected in Evaluation Performance Reports.

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Anti-Corruption Reforms

Background

Nigeria has been concerned about the worldwide phenomenon of corruption, with anti-corruption laws existing in 1944 before it existed as an independent country. The military governments Nigeria made the phenomenon into a problem for the country. Starting from 1999, when the country returned to democracy, however, efforts have been consistently made to rid the country of it, and its baneful effects on the poverty and unemployment levels, infrastructure networks, education and health human capital stocks, as well as housing conditions.

Past Reform and Achievements

In 2000, an Independent Corrupt Practices Commission (ICPC) was established to investigate infractions in government offices. Two years later, an Economic and Financial Crimes Commission (EFCC), which has the power to arrest and prosecute individuals suspected of corrupt activities, was established; and it has recovered more than ₦560 billion (US$4billion). The Code of Conduct Bureau, that ensures that public office holders do not abuse their offices, was also strengthened.

Sectoral efforts have also been carried against corruption. The Nigeria Extractive Industries Transparency Initiative (NEITI) and Bureau of Public Procurement (BPP) were established in 2007, to respectively ensure transparency in the use of Nigeria's natural resources and in the procurement of government supplies. A Freedom of Information Act that empowers citizens to enquire and receive information on any government activity and a Presidential Committee on Ports Monitoring to decongest and remove the corruption-induced inefficiencies at the ports, were established in 2011.

A Committee on Verification and Reconciliation of Fuel Subsidy Payments was set up in 2012, to eliminate inflation of claims by petroleum marketers. A second phase of pension reforms were carried out in 2014 to further increase the efficiency of the contributory pension scheme that was established in 2004 reforms to replace the corruption-ridden old defined benefits scheme. Efforts in the agricultural sector ended decades of rent-seeking corruption in fertilizer procurement and subsidy distribution to farmers.

Challenges and Next Steps

Government should summon the will to prosecute high-profile corruption cases to logical conclusions. New laws have to be promulgated to increase deterring jail terms for corruption offences.

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Justice Sector Reforms

Background

After Nigeria had transitioned from a military regime to civilian regime in 1999, the distortion of the judiciary by the military continued. Delays in the administration of criminal justice remained a major challenge. Judicial personnel were inadequate. Use of modern management technology in case management techniques were absent. Effective coordination and cohesion was also absent among justice institutions, causing many accused persons to await trial and for prisons, particularly urban ones, to be congested.

Past Reform and Achievements

To reform the judiciary, the government sent to the National Assembly a draft bill aimed at removing such abuses as frivolous injunctions, interlocutory motions, and unnecessary adjournments from court processes; towards enhancing the speedy dispensation of justice and ending corruption among judges.

A number of Acts were then enacted to further reform the sector: Freedom of Information Act (2011) to enhance transparency and accountability; Evidence Act (2011) to institute the use of computer-generated evidence which hitherto was inadmissible; Legal Aid Council Act (2011) to widen access to justice irrespective of financial means; Money Laundering Prohibition Act (2011) to fight money laundering; and Terrorism Prevention Act (2011) and Cybercrime Act (2011) to address the new insecurity problems of terrorism and cybercrime respectively. A Federal Justice Sector Reform Committee (FJSRC) was also established, and it has brought to fore the need for a comprehensive review of the long outdated Nigerian Prisons Standing Order.

Challenges and Next Steps

Bills addressing human rights, community service, domestic violence, police reform, and prison reform should also be enacted. The ‘holding charge practice’ should be reviewed. Sentencing policies should be reviewed to make the justice process more effective and the prisons less congested. Judicial integrity should be made paramount, and judges and other judicial personnel held accountable at all times for misconduct. The rule of law should also be made paramount, to ensure public confidence in the judiciary. The treatment of prisoners should be benchmarked against the United Nations minimum standard.

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Electoral Reforms

Background

The long years of military dictatorship having destroyed both democratic institutions and democratic culture, Nigerian governments have been confronted with various electoral problems since the return to democractic government in 1999. Conduction of free and fair elections have been almost impossible as a result. Elections have also been typically followed by long and complex legal tussles because political parties and aspirants refused to accept defeat.

Past Reform and Achievements

The federal government set up a committee in 2007 to recommend electoral reforms. The efforts yielded the Amendment of the Electoral Act of 2010, and the amendment of the relevant sections of the 1999 Constitution. INEC’s financial independence was increased by linking its funding directly to the Consolidated Revenue Fund. INEC was insulated from partisanship with the requirement that its Chairperson be no card-carrying member of any political party. INEC may also now conduct elections earlier, six months before the expiration date of current occupier of the office, and thus give time for the settling of electoral disputes in the courts. More tribunals were additionally established, and the numbers of tribunal members reduced from five to three to hasten decisions on electoral disputes. These reform efforts culminated in the 2011 and 2015 elections, which have been adjudged to be the most credible and transparent elections conducted in Nigeria.

Challenges and Next Steps

Maintaining INEC’s developing good image should be prioritised. Voters' database should be secured and made more credible. Strict enforcement of regulations guiding elections conduction should be continued. Project management difficulties in getting electoral materials to polling booths should be resolved.

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National Statistical System Reform

Background

By 2003, the Federal Office of Statistics (FOS), the apex data producing agency in Nigeria since 1947, was either not producing relevant statistics needed for planning and evidence-based policy formulation, implementation, monitoring and evaluation, or producing remotely relevant data untimely and without integrity. Poor attention from government, bad management, bloated and low quality workforce, preponderance of non-professional staff (particularly administrative and accounting personnel), archaic data production and management technologies, and low morale and productivity of workers were identified to be responsible.

Past Reform and Achievements

As first steps in reforming the production of national statistics, the federal government merged the Federal Office of Statistics and National Data Bank to form the National Bureau of Statistics (NBS); with a five-year National Statistical Master Plan (2004), a Statistical Act (2007) and a National Strategy for the Development of Statistics (2010).

The 1957 Statistics Act was repealed. A National Data Centre, with capacity for world-wide dissemination, archiving, and connectivity of statistical system, was established in Abuja alongside six Zonal Data Processing Centres; and in 18 states of the country, State Bureau of Statistics were established. The ratio of staff with technical skills to support staff were increased to make the reform successful. The NBS began to produce compendiums of national statistics as well as data sets periodically. The office also began publishing methodology used in compiling data. There has been a significant increase in the use of statistical data for evidence based policy, planning and decision making as a result.

Challenges and Next Steps

Poor government funding should be addressed to improve the integrity of national statistics. Collaboration efforts between agencies should be encouraged to increase the quantity of data collected as well as improve their quality. The slow pace of statistical development at the state and local governments should be quickened with technical support by the NBS to the statistical agencies of these sub-national governments. The low statistical awareness in the country should be addressed with jingles on radios and televisions about the importance of accurate statistics to economic development. Politicisation of data should be made impossible through the improvement of statistical methodologies.

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National Identity Management System

Background

The idea of having a national identity management system was first mooted in 1978. In 2001, a contract was awarded to French firm Sagem for the production of identity cards for all Nigerian citizens. The identity card scheme was, however, marred by corrupt practices and in 2003 only a few Nigerians received identity cards under the scheme. Different government agencies such as the Independent Electoral Commission (INEC), and the National Population Commission (NPC) that required data on most or all Nigerians, thus had to create their own databases. This would have been unnecessary if a national database had existed.

Past Reform and Achievements

In 2007, government established the National Identity Management Commission (NIMC), to implement the identity management reform, and replace the Directorate of National Civic Registration (DNCR). The NIMC initiated the National Identity Management System (NIMS) programme in 2009. NIMS comprises of a national identity database, also known as a Central Identity Repository or Register (CIDR), a chip-based, secure identity card, and a network of means to assert the identity of an individual. The first phase of the identity scheme ran from 2011 to 2013. The enrollment exercise for the issuance of the National Identification Number (NIN) started as a pilot scheme in February 2012 and was extended to cover all states of the Federation on 17 October 2013. A User Acceptance Test was carried out on the National Identity Smart Card facility to ensure that it conforms to international standards and best global practices in tune with the defined objective of the NIMS project. ISO 27001 Certification for information security management system was secured.

