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Nigeria Vision 20: 2020

The First National Implementation Plan (2010 ­ 2013)

Volume II: Sectoral Plans and Programmes

May 2010

Nigeria Vision 2020

TABLE OF CONTENTS

OVERVIEW OF VOLUME II ........................................................................................................................ 6 PART I: PHYSICAL INFRASTRUCTURE: .................................................................................................. 7 POWER ......................................................................................................................................................................8 TRANSPORT ............................................................................................................................................................26

Oil and Gas Infrastructure

HOUSING .................................................................................................................................................................43 WATER RESOURCES ..............................................................................................................................................50 PART II: PRODUCTIVE SECTOR ............................................................................................................. 51 AGRICULTURE AND FOOD SECURITY ......................................................................... ERROR! BOOKMARK NOT DEFINED. OIL AND GAS ..........................................................................................................................................................52 MANUFACTURING SECTOR .....................................................................................................................................97 SMALL AND MEDIUM ENTERPRISES .....................................................................................................................109 SOLID MINERALS AND STEEL DEVELOPMENT ..................................................................................................... 117 TRADE AND COMMERCE.......................................................................................................................................127 CULTURE & TOURISM ...........................................................................................................................................139 PART III: HUMAN CAPITAL AND SOCIAL DEVELOPMENT .............................................................. 146 EDUCATION ...........................................................................................................................................................147 HEALTH SECTOR ..................................................................................................................................................158 LABOUR, EMPLOYMENT AND PRODUCTIVITY .......................................................................................................176 WOMEN AFFAIRS AND SOCIAL DEVELOPMENT ...................................................................................................185 YOUTH DEVELOPMENT .........................................................................................................................................192 SPORTS DEVELOPMENT .......................................................................................................................................197 FOOD AND NUTRITION ..........................................................................................................................................203 SOCIAL PROTECTION AND SAFETYNETS .............................................................................................................212 PART IV: DEVELOPING A KNOWLEDGE-BASED ECONOMY ............................................................ 218 INFORMATION TECHNOLOGY AND COMMUNICATION............................................................................................222 NIGERIA POSTAL SERVICES .................................................................................................................................234 SCIENCE, TECHNOLOGY AND INNOVATION (STI) .................................................................................................236 ENVIRONMENT ............................................................................................................................................................ WATER SUPPLY AND SANITATION ..............................................................................................................................

Table of Figures Figure 1 Nigeria's electricity generation by source. ................................................................................... 10 Figure 2:Nigeria's Electric Power Transmission and Distribution Capacity ................................................ 11 Figure 3 :Power Losses as a per centage of Generation ............................................................................. 13 Figure 4 - Agriculture for wealth creation...................................................... Error! Bookmark not defined. Figure 5:Shows the actual and projected price and demand for gas from 1979 to 2015 .......................... 74 Figure 6: Unleashing the Nigerian Oil and Gas Industry ............................................................................. 77 Figure 7: Oil and Gas Companies ................................................................................................................ 79 2

Nigeria Vision 2020

Figure 8: Nigeria's GDP by sector 2008 ( per cent) ..................................................................................... 98 Figure 9:Primary School Enrolment .......................................................................................................... 149 Figure 10: Summary of Primary School Statistics ..................................................................................... 150 Figure 11: Causes of under five, maternal and newborn mortality .......................................................... 159 Figure 12: .................................................................................................................................................. 159 Figure 13 ........................................................................................................ Error! Bookmark not defined. Figure 14: National Health Development Priorities .................................................................................. 163 Figure 15: Private Investment in Telecommunication 1999 to 2008........................................................ 237 Figure 16: Mobile and Fixed Lines Subscription 1999-2009 ..................................................................... 238 Figure 17: Contribution (per cent) of Telecom Industry to National GDP 2001-2008 .............................. 238 Figure 18: Mail Traffic Handled by NIPOST 2005-2009............................................................................. 235 Figure 19: Economic concentration - distribution of non-federal internally generated revenue (IGR) by geopolitical zones (2008) ................................................................................................................................ Figure 20: Medium Term Objectives............................................................................................................... Figure 21: Medium Term Objectives............................................................................................................... Figure 22: Estimated Total Budget Projection ................................................................................................

Tables Table 1: Expected Additional Electricity to be generated........................................................................... 19 Table 2: Shows the capacity output of the NIPPs ....................................................................................... 19 Table 3: Priority Projects/Programmes for Power Sector............................................................................... Table 4: Priority Projects/Programmes for Power Sector............................................................................... Table 5: Rail Transport ................................................................................................................................ 36 Table 6: Upgrade and Expansion ................................................................................................................ 37 Table 7: Rehabilitation and maintenance of major trunk roads .................... Error! Bookmark not defined. Table 8: Key projects and programmes include:......................................................................................... 38 Table 9: Projects include: ............................................................................... Error! Bookmark not defined. Table 10: Sea Ports.......................................................................................................................................... Table 11: Priority projects and programmes aimed at achieving the objectives include:.. Error! Bookmark not defined. Table 12: Linkages include: ............................................................................ Error! Bookmark not defined. Table 13: Projects and programmes for the prioritized medium term development strategies are as follows:- ...................................................................................................................................................... 48 Table 14: Agricultural Contribution to GDP ................................................................................................ 54 Table 15: AGRIC SECTOR PERFORMANCE SHARE IN TOTAL per cent ( per cent) OF GDP AT 1990 CONSTANT BASE PRICES ................................................................................ Error! Bookmark not defined. Table 16: LIVESTOCK POPULATION ESTIMATES .......................................................................................... 64 Table 17: PRODUCTION FIGURES FOR SOME CROPS IN NIGERIA (`000 METRIC TONS) ............................. 65 3

Nigeria Vision 2020

Table 18: Agriculture and Water Resources Sector are as follows: ............................................................ 68 Table 19: Below shows the installed capacities of the four (4) refineries in Nigeria. ................................ 76 Table 20: NATIONAL FLAGSHIP PROJECTS .................................................................................................. 87 Table 21: Nigeria's Manufacturing as per centage of GDP and those of Selected Countries 2004-2007. . 98 Table 22: Manufacturing sector capacity utilization( per cent) .................................................................. 98 Table 23: Status of Manufacturing Industry Closures............................................................................... 100 Table 24: Manufacturing Sector Growth rate( per cent) .......................................................................... 100 Table 25: Priority projects and programmes will be executed during the plan period: ..... Error! Bookmark not defined. Table 26: Programme/project investment Plan 2010-2013 .......................... Error! Bookmark not defined. Table 27: shows a comparative analysis of the respective contributions of SME's in selected countries. .................................................................................................................................................................. 109 Table 28: Programmes and Projects ......................................................................................................... 114 Table 29: Following from the foregoing, the flagship projects for the SMEs sector during the plan period are: .................................................................................................................................................................. Table 30: AGENCY: MINISTRY OF MINES AND STEEL DEVELOPMENT ...................................................... 121 Table 31: The sector's contribution to GDP in 2008 was 14.2 per cent as shown below:........................ 127 Table 32: African Countries' Average Manufacturing Exports (GDP per centages).................................. 128 Table 33: In addition to above priority programmes the following are also essential investment programmes /projects for the sector during the plan period: ................................................................. 135 Table 34: Following from the foregoing, the flagship projects for the trade and commerce sector during the plan period are: .................................................................................................................................. 137 Table 35: The following are the priority projects and programmes for Culture, Tourism and National Orientation Sector that are considered to be strategic to the successful implementation of the plan. . 144 Table 36: Pre- primary Enrolment............................................................................................................. 148 Table 37: National Summary of Secondary School Statistics .................................................................... 150 Table 38: National Summary of WASC Examination Results May/June 2004-2008 ................................. 151 Table 39: Priority Projects ......................................................................................................................... 154 Table 40: Projected Investment ................................................................................................................ 163 Table 41:Implementation Plan....................................................................... Error! Bookmark not defined. Table 42: Programme and Indicative Allocations .......................................... Error! Bookmark not defined. Table 43: The summary of the attached detailed breakdown are as follows: ............. Error! Bookmark not defined. Table 44: Real Growth rate of employment in Industries & Businesses (2000-2005) .............................. 183 Table 45: During the period, the following three priority projects have been identified for implementation:- ............................................................................................................................................ Table 46" The projected Federal Government investment in the sector is in excess of N59 billion and is to be expended on projects and programmes of Departments of the Ministry as detailed below:- ............ Table 47: Analysis of Sectoral Priorities .................................................................................................... 200 Table 48: Trend performance in some key nutrition indicators ............................................................... 205 4

Nigeria Vision 2020

Table 49: % distribution of Households according to coping strategy in response to food insecurity .... 205 Table 50: % distribution of Body Mass Indices (BMI) of women in Nigeria .............................................. 205 Table 51: Consumption Pattern of Main Food Items in Nigeria reflecting trend ..................................... 206 Table 52:Consumption Pattern of Main Food Items in Nigeria reflecting trend ...................................... 207 Table 53: Showing Exclusive Breastfeeding rates over Five year period .................................................. 208 Table 54: The flagship projects prioritized for this sub sector, Food and Nutrition, under the Human Capital Thematic Area during this plan period are as follows .................................................................. 210 Table 55: Programme and Indicative Allocations .......................................... Error! Bookmark not defined. Table 56: Key Indicators for State of Readiness of Nigeria for KBE in Relation to Developing Countries 229 Table 57: Nigerian Ranking in GTIR Networked Readiness Index amongst 133 Countries (2009/2010) . 230 Table 58: National and International Patent Profile (2005-2009) ............................................................ 239 Table 59: Sub-Programmes for the ICT Sub-Sector .................................................................................. 229 Table 60: below and Appendix VII. ........................................................................................................... 243 Table 61: Projected Investment ...................................................................................................................... Table 62: Projected Investment ...................................................................................................................... Table 63: Summary Investment Profile.......................................................... Error! Bookmark not defined. Table 64: PROJECTED INVESTMENT ................................................................................................................ Table 65: Summary Investment Profile.......................................................... Error! Bookmark not defined. Table 66: Projected Investments and Program Allocations ........................... Error! Bookmark not defined. Table 67: PROJECTED INVESTMENT ................................................................................................................ Table 68: PROJECTED INVESTMENT ............................................................... Error! Bookmark not defined. Table 69: National Defence Collage ............................................................... Error! Bookmark not defined. Table 70: Defence Industries Corporation of Nigeria (DICON) ...................... Error! Bookmark not defined. Table 71: Nigeria Army................................................................................... Error! Bookmark not defined. Table 72: Nigeria Navy ................................................................................... Error! Bookmark not defined. Table 73: Nigeria Air Force ............................................................................. Error! Bookmark not defined. Table 74: Nigeria Police.................................................................................. Error! Bookmark not defined. Table 75: Federal Ministry of Interior ............................................................................................................. Table 76: Nigeria Immigration Service ............................................................................................................ Table 77: Nigeria Prison Service...................................................................................................................... Table 78: Federal Fire Service ......................................................................................................................... Table 79: Nigeria Customs Service ................................................................. Error! Bookmark not defined. Table 80: Summary Investment Profile........................................................................................................... Table 81: Six Geopolitical Zones: High-priority Projects and Programmes .................................................... Table 82: Six Geopolitical Zones: Complimentary Projects and Programmes Table 83: Boundary Commission High Priority Projects and Programmes .... Error! Bookmark not defined. Table 84: FCT High-priority Projects and Programmes ................................................................................... Table 85: FCT Complementary Projects and Programmes ............................ Error! Bookmark not defined. Table 86: The objective, strategies and targets and captured in the template below ................................... Table 87: NDDC: High-priority Projects and Programmes ............................. Error! Bookmark not defined. 5

Nigeria Vision 2020

Table 88: Ministry of Niger Delta: High-priority Projects and Programmes ................................................... Table 89: Ministry of Niger Delta: Complementary Projects and Programmes ............................................. Table 90: PRIORITY PROJECTS ......................................................................................................................... Overview of Volumes II As reflected in the Volume I, the second volume (Volumes II) of the 1st National Implementation Plan for Nigeria Vision 20:2020 details the sectoral plans, for Federal Ministries, Departments and Agencies (MDAs) in the four thematic areas. They indicate among others the current situation, challenges to be addressed, the objectives to be achieved, as well as, the strategies that will be employed to achieve the desired results. They also, contain set targets, programmes and projects and investment plan for each of the sectors. These programmes have been costed based on available information. The costing remains indicative, as some of the projects will need to be backed up with appropriate feasibility studies. The Volume II is arranged in 4 Parts featuring four thematic areas namely; Physical Infrastructure; Productive Sector, Human Capital Development and Knowledge-based Economy. The sectoral plans in the NIP have been presented according to the thematic Areas, as submitted by the MDA to the sub-central working groups, in line with the National Planning Commission's guidelines. The purpose of encasing sectoral chapters, in thematic areas, is to ensure effective sectoral linkages, synergy, and more targeted investment, in order to optimize the inputs, output and outcome, as well as other efficiency gains derivable. It is expected that the new approach will engender inter-sectoral collaboration and cooperation, required for achieving national goals. This is a marked departure from the presentation formats for sectoral plans adopted in the previous Development Plans. In the past, the sectors operated in silos without enjoying the benefit of backward and forward linkages that engender growth. For instance, the linkage among Agriculture, Industry and Science and Technology remains too weak, for meaningful development. A summary of Volume II is presented below.

Part I, of the document, deals with Physical Infrastructure thematic area. It contains five sectors, namely; Power, Transport (Road, Railways, Water, Ports) thematic Area, Oil & gas Infrastructure, Housing, Water Resources. These are critical enablers that support the productive sector of the economy.

Part II, involves "Productive Sector" thematic area: It covers 7 sectors namely; Agriculture and Food Security, Oil and Gas, Manufacturing, Small and Medium Enterprises (SMEs), Solid Mineral and Steel Development, Culture & Tourism, Trade and Commerce.These are sectors that produce goods and services in the economy.

Part III, deals with "Human Capital and Social Development" thematic area. It contains 8 sectors namely: Education; Health; Labour, Employment and Productivity; Women Affairs and Social Development; Youth Development; Sports Development; Food and Nutrition; Social Protection and Safety nets. The chapters elucidate on the imperative for Nigeria to harness and develop her human resources in order to engender, sustained growth and development,

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Nigeria Vision 2020

Part IV covers the "Developing a Knowledge-based Economy" thematic area and contains two main sectors and a sub-sector namely; ICT sectors, Postal services sub-sector and Science, Technology and Innovation sector. This, thematic area supports the Human Capital Development as well as other sectors of the economy. It deals with knowledge penetration, diffusion and utilization to produce high quality goods/services that are of highly competitive and high income jobs

PART ONE PHYSICAL INFRASTRUCTURE: THRUST: BRIDGING THE INFRASTRUCTURAL GAP TO UNLEASH ECONOMIC GROWTH AND WEALTH CREATION Introduction:

The thematic area "Physical infrastructure", in the context of this Plan has been limited to the following sectors: · · · · Power (Electricity and Alternative Energy), Transport (Road, Railways, Water and Air) Oil and Gas Infrastructure, Housing and Water Resources.

These, have been identified as major challenges constraining economic growth and development in Nigeria. The sectoral chapters detail the situation analysis, policy thrust, objectives, strategies and targets for the next four years. Each of the chapters, also contains proposed public sector investment in the sector for the Plan period. This, has been further disaggregated on annual basis for effective budgeting, while specific priority programmes and projects to be implemented towards the attainment of the nation's Vision of economic and social transformation are contained there in.

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Nigeria Vision 2020

Chapter 1: Introduction

Power

The total proposed investment in the sector, during the Plan period is N880.98billion. This will cover investments in four major areas: power generation; transmission; distribution; and alternative energy. The strategic context of Power in national development cannot be overemphasized. Power is a critical infrastructure for sustainable economic growth and development. The breakdown is contained on tables 1 and 2. This is because most economic activities are dependent on affordable and adequate energy for effective operation. It is critical for reducing the cost of doing business, enhancing productivity and quality of life. The inadequate provision of power has a pervasive impact on socio-economic activities and consequently the living standard of citizens in Nigeria. Most of the nation's infrastructure in the power sector was built in the 1970s and 1980s. Due to lack of maintenance and expansion of the facilities, the country has suffered significantly from the impact of epileptic and limited availability of electricity supply. In spite of the abundant energy resources in the country and the huge Government investments in the sector over the last ten years, electricity supply remains a serious challenge to Nigeria's socio-economic development. Currently, only about 40 per cent of the Nigeria's total population has access to public electricity supply due to inadequate transmission and distribution networks. Also ageing infrastructure, weak and radial network configuration and overloaded transformers, result in frequent system collapse, high transmission and distribution losses and poor voltage profile. The non implementation of the Nigerian Gas Master plan and coordination of domestic gas obligations of the IOCs as well as the frequent vandalization of existing gas infrastructure has created the epileptic power situation witnessed over the last few years. The lack of synergy between gas supply controlled by the agencies of the Ministries of Petroleum Resources and that of Power and the power generating companies' has further complicated this situation. Government commenced the reform of the power sector via the enactment of the EPSR Act 2005, as a primary driver towards sustainable and adequate power supply to the country. However, the relatively slow pace of the implementation of this Act has not brought the desired changes in the sector. Sectoral Goals The broad vision for the power sector is to meet the demand for adequate and sustainable power in all sectors by the Nigerian economy and in all parts of the country at affordable costs. This must be done in a technically efficient, economically viable and environmentally sustainable manner using different energy sources, conventional and non-conventional, to ensure supply at all times with minimal disruption. The Nigeria's Vision 20:2020 goal is to generate, transmit and distribute 35,000MW of electricity by the year 2020. The NV20:2020 strategic objective for the power sector is to ensure that the sector is able to efficiently deliver sustainable, adequate, qualitative, reliable and affordable power in a deregulated market, while optimizing the on and off-grid energy mix. It is expected 8

Nigeria Vision 2020

that the electricity supply industry will ultimately be private sector driven. In this Plan however, government will invest in direct electricity generation as well as provide appropriate legal and regulatory environment.for private sector participation. In the medium term, the goal is to generate, transmit and distribute 16,000MW of electricity by 2013. Specifically, the overall target for the plan period is to increase electricity generation, transmission and distribution from the 3,700MW capacity as at December, 2009 to 8,000MW by 2010, and 16,000MW by 2013. Access to electricity is expected to increase from the current 40 per cent to 50 per cent, while per capita consumption will increse from the current 125KWH to 500KWH over the plan period. This is expected to be achieved through significant investment in rural electrification programmes that will facilitate the expansion of transmission and distribution lines to majority of rural Nigeria. Alternative energy technology will also be developed from Coal and other renewable energy sources (Solar, Wind, and Biomass) will be encouraged to electrify the rural communities. In order to achieve the medium term goal, Government will continue regular maintenance of all power infrastructure, rehabilitate and complete all on-going power projects while putting in place incentives for private sector participation through accelerated implementation of the Power Reforms Act. Situation Analysis The current electricity supply in the country does not meet national demand. The estimated daily power generation was about 3,700MW as at end-December 2009 while the peak load forecast for the same period was 5,103MW, based on the existing connections to the grid, which does not take account of suppressed demand. Nigeria lags significantly behind in access, quality and availability of public electricity supply. As at end-December 2009, peak generation supplied by PHCN was 3,700 MW for a population of 150 million people when compared with some selected countries as shown below: · · · South Africa has 40,000 MW for a population of 50 million people Brazil has 100,000 MW for a population of 192 million people The US has 700,000 MW for a population of 308 million people

Only 40 per cent of Nigerians, living mainly in the urban centres have access to electricity. The installed available generation capacity is currently 5,200MW. Generation In year 2000, power generation capacity was 1,500MW and this was due mainly to lack of investment in maintenance and expansion programs on existing power plants. There exists virtual independent and potential power generating facilities at various locations which are unused and untapped because of the absence of synergy between Ministries of Water Resources, Mines and Steel Development and Power. For example Dadin Kowa Dam (30MW), Oyan dam (9MW) and ALSON (540MW). Available generation has increased from 1,500MW in year 2000 to about 3,700MW by endDecember 2009. Actual generation was frequently constrained to below 2,100MW as a result of inadequate gas supply and low water levels. However, currently available capacity was 5,200MW as at end-December, 2009 with gas-fired plants contributing about 74 per cent of the 9

Nigeria Vision 2020

available power. The new Power Plants significantly added to available generation capacity. These plants are compact and flexible in operation with better control and monitoring devices. In spite of the huge and diverse energy resource endowed in Nigeria, there are only two major resources that are exploited for electricity generation; namely: gas which contributes about 68 ces per cent, and water which generates about 31 per cent of electricity supply. The national cent, electricity grid comprises three (3) hydro and twelve (12) thermal generating stations with a generating total installed capacity of about 5,200MW. However, only about 2,000 - 3,000MW of electricity is generated. There are five Independent Power Plants contributing about 1486MW \

Figure 1 Nigeria's electricity generation by source source.

Transmission The transmission capability at 330KV is 6,848MVA (5,500MW) and at 132KVA is 8,275 330KVA MVA(7000MW). In order to ensure reliable supply of electricity in 2010, the Federal Government had awarded contracts for new transmission lines with over 90 projects currently on going at transmission on-going different locations across the country. Distribution Government has invested about Eighty-one billion naira (N81billion) in various distribution one projects in the country. The scope of work involved 1,707KM of new 33KV lines, 2,666KM of 1,707KM new 11KV lines additional 3540MVA sub stations capacity and 22,598 transformers. sub-stations

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Nigeria Vision 2020 Table 1 : Nigeria's Electric Power Transmission and Distribution Capacity

Source: PHCN

Following the enactment of the PHCN Act 2005, eleven distribution companies were created. , The collective capacities and capabilities of the companies are: List the companies · · · · 50,179km of -total installed 33kVA line total 34,868km of -total installed 11kVA line total 10,506MVA -total installed Injection Substation capacity -total Substation 17,899MVA -total installed Distribution Substation capacity -total

Issues And Challenges The key challenges facing the Power sector in Nigeria are as follows; Inadequate power generation capacity The major issues are: are · · · Cumbersome procurement process procurement Non-completion of ongoing power projects including NIPP completion including Poor maintenance culture of power infrastructure: ­ ­ ­ Age of grid equipment and the difficulty in spares procurement even with OEMs Most equipment on the grid are imported a and this introduces long lead time for equipment maintenance Dearth of skilled maintenance personnel in the sector. This results in earth heavy dependence on foreign personnel in many cases especially when dealing with OEMs.

·

Unfavorable enabling environment inhibiting private sector participation participation

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Nigeria Vision 2020

The capacity utilization of the existing power generating plants will be improved during the plan period by massive rehabilitation and development of new power stations to meet with the target of 10,000MW by December 2011 and 16,000MW by 2013 Insufficient Gas for Power Generation The major issues are: · · · · Non implementation of the gas masterplan Inappropriate pricing structure Vandalisation Lack of coordination between agencies of the Ministries of Power,Petroleum and Water Resources

Incomplete Implementation of the Reform Program Regulation The major issues are: · · Capability capacity gaps in the National Electric Regulatory Commission (NERC) Independence of the regulator needs to be strengthened.

Industry and Market Structure The major Issues are: · · · · Complete unbundling of PHCN Wind down PHCN Strengthening of NELMCO to acquire legacy liabilities of PHCN Strengthen the Market Operator

Inappropriate electricity Pricing The major issues associated with this are: · The current pricing regime under the Multi Year Tariff Order and the electricity prices and subsidies is far below the industry's costs prices need to be raised in order to make the industry financially viable. · Financial viability of the industry to attract Private Sector investment. · Review MYTO in order to achieve the appropriate price to attract private sector investment.

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Nigeria Vision 2020

Commercial Framework to Support Private Investments Investments The major issues are: · Non-viability of several distribution units viability · Develop commercial framework utilizing state/federal government guarantees for state/federal non-viable DISCOS and IPPs. viable · Concessioning of non viable distribution assets non-viable · Absence of government guarantee for an assignable risk and; and;. · Effective administration of the subsidy Inadequate transmission The transmission network is overloaded with a wheeling capacity of less than 4,000 MW. It has a poor voltage profile, inadequate dispatch and control infrastructure, radial and fragile grid network, frequent system collapse, exceedingly high transmission losses which is as high as 25 per cent compared with 3 per cent in the US 0.5 per cent in Japan and 0.4 per cent in South Korea due to low transmission grid voltages (330kv and 132kv) and long distances (300 and ow 500km) over which electrical energy is distributed in Nigeria Obsolete and Inefficient transmission and distribution equipment Significant portions of the transmission and distribution network are obsolete, especially in the major cities. The transmission and distribution losses are in the region of 8.25 per cent an 33 and per cent, respectively ,

Figure 2 :Power Losses as a per centage of Generation

Figure 3

Source:

National Energy Data Bank, www.nationalenergydatabank.org

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Nigeria Vision 2020

Low Access to Electricity Supply Access to electricity supply is low. About 40 per cent of the national population ­ representing less than 60 million people do not have access to electricity. Rural and semi-urban access to electricity is estimated to be about 35 per cent. Per capita consumption of electricity is approximately 125kWh against, in South Africa with 4500kWh, Brazil with 1934 kWh and China 1379kWh . Billing and revenue collection One of the major problems facing the Power Sector is low efficiency in revenue collection. It is estimated that about 35 per cent of residential customers do not pay for the electricity consumed. Low level of human capacity development There is low human capacity in the Industry and there is need to enhance human capacity in the power sector. To address this challenge, a National Power Training Institute, similar to the Petroleum Training Institute, was set up to take over the operations of the existing training schools of PHCN. The Institute will be adequately funded to discharge its mandate Vandalization of equipment, transmission and distribution lines The incidence of vandalization has significantly impacted negatively on grid equipment capacity development. Vandals target various equipment at every level from distribution flow voltages of 415Kv to 330Kv super grid levels. These include transmission lines at every level and transformers at distribution levels only. Usually these vandals pilfer the distribution transformers, line conductors, insulators and other line equipment that they resell to the grid on the open market. Inadequate Modern Control Systems Control systems such as frequency governors, voltage control regulators at several power stations are obsolete and so have had to be disabled, resulting in manual control methods. Inadequate Study of Domestic Power Requirements The estimate of actual electric power demand in the country would require substantial resources and time to be adequately determined. This is because of the growth in non-metered self generated electricity which necessitates very detailed enumeration and study of the domestic power demand market. POLICY THRUST, OBJECTIVES, STRATEGIES AND TARGETS The policy thrust of the medium term plan envisages a power sector that efficiently delivers sustainable, adequate, qualitative, reliable and affordable power in a deregulated market while optimizing the on off grid energy mix and a technologically driven renewable energy sector that harnesses the nation's resources to complement its fossil fuel consumption and guarantee energy security.