Challenges and Next Steps

A more robust enlightenment about the gains of IDM should be carried out to remove public cynicism and unfavourable perception of the identity sector that stemmed from the wasted efforts of the past. An interoperability platform should be urgently established to avoid high incidence of multiple identities. Persons that have enrolled on the NINs should be issued with their national identity smartcards immediately they enroll on the system. Issuing of national identity smartcards to people who had registered should be fast tracked to encourage others to register. Concessionaires should be made to fulfil their obligations, which include setting up and running enrolment centres. Human resource and capacity building should be prioritised.

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Postal Services (NIPOST) Reforms

Background

By 1999, the confidence of Nigerians in the country’s postal system was eroded as NIPOST could not deliver basic and core postal services of letter, parcel, and express mail delivery. Banks were easily supplanting NIPOST’s role as a mobiliser of savings at the grassroots level, as theft, loss, tampering, and violation of mail items, by a poorly motivated workforce, made many to prefer the former.

Past Reform and Achievements

The postal reforms were started by the National Council on Privatisation (NCP), through the Bureau of Public Enterprise (BPE). On 12 March 2007 the federal government engaged Nethpost Consultancy, a Netherlands consultancy firm based in the Netherlands, to provide advisory services for the reform of the sector. A Universal Postal Sector Fund and a Universal Postal Services Board were established. NIPOST was restructured along business lines for operational efficiency. It also had investments in human capital development and physical equipment. An e-Business services and creation of a virtual private network was provided for 1,500 of its post offices across the country. An International Postal System (IPS) was instituted for the tracking and tracing of all shipments.

Challenges and Next Steps

The Postal Sector Act should be enacted by the National Assembly to further drive the pace of postal reforms. A National Postal Commission for the regulation of postal services should be established, to prevent reoccurrence of the ills that once bedevilled postal services in the country. NIPOST's infrastructure should be improved. Its monopoly on letters below 500 grammes should be removed, to increases its efficiency while competing with private postal agencies. It should either be privatised to remove government's interference in its workings, or restructured into self-financing commercial business units.

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Reforms of the Information Sector

Background

The Ministry of Information which has the responsibility of projecting the positive image and reputation of the Nigerian nation, has grappled with how to project, communicate, sensitise and educate the citizenry as well as the international community on the policies, programmes and activities of government.

Past Reform and Achievements

The Ministry has developed a number of strategic communication plans for Government policies. The Ministry rolled out talk shows, discussion programmes, interviews, and documentaries on MDAs, on national media organizations, namely, FRCN, NTA, VON, NAN. Following the lifting of the 2003 ban on the printing of Federal Government Calendar and Diary in 2011, the Ministry produced and widely distributed the 2012, 2013, 2014 and 2015 Federal Government Calendars and Diaries.

The Ministry has digitised the archival registry and developed a virtual media resource centre, developed strategic plans for review of Journalism and Mass Communication curricula, and has also made functional the broken-down printing machines at the Federal Government Press. It has continued to publish the Federal Tenders Journals, a one-stop shop for all government procurements, thereby enhancing transparent in the procurement process in line with the Public Procurement Act 2007.

The Ministry has further ensured the completion of 27 FM Stations and 30 community TV stations, reduced by 33% breaches of the Nigeria Broadcasting Code by broadcast stations, transformed NAN from a text-only agency since 1978 to a multi-media organisation in 2007, successfully promoted Made-in-Nigeria Goods campaigns, executed with support from the World Bank a campaign to eradicate Avian Flu in Nigeria, and widely publicized awareness materials on the prevention and control of Ebola Virus Disease after its spread into Nigeria.

Challenges and Next Steps

The quality of various government websites, which is currently very low, should be vastly improved. Information Centres in Nigerian Missions should be reopened to coordinate the external publicity of Nigeria, while carrying out extensive multimedia domestic publicity of Government which is yet to take advantage of the internet. NTA and NAN should be upgraded to such international statuses as those of Aljazeera and Reuters respectively.

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Creative Industry Reform

Background

The Nigerian music and films industry has largely replaced foreign music and films as the major source of entertainment for many in the country, with unique brands of Nigerian music and movies. Both the World Bank and UNESCO report Nollywood to be the world’s second most prolific movie industry, employing over 200,000 directly and providing about 1 million with indirect jobs, while having the potential to generate US$400 million annual revenues.

Past Reform and Achievements

New policies were put in place to protect intellectual property rights in the industry. Rights enforcement was stepped-up to reduce the cases of copyright violations. The government introduced a number of fiscal policy measures such as tax holidays and import duty waivers for the industry. The government built and equipped twelve, new cultural industry centres in Benue, Edo, Sokoto, Enugu, Ondo, Taraba, and Ogun States and the FCT.

A $200million fund for grants, managed by the Bank of Industry (BOI) and Nigerian Export and import Bank (NEXIM) was established. The Ministry of Finance in collaboration with the Ministry of Tourism, Culture and National Orientation managed a ₦3 billion fund under the Advancing Technology Project in Nollywood (Project ACT), to facilitate the development of new talents and incorporation of modern technologies into the movies to raise their quality and enable them meet the enhanced tastes of the populace for realistic movie stunts and graphic effects.

In the last three years, the music and movie industries have witnessed unprecedented growth and Nigerian movies and music have conquered the local airwaves, while penetrating into Europe and America. Nigerian’s exports and foreign earnings have been raised as a result. Jobs have also been created, as the industry’s contribution to the GDP has increased.

Challenges and Next Steps

Intellectual property should be urgently protected, to encourage further growth in the industry and improve the quality of the movies. The under-developed promotion, marketing, and talent detection value chains should be transformed.

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Reforms In The Nigerian ICT Sector

Background

The ICT is currently the 4th largest sector of the Nigerian economy, and its fastest growing sector. It is contributing 10.26% of the GDP, and growing at a 24% rate. By the second quarter of 2014, the Nigerian ICT industry alone provided both direct and indirect employment to over 3million people in the country. Indigenous ICT companies have to contend with non-specialized and fragmented value chains, national infrastructural deficits among others. Consequently, software imports is high, with estimation at US$1bn annually.

Past Reform and Achievements

Government began reforming the ICT industry in 1999, informed by the high inefficiency of the telecommunications sector that the Nigerian Telecommunications Ltd's (NITEL) monopoly created. A telecom policy document that clearly articulated the intentions of government for the sector and the roles of the various stakeholders, the National Telecom Policy (NTP), was released in 2000; and a new board appointed and inaugurated for the Nigerian Communications Commission (NCC) to coincide with a new GSM licensing process in 2001.

By 2009, 20 firms were licensed to provide a range of telephone and Internet services using Global System for Mobile Communications (GSM), Code Division Multiple Access (CDMA), and fixed wired/wireless technologies. Total teledensity recorded in Nigeria has improved significantly —moving from 0.04 per 100 inhabitants in 1999, to 1.89 in 2002 after full liberalisation of the telecoms sector, to 42.13 in 2008, 87.06 in 2013, and 93.41 lines per 100 inhabitants in 2014. Access to the internet is also rising, with 41.5% of Nigerians having access at the end of 2013, compared to 34% end of 2012.

Government revenue accruing from the sector has increased; with annual taxes paid by telecom operators estimated to be about N160billion, where about N 55billion are paid in regulatory levies. Foreign direct investment in the sector is also growing, with $32 Billion already attracted by August 2014.

Challenges and Next Steps

The rollout of the terrestrial fiber-optic network, which had only 11,000 km laid in 2010, should be fastened. Software development should be enhanced with loans to indigenous ICT companies and government investments in computer science and engineering departments in the tertiary institutions. The theft and vandalisation of telecommunication infrastructure should be checked. Regulation of telecoms operators by NCC should be improved, to ensure quality telecoms and internet services for Nigerians.