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Nigeria Vision 2020

The strategic priorities for the power sector set to address the critical issues and challenges identified in the Nigerian electricity sector will enable the achievement of the primary goals of the Government of Nigeria as encapsulated in the vision document. The strategic priorities identified for the Nigerian Power sector are as follows:

· Provide necessary commercial and market incentives in order to attract private

investments (local and foreign) required to facilitate the necessary electricity capacity expansions in a rapidly growing economy

· Consolidate ongoing structural and economic reforms targeted at establishing effective

institutional and regulatory frameworks in the power sector

· Achieve energy supply security by utilizing the nation's renewable energy resources

(including wind, solar, hydro and biomass) to diversify the energy consumption mix

·

Development of efficient and sustainable power generation and consumption patterns

The first medium term implementation plan for the energy sector is expected to achieve the following strategic objectives over the four year plan horizon as detailed in the matrix. See Appendix

Objective 1: Increase generation, transmission and distribution capacity in order to provide adequate and sustainable power supply Targets: To achieve 16,000MW generation by 2013 the private sector · · Create a deregulated and competitive electric power sector to attract foreign and local investments Ensure a viable commercial framework for the electric power sector, including a tariff regime that promotes transparency, guarantees security of investment and a reasonable rate of return on investments

To strengthen the transmission network to wheel 16,000MW by 2013 · Enhance the transmission capacity and provide redundancies in the transmission system so as to ensure a fully integrated network that minimizes transmission losses while strengthening grid security

To increase electricity access to 50 per cent by 2013 from the current 40 per cent · Intensify rural electrification efforts in a more efficient manner

Objective 2: To achieve optimal energy mix using most appropriate technologies 15

Nigeria Vision 2020

Targets: · To achieve an electricity generation mix shown below: Gas fired plants Coal Nuclear Hydro Other Wind Solar Biomass Total 16,000MW Increase utilization of alternative energy in the National energy mix 10,000 4,200 Renewables

·

Objective 3: To reduce electricity wastage by promoting energy efficient practices Targets: · · Increase the average load factor in the power sector from 31 per cent to 50 per cent in 2013 Introduce demand side management principles, embark on public enlightenment campaigns, advocate for the use of energy saving equipment to reduce power demand at home and industry

Objective 4: To encourage local production of inputs required for development of the power sector Targets: · · To produce 1 per cent of the material inputs for the power sector locally by 2013 Provide incentives to encourage local manufacturing and production of consumables used in the power sector, initially of relatively low tech power equipment such as conductors, insulators, cables, transmission and distribution structures etc. Ensure local manpower development by establishing effective training institutions and programmes as well as enforcing minimum local content components of power sector development and operational activities

·

Objective 5: To improve the billing and collection efficiency of power distribution companies in the power sector Targets: · To achieve billing and collection efficiencies of 95 per cent and 80 per cent respectively for power consumed by 2013

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Nigeria Vision 2020

·

Completely privatize distribution assets in order to provide efficient billing and collecting infrastructure and ensure international best practices in electricity distribution

Objective 6: To promote the effective utilization of coal to complement the nation's power needs Targets: · · · To commence the development of coal to power plants by 2010 Promote the production of coal for power generation by creating a favourable business environment for coal-to-power investors Intensify the search for more coal reserves to make coal a sustainable and reliable alternative energy source

Objective 7: To pursue the development and exploitation of nuclear energy for peaceful purposes Targets: To commence the development of nuclear power plant · Establish unambiguous policy guidelines for the nuclear energy sector, clearly defining the role of relevant governmental organizations and the private sector as the main drivers of the nuclear power programme Intensify manpower training and development and the provision of adequate Infrastructure for nuclear science and technology

·

Objective 8: To fully harness the hydro power potential available in the country for electricity generation Targets: · · To achieve a 25 per cent contribution of hydro electricity to the nation's electricity generation mix by 2013 Utilize mini and micro hydropower schemes to extend electricity to rural and remote areas. Create enabling regulatory, fiscal and administrative environment to attract private investment in hydropower plants

Objective 9: Targets: To commercially develop the nation's wind energy resource and integrate with other energy resources for off-grid electricity supply to rural areas · · To achieve a 10MW contribution from wind energy to the nation's electricity generation mix by 2013 Utilize wind power plants to extend electricity to rural and remote areas especially in the northern part of the country 17

Nigeria Vision 2020

·

Aggressively drive to optimize the components of wind water pumping and electricity generation and - to de-emphasize diesel powered water pumps wherever the wind speed will allow wind water pumping

Objective 10: Targets: To harness the nation's solar energy resources for electricity generation, especially to rural and remote areas · · · · To achieve a 10MWcontribution of solar energy to the nation's electricity generation mix by 2013 Continuous active support of research and development activities to cater for site specificity of designs for all parts of the country Create an enabling environment to attract private investments in manufacturing, establishing and operating solar energy systems Support demonstration and pilot projects to ensure that the general public is aware of the potentials of solar energy technologies which will as well assist in creation of markets for solar energy systems

Objective 11: Targets: Integrate biomass energy resources, including agricultural residues, animal and human wastes, with other energy resources through the adoption of an efficient conversion technology · · · · · · · To commence research and development on firewood consumption for cooking with biomass energy technology by 2013 Promote R&D activities in biomass energy technology that will facilitate the realization of Biomass-to-Power target of 1,000MW electricity in the long-term Develop extension programmes and establish pilot projects to facilitate the general use of new biomass energy technologies To achieve a power generation capacity of 1,000 MW using biomass resource Create an enabling environment to attract private investments in biomass to power projects Achieve a biofuel blends not exceeding 10 per cent by 2020 using locally produced renewable biofuels from secondary biomass Create a sustainable legal, institutional and commercial framework that encourages public private sector investment in the sector

Key Initiatives, Priority Projects and Programmes The projects and programmes that will facilitate the realization of the first medium term implementation plan for the power sector are: · · Conclude implementation of the Power Sector Reform Program Overhaul and Rehabilitation of Existing Power Plants 18

Nigeria Vision 2020

Government shall embark on a massive rehabilitation of the existing thermal and hydroelectric power plants stations in phases during the plan period. The overhaul and rehabilitation programme is expected to generate additional 1,202.4MW of electricity by 2012 as shown in the table below:

Table 1: Expected Additional Electricity to be generated

Station

Available Capacity (MW) 470 482 450 1100 180 300 52 414 480 304 4232

Expected Additions (MW) 100 96.4 150 220 90 200 346 1202.4

Total (MW) 2012

Kainji Jebba Shiroro Egbin Sapele Delta AFam Geregu Papalanto Omotosho TOTAL

570 578.4 600 1320 270 500 398 414 480 304 5434.4

(i)

National Integrated Power Projects (NIPP)

Completion of the on-going National Integrated Power projects (NIPP) will be accorded priority. The NIPP projects are expected to contribute about 4,770.5MW of electricity to the national grid and increase the transmission and distribution capacities by 3040MVA at 132/33KV and 5250MVA at 330/132KV and 3540MVA (3009MW) respectively by December 2011.

Table 2: Shows the capacity output of the NIPPs

S/N 1 2 3

NIPP Calabar Egbema Ihovbor

Total Output 562.5 337.5 450.5

19

Nigeria Vision 2020

4 5 6 7 8 9 10

Gbarian Sapele Omoku Alaoji Papalanto Omotosho Geregu TOTAL

225.0 450.0 225.0 960.0 675.0 451.0 434.0 4770.5

(ii)

Rehabilitation & Expansion of Transmission and Distribution Infrastructure

The massive rehabilitation and expansion of transmission and distribution infrastructure will enhance the current capacity, provide redundancies in the transmission and distribution systems and ensure a fully-integrated network that minimises transmission and distribution losses, while strengthening grid security. Overall, 96 transmission and 34 distribution projects and programmes will be completed over the plan period in order to increase evacuation capacity to 16000MW by 2013. (iii) Establish a Parts Pool Arrangement for the power sector

The establishment of a parts pool for the power sector is envisaged as a strategic solution to the perennial problem caused by the lead time encountered in the procurement of parts and equipment. . The aim of the parts pool is to provide a virtual store for operators in the power sector to warehouse critical equipments, parts and repair facilities to meet immediate and future demands. (iv) Construction of Additional Gas Supply Infrastructure

Nigeria requires 1,773 million standard cubic feet per day (MMscfd) of gas to generate 6,000MW of electricity and 4,787MMscfd to generate 16,000MW of electricity by 2013 from gasfired thermal power generation plants. However, completion of ongoing Government and Joint Venture gas infrastructure projects will increase the available generation capacity to 9,089MW of electricity with 2,685MMscfd of gas resulting in a shortfall of 6,911MW of electricity and 2,102MMscfd of gas by 2013.

20

Nigeria Vision 2020

Consequently, there is an urgent need to source about 2.0 billion standard cubic feet of gas per day (bscfd) through the expansion of existing gas gathering and supply infrastructure if the available power generation target of 16,000MW by 2013 is to be realized. The key initiatives, projects and programmes that will facilitate the realization of the gas supply shortfall by 2013 are as follows: · Development of gas resources from Obiafu/Obrikom fields held by Nigerian Agip oil Company (NAOC) Construction of a 100km 48" pipeline to evacuate gas through the East-West interconnector gas pipeline from Obiafu/Obrikom in the East to Oben node in the West. This pipeline is expected to supply sufficient gas to meet the high demand in majority of the power plants in the western part of the country. The total project estimate is N33.0 billion. The project is expected to be completed within the next one year. Construction of about 30km gas pipeline from the existing export line Gas Transmission System (GTS1) to Obigbo North Spur line in Rivers State to evacuate gas to Afam thermal power plant. The pipeline which would be completed by 2011 is expected to feed gas directly from the LNG export line once the Domestic Gas Obligation (DGO) is implemented. Construction of about 400Km gas pipeline through Calabar-Umuahia-Ajaokuta to supply gas to the power plants in the Eastern part of Nigeria such as Alaoji, Geometric power plants etc. The phase I of the project will be completed by 2013.

·

·

(vi) Upgrading of Facilities at the National Power Training Institute As part of efforts to encourage local production of inputs required for development of the power sector and to bridge the human capacity gap, Government will implement intensive manpower development initiatives and upgrading of infrastructure in the newly established National Power Training Institute to a world class status in affiliation with leading power training institutes. Some of the initiatives include: deployment of modern training facilities and relocating the institute to a befitting site, and review of the current curriculum to incorporate standard training courses in line with leading practices.

(vii)

Independent Power Producers (IPP) Development Program for 4,000MW by 2013

Achieving the power generation target by 2013 will also depend on a focused effort aimed at encouraging the development of Independent Power Projects (IPPs) in the country. The IPP Program is an initiative that is targeted at delivering 4,000MW incremental capacity to the national grid from independent power producers by 2013. Government should provide incentives such as tax holidays, model form PPAs and GSPAs etc. Key Initiatives, Priority Projects and Programmes The articulated strategic initiatives, projects/programmes that will facilitate the realization of the first medium term implementation plan for the alternative energy sub-sector include: (i) Development of Coal-Fired Power Projects 21

Nigeria Vision 2020

The Federal Government is committed to developing coal reserves in partnership with the private sector in order to enhance energy security and sustainability through the diversification of feedstock for power generation. The Nigerian Coal Research Trust Fund (NCRTF) will be established to encourage tertiary institutions and research institutes to carry out research into coal briquetting and coal stove technology in the medium to long term. The development of coal for power in Nigeria will commence in 2010 with the following projects and programmes:

·

Construction of coal-fired power plant in Enugu, Benue and Gombe states to generate 300MW of electricity. The project which will commence this year 2010 is still at the preliminary stage of planning and feasibility studies. Establishment of a coal briquetting plant for mass production of coal briquettes. Feasibility studies should be conducted in early 2010 and full implementation should commence in 2011. The development of a comprehensive implementation plan that articulates, key action points and realistic timelines for the execution of the existing coal-to-power strategy Construction of 230-300MW Power Plant Using Crude Oil/Gas in Badagry

·

·

(ii)

The proposed dual powered power generation station is expected to make use of the Crude Oil as feedstock pending when gas transmission infrastructure is extended to Badagry. The project is still at the preliminary stage, however the contracted is expected to be awarded before the end of 2010. The project is expected to be completed by 2013. (iii) Construction of 215MW Low Pour Fuel Oil (LPFO) Power Generation Plant in Kaduna

The proposed dual powered power generation station is expected to make use of the LPFO as feedstock pending when gas transmission infrastructure is extended to Kaduna State. The project commenced in December 2009 and will be completed in 2011 to deliver 215MW of electricity to the state. The estimated investment cost for executing the project is N44.0 Billion (iv) Renewable Energy

The development of a comprehensive implementation plan that articulates, key action points and realistic timelines for the execution of the existing renewable energy master plan (v) Construction of 10MW Katsina Wind Project In line with the Federal Government policy to promote renewable energy, a wind map of the entire country has been developed. The map details several potentially viable sites for the deployment of wind turbines for power generation. The recently awarded 10MW electricity generation project in Katsina State is the first wind farm project in the country is scheduled to be completed by 2011. This will supplement electricity supply to communities in Katsina and serve as pilot project for wind technology deployment for potential private sector investors.

22

Nigeria Vision 2020

(vi)

Construction of 2600MW Mambilla Hydroelectric Power Project (HEPP)

This is one of the major renewable energy projects that are critical to the realisation of the energy supply security beyond 2013. The project is expected to have a generation capacity of 2600MW base load electricity power and will be implemented over a 5 year period. The project is also expected to deliver 330KM of 720KV Transmission Line to Jalingo and 330km from Abong to Makurdi. (vii) Construction of 700MW Zungeru Hydropower Project on the recently conducted feasibility study is to 700MW. As part of efforts to complete the awarded for the preparation of the tender a consultant for the Environmental Impact The optimal capacity of the power plant based 525MW, with the possibility of future expansion project on schedule, a contract was recently documents, while the process for procuring Assessment (EIA) for the project is ongoing. (viii) Solar Rural Electrification Project

In order to facilitate the off-grid electricity extension to the rural and remote areas, ongoing solar electrification projects in the following cities; Eshan community; Ogoja LGA, Cross River State; Ogofarm,Ogun State; Kindigi, Bauchi State; Mashi, Katsina State will be completed within the plan period. (ix) Small and Medium Hydro Power Plants

The terms of reference for the development of small and medium scale HEPP has been developed by the Ministry of Power in collaboration with Nigeria Infrastructure Advisory Facility (NIAF). The project will include the construction of Turbines with all the associated equipment on existing Dams to generate electricity. The specific projects locations will be determined after the preliminary studies.

23

Nigeria Vision 2020

Power Sector Table 3: Summary of Investrment Plan 2010 - 2013

Thematic Area - Physical Infrastructure Power Costs in N'm S/N Priority Projects 2010 1 Overhaul and Rehabilitation of 7 of the existing Power Generation Plants Rehabilitation and Expansion of Transmission Distribution Network and Infrastructure Construction of additional Gas Supply Infrastructure Construction of coal-fired power plant in 3 States (Enugu, Benue and Gombe) Construction of 215MW Low Pour Fuel Oil (LPFO) Power Generation Plant in Kaduna Construction of 10MW Katsina wind project Construction of 2600MW Mambilla Hydroelectric Power Project (HEPP) 2011 2012 2013 Total

11,130.15

92,997.43

12,935.03

108,078.09

13,536.66

113,104.98

37,601.84

314,180.49

2

3

15,855.40

8,195.83

18,426.54

19,283.59

53,565.53

4

9,524.89

9,967.91

27,688.63

5 6 7

4,452.06 232.72 677.93

5,174.01 270.46 787.86

5,414.67 283.04 824.51

15,040.74 786.22 2,290.29

24

Nigeria Vision 2020 Thematic Area - Physical Infrastructure Power Costs in N'm S/N Priority Projects 2010 8 Construction of 700MW Zungeru Hydropower Project Solar Rural Electrification Project in 4 Communities; Cross River, Ogun, Bauchi and Katsina Construction of 230 - 300MW Dual Power Plant using crude oil and gas in Badagry Small and Medium Hydro Power Plants in various locations Projects Non Priority Projects 189789.30 48,174.62 204,593.63 55,986.71 237,770.98 58,590.75 248,830.10 2011 15,177.47 2012 17,638.68 2013 18,459.09 51,275.24 Total

9

4,937.74

5,738.45

6,005.36

16,681.55

10

1,548.10

1,799.15

1,882.83

5,230.07

11 12 13

1,214.20

1,411.09

1,476.73

4,102.02 189,783.30 162,752.08 880,978.01

25

Nigeria Vision 2020

CHAPTER 2 :

Introduction

Transport

The estimated total investment for the transport sector during the Plan period is approximately N2.216 trillion. This figure has been disaggregated on annual basis and by subsector and these have been reflected at end of this chapter. The subsectors are: roads; railways; inland water ways; ports and airports development. Investments in these subsectors are strategic to national development. The development of a world class infrastructure that will support other sectors of the economy, particularly the productive sector, is a necessary pre-condition, for achieving Nigeria's quest to be one of the twenty largest economies in the world by the year 2020. An efficient transport system facilitates the movement of people and goods, reduces the cost of Gproduction; thus enhancing global competitiveness. The transport system in Nigeria comprises the following modes: railways, roads, ports, inland waterways transport, and air. In spite of massive Federal and State government investment in the transportation system, there is little improvement in the transport infrastructure in the country. Currently, the transport system is characterised by a moribund rail system (with only a few locomotives and wagons in use), large sections of impassable inland waterways, inadequate port infrastructure, poor and badly maintained road networks, poor interconnectivity of all transport systems, inadequate and poorly maintained airports. These myriad of challenges in the transport sector have stalled economic growth and development as well as reduced foreign direct investment in the economy. Road and air transport are the dominant modes of transportation in Nigeria; carrying more than 98 per cent of total traffic generated in the country. Although other modes such as railways and inland water transport could play a greater role, the road transportation would continue to dominate the transport landscape within the 1st Implementation Plan of Vision 20:2020. Due to imbalance in the share of traffic amongst the modes of transportation in the country, there is undue pressure on available roads network; resulting in very short lifespan of paved roads. Despite these challenges, Nigeria now aspires to evolve a multimodal, integrated and sustainable transport system, with greater emphasis on rail and inland waterways transportation. In addition, the Federal Government has taken steps to create an enabling environment for PPP, by designing new polices, legislation and institutional framework to support the envisaged transformation of the transport sector. Within this framework, it is imperative for government to anticipate the future economic and social development needs of the country and to ensure that future demands are accommodated in the planning. This Chapter sets out the priority projects to be undertaken in the transport sector during the plan period. Sectoral Goals The broad vision for the transport sector is: · To evolve a private sector led multi-modal and integrated transport system

26

Nigeria Vision 2020

· To create an enabling environment for Public Private Partnership (PPP) through enactment of appropriate legislations, policies, design an Institutional framework that will support the envisaged positive transformation of the sector; · To ensure that transport services are adequate to meet the social and economic needs of the country, and to provide an effective instrument of national development; · To ensure that the transport system is developed and operated in an integrated manner that promotes the efficient use of resources within the sector to improve productivity and enhance the level of service provided to Nigerians; · To provide a safe, efficient and cost effective transport service for the country; and · To develop the capacity to sustain and continuously improve the quality of transport infrastructure and service delivery in the country.

SITUATION ANALYSIS LAND TRANSPORT Road Nigeria has a total road network of 193,200 kilometres, comprising 34,123 km Federal roads, 30,500 km State roads, and 129,577 km Local Government roads. The Nigerian road network is characterized by the following: · Inadequate routine and emergency maintenance coupled with poor initial construction and design. These factors shorten the useful life span of the roads and increase the operating cost of road users · Lack of coordination in the construction and maintenance of the various road networks · Lack of a coherent national road policy, consistent regulation and application of road standards · Limited professional and business capacity resulting in inefficient services; · Inappropriate road design standards, to keep pace with increased vehicular traffic volumes and vehicle weights (poor axle load control causes significant damage to the road network); · Lack of road markings, safety barriers, and signage contribute to the high accident and casualty rate on all roads. Current neglect of roads implies a loss of network value of N80 billion per year and an additional operating costs of N35 billion per year. It has been estimated that over the next 10 years, N300 billion will be required to bring national roads into satisfactory usable condition Railways Nigeria's rail network consists 3,505 km, narrow gauge (1.067 m) single track rail lines running from Lagos to Kano and Port Harcourt to Maiduguri and the uncompleted 349 km of standard gauge from Itakpe to Warri via Ajaokuta. There is currently an imbalance between road and rail transport. Before this, the railways carried over 60 per cent of freight tonnage. The current imbalance in modal share between rail and road transportation emerged after the 1960s. In the last twenty years however, the highest number of passengers carried was 15.5 million in 1984 27

Nigeria Vision 2020

and the highest volume of freight was 2.4 million metric tonnes in 1977, and by 2000/1 traffic had fallen to 2 million passengers and less than 300,000 metric tonnes of freight. Despite the fact that rail transport is the cheapest means of transport for the haulage of goods and carriage of passengers over long distances rail transport now account for less than 1 per cent of land transportation in the country,. This phenomenon is traced to the bad condition of the railway system in the country. The rolling stock is in very poor condition - for example, in 2004, 54.5 per cent of the wagon available were defective and could not be used and carriages and locomotives were also in poor condition resulting in reduced number of scheduled trips due to locomotive failures. In 1999, for example, only 19.6 per cent of the 115 locomotives available were functional and only 46 per cent of the 2,744 wagons were in use. Nigerian Railways should be the lifeline of the Nigerian economy because of its potential for mass and long haulage of goods and passenger traffic. Government has, therefore, embarked on a programme of rehabilitation, reactivation and modernisation of the railways. In the 2009 budget, N2 billion was allocated for major rehabilitation of rail tracks and bridges, N400 million for workshop tools and re-railment equipment and N600 million for the rehabilitation of 120 coaches and wagons. WATER TRANSPORT Inland Waterways Nigeria has 12 major inland navigable rivers of about 3,800 km. The country also has an extensive coastline of about 852 km. This offers great potential for the movement of goods and passengers from the coast to the hinterland, since these waterways traverse 20 out of the 36 States of the country. The Niger River and the Benue River (including its major tributaries and estuaries) are the principal waterways. The waterways are characterised by inadequate river ports, poor navigational and communication infrastructure, high rates of sediment and poor maintenance. In order to tackle the deficiencies of the water transport sub-sector, government aims at promoting the development of the sector by eliminating the major physical constraints, promoting pricing policies (that help shift traffic back to inland waterways), restructure the supervisory agency, and provide opportunities for private sector participation in the operation and development of new inland waterways infrastructure.

The development of inland water transport will ease pressure on the over congested road sector and will enhance the mobility, welfare, and development of many remote and underprivileged communities. However, this mode of transportation has been neglected in the past three decades due to inadequate investment. Government has recently embarked on the dredging of the lower river Niger from Warri in Delta state to Baro in Niger state to enhance the all year navigability. When completed this will decongest Lagos and Port Harcourt sea ports and reduce pressure on the roads. The dredging project which spans 8 states namely: Niger, Kogi, Anambra, Imo, Edo, Delta, Rivers and Bayelsa has been divided into five lots to ensure its timely completion. They are: Lot 1 Warri to Bifurcation (154 km) 28

Nigeria Vision 2020

Lot 2 Lot 3 Lot 4 Lot 5 Sea Ports

-

Bifurcation to Onitsha (116 km) Onitsha to Idah (118 km) Idah to Jamata (108 km) Jamata to Baro (76 km)

The seaports are of great significance for the economic development of Nigeria as they practically handle all the country's imports and exports with the potential of increasingly serving the landlocked countries of Niger and Chad. All the ports in Nigeria were owned and operated by the Nigerian Ports Authority (NPA). NPA's assets comprise 13 major ports, 11 oil terminals, and 128 jetties with a total annual cargo handling capacity of 35 million tons. Nigerian ports are dependent on imports, which constituted on the average about 70 per cent of the total cargo. The ports mainly handle imports, ranging from between 31.6 per cent and 6.7 per cent for general cargo, 53.5 per cent and 44.5 per cent for bulk cargo, and 23.6 per cent and 22.6 per cent for containerized traffic. NPA which owns the ports on behalf of the Federal Government was established to provide infrastructure and services at the seaports. However, due to inefficiency of services, poor maintenance of infrastructure, corruption, excessive bureaucracy which made Nigerian ports uncompetitive, the government in 2001 commenced the reform and restructuring of the ports to introduce private sector participation. In April, 2006 private terminal operators took over handling operations when the ports were concessioned to private terminal operations after international competitive bidding, based on the Landlord model. The concession of the operation of the ports was done in conjunction with fundamental reforms in structure, institutional arrangements and operational modalities. NPA remains the regulatory agency supervising port operations and development. Shipping Nigerian indigenous companies have in the past made unsuccessful attempts to participate in the carriage of Nigerian crude oil, and exploit the opportunities available. Nigerian produces and exports a daily crude oil output of approximately two million barrels a day, of which 57 per cent (fifty seven per cent) accrues directly to Nigerian National Petroleum Company by virtue of its joint venture arrangement with the multi-national oil companies. Article 2 of the National Shipping Policy Act of 1987, which is based on the recommendations of the United Nations Conference on Trade and Development (UNCTAD), makes it mandatory for indigenous shipping lines under the code cargo sharing formula of 40:40:20, to carry at least 40 per cent (forty per cent) of the cargo generated in that country. A majority of the oil producing and exporting countries in the world, either the governments or the producing and marketing organisations of those countries, adopt operational and marketing strategies that exploit the revenues and profit opportunities of all the modal interfaces of the oil marketing chain, including shipping. This will encourage foreign shipping companies to register In Nigeria and flag vessels supplied under Nigerian colours, thereby ensuring that a substantial amount of the crew are Nigerian and expanding the Nigerian Ship Registry.