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Addressing The Millennium Development Goals (MDG)

Background

The Millennium Development Goals (MDGs), a global pro-poor agenda of action of eight goals aimed at addressing extreme poverty and hunger, illiteracy, women empowerment and gender equality, child and maternal health, environmental sustainability, HIV, malaria and other diseases, as well as the building of global partnership for development, was in alignment with Nigeria’s development aspirations as listed out in the Vision 20:2020 document and lately in the Transformation Agenda. Nigerian governments therefore worked hard at realizing them.

Past Reform and Achievements

In 2005, the Office of the Senior Special Assistant to the President on the Millennium Development Goals (OSSAP-MDGs) was created, to act as the Secretariat to the Presidential Committee on the Assessment and Monitoring of the MDGs. OSSAP-MDGs was also charged with designing appropriate mechanisms to tag and track Debt Relief Gains (DRGs) funded expenditure. Sustainability policy frameworks on MDGs interventions in Water and Sanitation sectors were developed. Monitoring, supervision and data collection frameworks were introduced. A Conditional Grants Scheme (CGS) implementation framework as well as a consolidated e-based payment for the Conditional Cash Transfer (CCT) Scheme were created.

Achievements from the efforts include the 17,026 boreholes and small town water schemes constructed; 128 minor irrigation systems constructed; 5,425 health facilities constructed, renovated or equipped; 68,430 Health Workers Trained; 4,710 Village Health Workers engaged and trained; 3,136 classroom blocks built or renovated; 2,807,208 school exercise books, textbooks and instructional materials; 1,130 Education Extension Workers engaged and trained; 716 construction of 500KVA Transformer Substation; 1,000 construction of 300KVA Transformer Substation; and 103,067 households receiving Conditional Cash Transfer.

The Midwives’ Service Scheme funded by OSSAP-MDGs, and implemented by the National Primary Healthcare Development Agency, would win the Commonwealth award on Innovations in Government Services and Programmes

Challenges and Next Steps

There should be quick incorporation of the Sustainable Development Goals (SDGs) that have replaced the MDGs. Advocacy should be made to states for continued counterpart funding of development programs. Dangers to development workers across the country, from Boko Haram terrorism and kidnapping, should be tackled and removed. The MDGs Offices created should not be abandoned; they should rather be used to formulate and drive development plans for the country.

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Health Sector Reform

Background

In 2008, the health sector has been characterised by a lack of an effective stewardship role from the government, fragmented health service delivery, inadequate and inefficient financing, weak health infrastructure, weak health information systems with low quality data, limited use and understanding of evidence in planning, a mal-distribution of the health work-force, and poor working coordination. As a result, life expectancy of Nigerians was just 47 years in 2008, and vaccine-preventable diseases, along with infectious and parasitic diseases, remained leading causes of illness and mortality.

Past Reform and Achievements

The Health Sector Reform (HSR) was initiated and adopted in 2004. In 2010, the National Strategic Heath Development Plan (NSHDP) was developed to reduce the morbidity and mortality rates due to communicable diseases, reverse the increasing prevalence of non-communicable diseases, and significantly increase the life expectancy of Nigerians.

The plan and other reform have ensured such health improvements as polio immunity of the population increasing from 46% in 2010 to more than 80% in 2013; introduction of new 10 years covering Cerebro-Spinal Meningitis (CSM) vaccines; total eradication of guinea worms; reduction of the baseline for underweight children (under five) from 27% (baseline) to 24% in 2012; consistent decline in the rate of mother and child mortality since the start of the interventions in 2010; achievement of the WHO elimination of Tuberculosis target of less than one case per 10,000 population at the national level and in all zones; and 45% reduction in post-operative infections in tertiary health facilities across the country.

Challenges and Next Steps

Pending health bills, especially the National Health Insurance Scheme Act (Amendment) Bill, at the National Assembly should be passed without further delay to further improve the health sector and save lives. Effective public-private partnership should be promoted in the health sector to address inadequate, inefficient and ineffective financing of health facilities and services. Efforts should be made to pay healthcare workers adequately and promptly, to check the frequency of industrial strikes led by medical worker unions. Medical practice insurance and effective framework for litigation should be institutionalised to reduce the incidence of medical malpractice in hospitals and medical laboratories. A robust training policy should be adopted to improve the capacity technical medical staff in the proper use and maintenance of newly acquired and modern equipment.

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National Health Insurance Scheme

Background

Medical insurance that can help reduce the strain of healthcare costs on families is rare in Nigeria. In emergencies, many often have to depend on the generosity of others, with avoidable deaths occurring from delays in pooling healthcare fees from various persons.

Past Reform and Achievements

In 1962, an attempt was made towards a national health insurance scheme, as part of a social security system. It failed. In 1984, the National Council on Health commissioned a study for a NHIS, a social health insurance scheme whereby the health care services of the contributors are paid for from the pool of fund contributed by participants in the scheme. In 1993, the Federal Ministry of Health was mandated to start the implementation of the NHIS report that was submitted in 1989. Six years later, in 1999, legal backing for the implementation of the NHIS was promulgated, and structures for the implementation of the NHIS established. After another six years, in 2005, NHIS became operational. NHIS offices were subsequently established in the 36 states of the Federation including the FCT.

The scheme has achieved some success. It covers 98% of federal government employees, and has enabled private organizations to provide health insurance for their employees. It aided the expansion of MDG project from 12 states to all the 36 states of the Federation inclusive of FCT, as long as the respective states make their own funding contributions. It has enabled the introduction of a Mobile Health Insurance Programme, which is the first of its kind in the world.

Challenges and Next Steps

Government should consider amending the NHIS Act to make all private organisations and state governments cover their employees in the scheme, towards covering more Nigerians and reducing losses of essential human capital to ill health. An aggressive awareness programme should be conducted to increase uptake of the scheme in the country. Programmes that advocate preventive health measures should be established by Government to reduce the incidence of adverse selection that may burden and then crash the NHIS scheme.

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Nigeria's Response To HIV/AIDS

Background

Since the 1986 first case of the Acquired Immune Deficiency Syndrome (AIDS) in Nigeria, many across the population age-groups have been infected by the virus causing the disease, the Human Immunodeficiency Virus (HIV). Drivers of the HIV epidemic in Nigeria have included low risk perception, multiple concurrent partners, informal transactional and inter-generational sex, lack of effective services for sexually transmitted infections (STIs), and poor quality of health services. Gender inequalities, poverty and HIV/AIDS-related stigma and discrimination have also contributed to the continuing spread of the infection.

Past Reform and Achievements

A seroprevalence survey was conducted in 1999. A Presidential Commission on AIDS (PCA) comprising Ministers from all sectors, with the President serving as Chairperson of the Commission was formed immediately. In 2000, the National Action Committee on AIDS (NACA) was established to emphasise a multi-sectoral approach to AIDS. NACA prepared Nigeria’s first HIV/AIDS Emergency Action Plan, which included public education on the disease. By 2007, the number of people being treated had gone up appreciably, rising from 81,000 people (15 % of those in need) to 198,000 (26%) by the end of 2007. In 2012 a systemic review of the national response to HIV/AIDS was carried out, key challenges were identified, and based on the premise of the global declaration and the identified continuing challenges to universal access to HIV/AIDS services in Nigeria, the “Presidential Comprehensive Response Plan for HIV/AIDS in Nigeria (PCRP): 2013-2015” was developed. A National HIV/AIDS Research Agenda was established.

PMTCT sites increased from 33 in 2005 to 5,622 in 2013; ART sites increased from 34 in 2005 to 842 as at 2013; and HCT sites from 226 in 2006 to 5191 in 2013. The HIV Prevalence Rate in Nigeria dropped from 5.4% in 1999 to 3.4% in 2013, representing a significant drop of 37%, which is very significant. The number of trained health workers providing HIV services also increased from 4,294 in 2010 to 10,407 in 2013.