29

Nigeria Vision 2020

AIR TRANSPORT Nigeria has a total of 21 airports and some additional 62 airstrips. There are four international airports in Abuja, Lagos, Port Harcourt and Kano, one airport in Calabar with connections to the West African Region, 11 solely domestic airports as well as five airports that are occasionally used. Also there are several airstrips privately owned by oil extracting companies. The Federal Airports Authority of Nigeria (FAAN) owns and operates all but 3 of the 21 airports. The National Airspace Management Agency (NAMA) is in charge of traffic control, regulations and navigational aids for aircrafts. Safety oversight and all other civil aviation issues are within the responsibility of the Nigerian Civil Aviation Authority (NCAA). Passenger and cargo traffic has been growing steadily in recent years but most of it is concentrated in the four international airports. Consequently, the 4 airports are the only airports generating sufficient revenue in their operation. In the case of cargo, 90 per cent of the volume is handled in Lagos. Many of the airports are in need of major repair and the equipment are obsolete. Lagos, Abuja and Kano airports account for between 77-90 per cent of passenger movements and 64 ­ 89 per cent of aircrafts movements, with Lagos accounting for slightly over half of the international and domestic passengers carried and more than 80 per cent of international and 40 per cent of domestic flights. Only three of the airports (Lagos, Abuja and Kano) cover their operating costs. Issues and Challenges for the Transport Sector The key challenges facing the Nigerian Transport sector are: Dilapidated infrastructure The railway system has almost ceased to function, with infrequent trains on a limited number of routes, and only a small percentage of locomotives remain serviceable. Many inland waterways are no longer navigable because of sedimentation, water vegetation, wrecks and other obstructions. Also relevant are inadequate port infrastructure, poor communication and navigational aids, piracy, environmental constraints, legal disagreements between State and Federal jurisdictions. Institutional reform The enactment of the Infrastructure Concession Regulatory Commission (ICRC) Act, 2005 has created an enabling environment for PPP participation in infrastructural development in Nigeria. Key policies and legislation will need to be created to establish the appropriate institutional framework for each mode of the transport sector. The legislation for the relevant transport modes will: · Separate policy, regulation and operation · Develop the economic and safety framework for the sector · Create the environment for PPP

30

Nigeria Vision 2020

Inadequate funding The public transport infrastructure lacked investment and adequate maintenance for many years, in spite of significant sums being expended in various sectors and institutional reforms. A major challenge in the transport sector is to have adequate resources required for investment in all the modes. The problem of inadequate funding is reflected in the poorly maintained roads, dilapidated rail network and rolling stock, obsolete navigational equipment for the aviation sector and waterways that are not navigable year round. Absence of Multi-modal Integrated Transport System The inadequate attention to other modes of transportation has led to imbalance in the distribution of traffic with roads responsible for over 90 per cent. With inadequate investment in maintenance and rehabilitation, the roads have deteriorated over the years. To correct this imbalance the government will address the following:

· Rehabilitate the rail connection to the ports · Link the four major international airports to road and rail · Modernize the rail system Objectives, Targets and Strategies In line with the vision, the following are the objectives for the transport sector during the first implementation plan period: (i) (ii) (iii) (iv) (v) To provide adequate transport infrastructure and services for even socio-economic development of the Country; To ensure the provision of safe, efficient and cost effective transport services for the country; Develop the capacity to sustain and continuously improve the quality of transport infrastructure and service delivery in the country To create an enabling environment for private sector participation in the provision of transport infrastructure Develop a seamless inter-modal transport system

The target and strategies for achieving the above objectives are listed below: 1. To provide adequate transport infrastructure and services for even socio-economic development of the Country Mode: Rail Targets · Complete rehabilitation of 3,500 km of the existing narrow gauge rail · Complete the Ajaokuta ­ Warri standard gauge rail line · Increase the tonnage of freight transported from 50,000 metric tonnes to 1 million metric tons · Transport 4 million passengers per year 31

Nigeria Vision 2020

· Achieve 500,000 daily trips via mass transit · Introduce private sector participation in the provision of rail services · Complete rail works that have reached 50 per cent completion as at Dec 09 · Commencement of the Abuja/Idu to Kaduna standard gauge rail line · Link Abuja by rail to the seaports of Lagos, Warri and Port Harcourt · Minna to Abuja (Lagos Port) · Kafanchan to Abuja (PH Port) · Itakpe to Abuja (Warri Port) · Commencement of the coastal rail line (Niger Delta Rail line): Calabar to Benin · Commencement of the East ­ West rail line: Abeokuta to Benin Strategies: · Concession of the Lagos to Kano and the Port Harcourt to Maiduguri rail lines · Construct rail lines to the ICDs · Construct mass transit rail lines in Lagos and Abuja · Rehabilitate the rail links at the ports Mode: Waterways · To increase the navigable routes on the inland waterways to 3,000KM · To increase inland waterways traffic and passengers substantially · To introduce private sector participation in the provision of inland waterway services · Rehabilitate and construct key river ports, jetties and wharfs (Baro, Lokoja, Onitsha, Oguta, Degema and Yenagoa) by 2013 Strategies · Dredge and reclaim the rivers Niger and Benue · To concession routes to the private sector Mode: Airways Targets · Upgrade and expand the international airports to ICAO standards and recommended practices · To transfer all other airports to state government · To concession the four international airports Strategy

32

Nigeria Vision 2020

·

To upgrade and maintain the four (Lagos, Kano, Abuja and Port Harcourt) major international airports to ICAO standards and recommended practices

Mode: Seaports Targets · · · Strategies · · ·

To reduce the turn-around time of ships at the ports To reduce tariffs to create competition at the ports To improve safety and security at the ports Develop new deep seaports at Epe/ Lekki, Brass, Bonny and Badagry. Dredge the harbors in Lagos and Bonny to accommodate large ocean liners and provide standard facilities, including RORO facilities in Bonny by 2011. Develop Calabar Port to support free trade zone

Mode: Roads · Recovery of 30 per cent of the existing bad federal roads (7,677km), by 2013. Currently, about 70 per cent of the existing roads are in a deplorable condition Strategies · Complete road works that have reached 50 per cent completion as at Dec 09 · To rehabilitate and reconstruct the major trunk roads · To concession major and viable routes · Secure funding arrangements from both the private and public sector for the remaining 40 per cent of the bad federal roads · To introduce private sector participation in the upgrade and maintenance of roads Mode: Shipping · Encourage the establishment of indigenous shipping lines that will transport the wet and dry cargo in Nigeria Strategy · To implement UNCTAD rules which creates the environment for 40 per cent shipping Mode: Pipelines · To increase the transportation of gas, crude oil and PMS via pipelines Strategies · To rehabilitate the pipelines · To construct more pipelines to new routes · To ensure the provision of safe, efficient and cost effective transport services

33

Nigeria Vision 2020

Water Transport NIMASA was established to promote safety and security and regulate, administer the enforcement of public polices in the Maritime Sector. The agency is charged with port control, wreck receipt and control, search and rescue, maritime security, pollution prevention and control, maritime environmental management, maritime accident investigation and enforcement Mode: Rail Targets · To minimise derailments

Strategies · · Reduce existing curves and gradients as part of the rehabilitation programme Establish the rail safety regulator

Mode: Aviation Targets · Comply with international conventions on aviation safety and security Strategies · Domesticate all existing aviation conventions Mode: Water Transport Targets: · · · Comply with international conventions on safety and security in the maritime industry Establishment of the Nigerian Coast Guard Removal of all wrecks and derelicts in the navigable channels and entire waterways

Strategies: · · · Domesticate all existing maritime conventions Register all ships to ensure compliance Increased surveillance of waterways and the coastline to check incidents of pollution and piracy

Develop the capacity to sustain and continuously improve the quality of transport infrastructure and service delivery Mode: Targets: ·

Build and strengthen human capital and professionalism in the transport sector 34

Nigeria Vision 2020

Strategies: ·

Re-structure and fund the NITT, NCAT and MAN (Oron)

Mode: Water Transport Targets: · Strategies: · · · · Objective: To create an enabling environment for private sector participation in the provision of transport infrastructure and services Mode: Targets: · · · Strategies: · · Objective: Develop a Seamless Inter-modal Transport System Mode: Targets: · · Separate policy, regulation and operation Develop the economic and safety framework for the sector Create the environment for PPP Develop indigenous capacity in manpower and skills as well as ship building and repairs

Audit of maritime service providers to build a database to help service users to identify locally available facilities and services Improved utilization of the Cabotage vessel finance fund Expand the Nigerian seafarers development programme Develop ship demolition and recycle capacity

Enact relevant legislation in transport namely the National Transport Commission, railway, ports, roads and inland waterway bills Establish the economic regulator for the transport sector

Implement inter-modal transport by connecting all inland container depots and airports to rail To link all the international airports, seaports and inland container depots to rail and road 35

Nigeria Vision 2020

Strategies: · · ·

Rehabilitate the rail tracks at the seaports Complete the link to Onne Port To construct rail lines to Lagos and Abuja airports

Key Initiatives, Priority Projects and Programmes The Government in prioritising programmes and projects for implementation during the medium term period (2010 ­ 2013) took into cognisance population growth and demographics as well as expected developments in the industrial and agricultural sectors, among others. The priority projects identified were based on the following criteria: · · · · · · Inter-modal transport connectivity projects Projects with more than 50 per cent completion Non-duplication of infrastructure Private sector participation Encourage and support mass transit systems PPP

Table 3: Rail Transport flagship projects

Project The rehabilitation of the existing narrow gauge railway network from Lagos to Kano Completion of the of 22 km standard gauge from Ovu-Warri,

Construction of 187.15 km standard guage from Abuja to Kaduna Construction of 6 stations between Itakpe Construction of modern coastal line from Benin to Calabar across 6 Niger Delta States Construction of Abuja light Railway project Construction of the standard gauge line from Itakpe to Abuja Construction of standard gauge line from Minna to Abuja Construction of standard gauge line from Kafanchan to Abuja

36

Nigeria Vision 2020

Road Transport 1. Rehabilitation, Upgrade and Expansion The total capital outlay for the massive rehabilitation and expansion of all trunk "A" roads and the ongoing roads construction is N461.8 billion for the four year plan period. To increase the percentage of roads in good condition from 20 per cent to 70 per cent within the planned period, the Federal Government will embark on a rehabilitation, upgrade and modernisation of 7,000km Federal Trunk `A' roads. The network will be kept in a motorable condition through the activities of Federal Road Maintenance Agency (FERMA) across various locations in the country, which will result in the maintenance of about 19.868 km of the existing road network by 2013. The total capital outlay estimated for the completion of the project is N700 billion

Table 5: Summary of Road projects to be funded solely from Federal Government allocation

Project Dualisation of Onitsha ­ Owerri Road and Onitsha Eastern by pass Dualisation of Ibadan ­ Ilorin road section 1 Dualisation of the Abuja ­ Abaji ­ Lokoja road

Dualisation of the Kano ­ Maiduguri road Dualisation on the East ­ West road. Warri to Oron via Port Harcourt Construction of Kano western bye pass

Construction of Panyam ­ Bokkos Wamba road

2.

Public Private Partnership Projects (PPP)

Private sector involvement in the transformation of the transportation sector is pivotal to the realization of the overall strategic direction of the sector as articulated in the NV 2020 economic transformation blue print. Consequently, existing and new Public-Private initiative will be given priority by the Federal Government to ensure their completion within the plan period.

37

Nigeria Vision 2020 Table 6: Key proposed projects and programmes for PPP

Project Lagos-Ibadan Express Way concession. Upgrading of existing road by expansion to 8 lanes between Lagos ­ Shagamu and 6 lanes between Shagamu ­ Ibadan with construction of bridges.

Government financial commitment

Concession of 1.35 km Guto-Bagama bridge across River Benue. Completion of 1.35 km with adjourning roads as expected to reduce travel time between Enugu and Abuja by 2 hours Construction of 2nd Niger Bridge across River Niger at Onitsha / Asaba. Completion of 1.75 km bridge 14 km road with 3 No. Flyover bridges and 3 other bridges.

Rehabilitation and expansion of Shagamu ­ Benin, Benin-Asaba, Abuja-Kaduna, Lagos ­ Badagry, Seme Border, Abuja ­ Kaduna, Kaduna ­ Kano dual carriageways to international standards in order to facilitate smooth

3. Water Transport (Inland Waterways and Ports) The major thrust in respect of inland water development is the improvement of existing naugable routes. Achieving the target of improving the existing navigable routes of 3,000 km to by 2013 will depend significantly on the execution of the following key projects and programmes across the various marine ports and inland water infrastructure (such as rivers, creeks, coastal lagoons etc). Air Transport Achieving the overall objectives of the Air transport sub sector in the medium term hinges on the rehabilitation of existing facilities at the international and local airports and the eventual concessioning of such facilities to private investors. Government will focus on the upgrading of facilities of four major international airports and develop a strategy and implementation plan for transferring other local airports to state governments or private ownership to enhance adequate maintenance and promote private sector participation.

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Nigeria Vision 2020

Inter-Modal Projects In order to achieve an integrated network and actualize the objectives of the medium term plan for the transport sector, ongoing projects aimed at ensuring linkages across the different transport modes will be completed.

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Nigeria Vision 2020

Transportation Sector Table 7: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Physical Infrastructure Transport S/N 1 2 3 4 5 6 7 8 Priority Projects The rehabilitation of existing narrow gauge railway network from Lagos to Kano Completion of the 22km standard guage from Ovu to Warri Construction of 187.15km standard guage from Abuja to Kaduna Construction of 6 stations between Itakpe and Warri Construction of modern coastal line from Benin to Calabar across 6 Niger Delta States Construction of Abuja light Railway project Dualisation of Onitsha - Owerri Road and Onitsha Eastern By Pass Dualisation of Ibadan - Ilorin road Section 1 Costs in N'm 2010 2011 33,849.02 938.78 15,051.85 140,817.74 55,576.07 19,620.61 1,642.87 785.04 2012 39,473.18 1,091.02 17,492.69 163,653.05 64,588.41 22,802.33 1,909.29 863.69 2013 39,681.24 1,141.77 18,306.31 171,264.82 67,592.52 23,862.90 1,998.09 989.91 Total

113,003.44 3,171.57 50,850.85 475,735.62 187,756.99 66,285.83 5,550.25 2,638.64

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Nigeria Vision 2020

Thematic Area - Physical Infrastructure Transport S/N 9 10 11 12 13 14 15 16 17 18 19 20 Priority Projects Construction of Kano western by pass Construction of Panyam - Bokkos Wamba road Routine Maintenance and Repairs of Road Failures Maintenance and road strenghtening of road failures Acquisition of Road Maintenance Equipment and Plants Provision and Restoration of Road Markings Concession: Maintain, Operate and Transfer Provision of new road camps Vegetation and Slit control Maintenance of street lights Maintenance of Field offices and road camps Construction of River ports in Degema Costs in N'm 2010 2011 2,065.33 844.91 184,156.13 38,099.02 1,251.71 1,251.71 3,755.14 219.05 2,878.94 719.74 647.76 516.33 2012 2,400.24 981.92 189,694.96 44,277.24 1,454.69 1,454.69 4,364.08 254.57 3,345.80 836.45 752.80 600.06 2013 2,511.88 1,027.59 191,541.23 46,336.65 1,522.35 1,522.35 4,567.06 266.41 3,501.41 875.35 787.82 627.97 Total 6,977.46 2,854.41 565,392.32 128,712.92 4,228.76 4,228.76 12,686.28 740.03 9,726.15 2,431.54 2,188.38 1,744.36

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Nigeria Vision 2020

Thematic Area - Physical Infrastructure Transport S/N 21 22 23 24 25 26 26 Priority Projects Construction of second runaway of Nnamdi Azikwe International Airport Reconstruction of Kano International Airport terminal building Acquisition of Road Maintenance Equipment and Plants Aviation Projects Transport Projects Works, Housing & Urban Development Projects Non Priority Projects 71,310.95 127,548.03 211,231.78 410,090.76 94,900.01 631,042.88 110,289.20 689,271.46 115,418.93 697,114.31 Costs in N'm 2010 2011 30,000.00 203.40 1,251.71 2012 15,000.00 236.39 1,454.69 247.38 1,522.35 2013 Total 45,000.00 687.17 4,228.76 71,310.95 127,548.03 211,231.78 320,608.14 2,427,519.41

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Nigeria Vision 2020

Conclusion The implementation of the projects and programmes in the transport sector will ensure improved services and contribution of the sector to the economy. The investments have been planned to begin to correct the imbalance in the distribution of traffic among the modes and to give attention to aspects of transportation that had hitherto not received attention, particularly the issue of inter-modality among the modes. The Private Sector is expected to complement the Public Sector in the provision of transport services and the required funds for investments. The enabling environment for Private Sector participation in the provision of transport services created through the enactment of Infrastructure Concession Regulatory Commission Act 2005 will be further complemented by appropriate policies, legal and institutional framework during the plan period.

CHAPTER 3:

Introduction

HOUSING

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Nigeria Vision 2020

The proposed public sector total estimated investment for the Housing sector, during the Plan period, is N461.73 billion. The delivery of decent housing accommodation has been underdeveloped in Nigeria, so also is the forward and backward linkages associated with housing development. Over the last three decades, Nigeria, like several developing countries, had emphasized public housing schemes, but this had little success. This public sector driven housing policy stance has created substantial challenges to the delivery of affordable housing development in the country, resulting in substantive housing deficit. The issues of affordable housing will be addressed holistically in the current Plan. Situation Analysis It is expected that an intensive housing programme will expand the construction sector, mortgage market and increase the quality of life of Nigerian. It has been estimated that there is a shortage of 16 million housing units in the country. It is estimated that most people, (over 80 per cent of the population), live in informal housing - structures of varying degrees of degeneration on land which they have no ownership/title rights. The property is often very poor quality and lacks basic facilities. The Land Use Act 1978 vests the ownership of all land on the Governor of each State. Governors are responsible for the allocation of land for development within the state. There is a Land Registry in each state, but land administration is poor and little effort has been made to computerize the state land registries. All transactions on property require the consent of Governors and registration with land registries. The process is time consuming and very costly, total fees being in the 20 to 30 per cent range. While the culture of repaying debts and mortgage arrears seem low, the foreclosure procedures are cumbersome and slow. Given the difficulties associated with the judicial process, lenders tend to use a number of devices including the power to sale which provides limited rights to the borrower and is at times enforced with some degree of force. Real estate contribution to GDP rose from N219 billion to N444.68 billion between 2001 and 2004 while building construction increased from about N30.6 billion to N80.1 billion within the same period. There are 90 Primary Mortgage Institutions (PMIs) with N36.7 billion available funds for investment. Issues And Challenges There are several issues and challenges facing housing delivery in the country. There is a genuine shortage of properties in the formal sector partly due to the high cost of constructing houses. Consequently, rent and house prices are high. One of the lingering challenges to housing development in Nigeria is unprecedented urbanization caused by high rural-urban migration which has created large demand for housing accommodation in the urban areas, leading to the mergence and expansion in slum settlements. The housing policy and inadequate regulatory and legal environment affect housing development in the country while lack of support and poor incentives structure for housing finance constrain private sector investment. There is also a lack of effective strategy for housing finance, access to land, residential infrastructure and building materials and related industry, particularly in the light of the need for the private sector to play greater role in housing. Other problems facing the construction industry include: · Inefficient mechanism for acquiring or transferring property rights; 44

Nigeria Vision 2020

· · · · · · · · · · · ·

The dearth of long term (Secondary Mortgage and Primary Mortgage) housing finance for home buyers; Absence of clearly defined foreclosure law; Lack of adequate infrastructure; Inadequate urban planning system; Weak enforcement of development control covenants; Lack of adequate capital for mass housing projects; Absence of enabling operational environment; Lack of identifiable model/system of housing delivery that best suits Nigeria; Implementation of projects that are not end user driven ; Lack of post construction management in planning projects; Over reliance on imported building materials as a result of inadequate development of local building materials. Administrative hurdles associated with the issuance of Governor's consent which fuels informal land transactions and development which impact negatively on property values

National Housing Development Imperatives For Nigeria to meet its housing needs, it is imperative for government to design and implement policies and partnerships with the private sector that will achieve the following: · · · · Provide the legal and regulatory environment that will promote private investment in housing. Utilise private partnership opportunities to contribute to housing production Implement reform policies towards the development of a more effective land administration system. Work with states and local governments to produce and implement a unified and integrated infrastructure development plan for housing, to open up new layouts and provide sight and services for private sector to develop affordable and decent mass housing. Expand site and services programme to encourage medium and high income housing production. Work with financial sector operators and regulators to develop an effective primary housing finance system, and facilitate linkage of that market to the capital market to provide long term affordable and sustainable liquidity for housing. Facilitate housing finance credit guarantees and provide targeted subsidies for home ownership to the needy. Expedite legislation for a clearly defined non judicial foreclosure law. Develop professional and skilled manpower, and build adequate capacity through training and skills acquisition to support the housing sector. Reduce the cost of houses by developing and promoting appropriate designs and production technologies for the housing sector. Encourage states and local government to produce truly low cost houses for low income earners and ensure they are allocated to the correct target group. Ensure that all Nigerians own or have access to decent, safe and sanitary housing accommodation at affordable cost with secure tenure. Pursue vigorously the implementation of private sector led mass construction of houses facilitated by Government. 45

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· · · · · · ·

Nigeria Vision 2020

· · · · · ·

· · · ·

Provide adequate incentives and an enabling environment for greater private sector (formal and informal) participation in the provision of housing. Strengthen existing institutions involved in housing delivery at the Federal level. Promote measures that will mobilize long-term and affordable funding for the housing sector. Promote the use of locally produced building materials as a means of reducing housing construction cost. Popularization the implementation of the National Environmental Sanitation Policy Ensuring sustainable, sufficient and affordable sanitation to all Nigerians through participatory investment by the three tiers of government, private sector and beneficiaries. Promote the use of Nigerian professionals, appropriate designs and technologies in housing delivery. Encourage active participation of other tiers of government in housing delivery Improve the quality of rural housing and infrastructure. Embark on Land Reform to facilitate private sector investment in housing

Policy Thrust During the plan period, the policy thrust will focus on the following areas: · Creation of enabling environment for private sector investment in housing development · Provision of adequate public building policy for effective service delivery · Establishment of national housing data bank · Harmonization and standardization of land administration process nationwide through a national technical development forum · Work with States and Local Governments to produce and implement a unified and integrated infrastructure development for housing, to open up new layouts and provide site and services for private sector to develop affordable and decent mass housing. · Work with financial sector operators and regulators to develop an effective primary housing finance system, and facilitate linkage of that market to the capital market to provide long term affordable and sustainable liquidity for housing. · Embark on land reform to facilitate private sector investment in housing. Objectives, Strategies And Targets Objective 1 Develop an efficient land administration system to make land ownership available, accessible and easily transferable at affordable rate.

Strategies · Confer secure registerable and marketable title on land; · Establish an efficient and transparent land title transfer system; · Simplify existing land procedures for effective title and consent delivery; · Develop an efficient national land information system; · Provide infrastructure for site and services to open up new urban layouts. Objective 2 46

Nigeria Vision 2020

Provide adequate and affordable housing finance to all Nigerians by developing an efficient Secondary and primary mortgage markets. Strategies · Provide funding for a detailed empirical research study for the establishment of an efficient primary market; · Enforce the NHF contributions as enshrined in the enabling act; · Recapitalizing the PMIs to a minimum of N10 billion; · Ensure that PENCOM invest sizable part of the pension fund in primary mortgage products; · Encourage MDAs to place fund deposit with the capitalized PMIs Objective 3 Establish an efficient legal and regulatory framework to enforce the control and monitoring of housing delivery Strategies · Establish a body to regulate the housing sector; · Design appropriate incentives to facilitate home ownership for lower income groups; · Establish a mortgage and title insurance system that will mitigate credit risks; · Establish an efficient foreclosure system that will give more guarantees to lenders in cases of default; · Design and implement measures to encourage investment in affordable rental housing · Review the land use act to ease the process of acquiring and disposing landed property Objective 4 Develop professional and skill manpower, and build adequate capacity through training and skills acquisition to support the housing sector Strategies · Rehabilitate all existing technical and vocational training centers, and build new ones; · Revive the certification and registration of all skilled manpower through Trade Test; · Appoint qualify building industry professionals to head housing ministries, departments, institutions, parastatals and related agencies; · Fund and upgrade facilities in relevant faculties and departments of institutions of higher learning as enumerated in the National Building Code Objective 5 Reduce the cost of production of houses by developing and promoting appropriate designs and production technologies in the housing sector Strategies · Provide adequate funding for R&D to improve the availability and affordability of building materials and technologies; · Promote the use of certified local building materials for housing construction; 47

Nigeria Vision 2020

· · ·

Commercialized the products of R&D of the Nigerian Building and Road Research Institute and other allied institutes; Enforce the provisions of the National Building Code (NBC); Promote appropriate and cost effective design of houses for different parts of the country to satisfy peculiar local consideration.

Objective 6 Add 10 million new homes to the national housing stock Strategies · Build an average of 1million new homes every year in the national housing stock; · Ensure that at least 50 per cent of the new homes are built in the urban centres and the remaining in the rural areas; · Provide incentives to encourage public private partnership in mass housing development.

PROJECTS/PROGRAMS

Table 4: Projects and programmes for the prioritized medium term development strategies are as follows:-

Provision and equipping of building materials testing workshops. Re-capitalisation of FMBN (N62.5M x 4yrs) Construction of 600,000 Housing units under Public Private Partnership Prototype Housing scheme ­ Construction of prototype houses using new technology and 90% local content. Construction of 240,000 affordable housing units Expansion of the site and services programme Development of land valuation mechanism Support for the production of lowcost housing units in LGAs Projected Investment The projected investment in the sector is in excess of N2.825 trillion over the next four years. This is the investment that would fund all the projects that have been proposed by the sector to enable them achieve the stated objectives particularly towards the provision of 4 million housing units.

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Housing Sector Table 8: Summary of Investment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Housing Priority Projects S/N 1 2 3 Recapitalisation of FMBN Construction of 600,000 Housing Units under PPP arrangement Construction of 240,000 affordable housing units by FHA Prototype housing scheme - Support for the construction of 200 Low Cost Housing units in collaboration with the LGAs using 90% local materials Development of Land Valuation Mechnanism Equiping Building Materials Testing Workshops Support for Urban Renewal projects in selected centres Non Priority Projects 49 2010 2011 5,167.94 31,421.06 21,705.34 Costs in N'm 2012 5,857.00 35,610.53 24,599.38 2013 6,201.52 37,705.27 26,046.40 17,226.46 104,736.86 72,351.12 Total

-

1,057.10

1,291.38

1,408.52

3,757.00

4 5 6 7 9

-

29.77 38.80 200.00 14,829.60 74,449.60

33.74 43.97 950.00 17,234.40 85,620.40

35.72 46.56 950.00 18,036.00 90,430.00

99.22 129.34 2,100.00 50,100.00 250,500.00

Nigeria Vision 2020

Water Resources Water Resources

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Nigeria Vision 2020

Part II: PRODUCTIVE SECTOR

THRUST: OPTIMIZING THE KEY SOURCES OF ECONOMIC GROWTH TO INCREASE PRODUCTIVITY AND COMPETITIVENESS Introduction:

The productive sector thematic area covers the primary sectors that produce goods and services in the economy. These include Agriculture and food security; Manufacturing and Small and Medium Enterprises; Oil and Gas (downstream and upstream activities); Trade and Commerce; Culture and Tourism and Film and Entertainment Industry. These sectors have been identified as growth drivers that will facilitate the achievement of the projected average GDP growth rate of 11 per cent during the Plan period. Attaining and sustaining a GDP growth rate, entails doubling the production of quality goods and services in the economy in the next four years and beyond. The proposed investment, is therefore targeted at actualizing the Vision 20:2020 Economic transformation pillar `optimizing our key sources of economic growth" to engender sustainable development. The sectoral chapters contain the situation analysis, thrusts, objectives , strategies and targets, as well as the investment plan that will be pursued during the plan period. The next six chapters of the Plan are presented below:

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Chapter 6: Agriculture and Food Security

INTRODUCTION The total sum of N745.24billion has been proposed for investment in the sector during the plan period. Agriculture remains a major driver of economic growth in Nigeria. It is composed of four subsectors ­ arable crops (including food crops), forestry (including tree crops), livestock (including poultry) and fishery. Agriculture contributed 41.5 per cent to GDP in 2008. The sector has continued its dominance in the economy, in terms of its size and contribution to the GDP. The Agricultural sector's contribution to the GDP has averaged 41 per cent in the last eight years (2001 ­ 2009), while it has áccounted for about 30 per cent of the growth in non-oil output. Although its continued large share in the GDP is an indicator of structural rigidity in the economy and under development, the importance of the sector to national development cannot be overemphasized. In the context of the nation's vision of becoming one of the 20 largest economy in the world by the year 2020, a vibrant and technology enabled Agricultural sector is critical for growth in national output, that will support expansion in the industrial sector, enhance foreign exchange earnings, provide food for the teeming population, provide gainful employment, create wealth and reduce poverty on a sustainable basis. The Agricultural sector is also critical for the attainment of a key pillar in the nation's Vision 20:2020 economic transformation blueprint; optimizing the key sources of economic growth to increase productivity and competitiveness, in terms of growth in national output, and total factor productivity (TFP). Under the 1st NIP, the policy thrust will be on enhancing total factor productivity in the Agricultural sector through the application and diffusion of knowledge and improvement in the technology base. It is envisaged that the sectoral contribution to the GDP, will shrink from the current 41.5 per cent (2009) to 34.3 per cent (2013), as more agricultural produce is transformed from their primary state into processed products, with more value-added. Situation Analysis: The Agricultural sector remains weak despite the contribution to the GDP, which studies have shown is not induced by productivity efficiency gains, but rather by increase in hectrage under cultivation. The inefficient production system is characterized by poor input; weak inter-sectoral linkages; ageing operators and an informal production and marketing structure. Successive governments have made effort to address the major constraint to growth in the sector. The importance of the agricultural sector to national development cannot be over-emphasized. The sector is critical to the attainment of a major pillar of the nation's vision "optimizing the key sources of economic growth to increase productivity and competitiveness. The Agricultural sector remains strategic for national food security, employment generation, wealth creation and poverty reduction as over 65 per cent of the labour force is engaged in the sector.

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Recent Developments Various recent programmes that have been adopted to improve agriculture and rural development, include the Special Programme for Food Security (SPFS), the Fadama II Programme, the Fertilizer Revolving Fund (FRF), the Presidential Initiatives on Cassava, Rice, Vegetable Oil, Tree Crops and Livestock, the restructuring and recapitalization of the Nigerian Agricultural, Cooperative and Rural Development Bank (NACRDB). Other complementary policies and programmes implemented in the recent past include Value Added Tax Exemption for locally produced agricultural inputs such as fertilizer and simple fabricated machines. In order to strengthen agricultural production, market information and outlets, storage and processing facilities, among others, were established in 2004. Also, three agricultural development and marketing companies- the Tree Crops Development and Marketing Company, the Livestock Development and Marketing Company and the Arable Crops Development and Marketing Company -were established. To stimulate export promotion, an export subsidy of 10 per cent was introduced in 2003. The Central Bank of Nigeria (CBN) also adopted new strategies on credit delivery, the Trust Fund Model (TFM) which reduced the risks faced by banks in agricultural lending with adequate emphasis on production, processing and marketing. As a result of all these, the sector was able to make significant progress in recent times. For example, output of staples such as maize, millet, sorghum, cassava, rice, vegetable oil and yam has increased tremendously as a direct response to presidential initiatives in these areas. Specifically, annual production of cassava increased from 33 million metric tonnes in 1999 to 49.0 million metric tonnes in 2006 while output of rice increased from 3.3 million metric tonnes to 4.2 million metric tonnes during the same period. In order to curb post harvest losses and protect the gains of increased production, silo storage capacity across the country was increased to one million metric tonnes with the recent completion of four additional silo complexes. The presidential initiatives in other areas such as livestock production, fisheries, and economic trees are also helping to increase production significantly and create employment in these areas. However, despite the impressive performance, productivity in the sector has remained low when compared with global average. Over the last 20 years, value added per capita in agriculture has risen by less than one per cent annually, with resultant effect of rising food and raw materials import bills and declining levels of food self sufficiency. Nigeria presently spends about $3 billion annually on the importation of a few food commodities including rice, sugar, milk and fish, despite favorable agricultural and ecological climatic conditions. This has continued to undermine the needed expansion and growth in the agricultural resource based industries expected to absorb the high labour force and boost foreign exchange earnings. Sectoral plans and programmes have been designed to grow the agriculture sector at the rate of 10 per cent annually. Government is also investing heavily in several projects across the entire agricultural value chain, such as improving the availability and delivery of appropriate inputs, commercial agriculture development programme, enhancing storage facilities, creating an enabling environment that is conducive for high agricultural growth, promoting inter-sectoral linkages as well as promoting private sector involvement in agriculture.

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Nigeria Vision 2020 Table 9: Contribution of Agriculture to GDP (in Per cent)

Agriculture Manufacturing

1999 36.70 4.32

2000 35.8 4.24

2001 34.3 4.18

2002 43.8 3.79

2003 42.6 3.64

2004 40.9 3.68

2005 41.1 3.79

2006 41.7 3.91

2007 42.0 4.03

2008 42.1 4.14

2009 41.8 4.20

Source: National Bureau of Statistics

Issues and Challenges Low Productivity There is an inverse relationship between growth in the area of cultivated land and yields for virtually all crops. Crop yields in the country are lower than most other countries, both in food and cash crop and animal husbandry. A lot of factors are responsible for the low productivity in the sector. These include, ineffective extension and advisory services, low adoption of improved seeds, poor quality inputs and inefficient weak input distribution system, low levels of mechanization and irrigation facilities poor access to credit, poorly managed soil fertility profile aging farm population as a result of rural-urban migration by the youths, high drudgery (physical effort per output), unattractive environment and poor morale among farmers. Low Level of Private Sector Investment Organised private sector investment in agriculture, both in primary production as well as processing (value added), is currently low. Factors contributing to the low level of investment include; high risk of investment partly owing to policy inconsistency and partly due to the very nature of agriculture itself, low investor confidence in the sector, high production cost, insecurity of land tenure, inadequate institutional and infrastructural support (roads, national railway network, electricity, and storage facilities), inadequate access to the use of use of business credit, unfavourable business climate and high cost of doing business. Non Competitiveness As currently managed, the sector cannot profitably compete in the international markets. This non competitiveness can be attributed to several factors, including: high cost of marketing, high production cost structure, limited commodity processing to enhance shelf life, and transportation to trade points, high exchange rates, difficulty in accessing regional and global markets, domestic policy-related obstacles that discriminate against export and price competing products Weak Domestic Policies and Institutions Successive governments have formulated and implemented conflicting policies to support agricultural production, and, these policies have changed frequently with changes in political leadership. Instability in policy regime had constrained agricultural growth because it had prevented sustained commitment to a coherent, integrated agricultural development. The loose policy framework does not encourage stability in import-export of certain crucial items (either as a raw materials or finished products) such as textiles, vegetables oils, etc. Inadequate funding 54

Nigeria Vision 2020

Inadequate and untimely funding of agriculture by the public sector coupled with inefficient and/or ineffective application of such funds (budgetary or otherwise) also constitute bottlenecks to agricultural productivity and development. Land Ownership and Tenure Incentives to invest in agriculture are undermined by policies regarding land ownership and land tenure. The Land Use Act of 1978, vests proprietary rights to land in the State. User rights are granted to individuals through administrative systems rather than a market allocation system. Individual and public ownership of land are often implemented side-by-side, and rather than seek allocations from the local government, people acquire access by a variety of informal means. The Land Use Act does not recognize such informal land ownership contracts, hence most of these are not legally secured. This therefore constrains the expansion of agricultural farms and also serves as a disincentive to making long-term improvements on the land. Other challenges include: · · · · · · · · · · · Persistent drift of population from rural to urban areas, Weak linkage to agro-industrial sector resulting in wastages of surpluses, and low prices during harvest period; Poor research coordination and weak linkage between research and extension; Absence of soil test when determining what type of fertilizer to use; Persistent problems of access to credit particularly in the rural level; Ageing farming population and low return to investment which makes agriculture less attractive to youths; Continued reliance on rudimentary tools and cultural practices; Poor state of rural infrastructure, especially roads, resulting in increased costs of farming operations and transportation of produce; Problem of development of appropriate farm implement and poor technology transfer Weak marketing structure; Poor data for planning purposes arising from inadequate collaboration among the Ministries of Agriculture and Water Resources, National Bureau of Statistics, and other stakeholders.

POLICY THRUSTS Objectives, Targets and Strategy The strategic policy trusts are: · · · · Generation of national and social wealth, particularly in the rural communities through the creation of rural employment and infrastructure. Provide the right incentives for private investment inflow into the Sector Promote the use of certified and improved seeds of major important crops, fish fingerlings and seed stock. Reduce the present level of food import worth over US$3.3 billion per year by 50 per cent by 2013

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Nigeria Vision 2020

· · · · · · · · ·

Encourage the rehabilitation of all existing irrigation facilities to achieve an increase in the percentage of cultivable land from 1 per cent in 2010 to 10 per cent by 2013 Review and develop on agricultural land and water policy that will address the problems of soil fertility, water productivity, land and environmental degradation by 2011. Achieve an efficient and effectual agricultural extension delivery system. Achieve the adoption of improved varieties/species of seed and broad stock by 50 per cent of farmers by 2013 Distribute high yielding, disease resistance, fast growing varieties of cultivars of crops, Provide incentives for commercial seed and breeding companies to mass produce improved crops, livestock and fish seeds Promote special infrastructure such as dams, irrigation facilities, silos, extension services, rural roads, electricity, railway net work, etc. Ensure Efficient Exploitation and Utilisation of Agricultural Resources, Promote the use of Biotechnology, create a new generation of farmers, enhance the utilisation of appropriate technology (home grown) promote agricultural production, processing and marketing in order to sustain the sector along the entire value chain. Adopt Agricultural Information System (AIS) and wireless technology to enhance effective mapping and classification of efficient allocation to crops, livestock and fish production Intensive use of satellite imagery to predict weather and/or climatic changes that affect agricultural production Also the use of Natural River and/or stream flow, solar and wind to generate electricity to power agricultural equipment.

·

· ·

Strategies for achieving the goals The strategies will include: · Breeding and distributing high yielding disease resistant species of crops, livestock and fisheries, as well as establishing four additional species mandated Livestock Research Institute · Strengthening the research capacity of all agricultural Institutes as well as the newly established Agricultural Research Council of Nigeria (ARCN) · Strongly promote agricultural biotechnology to enhance seed (crop, livestock, and fishery) productivity, consistency in conformation, disease resistance. · Encourage states to develop projects and model rural community farm settlements adequately provided with essential infrastructure · Reinvigorate and adequately capitalize the Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) and improve its structure for credit access by small and medium scale farmers to access credit through the network of micro credit banks · Rehabilitate and complete existing irrigation projects, establish new ones and provide incentives for the development of new community based and privately initiated irrigation projects

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Nigeria Vision 2020

· ·

· · · · ·

·

Professionalize agriculture to attract youths and new graduates to agricultural production, processing and marketing Create a new generation of farmers by incorporating modern technology especially ICT (example: farmer information call service) and incentives (scholarships, grants, soft loans) to sustain agricultural growth through the entire value chain Promote the liming of acid soils and use of organic fertilizers to complement the widely used inorganic fertilizer to ensure higher yield/productivity Reviewed land ownership and certification Achieve an efficient agricultural extension system by increasing the Extension Agent to Farmer Ratio to 1:500 by 2013 Achieve adoption of improved technologies and varieties/species of seeds for crops, livestock and fishery by 50 per cent of farmers by 2013 Institute mechanisms to guarantee/stabilize farm produce prices through stimulating activities at the agricultural commodity exchange markets, establishing a Guaranteed Minimum Pricing (GMP) structure for key commodities, establishing an effective and responsive agricultural commodity buyer system and stimulating public-private partnership Increasing functional irrigated and cultivated land from 86,000 Ha to 400,000 Ha by 2013

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Nigeria Vision 2020

Sectoral Priority In the light of the policy thrusts listed above the following will be pursed in the medium term. Objectives: Secure Food and Feed Needs of the Nation Targets: · To achieve a 3-fold increase in domestic agricultural productivity by 2015 and 6-fold increase by 2020. · To transform the Nigerian agricultural production system to a substantially mechanized system by 2020. · Expand dairy production and milk yield from less than 2,000 kg to 5,000kg per cow per lactation by 2015. Strategies: · · · · Promote greater use of highly productive and disease resistant crops, livestock, poultry and fish strains, breeds and species. Significantly increase the yield of crops, livestock and fisheries through the use of hybrid seedlings and seed stock. Explore and exploit the genetic potentials of the local and exotic breeds of crops, livestock and fish through enhance research and development. Professionalize agriculture and promote educational and professional training incentives to encourage young people embrace agricultural production, processing, extension and marketing. Introduce production incentive to specific crops that will target import substitution and export promotion Promote modernization of the production systems for crops, livestock, poultry and fisheries including processing, transportation storage, preservation, packaging and marketing. Develop high yielding strains of local cattle and goats breeds for milk production through selection and crossing with world class diary breeds (e.g. Holstein-Friesian, Guernsey and Jersey). Expansion of existing food storage capacity. Significantly enhance agricultural practices and production through the use of space technology Promote the grate use of biotechnology tools in selection and breeding of crops, livestock, fisheries and forestry. Promote the use of green technology to ensure sustainable agricultural production, safe and clean environment. Achieve 20 per cent farm gate storage, 75 per cent commercial storage and 5 per cent strategic reserves by 2013. To achieve a fully digital green and bio technology driven agriculture by the year 2013.

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·

· · · · · ·

Initiatives · Launch program for increased production and use of certified improved seeds and all other planting materials including cultivars of economically important crops as well as fish fingerlings and seed stock of livestock species. 58

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·

·

Accelerate the formation of and strengthen the existing agricultural producers associations, organizations and cooperatives to ensure more efficient access to inputs and other agricultural services. Breed and distribute high yielding varieties/cultivars of economic important crop, along with improved breeds of livestock and fish to constitute 50 per cent of stock by 2002. Produce high yielding, disease resistant, fast growing varieties of cultivars of crops along with improved breeds of livestock and fish to constitute 50 per cent of stock by 2020 Provide incentives for commercial seed and breeding companies to mass produce improved crops, livestock and fish seeds and stocks for planting/rearing Promote the development and selection of elite foundation stock of crops, fisheries and livestock species and subject all local domestic livestock, poultry and fish breeds/species to trait group evaluation to facilitate selective breeding of desired traits of economic importance. Establish national livestock genetic exploration technology agency (LiveGETA) together with livestock breeding and multiplication centers (6 nos) under the ARCN. Create additional livestock research institutes to intensity and diversify the mandate of NAPRI Ensure charter of all agricultural sub-sectors to register and certify all professional practitioners to enhance better service provision in the Industry Establish modern farm villages across the nation to serve as model villages/communities for Research and Development. Facilitate acquisition of farmlands and title holdings towards agricultural production through Public Private Partnership (PPP) initiative. Expand and strengthen Food Technology department in tertiary institutions to train the manpower required in the food processing industry. Provide special infrastructure incentives to communities that are identified as high production centres. Provide post production incentives in various forms, through farmer and community based organizations to titled land areas. Promote appropriate mechanization at all levels of the value chain. Develop local capacity to fabricate, manufacture and maintain appropriate machineries across the value chain. Expand and strengthen the existing livestock improvement and breeding centres for the purpose of upgrading local breeds for diary production Promote establishment of dairy farms based on efficient and intensive mechanized systems in selected suitable sites through the provision of financial incentives for large scale dairying and /or Public Private Partnership (PPP) and commercial Agricultural Program (CAP) intervention. Establish, through PPP, medium scale dairy processing plants in suitable locations with high peri-urban cattle populations and ensure effective milk collection systems from the cattle farmers Expand Research and Development for improved rangeland and pasture species. 59

· · ·

· ·

·

·

·

·

· · · · · ·

·

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Nigeria Vision 2020

· · ·

·

Provide adequate incentives and continuing training for dairy farmers and processors Construct additional food storage facilities, silos and conditioning centres through PPP. Train farmers, meat handlers and warehouse keepers in proper harvesting, slaughter and storage techniques respectively in order to improve quality and shelf life of produce Expansion of the strategic food reserves of the nation. Ensure steady power supply to facilitate effective storage.

Objectives Provide appropriate meat and fish preservation facilities in appropriate locations as well as near fish landing ports and sales outlets through PPP Develop and /or adopt GIS and wireless technology to enhance effective land mapping and classification for efficient allocation to crops, livestock and fish production. Intensive use of satellite imagery and to predict weather and /or climate changes that affect agricultural production. Embark on a genome project to unravel the genetic architecture of indigenous species of crops, livestock and fish. Develop genetic techniques to introduce desired traits. Development of biofortification in foods for nutritional and medicinal purposes. Establish a policy that encourages the use of non food items for bio fuels Adopt the use of Natural River and /or stream flow, solar and wind to generate electricity to power agricultural equipment such as irrigation pumps etc. Promote the use of organic farming for sustainable soil fertility and productivity for higher income and safe environment.

· · · · · · · · ·

Objectives: Enhanced generation of National and Social Wealth through greater Exports and Imports substitution. Targets · To derive over 50 per cent of the nations foreign exchange earnings through agroindustrial exports by 2013. · To reduce the present level of food import (worth over $3 billion per annum) by 50 per cent in 2015 and by 90 per cent in 2020 Strategies: · Significantly increase agro-industrial exports through enhancement of quality, local value addition and creation enabling environment. · Expand domestic capacity to process agricultural produce into raw materials for industrial use. · Aggressively pursue import substitution to reduce import of raw materials and food through import tariffs and tax holidays for local industries to thrive · Foster domestic processing of locally produced agricultural products (e.g. chocolate, juice, rice, egg, powered milk etc) Initiatives: · Expand export products handling, preservation and conditioning centres to meet International standards. ·

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Nigeria Vision 2020

· · · · · · · · · · · · ·

Develop export market information system to ensure that farmers are exposed to and benefit from international commodity market. Review trade related protocols sighed by Nigeria to ensure that the national interest is primarily served. Increase export incentives to enhance international competitiveness of Nigeria s' agricultural export commodities. Encourage and provide incentives to existing and new small and medium scale enterprise to add value along the value chain. Develop modern technologies and facilities for primary storage and processing of agricultural produce. Conduct training programs on the use of modern techniques and trends in processing agricultural products into raw materials with the active participation of the private sector. Review import levies and local subsidy on food agricultural raw materials. Partner with the private sector in the promotion of agro Industrial raw materials development and export. Provide enabling infrastructure through PPP and ensure profitability of agriculture business and establish a clear exist strategy for government involvement. Develop a PPP agricultural loan delivery scheme specifically targeted at Agro ­ Industries. Maintain zero tariffs on imported agro-processing machineries in the short and medium terms Provide tax holidays, pioneer status and other incentives to create enabling environment for the establishment of agro-processing industries. Institute and ensure adoption of International quality standard and industry best practices in the operation of the agro-processing industry.

Objectives: · Enhance Capacity for value addition leading to Industrialization and employment opportunities Targets: · To reduce the post harvest loss of agricultural produce by an average of 50 per cent in 2015 and 90 per cent in 2020. Strategies: · Improve harvesting and processing techniques of agricultural produce. · Promote establishment of agro processing parks through PPP arrangement in each agro-ecological zone · Strengthen agricultural commodity marketing through the creation of enabling marketing structures. Initiatives: · Sponsor enlightenment campaign on best practices in the harvesting/slaughter and handling of crops, livestock and fishery products · Promote establishment of cottage industries for value addition to agricultural produce · Create entrepreneurial opportunities in food processing through capacity building and soft loan provision · Rehabilitate existing agro-processing centres and establish new ones through PPP in all agro-ecological zones.

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· · ·

Strengthen capacity building institutions to meet the skill requirements of the expanding small and medium scale agro-processing industries Strengthen and harmonize regulatory mechanism towards ensuring Good Manufacturing Practices (GMP) and quality control Establish standards and operation procedures for crops, livestock and fisheries markets as well as ensure compliance Strengthen and establish effective domestic markets and export promotion centres. Improve on the existing marketing system including market information system of agricultural produce at all tier of government. Promote strategic investments in the development and maintenance of market infrastructure and related facilities through PPP.

· · ·

Objectives · Efficient Exploitation and Utilization of available Agricultural resources Targets: · Increase the size of irrigated land from current 1 per cent of cultivable land by 2015 and to 25 per cent by 2020. · Review and further develop an agricultural land and water policy that will address the problems of soil fertility, water productivity, land and environmental degradation by 2010. · Increase area of land planted with diversified biomass including economic species in agro forestry program from current 35 to 10 per cent in 2015 and to 20 per cent by 2020 Strategies: · Shift from dependence on rain fed crop production through significant utilization of irrigation · Ensure sustainable soil fertility, water management and productivity · Aggressive pursuit of afforestation, re- afforestation and erosion control programs Initiatives: · Intensify feasibility studies to identify and develop areas suitable for irrigation agriculture across the country. · Provide incentives by the way of loans and subsidies and infrastructural development for the development of community based and large scale irrigation projects and programs. · Rehabilitate and complete existing irrigation projects across nation. · Review and update existing policies on soil and water conservation and productivity and institute soil remediation practices (including liming) as required. · Promote and develop commercial organic farming as an integral part of good soil fertility management. · Develop and promote environment friendly utilization of inland and marine water resources · Promote planting of fast growing, drought and disease resistant tree species adapted to different ecological zones · Enforcement of laws to protect forests and grazing reserves. · Complete the establishment of gazette forest and grazing reserves by 2015. · Promote the use to alternative energy for cooking. · Introduce and promote the use of energy efficient technologies for home use

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Nigeria Vision 2020

Objectives: · Enhance the development and dissemination of appropriate and efficient technologies for rapid adoption Targets: · Achieve an efficient agricultural extension delivery system which includes extension worker, farmer ratio of 1:500 by 2020. · Achieve the adoption of improved varieties/species of seed and brood stock by 50 per cent of the farmers by 2015 and 75 per cent by 2020 Strategies: · Strengthen the agricultural extension system through adequate capacity building. · Expand and accelerate knowledge-driven farming systems · Achieve a high degree of public private partnership thrust in agricultural research and development by 2020 · Accelerate the adoption of high yielding seed varieties and brood stock (Produced under 01.G1.S2.1b) Initiatives · Reform and diversify existing extension system with emphasis on livestock, fisheries, agro-forestry and home economics. · Articulate and coordinate the specific roles to be played by the Federal, States, Local Governments and Private sector in extension delivery · Train extension personnel in key competences-interpersonal and communication skills, knowledge, planning, entrepreneurial skills, M &E and ethical competences · Emphasize research to serve agricultural practitioners and other stakeholders in the entire value chain. · Promote farmer education and provide training incentives to encourage young people into agricultural production, processing and marketing. · Establish farmer information call service (weather forecast/report etc) using the GSM and wireless technology. · Establish forum for regular interaction of public and private sectors on agricultural research and development. · Rehabilitate and further develop new farm service centres in collaboration with the private sector. · Organize agricultural shows and exhibitions to demonstrate new innovation and link farmers to market and industry. · Develop mechanisms to involve stakeholders in determining the priorities for research in varietal/breed improvement and extension. · Strengthen producers, processors, marketers and consumer associations to access and distribute improved varieties and brood stock for greater productivity and profitability. · Promote adoption of improved varieties and brood stock to strengthen and expand programs for women and youth development

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Nigeria Vision 2020

PROGRAMMES AND PROJECTS The following are the priority projects and programmes for the sector: LIVESTOCK The over-aching programme and effectively control and manage vectors of animal diseases and migratory pest as well as encourage private sector participation in all aspects of livestock production, processing and marketing. The major programmes including the following key sub programmes of livestock development: · intensification and diversification of research in livestock; · breeding to ensure availability of improved seed stock; · dairy development; · development of youth livestock farms; · grazing reserve development; · ensure improved animal and public health; · pest control services and development of the value chain and overall quality control. During the plan period, the focus of the subsector will be on: · Establishment of 50 gazetted grazing reserves · Establishment of 6000 km stock routes · Establishment of 12 livestock breeding and multiplication centres as well as a hatchery in each of the geo-political zone · Promotion of national animal disease control programme · Establishment of Abattoirs in all of the 36 states and FCT (under a Private-Public Partnership Programme). It is expected that the programmes will be driven mainly by the private sector, while Government at all levels will provide the enabling operating environment. The expected outcomes include: · · · · · Reduction in the incidence of major animal diseases Increase in production of Livestock products Reduction in pest infestation Increase in livestock exports and trade Increase in wholesome livestock and dairy products.