Challenges and Next Steps

Government should sustain the priority funding of the fight against the disease to prevent the current insufficient level of funding from making a new epidemic out of the disease. Public education on the disease, which has been generally relaxed, should be reinvigorated. Treatment centres should be extended urgently to many a rural area. Women should be empowered, to enable them make better sexual activities choices. Focus should be further placed on prevention programs.

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Water and Sanitation Reforms

Background

Only 0.02% of Nigeria's 263.7 billion cubic metres surface water potential and 51.9 billion cubic metres ground water potential is currently used for irrigation purposes; while of the 31 billion cubic metres in about 200 dams across the country, only 18% is effectively utilised. Nigeria thus grapples with water supply.

Past Reform and Achievements

The Federal Ministry of Water Resources was re-established in 2010, and an emergency meeting of the National Council on Water Resources held to review critical issues affecting the sector with a view to developing appropriate strategies for water sector transformation in the country. Over the years, a set of policies and strategies that have been developed and implemented, include the National Water Resources Policy, National Water Resources Master Plan, Water Supply and Sanitation Policy, Irrigation and Drainage Policy, Dam Operation and Maintenance Policy, Water Resources Infrastructure Operation and Maintenance Policy, National Water Resources Law.

Nine dams were completed by the end of 2012, in a process that created about 125,000 jobs. The government deployed 10 irrigation projects for the 2012 crop production and the rehabilitation of 1,000 dysfunctional hand pumps in 18 states across the country; while seeing to the substantial completion of the following water projects: Northern Ishan Water Supply projects in Edo State; Mangu Water Treatment Plant in Plateau State; Greater Makurdi Water Supply Scheme in collaboration with Benue State. Access to potable water has improved from 58% to 65% coverage, while access to improved sanitation facilities has risen from 32% to 41%. Land area under irrigation has increased by more than 31,000 hectares, to increase the domestic food production capacity.

Challenges and Next Steps

The means to acquire, collate, manage, and disseminate hydrological, hydro-meteorological, and hydro-geological information for each of the river basins in Nigeria should be established. The nature and level of further investments needed in the sector should be outlined, and with appropriate incentives the private sector encouraged to participate in the sector. Power supply should be improved to enhance efficiency in the water sector.

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Food and Drug Administration Reforms

Background

Prior to 2004, Nigeria was a haven for substandard and counterfeit drugs. Fake drugs were estimated to be at least 41% of all the drugs in the market. In 2003, the National Institute of Pharmaceutical Research reported that 80% of drugs on sale in Lagos State were fake. Counterfeit drugs were freely sold in commercial buses. There was even a specialist fake drugs market in Anambra State. The situation was bad to the extent that West African countries banned the importation of all pharmaceutical drugs from Nigeria.

Past Reform and Achievements

The National Agency for Food and Drug Administration and Control (NAFDAC) did not have a single functional laboratory, their offices were dilapidated, and their personnel were completely unmotivated prior to the reforms. After a whole-system reviews of all its operations were conducted, these facilities were developed and equipped. An ultra-modern regional laboratory complex was launched in Agulu, Anambra State in 2010. In 2013, Nigeria obtained the ISO 17025 accreditation for two Lagos-based NAFDAC’s laboratories.

New operational modes, which include controlling clinical trials, targeting the sources of counterfeit drugs, strengthening surveillance at all ports of entry, destroying fake drugs already in circulation, and quality assurance of locally manufactured products, were established. The agency was restructured and reorganised; its staff reoriented and motivated with clear incentives and sanctions, and its recruitment process made transparent. It engaged relevant stakeholders such as the media, the courts, the Standards Organisation of Nigeria and the Nigeria Customs Service; and began to change the foods and drugs industry by naming and shaming offenders, blacklisting offending companies, destroying fake and substandard drugs, and prosecuting their producers.

By 2014, the percentage of counterfeit and substandard drugs in Nigeria had fallen below 10% from the about 41% in 2004. NAFDAC was rated by NOI Polls as the most effective government agency in Nigeria for three years in a row, 2007, 2008, and 2009.

Challenges and Next Steps

Jingles should be made to encourage those Nigerians who abuse drugs in the forms of cough syrups and alcoholic herbal concoctions stop the behaviour. Unannounced raids on pharmacy stores and markets that seem to have slowed in the last several months should be reinvigorated. NAFDAC's collaboration with security agencies should continue to be strengthened.

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Education Sector Reform

Background

Educational infrastructure and learning resources had sufficiently deteriorated by 1999 that being well educated was reserved to only few autodidacts whom could educate themselves. Spaces in tertiary institutions could only accommodate about 21% of applicants. In 2010 only 23% of candidates passed the West African Senior School Certificate Examinations (WASSCE) with five credits and above, while just 9% so passed the National Examination Council (NECO).

Past Reform and Achievements

The Universal Basic Education (UBE) programme, a strategy for achieving education for all, was launched in 1999. Its bill, the UBE Bill, was later passed into law in 2004. Other programmes that have been passed to reform the education sector have included The Roadmap for the Nigerian Education Sector, and the One-Year Strategy for the Development of the Education Sector. The latest, a Four-Year Strategic Plan, was developed to provide a coordinated approach to addressing the challenges of quality education delivery in Nigeria; while targeting getting 10.6 million out-of-school children back into schools, and improving the quality and access to education at all levels.

Teacher training was additionally reviewed. Schools were constructed for Almajiri children. Technical and vocational education and training were reinvigorated. A Whole School Evaluation Policy (WSE) was also adopted in school evaluation. Twelve new universities were also established.

Primary school enrolment increased by 20.4%, between 2010 and 2012. In the latter year, the enrolment was 91% across the country. Enrolment into junior secondary school also increased by 23.9% from 2010 to 2012. The percentage of candidates passing with five credits and above in WAEC increased from 23% in 2010 to 39% in 2012; in NECO, from 9.36% in 2010 to 31.58% in 2012. About 91% of junior secondary school teachers and 73% of primary school teachers were aided in obtaining their respective professional qualifications.

Challenges and Next Steps

Partnerships should be developed with firms in various sector of the economy, to make the curricula being taught relevant to the nation's economic development needs. Collaborative mechanism should be developed for overcoming the resistance of some parents to educating their own children. The massive infrastructural rehabilitation of both federal and state educational institutions should be continued. The remuneration of education workers should be improved so that needed talents could be attracted into the sector.

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Women, Youth, and Social Development

Background

The population of Nigerian youths is increasing, requiring heavy governmental focus in harnessing the youthful energy for national development. While ensuring gender equality have been at the centre of most government policies, the patriarchal structure of most Nigerian societies have made the implementation of the policies quite difficult. For the about 22 millions Nigerians living with disabilities, however, governmental focus has been minimal, making them experience high levels of unemployment, poverty, discrimination and segregation.

Past Reform and Achievements

The NYSC scheme was created by decree No.24 of 22nd May 1973 to reconstruct, reconcile and rebuild the country after the Nigerian Civil war. The scheme was established "with a view to the proper encouragement and development of common ties among the youths of Nigeria and the promotion of national unity." Today, the scheme largely provides the labour that shores up the inadequacy in the education sector.

Among the government's gender initiatives is the National Gender Policy of 2006, which advocated 35% affirmative action to bridge gender gaps in political representation in elective and appointed posts at all levels. In 2010, the establishment of a Gender Unit to be headed by at least an Assistant Director in all MDAs was approved. A New Department of Social Security was created in the Ministry of Labour and Productivity to extend social protection to vulnerable Nigerians. As at the end of May 2013, 9,409,259 people were benefiting from various social security schemes, well over the target of 8,000,000 for 2013.

For person living with disabilities, four braille libraries and press centres were constructed at Awka, Bauchi, Calabar and Maiduguri in 2006. New Employee’s Compensation Act was enacted in 2010, to give additional social protection to all workers who may sustain injury at the workplace. Nigeria's contingent to the London 2012 Paralympic Games were also well funded, leading to their success.