In order to guarantee the continued growth of the sub-sector, a total sum of N105 billion will be earmarked for the sub sector during the plan period. Table 11: Livestock population estmates

CODES 1 2 3 Cattle Pigs Sheep 2000 15202357 5047633 28020149 2001 15334618 5249538 28692632 2002 15468029 5459520 29381256 2003 15602601 5677901 30086406 2004 15738343 5905017 30808479 2005 15875267 6141217 31547883 2006 16013382 6386866 32305032 2007 16152698 6642341 33080353 2008 16293226 6908034 33874281

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4 5 Goats Poultry 44156517 118063699 45260430 123966884 46391940 130165228 47551739 136673490 48740532 143507164 49959046 150682522 51208022 154216648 52488222 166127481 53800428 174433855

Source:

Estimates are based on livestock census.

CROPS SUB SECTOR The average annual growth rate of 8 per cent (2006-2008) recorded in the agricultural sector was propelled largely by crop production. Accordingly Government is determined during the medium term to increase the current level of production and productivity of the crop sub sector through strategies such as adoption of improved agriculture technology, price stabilization mechanism, improved irrigation scheme and efficient extension schemes. The core programmes and projects include: · Implementation of agriculture cadastre programme in all the 36 states and FCT. This is with a view to developing a rich data base for agriculture farm land. This will assist farmers to use their farm land as collateral for farm credit. · Clearing of 240,000 ha of land (2010-2013) in collaboration with the 36 states and FCT will be vigorously pursued. · Production of 62,500 MT of certified seeds and 27.5 MT breeder seeds, 508 MT foundation seed and establishment of Agric Seeds Centres in the 36 states and FCT are to be implemented. The programme is aimed at increasing farmers' productivity and farm income through the use of improved seeds of high yielding varieties. · Construction and completion of ongoing silos to increase the number of silos, which are aimed at increasing the number of silos to 44 from the current with storage capacity of 3 million MT. · Implementation of the programmes of community warehousing, which is aimed at achieving 700,000mt storage to store excess farm harvest. · Generation and rehabilitation of old and moribund cocoa and Oil Palm plantations and planting of new farms to increase production sustainability and quality. Establishment of 12 Agro Export Conditioning Centres (2 centres per geo-political zone). These programmes are aimed towards adding value to agricultural produce and linking them to both domestic and international markets. Similarly, some crops such as rice, palm oil, cotton, cassava, wheat, cocoa, sesame tomato and groundnut have been identified for support and development along the value chain with a view to generating foreign exchange and employment. Key projects to be implemented by the industry sector, in line with the value chain, include establishment of 181 large scale rice processing mills through Public Private Partnership programme to raise rice production from 49 million MT to 100 million MT by 2013, establishment of 200,000 cassava processing factories in the 36 states and FCT under PrivatePublic partnership in order to raise current level of cassava production. ·

Table 12: Crop Production for Selected Crops (`000 metric tons) S/N 1 CROPS Cassava 1999 29,9 2000 29,6 2001 27,7 2002 28,8 65 2003 30,3 2004 33,3 2005 35,8 2006 38,0 2007 39,1 2008 33,2

Nigeria Vision 2020

S/N 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

CROPS Tuber Cocoyam Cotton Yam Tuber Groundnut (unshelled) Cowpea Maize Sorghum Millet Rice Paddy Melon (unshelled) Wheat Sweet potato Irish Potato Soya Beans Bambara Nut Beni seed Onion Tomatoes Pepper Fresh Sugar Cane Ginger Garden Egg Garlic

1999 1,6 490 23,7 2,4 1,8 5,5 5,7 4,9 2,9 249 34 1,1 466 313 128 92 436 1,0 813 4,1 196 430 80

2000 1,6 394 25,6 2,4 1,5 6,0 5,5 4,3 3,3 283 41 1,1 492 348 160 91 593 1,2 865 4,6 196 456 80

2001 1,7 389 24,6 2,2 1,5 4,7 4,9 4,1 3,1 232 41 1,0 556 330 166 93 617 1,2 862 4,9 200 431 80

2002 1,8 354 28,3 2,5 1,4 5,5 4,6 3,7 2,8 280 42 1,1 587 335 176 89 633 1,2 901 5,0 221 469 80

2003 1,9 229 23,4 2,4 1,4 5,6 5,0 4,1 2,7 331 46 1,1 665 341 164 91 659 1,3 946 5,1 222 492 80

2004 2,4 536 26,6 3,3 4,3 9,4 9,9 6,9 3,7 479 44 1,2 700 403 169 91 1,1 1,8 1,0 5,2 246 509 79

2005 2,0 377 32,3 3,4 4,7 7,4 6,5 5,7 2,7 443 53 1,4 1,0 496 158 100 1,1 2,0 1,4 5,2 250 519 89

2006 2,2 516 28,2 3,0 3,7 7,0 6,4 5,9 3,3 372 51 1,5 1,1 484 162 105 1,1 2,0 1,4 5,2 272 549 89

2007 2,8 6,4 26,7 2,8 1,9 5,8 5,4 4,3 3,5 366 31 1,7 1,1 437 156 92 1,2 1,7 1,3 5,3 261 462 91

2008 2,8 4,4 27,2 2,8 2,1 9,1 5,2 4,3 3,3 378 37 2,3 2,0 469 158 131 1,3 1,8 1,6 5,5 372 454 109

Source: National Bureau of Statistics DAMS, RIVER BASINS AND IRRIGATION SCHEMES Dams and irrigation schemes are strategic for increased productivity by encouraging a shift from seasonal to all year farming. Irrigation and dams are necessary conditions for the enhancement of income, food security and reduction in poverty and for creative of safety nets. Consequently Government during the plan period will ensure that all existing dams and irrigation facilities are exploited and managed through Public­Private Partnership. The River Basin Authorities are to be restructured and managed in a more efficient manner with a view to making them centres for improved seed for crops, livestock and fishery multiplication, for the construction and maintenance (not management) of dams and primary channels, promotion of a strong extension system for the States of cover and more importantly for the farms in their irrigated lands. They will also be adequately funded to provide processing facilities for the major crops and livestock of the RBDAs farm system; provision of potable water supply, roads and basic infrastructure for rural communities to facilitate access and product evacuation as well as to improve the 66

Nigeria Vision 2020

environment to attract young farmers to the rural areas. The sum of N350billion is tentatively earmarked for river Dam River Basins and irrigation schemes. Fishery The priority of Government during the plan period is to achieve increased domestic fish production from all sources on a sustainable and renewable basis to the level of self sufficiency and fish export in the medium and long term. Government is set to pursue a deliberate policy of increasing production of fish and fisheries products by 25 per cent annually. By 2013, it is projected that the current production of about 700,000 MT will increase to about 3 million MT. Key priority projects in the sub sector during the plan period include establishment of 120 fish farm estates across various geo-political zones expected to increase fish output by 300 per cent; Inland Fisheries Development, Construction of Ornamental Fish Development Centres, Fish Seed and Feed Certification and Standardization, shrimp farm development, establishment of feed mills and fish resources monitoring. Local fish seed production is expected to increase from current 5million to about 4billion annually. The sum of N25 billion is earmarked for the programme between 2010 and 2013. Research and Development The plan will focus on the intensification of applied research; the strengthening of the Agricultural Research Council of Nigeria (ARCN), the establishment and equipment of additional Research Institutes including the unbundling of the National Animal Production Research Institute (NAPRI) into a Beef and Dairy Cattle Research Institute to be located at Shika ­ Zaria with outstations in Sokoto, Jalingo, Umuahia, Maiduguri, Ilorin and Ebonyi (for Muturu sp.), a National Swine Research Institute, Makurdi, Benue State with outstations in Asaba, Ogbomosho and Awka; a National Poultry Research Institute, Enugu with outstations in Lokoja, Ado Ekiti and Minna; National Pasture/ Forage Research Institute, Yola, Adamawa State with outstations in Birnin-Kebbi, Shika, Abakaliki. Furthermore, the plan will involve the establishment of specialized centres and laboratories for crops, livestock and fisheries agricultural biotechnology research for the focused and intensified production of high yielding, consistently conformational and disease-resistant species of crops, livestock and fishery with due consideration given to all ethical concerns. Extension and Professionalization of Agriculture Key priority projects during the plan period include training of 10,000 youths annually nationwide as private sector extension workers to 2013. Also agriculture should be professionalized to attract youths and new graduates to agricultural production, processing and marketing; create a new generation of farmers by incorporating modern technology especially ICT (example: farmer information call service) and incentives (scholarships, grants, soft loans) to sustain agricultural growth through the entire value chain. Also, government will establish a framework to strengthen the research and extension linkages. Federal Universities of Agriculture in each of the former regions shall be mandated to certify technologies for the former region as well as provide sustained training and certificate all extension personnel in agriculture in their former region of location. A total sum of N15billion is allocated for the key project.

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Priority Projects

Table 13: Agriculture and Water Resources priority projects

S/N Project

Commercial Agriculture Development Project aimed at developing major crops, Livestock and fisheries along the entire value 2 Construction, completion and rehabilitation of Silos and Warehousing 3 Research and Development including equipping of existing institutes for research in Agricultural Biotechnology 4 Completion and Rehabilitation of existing Irrigation schemes and Dams 5 Restructuring of Agricultural Commodity Marketing Companies

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Agrculture and Water Resources Table 14: Summary of Investrment Plan 2010 - 2013)

Thematic Area - Productive Sector Agriculture Costs in N'm Priority Projects 2010 S/N Commercial Agriculture Development Project aimed at developing major crops, Livestock and fisheries along the entire value chain Construction, completion and rehabilitation of Silos and Warehousing Research and Development including equipping of existing institutes for research in Agricultural Biotechnology Completion and Rehabilitation of existing Irrigation schemes and Dams Restructuring of Agricultural Commodity Marketing Companies Agriculture & Water Resources Projects 6 *Others (Counterpart Funds) 7 Non Priority Projects 8 69 29,304.68 34,056.79 35,640.83 99,002.30 52,323.00 27,825.00 13,886.00 94,034.00 149,900.75 31,980.54 34,752.45 47,957.63 114,690.62 2011 2012 2013 Total

1 2

5,949.66

8,725.41

13,111.53

27,786.60

3 4 5

29,748.32

34,901.64

16,389.41

81,039.37

39,516.11 9,916.11

43,125.41 17,450.82

52,389.41 16,389.41

135,030.92 43,756.33

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149,900.75

198,738.42

200,837.52

195,764.21

595,340.15

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Conclusion In order to grow the agricultural sector and improve productivity and competitiveness, full implementation of the policies, strategies and targets are recommended in the medium term. Agricultural policies, goals and strategies shall endure and outlive every government. Most importantly, the binding constraints and the identified flagship projects are critical. Private sector involvement, particularly in irrigation, seed distribution as well as processing segments should be strengthened to achieve the desired impact of the sector. Research and Development should be driven force in the entire value chain.

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Chapter 7:

INTRODUCTION

Oil and Gas

The proposed public sector investment in the Oil and Gas down stream and up-stream activities under the productive sector is approximately N571.163 billion. The annual breakdown is presented at the end of the chapter. In terms of strategic context, the Oil and Gas sector remains very strategic to the sustenance of rapid economic growth and development in Nigeria. This is because the sector accounts for over 95 per cent of Nigeria's total foreign earnings and 85 per cent of total government revenue, resulting in the nation's near total dependence on oil and gas revenue. However, the impact of the sector on employment generation, value addition and diversification of other sectors of the economy has remained comparatively low. Its relative current contribution to the country's GDP in real terms remains abysmally low at 17 per cent as at end-December 2009. Nigerians are yet to maximize the benefits of the nation's hydrocarbon resources. This is evident from the unpredictable supply and high cost of refined petroleum products in the country, often resulting in incessant long queues in the petrol stations. The lack lustre performance of the sector is attributable to a myriad of constraints which include high level of foreign content, focus on export of unprocessed crude and low refining capacity. For instance, the four refineries in the country have a combined production output of 18 million litres per day operating at full installed capacity. This is insufficient to meet the daily local demand of 30 million litres of refined product per day. Despite these challenges, the sector has a lot of opportunities to stimulate rapid economic growth and development during the medium term implementation period. Accordingly, the medium term programme for the oil & gas sector will be to stimulate investments in both the upstream and downstream by encouraging local and foreign investment in new refineries and increasing local value addition to promote the utilization of local resources (materials and human). In addition, oil exports will be diversified to include exportation of refined products globally. In pursuit of the NV 20: 2020 aspiration, the medium term focus will be on increasing crude oil refining capacity, increase the nation's oil & gas reserves and diversification of exports to include refined petroleum products and other directives from oil and gas. The thrust during the plan period will be on creation of an oil and gas sector that will be the engine of sustainable social, economic and industrial growth. Towards achieving the goal of increasing the nation's crude oil and gas production (increase proven oil reserve from 37.8billion in 2009 to 40 billion barrels by end 2010 and to 45 billion barrels by 2013; and proven gas reserve from 187tcf in 2010 to 215tcf by 2013), a deliberate attempt will be made to attract investment into prospecting and developing new oil and gas fields. Efforts will be geared towards the establishment of integrated refineries and increasing the capacity of existing ones; increase the exploration and production of Oil and Gas in all parts of the country and stimulate the growth of the Petrochemicals industry. Additionally, a renewed effort will be made to ensure that the investments in the oil and gas sector have a trickle- down effect on the nation's economy and the citizenry. This will be done by re-invigorating the local content initiative in the sector. The starting point will be to ensure that the Local Content Bill and the Petroleum Industry Bill are passed into law.

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Situation Analysis The oil and gas sector has continuously dictated the pace and structure of growth of the Nigeria economy for the past three decades. The huge oil and gas resource base, which currently stands at about 38 billion barrels of proven oil reserves and 187 trillion cubic feet of gas, has positioned the country as one of the key players in the global energy supply. Nigeria is the 10th largest oil producer in the world and the 7th in proven gas reserve with potential to grow to 600 TCF. Currently the Oil and gas sector accounts for approximately 16.05 per cent of Gross Domestic Product, (GDP) in 2009, 95 per cent of total foreign exchange earnings and 85 per cent of total government revenue resulting in near total dependence on oil and gas revenue for national development. For the first time in seven years (2003- 2010), Nigeria's crude production rose to 2.5 million barrels per day (bpd) in February 2010. The increase was largely attributed to the amnesty of the Federal Government that has restored relative peace in the oil producing Niger Delta Region. Oil production had dropped to the lowest level of 1.7million barrels per day in the heat of repeated militant attacks on oil and gas facilities in the Niger Delta region. The gas sector equally is experiencing a high demand underpinned by growth of diverse demand. The sector is re-positioning Nigeria from being among the top gas flaring countries in the world to being the most aggressive in gas utilization growth. Robust growth in the last five years has delivered a rich Gas sector portfolio that should generate significant income for the country in the future as well as fuel for the continuous growth of the economy. Demand is forecast to grow from about 5 billion cubic feet per day in 2009, 12 billion in 2010 to over 20 billion cubic feet per day by 2013. The gas sector is experiencing a major expansion in utilisation opportunities as evident from the figures. 1 and 2 below.

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Figure 3:Shows the actual and projected price and demand for gas from 1979 to 2015

Two key factors underpin the gas demand growth:

· ·

sustained rising gas prices in Western (US and Europe) and Pacific markets; and Unprecedented Power sector growth in Nigeria arising from government reforms. The gas sector has been positioned to sustain this level of demand to achieve its goals.

Currently, there is a robust portfolio of projects planned as outlined in the annexure to grow oil exploration and refining capacity. The Federal Government's transparent and competitive bidding rounds for oil blocks licencing are used to strategically link developments in the upstream and downstream sectors. Government also made it mandatory for all operators in the sector to attain 35 per cent local content vis-à-vis 15 per cent that hitherto prevailed. This is expected to rise to 70 per cent by 2013 as is the case of Petrobas, the Brazilian Oil Corporation. Deregulation, privatization and general institutional reforms which are still ongoing have resulted in large inflow of investment. Refineries and petrochemical plants are being privatized while approval has been granted for establishing new ones by the private sector. There is also the transformation process of the Nigeria National Petroleum Corporation (NNPC) to a world-class National Oil Company with the capability to compete and fund Oil and Gas projects like other oil producing countries. The average crude oil price grew steadily from less than $40/bbl in 1988 to $140/bbl in mid 2008 and thereafter, crashed to $45/bbl by October 2008. In recent times, the price of Nigeria crude stood at $83.54 per barrel. Similarly, natural gas which traded traditionally at about $2/mmbtu in the Henry Hub a few years ago, peaked at 74

Nigeria Vision 2020

about $14/mmbtu a few months back and currently hovers between $6-8/mmbtu. Despite the gas potential, the level of gas penetration and utilization in the country for both domestic and industrial purposes is relatively low. For years, most of the associated gas produced was flared and the initiatives implemented to reduce gas flaring have not yielded the required results. Various flare out dates were set but as these dates approached various reasons were adduced for a deferral. It is therefore ironic that despite the country's large gas reserves and gas flares, domestic gas demand, especially for the power and manufacturing sectors are not being met. Also, there is lack of infrastructure to allow the easy movement of gas from the Niger Delta to the consumers. The existing gas pricing mechanism has also not enabled investments. Due to lack of a gas infrastructure, 75 per cent of associated gas is flared and 12 per cent is reinjected into the earth. Nigeria has set a target of zero flare 2012 by and is providing incentives for the production and use of gas. The government also plans to raise earnings from natural gas exports to 50 per cent of oil revenues by 2012. Nigeria's downstream oil industry is also a key sector including four refineries with a nameplate capacity of 438,750 bbl/d. Problems such as fire, sabotage, poor management, lack of turnaround maintenance and corruption have meant that the refineries often operate at 40 per cent of full capacity, or less. This has resulted in shortages of refined petroleum product and the need to increase imports to meet domestic demand. Nigeria has a robust petrochemicals industry based on its substantial refining capacity and natural gas resources. The petrochemical industry is located around the three refineries at Kaduna, Warri and Eleme. Crude Oil Exports In 2009, Nigeria exported approximately 1.9 mob/d of its 2.17 million bbl/d of oil production. Of this, about 44 per cent was exported to the United States, making Nigeria the 5th largest foreign oil supplier to the United States. The light, sweet quality of Nigerian crude makes it a preferred gasoline feedstock. Consequently, disruptions to Nigerian oil production impacts trading patterns and refinery operations in North America and affects world oil market prices. Crude Oil Refining In the downstream oil sub-sector, Nigeria has four refineries with a combined installed capacity of 445,000 barrels per day (bpd). At optimum capacity, the output of the refineries will be 18million liters daily. The combined capacity of these four refineries is insufficient to satisfy the domestic consumption of refined products, which is largely premium motor spirit (PMS), estimated at 30 million liters daily. The refineries are currently operating far below their installed capacities due to inadequate funding for their routine maintenance and sabotage of oil facilities by militants. The demand shortfall for petroleum products is therefore met through importation.

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Table 15: Below shows the installed capacities of the four (4) refineries in Nigeria.

S/N 1. 2. 3. 4.

Refinery Port Harcourt Refinery (1) Warri Refinery Kaduna Refinery Port Harcourt Refinery (2)

Installed Capacity (bpd) 35,000 100,000 100,000 150,000

Year Commissioned 1965 1978 1980 1989

Expanded Capacity (bpd) 60,000 125,000 110,000 -

Year Expanded

1986 1986 -

Nigeria's downstream distribution facilities include 22 storage depots, 5,120 km pipeline network, 24 Pump Stations, nine (9) butanization depots with a total combined capacity of 12,000 MT, over 40 private depots, five NNPC jetties and a number of private jetties. The distribution of refined products in Nigeria is carried out through more than 7,000 retail stations. The retail system and the transportation facilities that bring the products to these outlets are managed by the Pipelines and Products Marketing Company (PPMC). The storage and distribution depots are linked to the refineries and port terminals by a network of pipelines. Product distribution is also done by tanker service, which has been the focus of theft and diversion of shipments. The Oil and Gas sector Implementation Bill (OGIC), which envisioned a dramatic reform of the industry is now before the National Assembly, and when it eventually becomes law, the institutional reforms will ensure that Nigeria derives added value from the Oil and gas given the fact that institution like NNPC would be strengthened and empowered to operate as purely commercial ventures. NNPC management in the last one year has continued to take measures that would assist in optimizing Government take from crude oil sales, through improved pricing mechanism as a new premise for calculating Petroleum Profit Tax (PPT). In this regard, rigorous analytical measures are being taken in preparation of the monthly official Selling Price (OSP) of the various Nigeria crude Oil grades as well as calculation of realizable Prices (RPs). A Petroleum Industry Bill was drafted, as an all-encompassing legislation to regulate major aspects of the Nigerian petroleum industry. The Petroleum industry bill has passed through the second reading in the National Assembly and it is expected to be passed into law by the end of 2010. The Local Content Bill has been signed by the President and appropriate institutional framework put in place with the creation of Local Content Commission, However, advocacy and awareness creation will be sustained to ensure the success of the policy. In the downstream sub-sector, there will be increased drive for investments in integrated petrochemical industries based on gas feedstock through private sector initiatives. A major policy thrust for the current administration is the conclusion of the liberalization and privatization programme of the downstream sub-sector to ensure regular supply and distribution of petroleum products. There will be expansion of downstream programmes that will pave way for petroleum product exports, while the hedging of the national economy against volatility in the crude oil market and OPEC quota will continue. Furthermore, a policy objective centered on Nigeria emerging as the regional hub for oil and gas activities in the African sub-region will be pursued.

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Nigeria Vision 2020

Figure 4: Unleashing the Nigerian Oil and Gas Industry :

Unleashing the Nigeria Oil and Gas Industry for growth and added revenue generation to the benefit of Nigeria and international investors requires a focused solution to key developmental Nigeria challenges. Consequently, Government's strategy for the Oil and Gas Industry will be underpinned by the following:

· · ·

Creating an enabling environment in the Niger Delta; Realizing Realizing economic benefits to Nigeria through greater linkages; and Structural solution to the issues of the Oil and Gas Industry with respect to funding, enabling policies and an efficient NNPC/DPR structure.

Creating an Enabling Environment in the Niger Delta It is evident that Nigeria will not realize the economic benefits the Oil and Gas Industry portends if it does not quickly find solutions to the Niger Delta issue. Specific problems the Petroleum Industry faces in the Niger Delta can be summarized as follows: as

· ·

Absence of law and order and related lack of security; Inadequate infrastructure (basic infrastructure as well key developmental infrastructure);

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Nigeria Vision 2020 · ·

Low literacy levels due to poor/limited education system, resulting in inadequate capability of the work-force to service/support the local oil industry; and Extremely high unemployment levels as well as limited income generating opportunities across a diverse range of working and skilled groups.

The agitation of the Niger Delta communities is spurred on by the desire to have solutions to all these monumental problems as soon as possible and in the belief that it is within their just right to achieve their goals by any means. Oil and Gas Industry ­ Links and Economic Impact The Oil & Gas Industry has failed to catalyse the rapid growth of our industries and related businesses. To reverse this undesirable trend, the Federal Government will drive the realization of the goals in each of the following five initiatives to the benefit of the country: Nigeria Content Development (Achieving Local Content) The Federal Government of Nigeria (NNPC) has a Nigeria Content Policy to ensure that investments made in the Oil & Gas Industry have a significant trickle down effect on the Nigerian economy, and has set local content target of 70 per cent by 2010. The overall objective of the policy is to create an economic engine for growth, driving employment, wealth creation and improved linkage between the Oil and Gas Industry and other sectors of the Nigerian economy. This policy needs to be pursued vigorously with emphasis on utilizing Nigerian (i) Human resources, (ii) Material resources and (c) Local Services. Technology Drive The Oil and Gas Industry is dependent on new innovations and technology to enable it open up new frontier oil and gas fields, optimize and introduce new efficiencies on how it discovers, develops and operates it's assets and ultimately create value for it's shareholders. Most of these technologies are imported into Nigeria for implementation. The industry represents an opportunity for Nigeria to grow its technology development capabilities. Hence, key technologies that are pertinent to the growth of the Oil and Gas Industry need to be identified and tripartite partnerships created with International Technology Centres (Oil Company Research Centres/Universities), Nigerian Universities and Local Enterprises/Companies that will be the implementation vehicles for these technologies.

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Nigeria Vision 2020

Figure 5: Oil and Gas Companies

The Oil and Gas Companies and the related Service Companies through their Projects and Operations directly employ in the range of 25,000 and 50,000 personnel and spend between $12 - $15 billion. However, if forward and backward linkages are established with other business sectors as shown in the diagram above, it will have significant benefits in the following areas:

· · · · · ·

Potentially a 10 ­ 100 fold increase in direct and indirect employment generation in the Industry; Growth in the employment opportunities in the manufacturing and service sector; Significant proportion of the $12 - $15 billion retained in the Nigerian economy; Significant revenue generation for FGN through taxes; Increased capacity utilization in the manufacturing and service sectors; and Increased business efficiency across all sectors.

Capacity Building/ Manpower Planning The rapid development in the oil and gas sector in the last few years has led to acute shortage of skilled manpower. Capacity building during the plan period will focus on developing the skills of the technician, engineering, support and general services, management and executive level to appropriately support the requirements of the industry. This is essential if we are to have an 79

Nigeria Vision 2020

industry that is successfully run and managed by Nigerians and the appropriate amount of expatriates. Therefore, capacity building should focus on the following areas:

· · ·

Focused development of Technical Training Institutes (such as the Nigeria Institute of Welding and the range of Polytechnics and Technical Institutes in the country); Update the curricula and quality of the Engineering and Geosciences departments of the Universities; and Upgrade of the Petroleum Training Institute into a top capacity building institute in support of the resource requirements of the industry.

Adequate Funding of the Oil & Gas Industry The Oil and Gas Industry requires up to $15 billion per year to execute projects that will deliver 4.5 million barrels of Oil per day by 2010 and over 4 billion standard cubic feet of gas per day by 2012. As mentioned earlier, the FGN is expected to provide its share of this investment, which is about $8 billion. Currently the Joint Ventures and other related Oil & Gas Ventures are funded from the following sources:

· · · · ·

Government funding of it's equity share from appropriated funds from the FGN budget; Project Finance through Bank/Finance Institution; International Oil Company Partner Financing concepts (called Alternative Funding); Short Term Corporate Loan for venture partners of banks; and Minor equity sell-down to raise capital for major projects

However, a structural and permanent funding solution is required to adequately fund the growth of the business. The FGN will intensify effort to address the following:

· · · · ·

Incorporation of JVs; Commercialisation of NNPC; Conversion of the JV/MOU business to PSC; Structural Partner Financing solutions; and Third Party Financing solutions.

Utilisation of the Gas to fuel the Nigerian Economic Growth The huge gas resources in Nigeria will play a major role in fuelling the economic growth of the country. A Gas Utilisation Master Plan will be required to give focus to how Nigeria realizes the true potentials of this huge gas resource to the benefit of the economy in terms of revenue generation as well as associated economic enablers/benefits. The Plan will define the investment requirements, the sequence of activities and the role of respective stakeholders (both in government and the private partners). Gas provides the opportunities to satisfy:

·

Energy requirements; o Gas to Power (Electricity) o Gas to Liquids o Gas as a fuel (Liquified Petroleum Gas (LPG)/Compressed Natural Gas (CNG)) 80

Nigeria Vision 2020 ·

Feedstock into our Petrochemical Industries o Fertiliser o Plastic

The majority of the gas resources are in the Niger Delta. Gas has to be delivered across the country if Nigeria is to achieve the balanced economic growth across the country. Infrastructure Development Marketing Infrastructure In view of the proposed increase in refining capacity during the plan period, a large investment would be required for creating marketing and associated infrastructure such as ports, storage, pipelines and terminals. Servicing of E&P Activities E&P service providers play a key role in enabling success for E&P operators. the accelerated growth of E&P activities has led to multi-fold growth in demand of technology and oilfield services worldwide. Therefore availability of services in Nigeria is becoming constrained and expensive. Hence there is a need to facilitate their growth. . Key Issues And Challenges The major challenges that have continued to undermine development aspirations in the Oil and Gas Sector include: · · · · Unrest and agitation in the Niger Delta region over the past five to ten years which creates an unattractive environment for investment. Loss of revenue due to interruption of production operations and theft of crude oil from pipelines and tank firms. Delayed and abandoned projects in communities where companies are unable to sustain their Operating License. Escalating operational and development cost (of operations and project activities), arising from the requirements of additional security for oil company, contractor staff and assets; escalating demands from the host communities and the cost premium of operating in a very unstable business environment High incidence of delayed and abandoned projects in communities where companies are unable to sustain a license to operate. This gives rise to a lower than expected rate of growth of the Nigeria Oil and Gas Industry.

·

POLICY THRUST OF THE OIL AND GAS (2010 -2013): The strategic thrusts for oil and gas during the first implementation plan will be as follows: · Consolidating on the gains achieved under NEEDS 2004-2007 · Optimizing the contributions of the oil and gas sector by intensifying crude oil and gas exploration

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Nigeria Vision 2020

· · · · · · · · · · ·

Promotion of private sector investment in both Upstream and Downstream activities of the oil and gas industry Deregulation of the oil and gas industry Promotion of environmentally friendly oil and gas exploration and exploitation methods, thereby minimizing the environmental degradation of the oil producing areas. Strengthening capacity building programmes especially the core technical areas of oil and gas. Provision of funding mechanisms for pre-bidding geoscience and surveys of deepwater offshore. Liberalize the oil industry, ensuring efficient and effective distribution system Achieving gas flare­down as a means of reducing pollution and increase revenue base of the country. Harnessing gas resources to grow the economy. Promotion of Liquefied Petroleum Gas (LPG) as fuel for cooking to free liquid petroleum for exports. Ensuring adequate gas supply for the domestic market and principally for generation of power. Diversification of the mode of transportation of petroleum products- pipeline, railway and road haulage

Objectives, Strategies and Targets The sectoral objectives for the Oil and Gas Sector include the following:. · · · · · · · · · · · · To grow national content value addition in the Oil and Gas Sector thereby expanding linkages to other sectors of the economy. To create an efficient Oil and Gas Industry with low operating costs, maximized revenue and efficient regulation. Increase local refining capacity to service both domestic and regional markets. Put in place arrangements for cost effective delivery of petroleum products to all parts of the country Meet Nigeria's domestic gas demand especially to the power and manufacturing sector while optimizing Nigerian's share and competiveness in high value export markets. To transform the national oil company into a world class, commercially driven and globally competitive organization To ensure that oil and gas operations meet global health, safety, and environment (HSE) standards To develop adequate distribution infrastructure to facilitate efficient delivery of petroleum products to every part of the country To ensure provision of adequate funding for oil and gas projects Develop Nigeria's gas industry, separate from the oil industry while delivering significant capacity additions to serve local and export gas markets Accelerate development of the Nigerian domestic gas sector thereby achieving aggressive GDP growth while assuring long-term energy security. To create a well secured operating and business environment in oil producing communities.

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Nigeria Vision 2020

In line with these objectives, the sectoral targets for the plan period include: · · · · · · · · · Grow reserves from 40 billion barrels in 2010 to 50 billion barrels by 2013; Grow crude oil production capacity from 2,8mb/d in 2010 to 4.5 mb/d by 2013; Grow in-country refining capacity from 0.45mb/d to 0.750mb/d by 2013; Increase OPEC Quota allocation from 1.67mb/d to 4.5mb/d by 2013; Increase local content in Oil and Gas from current 20 per centin 2009 to 35 5 per centin2010 and to 70 per cent by 2013; Grow gas reserves from 187TCF in 2010 to 220TCF by 2013; Attain zero flare from 34 per cent gas produced as in 2006 to what is technically allowed in 2010 ; and Increase the use of LPG gas in homes and industries and LPG penetration from current 0.5kg to 1.0kg per capita by 2013. Developing alternative energy in the quest for overall sustainable development in alignment with global initiative to reduce global warming

Accordingly, the following implementation strategies will be adopted to achieve the above stated targets · · · · · · · · Create an enabling environment in the Niger Delta. Promote economic empowerment programmes targeted at building community capacity Create employment opportunities in oil producing communities by upgrading and building new facilities Establish an appropriate machinery to effectively monitor the activities of all operators in the Oil and Gas Sector. Establishing appropriate regulatory Agency and ensure enforcement of rules. Continue with competitive and transparent bidding/allocation of Oil (Sao Tome and Principe JDZ inclusive). Transparency in allocation of Oil blocks by officials with proven integrity Attract the most technically qualified and financially capable investors to participate in each bid round while developing indigenous capacity and capability in conformity with practices and standards in petroleum exploration and production. Fully commercialize the NNPC to place it on a level playing field with Joint Venture partners. Deregulation of petroleum product pricing. Promote private investment to distribute petroleum products to all the state capitals Privatization and/or private equity participation in the existing refineries. Encouraging the establishment of necessary structures for effective gathering, processing, transmission and distribution of gas nationwide. Developing the appropriate pricing regime for the gas sub-sector to promote investment in various phases of gas production, transmission and distribution. Passage of the Petroleum Industry Bill and Local content Bill into law. Develop a database on the country's oil and gas deposits, facilities and professionals.. Facilitate projects that transfer technology and generate employment in the non-oil sector, especially the petrochemical industry. Improve security(against vandalism at facilities), and strengthen the Department of Petroleum Resources 83

· · · · · · · · · ·

Nigeria Vision 2020

· ·

Ministry of Environment to perform their regulatory functions properly Implement the National Oil Spill Contingency Plan

PLANNED INVESTMENT PROGRAMMES AND PROJECTS In other to meet Nigeria's oil and gas sector objectives, efforts will be made to encourage more investments by private entities, individuals and government. The oil and gas industry requires up to N5,400 billion(US$36.0) billion over the medium ­term period to execute projects that will deliver 4.5mbpd and over 4 billion cubic feet of gas per day by 2013. Out of this amount, the Federal Government is expected to provide its share of this investment which is about N467.88 billion (US$3.111 billion). This amount included funding for the capital projects in gas and power. Other projects in the sector include NNPC's direct exploration and production activities, natural gas supply projects, depots, capital improvement projects.

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Oil and Gas Sector Table 16: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Productive Sector Oil and Gas Priority Projects S/N 1 2 3 4 5 6 7 Expansion of ELP System 8 Gas Supply to Alaoji Power Station 9 Gas Supply to Omotosho Power Station 10 Gas Supply to Papalanto Power Station 11 85 50.20 50.20 66.74 66.74 2,033.29 2,033.29 Ajaokuta-Kaduna-Kano Gas Pipeline Calabar-Umuahia-Ajaokuta Gas Pipeline West African Gas Pipeline Project(WAGP) Trans Sahara Gas Pipeline Project(Definitional Phase) Brass LNG OKLNG Expansion of ELP System 2010 2011 11,473.96 16,999.98 95.55 1,406.10 41,322.24 827.12 Costs in N'm 2012 30,828.43 35,058.56 1,786.39 2,551.98 2013 53,192.55 57,619.43 1,869.47 2,670.68 95,494.94 109,677.97 95.55 5,061.97 41,322.24 6,049.78 Total

Nigeria Vision 2020

Gas Supply to Geregu Power Station 12 Gas Supply to Abeokuta City Gate 13 Abuja Power Plant 14 Kaduna Power Plant 15 Oil & Gas projects 16 Non Priority Project 17 29,370.04 20,426.23 119,571.01 22,792.65 155,177.12 55,248.12 264,747.12 98,467.01 541,793.94 29,370.04 11,947.90 26,863.81 38,578.41 77,390.12 12,921.70 35,295.28 57,867.16 106,084.14 -

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Table 17: Flagship projects for Petroleum Resources Sector

A S/N

Programme/ Project Title

Justification

Programme/Project Status

Commencement Date

Completion Date

1

ICT for the Oil and Gas Sector.

2

Oil and Gas Databank Development and Acquisition of Regulatory Instruments Gas Projects: Trans Saharan Gas Pipeline Calabar - UmuahiaAjaokuta -Kogi Gas pipeline project.

To strengthen the Oil and Gas Sector's ICT for enhanced quality of information flow Availability of quality data to enhance planning and decision making Reduction of gas flare and generation of income Availability of gas to power and domestic consumption.

2009, PHASE 1

2013

2009, PHASE 1

2013

3

2009, PHASE 1

2013

4

2009, PHASE 1

2013

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Nigeria Vision 2020

5

Ajaokuta - Abuja ­ Kano Gas Project

Availability of gas to power and domestic consumption. Increased power installed Capacity of 25,000 to 40,000 MW in 2020 Making gas available for Industrial Consumption To evaluate and ensure royalty payment of correct gas royalty based on accurate data. Provision of guideline for clear investment and consumption To supply gas to power station in Alaoji and Aba

2009, PHASE 1

2013

6

Gas supply pipeline to PHCN Delta IV

2009, PHASE 1

2013

7

Obiafor Obirkum - Oben Gas Pipeline project

2009, PHASE 1

2012

8

Gas Royalty Reconciliation

2009, PHASE 1

2013

9

Gas Master Plan

2009, PHASE 1

2013

10

Supplementary Gas Treatment/Processing Plant at Owaza for Aloaji and Aba Power Station Planning, Monitoring and Evaluation

2009, PHASE 1

2013

11

To ensure that projects are executed according to specifications

2009, PHASE 1

2013

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Nigeria Vision 2020

12

Bilateral Economic Cooperation on oil and gas

13

Facilities for Technical/ Administrative cooperation with International Bodies on oil and gas development Library Development and Automation procurement of Law books. Document Management , store inventory systems and account general ledger system for MPR Facilities and Equipment for Capacity Development Implementation of PIB

To facilitate MPR participation in International convention meetings and Bilateral Relations. Fulfillment of Nigeria obligations to International Bodies.

2010

2013

2009, ONGOING

2013

14

To have a well equipped Library for Research Purposes To enhance MPR accountability and transparency.

2010

2013

15

2010

2013

16

Improved productivity

2009, ONGOING

2013

17

To exercise control over our Oil and Gas.

2010

2013

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Nigeria Vision 2020

18

Acquisition of G and G Software (Jewel suites and others)

19

Real-Time Monitoring of Gas Facilities, Production and Operation

20

Equipment and Services For Gas Reserve Studies Gas flare down monitoring facilities and services

Monitoring the production levels of oil companies Improve oil and gas exploration For accurate fiscalisation of oil and gas, to reduce human risk in the monitoring of production activities in remote locations. To know the national gas reserve for effective planning Environmental Protection through checking of gas flare out and Ozone layer depletion. Encouragement of participation in the downstream sector. Building of more refineries To renovate and furnish offices for conducive working environment.

2009, PHASE 1

2013

2009, ONGOING

2013

2009, PHASE 1

2013

21

2009, PHASE 1

2013

22

Encouragement of private refineries on BOT, PPP and BOO basis

2009, ONGOING

2013

23

Rehabilitation and Furnishing of Offices

2009, ONGOING

2010

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24

Procurement of Laboratory Equipments

To provide Laboratory equipment for good scientific QC/QA analysis. Provision of office, safety and PPP for staff To provide safe and fast transportation mechanism of crude oil and personnel. Construction of new facilities and rehabilitation of old ones to enhance productivity.

2009, PHASE 1

2010

25

Procurement of Office Equipment Procurement of Motor Vehicle, Sea Vessel and Other Capital Assets Construction of Other Capital Assets

2009, PHASE 1

2013

26

2009, ONGOING

2013

27

2009, ONGOING

2010

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The two subsectors are oil and gas and the time frame is 2010-2013. OIL Objectives: · Increase oil reserves and production using environmentally friendly petroleum exploration and production methods to minimize environmental degradation in oil producing areas

Targets: · To grow reserves from 36.5billion barrels to 40 billion barrels by 2010 and 50 billion barrels by 2013 and grow crude oil production capacity from 1.8mbpd to 3.2 mbpd by 2010 and 4.5mbpd by 2013

Strategies: · · Invest in and embark on aggressive exploration for oil reserves and production in all parts of the country Provide appropriate fiscal incentives to attract investments in oil exploration, at the same time ensuring reasonable returns for the nation

Objective: To grow national content value added in the Nigerian energy sector , thereby expanding linkages to other sectors of the economy and making Nigeria the West African hub for the provision of oil and gas services to the Gulf of Guinea Targets: · · · · Attain a national content value of 50% by 2013 Strategies: Enhance the in-country capacity for the fabrication of steel structures used in the oil and gas industry Encourage the use of locally available materials such as bentonite, glass cement and barites in exploration activities

Objective: To create an efficient oil and gas industry, with low operating costs, maximized revenue and efficient regulation Targets: · · Reduce operational costs by 5% in 2013 through improved industry efficiencies Reduce contracting process for oil and gas projects to 6-8 months

Strategies: · Put in place the necessary regulatory and structural framework to support an efficient and competitive oil and gas industry 92

Nigeria Vision 2020

·

Improve the decision making cycle/ contracting time for oil and gas projects

Objectives: To ensure that oil and gas operations meet global health, safety and environment (HSE) standards Targets: · · · Attain total oil spill of not more than 2000bbls per annum in 2013 Reduce gas flares to operational and technical requirements only by 2010 To manage naturally occurring radioactive materials (NORM) generated from exploration activities to meet global standards

Strategies: · Strengthen the relevant regulatory agencies in order to ensure the enforcement of appropriate standards and entrench global HSE standards and principles in the Nigerian oil and gas sector Encourage oil and gas producing companies to gather and utilize associated gas to eliminate flaring by 2010 Ensure the enforcement of appropriate regulations related to the control of NORMS

· ·

Objective 5: · To create a well secured operating and business environment in oil producing communities

Targets: · Reduce the occurrence of attacks on oil and gas producing facilities by militants

Strategies: · · · Promote economic empowerment programmes targeted at building community capacity Work with NGOs as key implementation mechanism for community related projects Create employment opportunities in oil producing communities by upgrading and building new facilities

Objective 6: · To transform the national oil company into a world class, commercially driven and globally competitive organization

Targets: · Grow NOC production to over 250,000bpd in 2013

Strategies: · Develop the NOC into a medium oil and gas producing company that can operate internationally 93

Nigeria Vision 2020

·

Intensify Human capital development in the NOC

Objective 7: · To increase local refining capacity to serve both domestic and regional markets

Targets · · · Grow in-country refining capacity to over 750,000bpd in 2013 Strategies: Create an enabling environment to attract foreign and local investments in refineries

Objective: · To develop adequate distribution infrastructure to facilitate efficient delivery of petroleum products to every part of the country

Targets: · Enhance the capacity of downstream distribution assets to handle refined products from 0.75Mbpd of crude in 2010 and 1.5Mbpd in 2013

Strategies: · · Carry out a partial privatization of old distribution assets owned by the Government Create an enabling environment to attract new investments in downstream storage and distribution assets

Objective: · To ensure provision of adequate funding for oil and gas projects

Targets: · Increase accessible funding for oil and gas projects by 30% in 2013

Strategies: · Complete structural and legal reforms in the oil and gas sector targeted at creating an efficient, transparent and commercially viable industry

Gas Vision: · A vibrant gas sector developed in a Comprehensive and integrated manner in order to accelerate the growth of the economy

Objectives: · Develop Nigeria's gas industry, separate from the oil industry while delivering significant capacity additions to serve local and export gas markets 94

Nigeria Vision 2020

Targets: · Grow proven gas reserves from 180TCF to 215 TCF by 2013

Strategies: · Create an enabling environment, with appropriate legal and regulatory framework, to attract private investments (local and foreign) in gas exploration and production

Objectives: · Meet Nigeria's domestic gas demand, especially to the power and manufacturing sector, and maximize the multiplier effect of gas in the domestic economy while optimizing Nigeria's share and competitiveness in high-value export markets

Targets: · Increase gas exports: LNG and LPG from 22mtpa to 50mtpa to 40bcm per annum Pipeline to XX Grow domestic gas demand to 5bscf/d in 2013

·

Strategies: · · · Strategically position Nigeria's gas development assets and infrastructure for growth in high yielding export markets, with local content as a key driver Give domestic gas supply projects priority over gas export projects to ensure that local gas demand, especially to power, is met Delineate and address supply-side challenges of availability, affordability/commerciality of supply, deliverability and its cost effectiveness, legal and regulatory framework, and funding

Objective 3: · Accelerate development of the Nigerian domestic gas sector thereby achieving aggressive GDP growth while assuring long-term energy security

Targets · Increase the use of LPG gas in homes and industries and LPG penetration from current 0.5kg to 3kg per capita per year in 2013 Grow gas based petrochemical manufacturing capacity by 60% in 2013

·

Strategies · Promote LPG use as a viable alternative for kerosene and firewood for domestic cooking 95

Nigeria Vision 2020

·

Stimulate the growth of the petrochemicals sector by increasing gas-based manufacturing of petrochemicals

CONCLUSION The oil and gas sector has played and will continuously play a significant role in the economic development process, in particular through the provision of revenue to finance sociodevelopment projects of all the tiers of government. However, while the sector has largely fulfilled its fiscal objective, the inefficiency of the power subsector has constrained the competitiveness of the productive sectors of the economy and has imposed significant costs to manufacturing subsector and distortions on the economy. While the challenges of reforming the oil and gas sector to make it deliver reliable and affordable energy inputs to the economy are huge, there are reasons to be hopeful. The government has approved the Gas Master Plan as well as New Gas Pricing and Allocation Policy. However, there is a need to address such issues as appropriate funding, gas supply security, maintenance of existing oil and gas supply infrastructure, adequate coordination of activities among various stakeholders. There should be expansion of pipeline distribution networks, and enlightenment of the public on issues of pipeline vandalism. The government should also faithfully implement the recommendations of the Oil and Gas Reform Committee.

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Chapter 8:

Introduction

Manufacturing Sector

The proposed investment in the sector is N111.82 million. Nigeria Vision 20:2020 aims at building a vibrant and growing manufacturing sector which can create competitive advantages in the face of rapidly increasing globalisation. This is critical for the achievement of the nation's vision, of growing the GDP from its current estimated level of US$180b (2009), to the desired level of US$900b level in the next 10 years. The implication is the expected significant increase in the production of quality and high value goods and services. This will require substantial improvement in productivity and competitiveness in the Manufacturing Sector, as well as, in other sectors of the economy. The Manufacturing sector is also crucial for employment generation, wealth creation and raising the quality of life of Nigerians. However, the sector remains weak due to a myriad of challenges including the poor state of the nation's infrastructure which imposes high cost of production. Weak technological support and low levels of innovation which lead to production of low quality products and noncompetitiveness. The vision for the manufacturing sector is to establish `a technologically driven and globally competitive manufacturing sector, with a high level of local content and contributing more to National GDP'. This entails rapid expansion in the technology base, substantial improvement in the quality of the human capital, enhanced efficiency and productivity, among others. During the plan period, sustained effort will be made to re-invigorate and reposition the sector, to contribute substantial to the nation's growth and development. To this effect, five sub-sectors have been identified as priority areas. These include: chemicals and pharmaceuticals (including hydro-carbon based); products, basic metal, iron and steel and fabricated metal; food, beverages and tobacco; textiles, wearing apparel and leather/leather footwear; and non-metallic mineral products. These represent the foremost segments of the manufacturing sector where Nigeria has or can easily develop comparative advantage. These core areas have the highest potential to provide raw materials for other key industries in the longer term. The manufacturing sector will remain private sector driven. Government will however, sustain effort to provide the enabling environment that will enhance the level of operating efficiency, productivity and profitability as articulated in the business environment section of this plan. Situation Analysis As elaborated in the Economic Transformation Blue-print, the sector remains structurally weak and basic industries such as iron, steel and petrochemicals are weak. The technological base is also weak primarily due to lack of investment in research and development and innovation. Manufacturers depend largely on imports of machinery, equipment and spare parts, which is not sustainable due to foreign exchange limitations. The sector also lacks the skilled manpower necessary to guarantee competitiveness in a globalized world. The deterioration in the sector, is evident from the its contribution to the GDP, which has averaged 4 per cent in the last five years, 2004 ­ 2009. In addition, the contributions to foreign exchange earnings as well as share of employment and government revenue generated have been low. However, value added grew 97

Nigeria Vision 2020

at an average of 8.8 per cent between 2005 and 2009 while capacity utilization rose from 34per cent in 2005 to 50 per cent in 2009. Although, this indicates some measure of progress however, when compared to a 50 per cent capacity utilization is relatively poor. The Low capacity utilization rates have largely been blamed on frequent power outages, lack of funds to procure inputs and the reduced demand for locally manufactured goods. The chart below shows the sectoral contributions to the GDP:

Figure 6: Nigeria's GDP by sector 2008 ( per cent)

17% 18%

Whole Sale, Hotel & Resturant Crude Petroleum & Natural Gas Building & Construction Manufacturing

18%

Agriculture

41%

4%

2%

Other Services

Source: National Bureau of Statistics

The contribution of the industrial sector to the GDP in Nigeria is further compared with those of selected countries to further emphasize the poor performance of the sector.

Table 18: Nigeria's manufacturing as per centage of GDP and those of Selected Countries 2004-2007.

Period Brazil China Egypt India 2004 23 41 18 16 2005 23 42 17 16 2006 23 41 17 16 2007 23 43 17 16 Source National Bureau of Statistics 2009

Malaysia 30 29 29 29

Nigeria 3.68 3.79 3.91 4.03

Singapore 27 27 27 27

Canada 18 18 18 18

USA 13 13 13 13

In terms of capacity utilization, the capacity utilization in the manufacturing sector that was 73.3 per cent in 1984 fell to 54.67 per cent by 2008. Details of Capacity Utilization in the manufacturing sector is depicted below:

Table 19: Manufacturing sector capacity utilization ( per cent)

S/NO 1. 2. 3. 4.