Challenges and Next Steps

Budgetary allocation to the Social Development Ministry should be improved. The executive’s Affirmative Action which saw 33% federal appointments go to women should be backed by legislation, and extended to the other two tiers of government. Aggressive innovative youth employment strategies and schemes should be devised and properly implemented, to tap Nigeria's growing youthful energy.

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Sports

Background

Despite the excellent performance of individual Nigerians in the international sporting arena, Nigeria’s reputation in global sports is yet to be set on a firm, sustainable footing. The National Sports Festival (NSF) that was launched in 1973 to be the biggest sporting event in Nigeria as well as a platform for talent identification, has largely failed to perform either of these roles. It has lost its glamour and, therefore, sponsorship attraction; while failing to include Nigeria’s athletes living in foreign countries in its competitions.

Past Reform and Achievements

To reposition Nigerian sports sector, The National Sports Commission (NSC) developed a Code of Governance and Election Guidelines for National Sports Federations, towards entrenching the principles of transparency, efficiency and accountability in sports administration in Nigeria. The government created through the NSC the Nigeria High Performance Sports Directorate (HPSD), to develop and manage an elite athlete programme for Nigeria’s participation in international competitions; and adopted a funding paradigm that focused on sporting activities instead of funding sporting federations.

The National Sports Festival has been restructured into an open festival, in which Nigerian athletes from across the world can now participate. A National Youth U-17 Games was established for early discovery of budding sporting talents. The National Academicals Sports Committee (NASCOM) was setup as the flagship vehicle of the NSC for grassroots sports development, and it has organized notable sports events. The government now focuses on just the Lagos and Abuja national stadiums, as it has transferred ownership of the ones in Bauchi, Kaduna, and Ibadan, to their respective state governments.

Successes of the sports reforms have included gold and silver medals at the 2012 World Chess Olympiad; overall victory at the 2012 Senior African Weightlifting Championships; first position at the 2012 Senior African Athletics Championship; six gold medals, five silvers and one bronze medal at the London 2012 Paralympic Games; the 2013 Africa Cup of Nations championship; 2013. FIFA Under 17 World Cup championship; and the African junior Athletics Championship in 2013

Challenges and Next Steps

The sports ministry and the education institutions should collaborate effectively, to identify talents. Efforts should be stepped up to pass the NSC Bill. Sport facilities should be better managed.

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Banking Reforms

Background

The 2008 Nigeria bank crisis was according to the Central Bank of Nigeria (CBN) caused by macroeconomic instability from large and sudden capital inflows, lack of investor and consumer sophistication, major failures in corporate bank governance, uneven supervision and enforcement, inadequate disclosure and transparency about the financial position of banks, critical gaps in the regulatory framework and regulations, unstructured governance and management processes at the CBN, and weaknesses in the business environment.

Past Reform and Achievements

To address the identified factors and ensure a stable financial system, the government, through the CBN, embarked on reforms. About ₦620 billion was injected into the banking industry to shore up the capital of nine banks, and prevent their collapse. The chief executive/executive directors of eight of these banks were additionally removed from their positions.

To sustain liquidity in the financial system, the CBN continued to guarantee the interbank market till 31 December 2011. Foreign creditors and correspondent banks’ credit lines were also guaranteed to restore confidence and maintain important correspondent banking relationships.

A new banking model that prevents banks from investing in non-bank subsidiaries was instituted. Banks were also classified into international, national, regional, mono- line, and specialized Islamic categories, to increase efficiency. The Asset Management Corporation of Nigeria (AMCON) was established through an Act of the National Assembly and assent of the President. It was further made mandatory that banks change external auditors after having being audited by same for ten years. New point of sale guidelines were issued to encourage banks and other service providers embrace POS electronic devices.

As of March 2013, the CBN had recovered the sum of ₦7.9 billion that banks illegally charged their customers. The asset quality of banks improved from 4.03% in December 2010 to 17.9% and 17.8% in December 2011 and in June 2012, respectively – above the global threshold of 10%. The industry non-performing loans (NPL) ratio fell from 15.49% at end period December 2010 to 4.95% and 4.3% at December 2011 and June 2012 respectively. The industry liquidity ratio was high at 69.06% and 62.67% respectively, at end-December 2011and June 2012, up from 47.46% at end-December 2010.

Challenges and Next Steps

Focused leadership at the CBN should be ensured, to sustain the reforms. Balance should continue to be struck between stability and reform in the financial sector; while bank monitoring should be enhanced, to prevent bank crisis.

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Capital Market Reform

Background

Landmark reforms across the banking, insurance and pension sectors between 1999 and 2007 transformed the Nigerian capital market and led to unprecedented growth. The growth being induced, however, by a new regulation that mandated the recapitalisation of financial institutions, the capital market lost between 2008 and 2009 over 70% of its value. Investor’s confidence were eroded; and by 2009, new stock issues had dropped by 93.5% to only N85.9 billion from the peak of N1.3 trillion in 2007.

Past Reform and Achievements

To restore investor confidence in the capital market, Securities Exchange Commission (SEC) focused considerably on investor protection. The National Investor Protection Fund (NIPF) Rules was reviewed to enable the utilization of the N5b the Commission has set aside to mitigate specific investor losses.

SEC developed a policy of zero tolerance on non-compliance with market rules and regulations, and has handed many capital market operators sanctions and penalties commensurate to their infractions. It further embarked on process improvement, introducing international best practices in the offering of securities such that share offers are now largely through book building while bonds are largely through shelf registration. Whistle blowing that would strengthen confidence in the market was encouraged with an anonymous ‘whistle blowing link’ on the SEC website.

The Administrative Proceedings Committee (APC) of SEC was reconstituted and inaugurated in 2013 to enhance quality and effectiveness in resolution of disputes and complaints in the capital market. The Board of the Commission approved an upward review of the minimum capital requirement for registered capital market operators in September 2013. The Commission also approved a policy change that will strengthen the provision for insurance cover for fraud and malfeasance of capital market operators.

These and other reforms have yielded such positive results as the rebounding of the All-Share Price Index, increase in the equity market capitalization and trading value in 2010, from the 2008-2009 crashed levels. The positive outcomes continued into subsequent years; with Domestic participation at the nation’s stock market increasing to N167.77 billion (about US$1.08 billion) in July 2014, up by 81.77% from the January 2014 level. From its inception in November 2013 to July 2014, the FMDQ platform for trading of bonds and other fixed income instruments has recorded a market turnover of N48 Trillion.

Challenges and Next Steps

The shortage of skilled manpower for key legal and supervisory roles should be addressed. Conflicting regulations should be resolved. Opportunities for fraud and abuse should be checked. More technological innovations should be introduced.

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Job Creation and Inclusive Growth

Background

The Nigerian economy has averaged an impressive growth rate of about 7% over the past five years. Over the same period, however, the national unemployment rate increased from about 12.7% in 2007 to about 21% in 2010.

Past Reform and Achievements

The Agricultural Transformation Agenda (ATA) was based on the recognition that growth in the agricultural sector is pro-poor, inclusive, and could generate many jobs. The Community Service Scheme was designed to engage youth in labour-intensive work such as the construction and rehabilitation of social and economic infrastructure; and it engaged about 120,000 youth from 2012–2014 with 5,156 persons with disabilities offered temporary employment.

The Graduate Internship Scheme was designed to enhance the skills development of Nigerian graduates towards their employability, by attaching them to competent firms; about 4,000 graduates have been matched under this scheme. The YouWin! Programme was created to support young, existing or aspiring entrepreneurs so that they could create jobs; and about trained 12,000 aspiring or existing young entrepreneurs have created over 26,000 new jobs. A good number of health workers were employed in the implementation of the Save One Million Lives; with over 9,000 were recruited, trained, and deployed on the SURE-P front alone.