Sub-Sector Meat & Dairy Products Vegetable & Grain Mill Bakery Products Sugar/ Confectionery 2000 43.20 16.80 30.10 31.00 98 2006 54.00 48.40 46.03 45.00

Year 2007 63.00 58.00 68.00 71.00 2008 64.00 46.00 66.00 65.00

Nigeria Vision 2020

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Misc. Food Preparation Beer & Stout Soft Drinks Textile Knitting, Carpet & Rug Leather Products Leather Footwear Saw Milling Wood & Cork Products

39.20 49.40 27.00 21.40 35.80 37.90 23.10 26.80 0.00 25.10 38.00 30.40 47.00 38.60 45.60 46.80 31.80 45.10 42.30 49.10 0.00 0.00 47.10 36.70 41.90 39.80 35.60 36.10

26.00 57.50 35.00 56.60 67.00 0.00 76.16 0.00 52.50 70.00 47.75 49.25 51.88 57.30 53.80 90.50 64.00 64.88 51.00 52.13 0.00 55.56 59.26 53.00 16.00 56.13 53.30

56.00 48.00 71.00 41.00 4.00 69.00 68.00 96.00 64.00 32.00 61.00 68.00 82.00 68.00 89.00 72.00 22.00 73.00 69.00 76.00 53.38

44.00 37.00 77.00 39.00 50/4 91.00 75.00 74.00 57.00 76.00 54.00 40.00 60.00 32.00 52.00 17.00 74.00 57.00 63.00 83.00 50.00 15.00 37.00 54.67

Paper Manufacturing Products Printing & Publishing Basic Industrial Chemicals Paints Drugs & Medicine Soap & Perfumes Other Chem. & Petroleum Products 21. Tyres & Tubes 22. Plastic Products 23. Glass & Glass Products 24. Cement & Cement Products 25. Basic Metal Industries 26. Structural Metal Products 27. Fabricated Metal Products 28. Radio, TV & Communication Equipment 29. Motor Vehicle Assembly 30. Roofing Sheets 31. Wine, Spirits & Distillers 32. Average Capacity Utilization Source: National Bureau of Statistics(2008)

Table 20: Status of Manufacturing Industry Closures Industries that have Industries in the ailing category closed down (30 per cent (60 per cent of total) of total) · Electronic/ Electrical Appliances · Auto · All others · Hydro-carbon based industries · Pulp, paper products, printing, publishing and packaging sector · Footwear · Textiles and garments

Industries at a sustainable level (10 per cent of total)

· Food, Beverages and Tobacco · Wood and Wood Products · Pharmaceuticals · Leather

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Source: Manufacturers Association of Nigeria

Table 21: Manufacturing Sector Growth rate (per cent)

S/No

Year

Growth Rate ( per cent)

1 2002 2 2003 3 2004 4 2005 5 2006 6 2007 7 2008 Source: National Bureau of Statistics

10.07 5.66 10.00 9.61 9.71 8.85 8.89

The manufacturing sector is currently faced with several challenges Many small enterprises have closed down, while rationalization and staff layoffs are being experienced in many medium and large-scale establishments. As shown in table 4, 30 per cent of firms have closed down, 60 per cent are ailing and only 10 per cent are operating at a sustainable level. Companies in the closed down group cut across all industrial product but most affected are products such as textile, chalk, dry cell and automotive batteries, shoe polish, matches, candle, e.t.c The problem has been compounded by the introduction of the ECOWAS free trade arrangement aimed at promoting freer movement of goods and persons within the West Africa sub-region. Nigerian manufacturers are relocating to other countries within the sub-region that have more favourable investment climate. Under the 1st NIP concerted efforts will be made to reverse the trend through the pursuit of policies and programmes that will ensure substantial reduction in operating costs and improvement in the business environment. Issues and Challenges As elaborated in the Vision document, the major challenges in the sector include: · Poor state of physical infrastructure: Frequent disruptions in electric power, water supply, inefficient telecommunication and transportation systems, constitute a major constraint to productivity of manufacturing firms. Manufacturers have to invest huge amounts of capital to provide alternative infrastructural facilities and such high operating cost structures reduce efficiency thereby resulting in loss of product competitiveness. Policy instability and discontinuity: Investment in manufacturing requires long range planning; consequently stable and consistent macroeconomic policies are a pre-requisite for high performance in the sector. However the increasing policy inconsistency resulting in instability in the macro-economic environment, affects the corporate planning adversely. 100

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·

·

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·

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Lack of funding and financial services: Funding challenges have made it difficult for manufacturing firms to invest in modern machines, Information Technology and human resources development, which are critical to reducing production costs, raising productivity and improving competitiveness. High interest rates and the reluctance on the part of financial institutions to comply with laid down lending guidelines tend to frustrate corporate investment and fail to ensure protection and growth of local industries. Insufficient quality control: Although the Standards Organisation of Nigeria (SON) has taken various measures to improve standards and quality of products, there are still gaps in the implementation of quality control and standards. For example, commercial laboratories for testing products are lacking and there are no set standards for certain products, such as spare parts and components. In the absence of clearly set standards and facilities for measurement of quality, subcontracting from large to small-scale establishments has been made difficult and charges of inferiority against made-inNigeria products cannot be easily verified. Weak local raw materials supply base: Nigeria is richly endowed with agricultural and mineral resources but most of these resources are yet to be fully developed or harnessed. Manufacturers depend on imported raw materials. The high tariff regime discourages investment in the manufacturing sector and makes the cost of manufacturing uncompetitive. Skilled manpower shortages: The gap between training institutions and industry, inadequacies of on-the-job training and the general lack of training has led to a lack of quality manpower. Manpower availability, in the right quantity and quality, is fundamental to the success of all other strategies designed to achieve set targets for the industry. Unavailability and poor flow of data/ information: The general lack of detailed, reliable and timely data and information flow is of great concern in the industry. The fact that no reliable data exists for some industry sub-sectors is a worrisome one. For example, little or no reliable data exists on fruits and vegetable production and in the engineering industry there is no record of the amount of specialised alloy steels imported into the country. Low level of technology: This is perhaps the greatest obstacle constraining productivity in Nigeria as developments in technology and innovations are the primary forces propelling industrialization today. New processes, procedures, and automation have revolutionalised manufacturing and helped to multiply productivity in industrialized nations. Due to financial constraints, industries in Nigeria are unable to acquire modern technologies. Most manufacturing sub-sectors, especially textiles, cement, bakery, leather, paper manufacturing and some others still use machinery that have been in use since the 1960s and 1970s. Consequently, the equipment frequently breakdown and this reduces capacity utilization rates. Absence of industrial core base: Due to the severe absence of a core industrial base, majority of processed raw materials used in the manufacturing process are imported. Promising projects, especially those for steel and petrochemicals, which have failed over the years, need to be resuscitated or newly developed to hasten the production of basic raw materials for use in the manufacturing industry. Low investment in research & development: In today's fast changing world, Nigeria's current level of investment in Research & Development would be considered inadequate. It is imperative that mechanisms and partnerships that promote the 101

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·

·

expansion of R&D are put in place to hasten the manufacturing sector's attainment of its Vision 2020 goals. Competition with sub-standard imports: Competition with sub-standard imports and illegally manufactured/ uncertified local goods has led to the lack of competitiveness of `made in Nigeria' goods. Imported alternatives, despite their poor quality, are cheaper and typically considered more appealing despite their quality and safety issues. Difficult business environment: The bureaucracy involved in doing business in Nigeria is a major deterrent to the growth of the manufacturing sector. Issues of poor governance and cumbersome entry/contract procedures have increasingly encouraged corruption.

Thrust, Objectives, Targets And Strategies: Thrust: The strategic thrust during the plan period will be on promotion of private sector investments in the sector, through the creation of enabling operating environment that allows for substantial improvement in efficiency, productivity and profitability in the manufacturing sector. The primary objective is to position the manufacturing sector as a key driver of the economy. Other objectives include: · · · · · · · Ensure global competitiveness for manufactured goods Significantly increase manufacturing local content and linkages with other sectors of the economy. Make Nigeria's manufactured goods major foreign exchange earners; Ensure a manufacturing sector which is driven by R&D, Technology and Innovation. Achieve Global Competitiveness for Nigerian Manufactured goods Achieve a greater share of the domestic market Achieve rapid and sustained economic growth through broadening the nation's productive base

Targets: The targets for the sector during the plan period will include: · · · · · · · Increase significantly the contribution of the manufacturing sector to GDP from 4 per cent to 12 per cent between 2010 and 2013, Raise capacity utilization from 54.67 per cent in 2008 to 65 per cent by 2013,and Significantly improve productivity and create the necessary linkages between various sub-sectors Provide a business climate which is conducive to manufacturers by lowering infrastructure, regulatory and other costs by 60.0 per cent by 2013. Increase local content in manufacturing from the present 22 per cent to 55 per cent by 2013 Increase agricultural produce processed by the sector by 10 per cent annually from 2010 ­ 2013 Increase employment share of manufacturing by 15 per cent annually up to 2013 102

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· · ·

Attain 60 per cent compliance with global ISO quality standards within the next 3 years. Increase the share of manufactured goods in export from 2.2 per cent to10 per cent by 2013.

Upgrade skills and productivity of at least 60 per cent manufacturing workforce by 2013. · Increase access of 60 per cent of manufacturers to short-term and long-term credit by 2013 · To attain 25 per cent reduction in cost of production between 2010 and 2013; · Promote the growth of core industries to be the backbone for material inputs by 70 per cent by 2013 · Increase indigenous innovation and R&D by 2013 · Increase employment share of manufacturing sector by 15 per cent annually · Increase access to local raw materials by 2013 · To ensure a reduction in proportion of manufactured goods in imports from 70.6 per cent in 2009 to 55 per cent by year 2013 · Government patronage of locally manufactured goods to double between now and 2013 · Attain cost parity with imported manufactured products within the next 5 years. · · · Ensure that locally manufactured goods meet global standards within the next 5 years To increase the share of manufactured goods in exports from 2.5 per cent in 2005 to 15 per cent in 2013 Increase annual growth in manufacturing sector from 8 per cent in 2005 to a minimum of 35.9 per cent on the average annually.

Strategy: The strategies that will be employed to achieve the objectives are · · · · · · Provision of common facilities at manufacturing clusters to enhance efficiency in production and cost reduction. Establish a low interest special fund that will be accessible to manufacturers for the rehabilitation and modernization of their plants during the plan period. Create the enabling environment for the promotion of high value-added products. Re-establish export processing factory scheme Improve policy framework Promote linkage between the sector and the primary sector.

· · ·

Provision of incentives for investment in the food and Beverages, Textiles, Metal Products, Iron and steel, Chemical, Pharmaceutical and Basic Metals industries. Establishment of Industrial Clusters, Free Trade Zones and Export Processing Zones to facilitate economies of scale for SMEs Provision of incentives for private investment in R&D 103

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· · ·

.Implementation of targeted cost reduction strategies Ensure ports meet the best international standards, and Strengthen the Customs Service (including NAFDAC and SON) to ensure that the war against adulterated goods is intensified

Priority Programmes and Projects Under the 1st NIP government will target investments in the following identified priority subsectors. Petrochemicals The development of the petrochemical industry is critical to the achievement of the nation's vision. It is a major driver in industrial development, as it accounts for a large share of chemical raw material; such as production of polymers, building blocks, plastics, synthetic fibres, surfactants, synthetic rubbers etc. It is also labour intensive particularly the downstream plastic processing sector. In spite of the huge market that exists for plastic products and fertilizer in the country, there is only one petrochemical company (Indorama) that produces petro-chemical products. The production capacity of Indorama is inadequate to meet the demand in the country. Therefore, stimulation of investment in the petrochemical sector is one of the major areas of focus during the medium term period. Drugs and Pharmaceuticals The nation's pharmaceutical industry is largely under developed despite its potentials to generate substantial revenue, create wealth and employment, due to lack of attention to the sector by successive governments. A large proportion of the nation's drugs and pharmaceutical needs are met through importation, this is an indication of the opportunity that exists for local production. During the plan period, concerted effort will be made to significantly attract investment in the production of drugs and pharmaceuticals including the expansion of existing plants. Also biopharmaceutical market is evolving as major growth inducing area that Nigeria needs to quickly tap into in terms of vaccine production. Production of generic drugs will reduce significantly the foreign exchange used for importation and make drugs more accessible. Food, Beverages and Tobacco Existing food, beverage and tobacco manufacturers in Nigeria do not source their raw materials from Nigeria despite the nation's potentials for producing most of the required inputs e.g. cocoa, dairy milk, tobacco etc. Some of the reasons adduced for the poor patronage include poor quality of produce, poor/ packaging etc. During the medium term implementation period, adequate measures will be put in place to ensure that local products meet the local content bill specifications as well as international standards.

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Textiles, clothing and leather This is a key growth driver as the textile and leather industries, are labour intensive and contributes substantially to export. The sector is dominated by SME, thereby creating wealth and job opportunity. In spite of the nation's abundant potentials for producing cotton, most of the textile mills/ companies in the country are moribund due to the unfavourable economic conditions under which they operate. A small proportion of nation's leather products are utilized in the production of footwear and other leather products. Under the 1st NIP, investments will be targeted at the leather industry while the textile industry will be revitalized and repositioned with additional investments. Basic metals, iron & steel and fabricated metals In spite of the nation's enormous iron ore deposits and existing market for iron and steel products, the iron and steel industry is yet to function optimally due to a myriad of challenges. In line with the vision of the manufacturing sector, the iron and steel industry will be positioned for increased production. In line with government policy on privatization, existing steel companies such as the Delta Steel Company, Aladja have been concessioned to a private investor while the Osogbo Machine & tools company have been privatised. Also, the Ajaokuta Steel Company Limited whose concessioning agreement was reversed is being reconsidered for concessioning. Non-metal minerals products The nation has abundant deposits of non-mineral metals - limestone, coal, bitumen, barites, bentonite etc. The emphasis during this medium term implementation period is to fast track private sector investment in the non-metal mineral product exploitation and marketing. The production of coal as alternative energy source for the power industry, expansion of production of basic cement to meet local demand and for export, the drilling of mineral (bentonite and barite) and investment in bitumen extraction will be supported with appropriate policy environment that ensures profitability for investment. Table 22: Strategies of realising the objectives in the priority areas S/NO. 1. Projects Provision of $3 billion Special Fund for rehabilitation of Ailing Industries and Promotion of Core Industries for Rehabilitation. Recapitalization of Bank of Industries. Mini Sugar Plants Development Establishment of Vocational Centres in the Zones Establishment of 4 Model Enterprise Zones. Establishment of Cement Technology Institute Remove Multiple taxation and reduce overall tax level Update of national regulatory requirements to improve Product standards. Establishment of Industrial Clusters Development of Industrial Data Base/Bank 105

2. 3. 4. 5. 6. 7. 8. 9. 10.

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Most of the sectors are knowledge driven, a major strategy will be improvement in human capital, particularly in raising science, engineering and pharmacy graduates with quality education. Government will adopt appropriate incentives to attract investment in high risk areas, such as drugs and pharmaceuticals industry. Government will also provide financial assistance especially to small scale enterprise to enable them invest in these areas. In addition joint venture and smart partnerships will be encouraged.

Conclusion The private sector will remain the engine of growth in the sector. It is expected that the implementation of the strategies for addressing the challenges in the manufacturing sector as contained in this Plan would promote rapid economic and social development of the country as well as move the country closer to achieving NV20:2020.

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Manufacturing Sector Table 23: Summary of Investrment Plan 2010 ­ 2013 Thematic Area - Productive Sector Manufacturing Costs in N'm Priority Projects 2010 S/N Provision of $3 billion Special Fund for rehabilitation of Ailing Industries and Promotion of Core Industries for Rehabilitation Recapitalization of Bank of Industries. 2 Establishment of Industrial clusters in the states to boost processing and production of exportable products Establishment of 4 Model Enterprise Zones. 4 5 6 Establishment of Cement Technology Institute 7 Mini Sugar Plants 8 107 88.13 69.26 108.46 265.85 56.40 27.70 84.11 Update of national regulatory requirements to improve Product standards Development of Industrial Data Base/Bank 2.82 1.39 2.17 6.37 282.02 2.12 138.52 1.39 216.92 2.17 637.46 5.67 17,160.46 586.12 17,035.77 640.20 20,956.14 669.98 55,152.37 1,896.30 10,575.69 13,851.53 10,846.14 35,273.36 2011 2012 2013 Total

1

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9 10 11

Women Vocational and Entrepreneurship Development Programme (WVEDP) Provision of Common facilities for at least 7 priority clusters Establishment of 6 Vocational Centres in the Zones

150.00 500.00 14.10

150.00 500.00 27.70 5,490.58 37,934.04

200.00 1,000.00 5,745.96 39,747.94

500.00 2,000.00 41.80 15,961.00 111,824.29

Non Priority Projects 12 4,724.46 34,142.31

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Chapter 9: Small and Medium Enterprises

Introduction The estimated total investment for the sector, for the Plan period, is N4.701 billion. The annual breakdown is in the annex. The Small and Medium Enterprises (SMEs) sector has been identified as one of the critical elements to achieving the Nigerian Vision 20:2020. This is because a nurtured and well structured SME sector can contribute significantly to employment generation, wealth creation, poverty reduction and sustainable economic growth and development. This is in line with the vision for the SMEs sector, which is "To be the engine of economic growth, driver of sustainable industrial development and a globally competitiveness". The activities of SMEs in Nigeria cut across several sectors of the economy and include manufacturing, agriculture, solid minerals, metal fabrications, ICT, culture and tourism, transportation, trade and commerce among others. However, there is a dearth of statistics on SMEs in Nigeria in terms of their current status. This has made it difficult for more targeted intervention to the sector over the years. The establishment of the Small and Medium Enterprises Agency of Nigeria (SMEDAN) in 2003 was among some of the policies put in place by government to promote orderly development of the SMEs sector in the country. During the plan period, Government will make concerted effort to provide institutional support and create the necessary enabling environment for SMEs to become the engine of economic growth in the country. The thrust will include facilitating availability of common facility, in selected locations, to reduce production cost reduction and enhance the optimization of economies of scale. It is planned that 12 functional SME clusters will be established across the country by 2013. Other programmes that will be implemented are highlighted in the chapter. Situation Analysis The SMEs constitute over 80.0 per cent of all business enterprises in Nigeria and cover the entire range of economic activities. Similar to the manufacturing sector the SMEs face enormous challenges. These, include, lack of an integrated financing system that provides funding to the sector. The SMEs compete for funds in commercial banks at very high interest rates averaging 15 -20 percent. This, coupled with the poor savings culture in Nigeria, invariably reduces profitability in the sector and contributes to their high mortality rate.

Table 24: Shows a comparative analysis of the respective contributions of SME's in selected countries.

Countries UK USA India Hong Kong Japan Nigeria

Employment 53 52 79 78 70 75

Export Earnings 27 30 38 37 40 2 109

Contribution to GDP 52 50 40 51 51 10

Nigeria Vision 2020

Source: CBN SMI Surveys (2005) and SMEDEC of Malaysia The SMEs sector contributed only 2 per cent of export earnings and 10 per cent to GDP in 2006 respectively. The low contribution to export earnings has been attributed to lack of skills, management capacity, poor product quality, low production capacity, poor access to international markets, and lack of working capital that have resulted in the sector not being globally competitive. Overall, while some progress has been made in respect of change in business registration procedures and micro finance, the problem of poor infrastructure (power, rail, road, water etc.) remained a very serious challenge. The government will make concerted effort to address these problems during the plan period. Issues and Challenges The major challenges affecting the growth and development of SMEs in Nigeria are: · · · · · · · · · Poor and inadequate infrastructure (power supply and transportation facilities). Non-access to medium and long term credit facilities and poor financial intermediation including lack of venture capital Poor market information and lack of market access Harsh business operating environment resulting in high cost of doing business and unfair competition from imported goods. Multiplicity of taxes. High mortality rate of SMEs Weak sectoral linkages resulting in lack of synergy and inability to optimize the benefits of effective net-working Inadequate government support Lack of data for effective planning and targeting in the sector

Thrusts, Objectives, Strategies and Targets The strategic thrusts, during the plan period will be : · · · · The creation of conducive policy and regulatory environment for the growth of SMEs, Enhancing access to formal credit and complementary financial services on a sustainable basis, Promoting access to requisite information and business development services to enhance the capacity of the sector, Address infrastructural bottlenecks (workspace, roads, sanitation, utilities, etc) which have long been known to be the bane of enterprise development and competitiveness, Promoting effective research and development (R&D) systems for the growth and competitiveness of SMEs,

·

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· ·

Improving SMEs share of local/export markets, and Promoting the transformation of informal SMEs to formal sector through sensitization/simplification of registration procedures, to ensure full integration into the economy

Objective 1: Develop an SME sector that is the driver of national economic growth and development Target: · · Increase entrepreneurship and raise employment contribution to To contribute 30 per cent of GDP by 2013 50 per cent by 2013

Objective 2: Develop a strong virile, viable and sustainable SME sector capable of competing globally in terms of quality products and services at competitive prices Target: · · To contribute 30 per cent of exports by 2013 Increase production of capital goods by 10 per cent annually up to 2013

Objective 3 : Develop and improve entrepreneurial skills and competencies of existing and potential entrepreneurs Target: · · Improvement in investment on human capital by 10 per cent annually up to 2013 Increase productivity at all micro, small and medium enterprise levels by 20 per cent

Objective 5: Encourage the use of improved technology in the production of goods and services Target · To increase the skills and know-how for industrial production and management by 30 per cent on a yearly basis Objective 6: · Increase access to funding and financial services Target: 111

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·

To increase access to credit by 20 per cent annually until 2013

Objective 7: Encourage forward and backward linkages with other sectors of the economy Target · To provide linkage with, and be a source of raw materials to large-scale industries · To effectively utilize locally produced raw materials Objective 8: To grow the domestic market for SMEs Target · Increase procurement of SME goods and services by 40 per cent in 2013

Strategies and Interventions: The strategies and key interventions to be employed during the plan period in order to achieve these objectives will include: · Intensification of PPP in projects and programmes implementation in key areas such as agriculture, agro-allied industries, tourism, ICT, transportation, arts & craft and building & construction among others.\ Establishment of SMEs clusters Facilitate and encourage the private sector to undertake institutional and operational changes that are critical for the growth of the SMEs sector. In this regard focus will be on the following areas: Innovation Government will put in place effective innovative schemes that can bring together small enterprises in various industries to exploit the immense national business opportunities. Information Availability of information on access to credit/loan, profitable market, appropriate technology and business support services will spur increase in the number of new business and guarantee the survival of existing ones. Accordingly a functional and up to date data base will be developed for the use of SMEs operators. Enterprise Creation and Competitiveness Increasing the number of new businesses (start-ups) annually for the next five years will ensure that targets for nationwide employment generation and poverty alleviation are met.

· ·

·

·

·

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·

Funding In order to fuel SMEs growth and development, government will put in place framework for stable and secure access to finance and credit/loan facilities for the SMEs to be used for either business start-ups, expansion or simply for technological upgrades, innovations, and the sourcing of more profitable markets. Energy Without regular power supply at reasonable cost, SMEs in Nigeria may never be globally competitive. Accordingly, government in collaboration with the prive sector will provide the base for a sustainable power supply during the plan period. Enterprise Clusters, Industrial Parks and Incubation Centres Business cluster and incubation centres will have positive implication for profitable market since they allow SMEs to pool products and services to meet export demand thus guaranteeing a steady or ready market for their products. Institutional Realignment Government will enhance the capacity of SMEDAN to enable it coordinate the various efforts targeted at SMEs development in the country. Enhanced Linkages with the Agric Sector The spin-off effect of the agricultural sector on SMEs is huge and therefore needs to be promoted to ensure steady supply of inputs and generation of new businesses and employment. Accordingly, government working in close collaboration with the private sector, will reinvigorate the agriculture sector to produce goods and services not only at the right quality but also at the right price to ensure competitiveness and profitability. Capacity Development Developing entrepreneurs and entrepreneurship is also a priority. As the proposed initiatives for the SMEs sector are rolled out, it will be increasingly important to deepening the entrepreneurship program of tertiary and other institutions to ensure a large pool of highly skilled graduates are participating in the sector. Capacity building in specific areas, technical skill development in identified industries and e-business application will be targeted.

·

·

·

·

·

Priority sub-programmes for the SME sector: Investment of over N19.101 billion will be made in the following key sub-sectors over the plan period: Developing Entrepreneurial Skills sub-programme: One of the greatest challenges to the economy is increasing youth and graduate unemployment arising from the slow responsiveness of labour market to labour force demands. The tertiary institutions produce large number of graduates annually into the labour market without corresponding job opportunities to absorb them. The intention therefore is to develop entrepreneurial skills not only to provide alternative sources of employment for school leavers but to also scale up employment opportunities in the sub-sectors to about 50 per cent by 2013.

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The approach will involve training of women and individuals on vocational skills and improving physical infrastructure and financing. Establishing Functional SMEs Clusters sub-programme The various geopolitical zones of the country are endowed with natural resources which can be harnessed for the development of the economy. During the period of the plan, the focus will be to expand and extend the industrial base of the economy by establishing at least 12 SMEs clusters across the country. The clusters will be encouraged to deepen economic activities and create job opportunities for young school leavers. The priority will be to stimulate the establishment, of new businesses and scaling-up of existing ones in key sectors through the following measures involve: Government establishment of clusters sub-programme: This is intended to promote export businesses and technology adaptation geared towards enhancing SMEs competitiveness and profitability, as well as the creation of employment opportunities for the teaming population. Private sector development of industrial and business clusters : this is to enable them optimize economies of scale, direct government interventions enhanced access to valuable information, in order to achieve critical mass of high quality goods required for access to international markets. Fiscal environment sub- programme: Reducing Tax Burden One of the constraints to doing business in Nigeria is the high of cost of production relative to other countries, arising from inadequate physical infrastructure and the multiple taxations. These costs are translated to high prices of goods and services provided by the SMEs and often result in high inventories. During the period government will vigorously address the issue of multiple taxations in its fiscal policies. The strategy will involve eliminating multiplicity of taxes and rates and reviewing the guidelines for accessing SMEs fund to make it less stringent and easily accessible. SMEs Expansion sub-programme : The promotion of the formation of new and innovative SMEs will continue to be the focus of this plan period. The strategy will be to first conduct National Survey of SMEs Output in year 2010 which will serve as the basis for establishing expansion targets for 2011 to 2013. The other strategies will be to strengthen and inject additional equity capital to BOI in order to provide support for existing and formation of new and innovative SMEs.

Table 25: Programmes and Projects

S/N 1 2.

Project/Programme One Local Govt, one product programme Establishment of BScs

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3. 4. 5, 6. 7. 8. 9. 10.

Other Enterprises Support Services to MSMEs Women Vocational Programme (WVEDP) General Vocational Programme (GVEDP) and and Entrepreneurship Entrepreneurship Development Development

Youth Vocational and Entrepreneurship Development Programme (YVEDP) Credit Guarantee Scheme for MSMEs Provision of Common facilities for at least 6 priority clusters Industrial Development Centres (IDCs) upgrade Micro, Small and medium Enterprises (MSMEs) survey and studies

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Small and Medium Enterprises Table 26: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Productive Sector Small and Medium Enterprises Priority Projects S/N 1 2 3 4 5 6 7 8 9 10 11 Industrial Development Centres (IDCs) upgrade Micro, Small and medium Enterprises (MSMEs) survey and studies Non Priority Projects 412.95 36.94 226.16 1,395.72 434.22 44.04 262.83 1,573.40 540.47 46.03 275.05 1,732.63 764.04 4,701.75 1,387.64 127.00 One Local Govt, one product programme Establishment of BScs Other Enterprises Support Services to MSMEs Women Vocational and Entrepreneurship Development Programme (WVEDP) General Vocational and Entrepreneurship Development Programme (GVEDP) Youth Vocational and Entrepreneurship Development Programme (YVEDP) Credit Guarantee Scheme for MSMEs Provision of Common facilities for at least 6 priority clusters 2010 Costs in N'm 2011 5.85 145.90 15.15 19.40 76.80 49.96 332.20 74.41 2012 6.95 173.42 18.12 22.97 91.45 59.42 395.08 64.90 2013 7.31 181.45 18.91 23.96 263.83 95.58 171.55 62.17 413.85 67.84 1,141.13 207.15 20.11 500.77 52.18 66.33 Total

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Conclusion Under the 1st. NIP government will endeavour to enforce appropriate legislations aimed at developing and growing the SMEs sector. In this regards targeted incentives will be made available to operators in the private sector who are ready to partner with government in establishing viable businesses.

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Chapter 10: Solid Minerals and Steel Development

Introduction The estimated total investment for the sector during the period of the Plan amounts to N66.715 billion. The breakdown of the annual estimates is annexed. These are: · · Growth through the diversification of Nigeria's economy by significantly increasing nonoil contribution to GDP The empowerment of the Nigerian people by ensuring a balance between economic growth and social welfare.

The minerals and metals sector will be driven by an overriding policy, aimed at ensuring that mineral production is linked to the real sector of the economy, in a manner that will encourage higher output and productivity of the economy, and guarantee lower factor input costs for the mineral sector. The objectives and key result areas are anchored on the following: · · · · · Development of quality geosciences data Sustained mineral exploration Ease of access to capital Economic diversification away from a mono-product, oil dependent economy Develop functional linkages to power generation and real sector

The vision is to transform Nigeria's minerals and metals as a catalyst for domestic growth and attain global relevance in a sustainable manner. This will involve strengthening institutional and human capital across every aspect of the minerals and metals value chain (production, processing, marketing and distribution), as well as sustaining a stable, effective legal and regulatory framework for the minerals and metals sector. Situation Analysis Prior to the emergence of petroleum 30 years ago, minerals and metals was one of the key sectors of the economy. Until the 1960s, coal and tin were mined and exported on a large scale and the sector contributed significantly to the Gross Domestic Product (GDP) averaging 12 per cent between 1965 and 1975. A combination of unfavourable government policy, changing country circumstances and poor management of state owned enterprises has led to a precipitous decline in the sector and a situation in which little new investment in mineral exploration and development, neither foreign nor domestic could be attracted. The scale of this decline is clearly illustrated in the drastic reduction in sectoral contribution to GDP from 5.6 per cent in 1980 to 0.16 per cent in 2007. Currently, there are no medium or large scale mining operations in Nigeria, Most active mining in the country is being undertaken by small entrepreneurs and artisans, working deposits of precious, semi-precious, construction and industrial minerals. Producers are either not licensed or are operating outside of the parameters of the licenses held. Appreciable progress has however been made in recent years with regard to legal and regulation reforms.