The Youth Employment in Agriculture Programme (YEAP) would empowered 740,000 market-oriented agricultural producers and 18,500 ‘N-Agricpreneurs’. The Technical Vocational Education and training (TVET) equipped about 220 young Mechanical and Electrical/Electronics engineering graduates with essential skills to take up job spaces in the power sector.

Challenges and Next Steps

Government employment generation policies in agriculture, manufacturing, power, housing and urban development, solid minerals, and communication technology should be vigorously implemented to achieve the desired results. Power sector revitalization should be completed as soon as possible, as the sector remains a key driver for job creation and self-employment. Infrastructural rehabilitation should also be continued at a fast pace, with special focus on rural areas.

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Agricultural Sector Reforms

Background

Nigeria is one of the highest food importing countries in the world. Estimates hold that it spends about ₦1.3 trillion annually on importing foods; but this at the cost of domestic inflation as the need to buy foreign currencies so as to pay for expensive food imports pressurise the local currency, the Naira, by making it to be more in abundance relative to the foreign currencies.

Past Reform and Achievements

In 2012, a Growth Enhancement Support Scheme (GES) ended government’s direct procurement and distribution of seeds and fertilizers, by hinging the distribution of government’s distribution of input subsidies on technology. Private sector dealers assumed the role, and now sell the inputs to farmers at subsidized rates to about 6 million farmers. To further involve the private sector in the agricultural reform, a private sector-led Nigerian Agribusiness Group (NAGB), was established to drive agribusiness developments and lead public-private policy dialogue.

Also as part of the scheme, government developed crop value chains, to facilitate the commercial development of priority crops. Key interventions in the value chain included the provision of adequate and good quality inputs, mechanization of staple-crop production, emphasis on value addition, development of staple crop processing zones, development of marketing corporations for cassava, cocoa cotton and grains crops, and improvement of farmers’ access to adequate credit such that total bank lending to farmers rose from close to 0% of all banks’ lending in 2011 to about 5% by 2013, with lending to seed companies and small farm input retailers rising from ₦ 3.5 billion in 2012 to ₦ 25 billion in 2013.

Challenges and Next Steps

Fertilizer distribution should be properly timed and done before the farming season. Extension services should be reinvigorated to influence farmers into adopting modern farming technologies. Agricultural policy inconsistency should be stopped. Climate change mitigation should be among the focus of the government, as agricultural production is transitioned to irrigated systems from the current rain-fed system.

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Solid Minerals Sector Reform

Background

Nigeria’s untapped solid mineral deposits include over 34 mineral types that are situated in about 450 different locations across the country. The variety ranges from metallic minerals, mineral fuel, gemstones, and precious metals to dimension stones. As at the end of the first quarter of 2010, however, their contributions to the GDP was an abysmal 0.29%; denying the country of much needed reduction in unemployment levels and revenue.

Past Reform and Achievements

A new minerals policy was developed to encourage greater private sector participation in an orderly and sustainable solid minerals exploration environment. As part of this policy, government planned to produce a comprehensive and high quality geosciences data and formalize the existence of artisanal and small mining (ASM) operators. Government embarked on the continuation and improvement of the Minerals and Mining act of 2007 to ensure security of tenure, competitive fiscal terms, and private sector participation in the sector. A policy initiative, Commerce 44, was introduced to actively promote the exports of tantalite, coal, gold, silver, ilmenite-rutile, cassiterite, bitumen, lead-zinc, iron-ore, wolframite and manganese.

The Mining Cadastre Office (MCO) was created as an autonomous agency to administer mining titles with integrity and transparency on a ‘first-come, first-served’ basis. Fiscal incentives were designed for the solid mineral sector as a way of ensuring that the private sector is recognized as the explorers of Nigeria’s solid mineral resources.

The preparation of several comprehensive geosciences data sets has been completed, and it includes 27 new geological maps, airborne magnetic survey of the entire country and airborne radiometric survey of required areas, 2,385 interpreted airborne geophysical maps, and geochemical mapping of four global reference network cells. Geosciences research laboratories have been upgraded to world-class status. The processes and procedures of granting mineral titles have been computerized.

High-grade iron ore resources have been discovered. Ten additional minerals have been discovered in commercially viable quantities, to bring the number of Nigeria’s solid minerals to 44 from 34. Steel production has increased

Challenges and Next Steps

The problems of illegal mining should be urgently addressed, to prevent poisoning of illegal miner’s communities as it has been occurring in Zamfara State where lead from the illegal mining of gold has created a number of health hazards, especially on children. Investment in the sector should be increased. Mining regulations should be improved and inspection enhanced. Foreign investment in solid minerals should be intensified, to stimulate job creation.

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Petroleum Sector Reforms

Background

The petroleum sector constitutes more than 95% of Nigeria's export earnings and about 85% of government revenue. The volumes of the sector's contributions would be much higher than they currently are but distortions in the marketing of major petroleum products, pipeline vandalisation, oil spills, and gas flaring have bedevilled the sector. Government's decision to remain the major player in the sector despite its capital-intensive nature, which makes the private sector more suitable to dominate it, has further disallowed the sector from realising its full potentials.

Past Reform and Achievements

The petroleum sector has remained the focus of one reform effort or the other, since a Structural Adjustment Programme (SAP) carried out by a military government in 1986. Civilian reforms began in 2000 with the inauguration of an Oil and Gas Sector Reform Implementation Committee (OGIC), which produced a National Oil and Gas Policy (NOGP), whose major thrust was separating the revenue generating petroleum institutions from the regulatory and policy-making ones. In 2008, a Nigerian Gas Master Plan was developed with the aim of making Nigeria a major player in the international gas market, and of laying a solid framework of gas infrastructure and expansion in the domestic market. Some deregulating and divesting of government interests were subsequently carried out to allow private indigenous companies participate in the supply and distribution of petroleum products—especially in its importation. To reduce the volume of gas flared, a gas monetisation and commercialisation policy was carried out. The Oredo Field in Oil Mining Lease (OML) has been delivering 65 million standard cubic feet of gas per day (mmscf/d) from the Nigeria’s first liquefied natural gas plant (NLNG) that commenced production in October 1999 with two trains but that now has eight trains five of which are fully operational. The government has also been rehabilitating the refineries.

Challenges and Next Steps

The Petroleum Industry Bill (PIB) should be passed into law to increase efficiency in the sector. Rehabilitation of the nation’s four refineries should be fastened, and they should be made to begin functioning at 100% capacity. Security agencies should engage communities and draw up plans towards ending oil theft, pipeline vandalisation, and illegal oil bunkering. The process of acquiring and diffusing technology and managerial expertise in the energy sector should always be accelerated. Sustainable exploitation of petroleum resources is key to the livelihoods of the citizens of Nigerians living in petroleum-rich areas, and should be prioritised.

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Manufacturing and Trade Sector

Background

Nigeria’s manufacturing sector has been plagued by poor power supply, high cost of inputs and of doing business, multiple taxation, infrastructural deficit, low access to finance, weak intellectual and property rights, insecurity, low quality of ‘Made in Nigeria’ goods, poor information flow, and lack of synergy between the educational system and the labour market. Consequently, Nigeria’s trade imbalance is high.

Past Reform and Achievements

Government has been unrolling a National Industrial Revolution Plan (NIRP) aimed at developing Nigeria’s areas of industrial comparative and competitive advantage in agro-allied and agro-processing, metals and solid mineral processing, oil and gas related refining, and light manufacturing, construction and services. A Sugar Master Plan was developed to provide a roadmap for 100% local production of sugar consumed in Nigeria. As automobile imports are about US$3.5 billion every year and payment for automobile imports is the second highest user of Nigeria’s foreign exchange, a national automotive policy was designed to establish a local automobile industry and domesticate both production and consumption of cars in Nigeria. A new policy was enacted for Cottons, Garments, and Textiles, with the medium-term objective of doubling output in the sector and creating up to 75,000 jobs. A triple helix framework, with Ministry of Science and Technology, was launched to drive technology development, and adoption in Nigerian industry. Government also partnered with the private sector to establish the National Competitiveness Council of Nigeria (NCCN), so as to enhance Nigeria’s competitiveness with carefully considered policies.

The reforms have saved over ₦200 billion from the cement industry, as no import quota was issued. The government has successfully secured aggregate pipeline investment commitment of US$3.1 billion into the Nigerian sugar sector and increased sugar project sites in the country from 6 to 17. The Onne Oil and Gas Free Zone has been transformed, with US$6 billion invested leading to the attraction of 150 companies into the zone, with 30,000 jobs created to date. Foreign direct investments worth billions of dollars have also been made.

Challenges and Next Steps

The poor power supply in the country should be urgently addressed to reduce overhead costs and make doing business easy. Investments should be made to reduce the country’s other infrastructural deficits. Regulations that obstruct smooth working of businesses should be repealed. Local manufacturers should be well incentivized.

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Power Sector Reforms

Background

The poor power supply in the country should be urgently addressed to reduce overhead costs and make doing business easy. Investments should be made to reduce the country’s other infrastructural deficits. Regulations that obstruct smooth working of businesses should be repealed. Local manufacturers should be well incentivized.

Past Reform and Achievements

Successive governments of Nigeria have expressed determination to tackle the poor state of the power sector. The Electricity Power Sector Reform Act (EPSR) was passed and signed into law in 2005; and it created the Power Holding Company of Nigeria (PHCN). In 2010, the Road Map for Power Sector Reform was launched, to accelerate the pace of activity with respect to reforms already mandated under the EPSR Act and to improve on short-term service delivery.

The Presidential Action Committee on Power (PACP), consisting of Ministers and Heads of Agencies, was set up in 2010 to play critical role in Nigeria’s Power Sector. Acting like a “War Cabinet” it set, granted and expedited approvals for critical decisions.

The Presidential Task Force on Power was established in 2010, to drive the implementation of the power reforms. It brought together all the agencies needed to remove the legal and regulatory obstacles to private sector investments in the power industry. A Multi-Year Tariff Order (MYTO) was subsequently established with a major tariff review every five years, so as to ensure the Nigerian Electricity Regulatory Commission (NERC) only adopt tariffs that are favourable to the Nigerian people and investors. The Nigerian Bulk Electricity Trading Plc (NBET) was established during the transitional stage of the Nigerian Electricity Market Reform, to be responsible for bringing power from IPPs and reselling power to distribution companies and eligible customers.

Power generation increased from 3,514MW in 2011 to over 4,600MW as at November 2014. Foreign Direct Investments have also been attracted

Challenges and Next Steps

The Rural Electrification Agency (REA) should be urgently funded to extend electricity into rural areas, and transform rural economies. The billing and collection systems should be made efficient. Disputes over privatizations in the sector should be resolved and measures taken to ensure that they do not arise again. The transmission process should be strengthened by addressing legal and policy constraints militating against transmission networks as well as by attracting more private sector capital. Vandalism of power installations should be checked with effective coordination between operators, regulators, gas suppliers, security agencies, and other key stakeholders.

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Transportation Sector Reforms (Aviation, Inland, Waterways, Ports, Road and Rail)

Background

Long years of neglect and decay have characterised the transportation system in Nigeria. Successive governments of Nigeria have grappled with the sector’s issues, but almost to no avail.

Past Reform and Achievements

Aviation

Following the frequency of air mishaps out of highly inefficient and corrupt aviation authorities, reforms started with the termination of the employment of a number of high-ranking aviation officials. A comprehensive audit of airport infrastructure were conducted. The Accident Investigation and Prevention Bureau (AIPB) was transferred from the Ministry of Aviation to the Presidency, and made an autonomous bureau. The Aviation Sector Master Plan was developed after wide consultations with stakeholders in the aviation industry.

Inland Waterways

Government has in the last five years allocated over ₦67.9 billion to the National Inland Waterways Authority (NIWA) for the development of inland water transportation across the country. Investments have included the purchase of passenger ferry boats, construction of river port and jetties, and the channeling and dredging of rivers and creeks.

Ports

The Bureau of Public Enterprises (BPE) initiated ports concession programme in October 2004. The number of agencies involved in the ports operation was cut from 14 to seven. Substantial investment has also been made in ports infrastructure development including ICT infrastructure.

Roads

The Federal Ministry of Works has worked to improve various sections of the federal highway network. That effort has included 184 projects, at a total cost of about US$11.37billion.

Rail

In an effort to turnaround the railways nationwide, Government articulated a 25-year strategic vision for Nigeria’s railways. The strategic plan requires ₦6.4 trillion of investment, and ₦ 2 trillion has been committed in the last six years.

Challenges and Next Steps

The reforms should be sustained and even improved upon. Funding of ongoing projects should be prioritized in the budget. The Railway Bill should be passed into law.

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Housing and Urban Development Sector

Background

Nigeria’s housing deficit was as high as 16 million units in 2010. This is despite the regard of the provision of housing in Section 16(1)(d) of the 1999 Constitution as one of the fundamental duties of the government.

Past Reform and Achievements

The Federal Ministry of Lands, Housing and Urban Development was established in 2010 as the umbrella policy arm for ensuring adequate and sustainable housing delivery and maintenance of a conducive living environment. The National Building Code, which was published in 2006, was reviewed in 2013 by the National Building Code Advisory Committee (NBCAC), to address lapses and omissions observed in the old edition.

Mortgage access for low-income, informal sector workers was created in 2011 under the Informal Sector Cooperative Housing Scheme. The Nigeria Mortgage Refinance Company (NMRC) was officially launched in 2014, to increase mortgage penetration in the country. Government developed a policy on housing and urban development in 2012, in an inclusive and participatory process involving all key stakeholders in the sector. A Ministerial Committee was inaugurated in 2014 to facilitate the audit of the contributions of public servants into the National Housing Fund (NHF) Accounts that is maintained by the Federal Mortgage Bank of Nigeria (FMBN).

A total of 43,126 housing units were added to the national stock between 2010 and 2014. Within the period, 3,798 Certificates of Occupancy were granted, and 3,787 serviced plots created.

Challenges and Next Steps

Aggressive implementation of social housing programme should be embarked upon to remove the huge deficits of up to 16 million housing units. Public-Private Partnerships should be intensified in the housing sector to accelerate the delivery of housing units. Mortgages should be made easily available to more people. The integrity of building structures should never be compromised, to give confidence to house buyers that their housing units would not collapse. Effective policy that will reduce the high cost of building materials should be articulated. The Federal Mortgage Bank of Nigeria (FMBN) should be recapitalized to enable it make mortgages available to more Nigerians. The process of land titling should be enhanced.

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Reforms of the Ministry of Niger Delta Affairs

Background

Oil contributes 80% of Nigeria's revenues, 95% of export receipts and 90% of foreign exchange, and the Niger-Delta alone accounts for almost all of Nigeria's oil. The irony is, however, that successive governments of Nigeria did not develop the region, leaving the inhabitants to exact their livelihood in harsh conditions: In rivers polluted and farms burnt by crude oil spills. A military government was so heavy handed it executed activists led by a prominent Nigerian writer, Ken Saro-Wiwa, who are demanding for the region to be developed and its environment protected. Soon enough after the return to democracy, an armed militancy of Niger Delta youths that threatened to bring down the Nigerian state – by cutting off oil supplies and thus the source of its revenue – soon developed.

Past Reform and Achievements

The Niger Delta Development Commission (NDDC) was established in 2000 with to develop the region. The region's significance would yet made Government to go further in 2008 and establish a Ministry of the Niger Delta Ministry, with the NDDC as its parastatal. The ministry was established to coordinate the activities of government agencies, international partners and stakeholders and fast track the region's development. Land reclamation, shoreline protection and flood/erosion control were focused on. An amnesty programme was additionally declared for the armed militants.

These efforts ceased the militancy, and achieved relative peace and security in the region. Nigeria's oil production which was at 700,000 bpd at the height of the militancy increased to over 2.5 million bpd—and might have stayed so were the current slumping global oil prices not be occurring. A total of 5,204 ex-militants are undergoing various forms of skills acquisition training programme or formal education (marine, heavy duty operations, welding, agriculture, boat building, oil and gas techniques, entrepreneurship, automobile technology and aviation, etc.) in Nigeria and other parts of the world.

Challenges and Next Steps

The funding of the Niger Delta development efforts should be continued, but only through processes that are corruption-proof. The key recommendations of the United Nations Environment Programme (UNEP) Report to clean Ogoniland and other communities affected by oil spills in the Niger-Delta should be implemented.

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Reforms of the Federal Capital Territory Administration

Background

The Federal Capital Territory is faced with such issues as inadequate housing, infrastructure deficit, transportation problems that arise from bureaucratic bottlenecks in its administration.

Past Reform and Achievements

Prior to reforms in 2003–2006, the Federal Capital Territory was administered as a ministry known as Ministry of Federal Capital Territory (MFCT). To make the area befitting of a national capital, The Federal Capital Territory Applicable Laws of 1984 were codified as Cap F6 LFN 2004. Secretariats and Agencies of the Federal Capital Territory Administration (FCTA), which in 2010 set up a 17-Man Committee to chart a Roadmap for the Sustainable Development of the FCT, were established by Order 1 of 2004. The Department of Monitoring and Inspection was established in 2009

The achievements of the FCTA have included reduction of under-5 mortality rate to 60 per 1,000 children in 2010 from previous years' 155 per 1,000 children. In 2014, maternal mortality rate dropped from the 378 for every 1,000 women 2010 level to 200 for every 1,000 women. Pupil-classroom ratio were reduced from 1:57 in 2010 to 1:40 in 2013; the accident rate from 35% in 2010 to 6% in 2013. Access to potable water increased from 40% in 2010 to 52% in 2014.

Challenges and Next Steps

The FCT Board of Internal Revenue should be strengthened to increase revenue generation. Traffic management should be invested in, to ease traffic logjams. The National Assembly should increase the pace of passing bills related to improving the FCT, which is faced, as the national capital of Nigeria, with increasing population pressure and shortage of amenities. Existing partnerships with the private sector and investors in the provision and development of infrastructure in the area should be strengthened; and collaborations sought. Public administration efficiency in the FCTA should be enhanced.

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Reforms in the Nigerian Police Force

Background

The Nigeria Police Force was mismanaged by successive military governments of Nigeria. The police force was underfunded and its personnel paid meagre salaries and allowances. This engendered a culture of repression, impunity, corruption, irresponsibility, and brutality stemming from lack of recognition for basic human rights, among its personnel.

Past Reform and Achievements

Various police reforms have been carried out since the return to democratic government in 1999. Some of the channels through which these reforms have been carried out include, Committee on Police Reforms in 2006, Presidential Committee on the Reform of the Nigeria Police Force in 2008, Presidential Committee on the Reorganisation of the Nigeria Police Force in 2012.

The Police Academy, Wudil was upgraded to a degree awarding institution, and the recruitment process restructured, to improve the human capital going into the force. The funding of the force was restructured to include contributions by the state and local governments, in addition to the federal government's. The force was also made to become self-accounting and to be in control of its budget. Salaries and general welfare of the police officers have generally improved. Police barracks and offices were increased and existing ones renovated across the country.

Challenges and Next Steps

The disconnect between the functional Departments of the Force Headquarters, Zonal and State Commands should be rectified. Use of funds should be regulated with frequent auditing. Police presence in rural areas should be increased. Forensic crime laboratories should be built. Efforts should be made towards the establishment of a comprehensive criminal database and Crime Statistics Bureau. Illegal deployment and utilisation of police manpower should cease. Capacity building should be conducted for police officer to enhance their use of modern policing technologies. Drug and alcohol abuse among police personnel should be sanctioned. Monitoring mechanisms should be put in place to check abuses by police officers. The establishment of parallel security agencies in the country should be checked; funds that would have been diverted into these new agencies should rather be used strengthening the various organs of the Nigeria Police Force.

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Safety and Security

Background

Nigeria continues to grapple with security challenges from armed robbery, kidnappings, ritual killings, pipeline vandalisations, communal conflicts, ethnic conflict, religious conflict, insurgency and terrorism. These challenges are often localised in the country's regions: For instance, terrorism by Boko Haram in the north, and pipeline vandalisations in the Niger Delta.

Past Reform and Achievements

Successive governments of Nigeria have made efforts at achieving security across the country. Actions taken since the beginning of civilian rule in 1999 have included consultations with stakeholders on security imperatives; engagement of community personnel resources in the fight against violence (i.e. JTF community policing); developing multilateral co-operations among security in information sharing and operations; reorganisation of existing security structures for effective operations; retraining of security personnel as well as enhancing their welfare; equipping the security agencies with modern logistics and operational facilities; increasing the number of police stations across the country to improve access by the populace; acquisition of patrol vessels for the Navy; upgrading of the tracking and interception system of the Department of State Security Service; and the deployment of a GSM Tracking and Interception System for the Nigeria Police Force.

The number of crimes reported in the country, a good proxy for the incidence of crime, decreased from 177,271 in 2011 to 9,343 in 2012. Emergency response time has also improved to 15–20 minutes in 2012, from the 23–30 minutes in 2011.

Challenges and Next Steps

A National Policy on Public Security and Safety should be developed and implemented. The capacity of security agencies to tackle the Boko Haram terrorism insurgency should be urgently done. Communities should be engaged to improve intelligence gathering. Religious leaders should be deterred from inciting their members to clashes by appropriate engagement and sanctions. Tighter control should be placed on items that could be used in making improvised explosive devices. More modern technology should be procured for the security agencies. Professionalism should be developed among the security personnel.by cognitive trainings and appropriate disciplinary sanctions. Aerial surveillance equipment should be procured.

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Road Safety Management Reforms

Background

In 1988, the high rate of car crashes on Nigerian roads informed the World Bank's classification of Nigeria as the worst country in the world, only after Ethiopia, in which to drive a motor vehicle. With reforms, however, Nigeria has shed the classification. The World Bank itself recently declared the Federal Road Safety Commission (FRSC), through which the reforms have been largely carried out, as the best example of a lead agency in Africa, while recommending that other developing countries emulate Nigeria’s experience as a model for improving their country’s road safety profile.

Past Reform and Achievements

The FRSC has carried out various reforms. A biometrics driver’s licence was launched in 2010 to make multiple possession of driver licences impossible for any single driver, and to ensure that fresh applicants for driver licences undergo oral and practical examinations, while being sponsored by a certified driving school. The FRSC incorporated modern technology to be capable of tracking in real-time the location of all its operational vehicles which include patrol vehicles, tow trucks, and ambulances, and to also communicate with them towards achieving prompt responses to traffic emergencies. A modern emergency call centre with a toll free 122 line was also rolled out, to enable members of the public report traffic incidents and for emergencies responses to improve.

The biometric driver licence database is shared with security agencies towards fighting crime. The reforms have also enabled Nigerians to exchange their driver licences for those of EU countries and some states in the US. Figures from the FRSC show that in 2010 road traffic crashes were reduced by 50%, deaths from road crashes by 28% in 2010.

Challenges and Next Steps

Driver testing should be made an integral part of the process of issuing drivers' licences. Driving schools should be regulated and monitored. The reforms should be continued and improved upon. Capacity building should be carried out for FRSC staff. Video recording technology should be added to the FRSC vehicles to ensure that the growing extortion of drivers by patrolling staff of the organisation cease. Speed limiting devices for every vehicle in the country should be looked into. Mechanism for punishing and deterring traffic offences such as over-speeding, reckless driving, and overloading of commercial vehicles should be developed and strengthened.

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