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Constraints The key constraints include the: · · Absence of a comprehensive Geological Survey of the entire country for mineral deposits Lack of enforcement of global best practices in environmental standards for mining activities. Mining activities have often created abandoned pits, shallow ponds, poisonous wastes, radioactive wastes etc with severe health implications Lack of capacity of staff on mining regulatory issues. Prevalence of informal and illegal activities. Absence of adequate buying centres. The establishment of buying centres for small scale miners to interface with local users/exporters is a major challenge. Inadequate minerals processing centres: Presently, there are inadequate processing centres for minerals. The few processing centres are operated by the private sector on very small scale. the establishment of modern minerals processing centres will be a major objective of the government in order to add value and increase revenue from exports Absence of an Act to control operations in the metallurgical industry. The Act is expected to ensure compliance in materials specifications, product standards, codes, quality and maintenance of environmental best practices and industrial safety. The non completion of the Ajaokuta -Warri rail line, non availability of a captive port and lack of accessible roads to raw materials deposits Inadequate supply of power and natural gas Lack of trained manpower with technical skills.

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·

· · ·

Policy Thrusts The policy thrusts aimed at making Nigeria a destination for capital (local and foreign) for the profitable exploitation of the nation's mines resources are: · Development of an effective mechanism for consistent and systematic generation of quality and reliable geosciences data to support detailed exploration of mineral resources. This will require mandating and empowering the Nigerian Geological Survey Agency (NGSA) to prepare 20 maps of 1:100,000 per annum to achieve 100 per cent coverage by 2020, and providing improved funding for NGSA to accelerate progress in its geological and geophysical mapping programmes Facilitation of access to capital for expansion and development of the solid minerals sector. In addition to other funding sources, the solid minerals development fund provided for in the Nigerian Minerals & Mining Act of 2007 will be fully utilised for this purpose, and will be fully operational by the end of 2010. Provision of specialized funding for key institutions in the solid mineral sector such as ( NGSA, COMEG, NMDC, Department of MMSD, School of Mines, NSRMEA ) and the development of industry-wide capacity building programmes for both small and medium scale mining companies entrenching sustainability as a fundamental principle in the exploitation of all minerals resources, with a view to preserving the physical environment, preserving the physical environment, protecting the rights of host communities, and ensuring that mining activities lead to greater economic empowerment of the people. 119

·

·

Nigeria Vision 2020

Objectives, Strategies And Targets Objectives: · · · · · Entrench sustainability as a fundamental principle in the exploration of mineral resources and in developing metal sector Strengthen institutional and human capacity across every aspect of the mineral and metals sector Sustain stable and attractive legal and regulatory framework for the minerals and metals sector Develop functional linkages to the real sector of the economy e.g Coal for power generation, bitumen for road construction Facilitate access to sources of funds for the exploration and development of minerals, steel and other metals industries

Targets · Achieve 30 per cent compliance with global environmental best practices · Revitalize the entire steel sector for the operation and production of 3million tonnes of liquid steel per annum by 2013 · Achieve enhanced capacity to supply 50 per cent skilled manpower required for all segments of the minerals and metals sector · COMEG to establish professional programme by 2011 · Empower NGSA to prepare 20maps of 1:50,000 per annum (with accompanying literature and bulletins) to achieve 60 per cent coverage by 2013 · Achieve total compliance with and applications of all stipulations and provisions of the Nigeria minerals Act 2007 or any subsequent legislative framework for the minerals and metals sector · Maximum exploitation of bitumen to meet local demand most especially in the area of road construction. · Coal fired plant to contribute 30 per cent to power generation by 2013 Strategies: · · · · Sustain transparent, independent and modern licensing system through the mining cadastre office Initiate specific programmes targeted at the development of the medium scale commercial mining operators Develop an effective mechanism for the consistent and systematic generation of quality and reliable geosciences data to support sustained minerals exploration Encourage manpower development for the preparation of bankable feasibility studies in Nigeria's Mining industry through: - COMEG to establish professional programme by 2011 - Strengthen facilities in Universities and Polytechnics to produce requisite manpower Create attractive environment and clearly defined incentives to minerals and metals to meet various domestic production needs.

·

120

Nigeria Vision 2020

·

· .

Initiate specific interventions (government/private sector driven) to achieve growth in minerals and metals production, and promote deep and functional linkages with the economy Establishment of Solid Minerals Development Fund

Table 5: Priority programmes and projects for Solid Minerals and Steel Development

S/N I

2

3

4

5

6

7

8

9

PROJECT PROJECT DESCRIPTION TITLE Formalization of Artisanal The programme is aimed at establishing a Small Scale Mining vibrant and robust ASM sub-sector that operations in the Country. enhance the production capacity of ASM operators, attract investment to the sector. Establishment of Extension The programme is aimed at enhancing the Services performing and production capacity of ASM operators, Registered ASM attract investments to the sub-sector, Cooperatives. increase government royalties, and ensure efficient marketing systems among others. Construction and equipping Six Analytical Laboratories to be of Environmental Analytical constructed and equipped in each GeoLaboratories. Political Zone. Base Line Environmental Carry out the environmental audit of all Audit of quarry & Mining Mines and Quarries in the Country. Sites. Reclamation of High Risk Reclamation of 100 Abandoned Mine Sites critical abandoned mine in the six geo - political zones of the sites. country. Mining Cadastre publicity Advertisement, publications and mining and enlightenment of cadastre education. stakeholders. Mining Cadastre capacity To procure consultants for the training in building. GIS AutoCAD software, GPS, Geodetic Network and SIGTIM. Establishment of Information Updated internet facilities Post, Management System (IMS) telephones. of the Mining Sector. Construction of an A 1,500 seat capacity Auditorium to serve Auditorium at MTI (Onitsha) as General lecture hall a condition for with the following facilities: accreditation for the institute. (i) A main gallery having a seating capacity of 1000 students; (ii) A double Mini -Hall to sit 121

Nigeria Vision 2020

10

11

500 students; (iii) 9 number offices/utility rooms attached to the main gallery; (iv) A projection room at the upper gallery; and (v) An upper lounge. Construction of 2 No. additional workshops and classroom blocks. Procurement of Training Equipment. Capacity building & Manpower Development in the Steel Sector. Sensitization of stakeholders in the Minerals & Metal Industry Develop; review mining & metallurgical laws, explosives act & regulations, codes & manuals. Procurement of Consultants for the production of Mines Environmental Compliance Handbooks & Regulations. Production of Geological Maps from the 6 geopolitical zones at 1:50,000. Updating of Rock Types from the 6 geo political zones. Base Metal, Metallic and Precious Metal Programme. Ground Follow-up of Anomalous Areas Identified from Airborne Survey and National Gravity Network Programme.

A practical training workshop and class room block for Steel Fabrication and Welding Engineering. Procurement of 4CNC Lathe Machines, 3CNC Milling Machines and 2CNC Shaping Machines

12

13

14

15

Production and distribution of 50,000 copies of Mines Environmental Handbooks and Regulations

16

17

18

Exploration of base metals, metallic and precious metals in selected areas across the Country. The project is aimed at ground- truthing suspected anomaly from Air-borne survey in order to discover mineral deposits or structural features favourable for mineral deposits for the use of geophysical methods.

19 20

21

Analysis of geosciences field samples 5Centre for Marine Marine Geological Mapping of 9 Coastal Geology Programme. States on a scale of 1:50,000 with a 40km radius. 6 National Geohazard Study of Erosion, Rock fall and Landslide. programmes. 122

Nigeria Vision 2020

22

Coal Exploration (Benue & Anambra basins). Iron-Ore Exploration. Procurement of Drilling Machinery & Tools. Mining Cadastral Computer System. A central office and 6 No. Purchasing Furnishing and Equipping. Zonal Offices of the Mining Cadastre Office. Rehabilitation, completion and commissioning of the Ajaokuta Steel Company. Expansion of the Ajaokuta Company to produce flat sheets Purchase of Mining equipment, Iron-ore Mining Company (NIOMCO). Installation of Superconcentrates plant. Establishment of Central Laboratory and procurement of Metallurgical Testing Equipment. Construction of access roads to raw material deposits, Obajana ­ Ajaokuta etc. Thematic Areas PRODUCTIVE SECTOR

23 24 25 26

27

28

29 30

31

S/N 1. 2. 3. 4.

Priority Projects Coal Exploration (Benue & Anambra basins). Iron-Ore Exploration. Procurement of Drilling Machinery & Tools. Rehabilitation, completion and commissioning of the Ajaokuta Steel Company. Expansion of the Ajaokuta Company to produce flat sheets. Installation of Super- concentrates plant.

5.

123

Nigeria Vision 2020

Solid Minerals and Steel Development Sector

Table 28: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Productive Sector Solid Minerals and Steel Development Priority Projects S/N 1 2 3 4 5 6 7 8 Formalization of Artisanal Small Scale Mining operations in the Country. Establishment of Extension Services performing and Registered ASM Cooperatives. Construction and equipping of Environmental Analytical Laboratories. Base Line Environmental Audit of quarry & Mining Sites. Reclamation of High Risk critical abandoned mine sites. Mining Cadastre publicity and enlightenment of stakeholders. Mining Cadastre capacity building. Establishment of Information Management System (IMS) of the Mining Sector. 2010 2011 36.32 108.28 69.85 20.96 305.96 55.88 48.90 648.95 Costs in N'm 2012 164.94 507.49 380.62 126.87 1,401.95 285.47 222.03 2,226.63 2013 216.28 665.47 2,408.17 395.12 311.94 2,832.41 417.54 1,281.24 450.48 147.83 4,116.09 736.47 582.87 5,707.99 Total

124

Nigeria Vision 2020

9

Construction of an Auditorium at MTI (Onitsha) with the following facilities: (i) A main gallery having a seating capacity of 1000 students; (ii) A double Mini -Hall to sit 500 students; (iii) 9 number offices/utility rooms attached to the main gallery; (iv) A projection room at the upper gallery; and (v) An upper lounge. Procurement of Consultants for the production of Mines Environmental Compliance Handbooks & Regulations. Production of Geological Maps for the 6 geopolitical zones at 1:50,000. Updating of Rock Types from the 6 geo political zones. Base Metal, Metallic and Precious Metal Programme. Ground follow-up of Anomalous areas identified from Airborne Survey and National Gravity Network Programme. Analysis of geosciences field samples 5- Centre for Marine Geology Programme. 6 National Geohazard programmes. Coal Exploration (Benue & Anambra basins). Iron-Ore Exploration.

34.93

34.93

-

-

10

49.60

291.81

-

341.41

11 12

94.30 125.74 24.45

399.65 570.93 111.01

677.95 623.88 -

1,171.90

1,320.55 135.46

13 14 15 16 17 18

34.93 20.96 104.78 41.91 69.85

158.59 126.87 475.78 253.75 475.78

831.84 415.92 623.88

193.52 147.83 1,412.40 711.58 1,169.51

125

Nigeria Vision 2020

19 20

Mining Cadastral Computer System. A central office and 6 No. Zonal Offices of the Mining Cadastre Office. Rehabilitation, completion and commissioning of the Ajaokuta Steel Company. ( Expansion of the Ajaokuta Company to produce flat sheets) Purchase of Mining equipment, Iron-ore Mining Company (NIOMCO). Installation of Super- concentrates plant. Establishment of Central Laboratory and procurement of Metallurgical Testing Equipment. General Vocational and Entrepreneurship Development Programme (GVEDP) Youth Vocational and Entrepreneurship Development Programme (YVEDP) Credit Guarantee Scheme for MSMEs Industrial Development Centres (IDCs) upgrade

62.87 69.85

317.18 475.78

790.25 831.84

1,170.30 1,377.47 1,003.93

62.87

317.18

623.88

21 22 23 24 25 26 27 28 29 30

1,178.45 15.37 194.90 44.01 5,258.68 34.93

3,999.69 57.09 1,370.24 158.59 -

2,487.19 83.18 623.88 124.78 -

7,665.34 155.64 2,189.01 44.01 5,258.68 318.30 3,981.73 7,170.84

Micro, Small and medium Enterprises (MSMEs) survey and studies Mines & Steel Development projects 7,170.84 Non Priority Projects 7,170.84 126

3,981.73

31

4,825.10 17,625.32

5,607.54 20,483.48

5,868.36 21,436.20

16,301.00 66,715.84

Nigeria Vision 2020

Chapter 12 : Trade And Commerce

Introduction The estimated total investment for the sector during the period of the Plan amounts to N20.112 billion. The breakdown of the annual estimates is presented in the annex. Trade and Commerce is strategic for the economic development of the country. Accordingly the policy thrust of the sector within the plan period will be to implement projects and programmes that will boost the production of export manufactures as well as create the necessary environment for the emergence of the country as a hub for trans-American, trans-Europe and trans-Asia trade. Situation Analysis During the period (1960 ­ 1980), Nigeria's trade policies were informed by the doctrine of import-substitution industrialization with significant trade restrictions. This strategy advocated the protection of the domestic market from foreign competition in order to promote domestic industrial production. Trade and commerce was characterized by extensive State involvement in the economy both in production and in marketing with significant use of non-tariff measures to shield the domestic market from foreign competition. However, by 1990s, the Policy direction shifted to trade liberalization which brought some notable progress. By 1996, Nigeria became the 34th largest exporter and 43rd largest importer worldwide but in 2007, Nigeria's position was 41st and 58th respectively. Nigeria over the years had been the third largest trading nation in Africa. Table 29: The sector's contribution to GDP in 2008 was 14.2 per cent as shown below: Sectors per cent of GDP Growth in per Contribution to cent GDP growth ( per cent) Large Sectors Crops Oil and gas Wholesale & Retail Trade Medium sectors Financial Institutions Manufacturing Electricity Livestock Road transport Building & Construction Telecommunications 3.8 4.1 3.3 2.7 2.4 1.8 2.9 127 4.8 8.9 3.5 6.8 7.0 13.1 34.7 1.79 5.20 3.91 2.62 3.35 2.38 6.62 37.6 17.3 14.2 6.2 -6.2 15.96 40.88 -4.49 28.78

Nigeria Vision 2020

Real Estate Fishing

1.6 1.4

11.8 6.6

2.20 1.9

Source: National Bureau of Statistics [NBS] When compared to other African countries, the share of manufactured export in the GDP of the country is very small. In the period 2000-2006, it contributed 0.7 per cent while it was 26.1 per cent,13.2 per cent and 7.8 per cent for Mauritius, South Africa and Cote d'voire respectively. The details are shown in Table 2 below:

Table 30: Share of manufactured export in the GDP of the country COUNTRIES Benin Cameroon Cote d'Ivoire Egypt Gabon Gambia Ghana Kenya Madagascar Mali Mauritius Morocco Nigeria Senegal South Africa Togo Tunisia 1980 ­ 1989 0.5 1.3 3.4 2.4 2.8 0.4 0.3 2.0 0.8 0.1 25.2 6.0 0.0 3.5 4.4 2.5 11.7 1990 ­ 1999 1.5 1.5 6.3 2.3 1.4 1.6 3.1 4.6 3.1 1.4 28.5 10.0 0.6 7.2 9.1 4.0 21.6 2000 - 2006 1.3 0.9 7.8 2.1 4.0 0.6 4.5 3.5 6.3 8.8 26.1 14.0 0.7 7.5 13.2 13.7 25.0

Table 6: African Countries' Average Manufacturing Exports (GDP per centages)

Source: World Bank Report 2008 128

Nigeria Vision 2020

Government has tried in recent years to manage the challenges of the sector through the introduction of various initiatives. Some of these initiatives include: · · · · · · · · Tariff Reforms; Harmonization of Waivers; Concessions and incentives; Port Reforms; Introduction of FTZ as strategy for boosting exports; Ongoing efforts to establish a National Competitiveness Commission; Capacity building in the Ministry of Commerce and Industry to enhance trade negotiation skills; Harmonization of activities of Regulatory Agencies including NAFDAC, CPC, SON, etc

Tariff reform as a trade facilitation tool was employed to induce the simplification of Nigeria's hitherto complex and unpredictable tariff regime. There were also policies and programmes put in place to enhance productivity, international competitiveness, export diversification, greater utilization of preferential trade arrangements, and Nigeria's increased participation in international trade negotiations. Other complementary policies pursued in recent years included macro-economic stability, improving the domestic climate for doing business, strengthening the competitiveness of local firms and improving trade-related institutions in the country.

At the multilateral trade policy level, Nigeria, as a member of the World Trade Organization (WTO), continues to intensify efforts to play more active and collaborative role in shaping the direction of multilateral trade policies. Similarly, under regional trade arrangements, Nigeria remains a major player in the ECOWAS sub-region. Nigeria's adoption of the ECOWAS Common External Tariff (CET) in 2005 improved the predictability of its tariff regime, and provided a strong signal of Nigeria's commitment to a competitive level playing field and deepening sub-regional integration. However, although Nigeria accounts for about 51 per cent of firms involved in the ECOWAS Trade liberalization Scheme (ETLS), the regional market still accounts for only a small fraction of Nigeria's total trade flows.

Nigeria benefited from non-reciprocal preferential treatment of its exports into the European Union under the former Cotonou Agreement between the European Union and the Africa, Caribbean, and Pacific (ACP) States. The Cotonou Agreement is however expected to be replaced by a reciprocal Economic Partnership Agreement (EPA) in the near future. For exports to the USA, some Nigerian products receive preferential tariff treatment under the African Growth and Opportunity Act (AGOA). Under AGOA, eligible countries qualify for duty-free and quota-free access to the USA market for a range of products, including agricultural and textile products. Nigeria's exports under AGOA however remain highly undiversified consisting primarily of energy-related products. Endowed with the potential to improve her export base, government under a catch phrase "Commerce 44" is pursuing the diversification of her export base to the USA. To achieve this goal, government has identified 11 agricultural commodities, 11 solid minerals, and 11 manufactured products, whose quality and standards would be significantly improved to position them for export. Government has also identified 11 countries and regions were the export of these products will be targeted for maximum gains. 129

Nigeria Vision 2020

Issues & Challenges The major challenges of the sector include: · · · · · · · · · · · · · Low productive/trade capacity for effective participation in the global market; Lack of commitment to policies aimed at boosting total exports; Absence of reliable and timely trade data; Poor quality of goods and services that do not meet international standards; Poor trade skills and negotiation capacity; Non diversification of export base; Low production capacity for effective participation in the globalization process; Low level of technology, poor development of value chain and low value-addition to exports; Poor infrastructure; High costs of doing business; Poor regulatory environment; Uncoordinated informal trade; and Inadequate specialized support institutions and awareness for exporters on the opportunities provided by the preferential trade arrangement schemes.

Policy Thrust The Policy thrust for the sector within the medium term implementation plan is set within the context of the NV20:2020. This is also in accordance with the Millennium Development Goals (MDGs) target of reducing poverty by 5O per cent by year 2015. One of the major policy thrusts of the sector will be to ensure the development of a private sector led export growth of the economy. It is also aimed at encouraging the production and distribution of goods and services, especially with in context of Commerce 44 initiative to satisfy domestic and international markets for the purpose of achieving accelerated growth and development. Objectives, Strategies and Targets The objectives and targets for the Trade and Commerce sector during the plan period are as follows: · Drive and promote increased value addition to Nigeria's potentials in Agriculture, Minerals, Oil and Gas in order to achieve rapid sustainable economic growth that reduces poverty, ensure wealth creation, employment generation and delivering prosperity to all Nigerians; Sustain the tariff reform which is aimed at reducing the unpredictability, uncertainty and lack of transparency of Nigeria's tariff regime; Broadly deepen Nigeria's integration into global markets by doubling the country's openness index by 2013;

·

·

130

Nigeria Vision 2020

·

Promote greater utilization of various preferential trade arrangements including ECOWAS Free Trade Area and AGOA; Conclusion of the Economic Partnership Agreement (EPA) with the EU; Facilitate trade in goods and services both domestically and internationally; Promotion of the transfer, acquisition and adoption of appropriate and sustainable technologies to ensure competitive export-oriented industries; Ensure that the country moves up substantially in the ease of doing business index by 2013; Promotion of ethical business practices which support consumer protection.

· · ·

·

·

Strategies Various strategies and initiatives will be used to support the growth of non-oil exports, to increase utilization of preferential trade arrangements and to strengthen Nigeria's participation in international trade negotiations. Improving the uptake of preferences would require addressing various bottlenecks such as transactions and transformation costs and regulatory framework for market access both formal and informal which increase the domestic costs of doing business and reduce the competitiveness of local firms. Nigeria's increased participation in international trade negotiations will also ensure that the country's interests are secured in future trade agreements. These strategies will include the following:

·

Improving non-oil export performance by promoting a limited number of products to welldefined target destinations, such as currently proposed under the Commerce-44 Initiative. This medium term policy will set concrete benchmarks for increasing non-oil exports, employing in particular the commodity value chain and taking advantage of the emerging private sector led commodity networks for market penetration. Strengthening institutions responsible for export promotion, particularly the Nigerian Export Promotion Council (NEPC). Greater support on production, financing, logistics and market identification for export products will be provided particularly to SMEs.

·

·

Promoting an export culture and trade capacity building in the Nigerian private sector by re-designing existing export incentives, for example, by providing some export grants to firms targeting new export destinations. Greater attention would be on Agriculture and Agro-Allied exports and enterprises. 131

Nigeria Vision 2020

·

Improving current strategies to augment utilization of preferential trading schemes such as AGOA. For example, Nigeria has put in place a number of measures to improve on the utilization of opportunities under AGOA including concessionary import duties of 2.5 per cent on industrial equipment used to produce AGOA exports, and the establishment of AGOA-dedicated desks at the country's ports. However, much more work is needed to improve utilization and to diversify products exported under the AGOA scheme. Encouraging the exploitation of opportunities for increased regional trade particularly using the ECOWAS Trade Liberalization Scheme (ETLS) for domestic industries. Nigeria's official exports within the ECOWAS region constitute only a small share of its overall exports, although a significant share of intra-ECOWAS trade occurs via informal channels. The current plan will direct efforts towards sensitizing the SME on trade opportunities in the ECOWAS sub-region. Actively strengthen links with Nigerians and other Africans in the Diaspora to deepen technical and business ties with the rest of the world, and improve export market penetration, especially in textiles, food, cultural artifacts leather an leather products. Liaising with other like-minded developing countries (particularly African countries) to increase Nigeria's bargaining power in global negotiations. Nigeria will adopt a proactive stance towards negotiations and the determination of issues in both multilateral and regional trade in order to maximize the country's gains and minimize its losses in future trade deals. Improving inter-institutional coordination on trade policy among government agencies and improving the quality and frequency of government's discussions with relevant stakeholders notably in the organized private sector and civil society organizations. Harmonizing institutions for negotiations and improving preparations for trade negotiations, by conducting comprehensive background studies which clearly outline strategic national interests as well as risks associated with various negotiation outcomes. The plan will also support more systematic ex ante and ex post assessment of various trade-related reforms such as tariff liberalization. Playing a more active role in shaping the outcome of the ongoing WTO Doha Round, and supporting key issues of concern to developing countries such as improving market access to developed country markets, and maintaining special and differential treatment measures for developing country members of the WTO. Strengthen EPA negotiations, conducting extensive impact assessment studies on potential impact of EPA with the EU, and to only consider an agreement if the overall anticipated benefits exceed current benefits obtained under the Cotonou Agreement. 132

·

·

·

·

·

·

·

Nigeria Vision 2020

·

Reviewing the existing regulations both formal and informal to ensure regulation changes for easier access to the domestic markets by stakeholders Promoting commodity value chains in line with Commerce 44 Strengthening ongoing reforms of the Nigeria Customs Service, the Nigeria Ports Authority and other operations at the ports. Activities will include further strengthening destination inspection programme and widening risk-based clearance systems at ports to ensure timely clearance of goods. Developing deep-sea port, inland container depots, Free Trade Zones (FTZs) and a shipbuilding facility to enhance coastal shipping, international trade, and regional integration. Continuing with the tariff rationalization and harmonization in line with best international practice and maintaining dialogue with other ECOWAS Member States on full adoption of Common External Tariff, while gradually reducing list of items which are prohibited. Strengthening trade regulatory agencies, particularly the Standards Organization of Nigeria (SON), with a view to making them more effective in monitoring standards of Nigerian products, and ensuring that Nigerian goods meet quality standards of international markets.

· ·

·

·

·

Sectoral Priority & Targets The following will be the focus areas during the plan period: · Building bridges across the ministries, tiers of government; businesses, industries; etc.; with a view to harmonizing trade and commerce strategies at different levels; Commodity/ Products/ Services development to enable Nigeria be a global hub in specialized products e. g cash crops (e.g. cocoa, cotton), fruits products, etc. as well as specialized services such as telecoms; Further strengthening and organizing the private sector with particular reference to the commodity associations in agriculture, solid minerals, etc; Market development through provision of market infrastructure: Creation of industrial parks with full complement of services, more export processing zones, industrial clusters, free trade zones, and special economic zones etc; Commodity development through value chain management: Linkage between production storage, and utilization; Incentives for selected products; 133

·

·

·

·

Nigeria Vision 2020

· ·

Provision of adequate incentives to stimulate targeted products/services; Market facilitation through provision of marketing facilities; (information, quality control, incentives, arbitration, demonstrations, etc.) Capacity building for establishment of Standards e.g. conditioning centers to set export standards; Development of centers for sector specific skills in institutions; Development of Capacity for negotiating trade agreements, regional/international concessions, duty free/tariff preference trade regimes for products and services; (trade missions) Trade facilitations/ Investment promotion: Trade facilitations, proper trade shows; supporting the country to participate; arrangements for market access, etc; Reduction of transaction costs ­ government fees etc.; Zero cost export, promotion of Ecommerce: reduce copious documentations, approvals etc; Integration of informal sector into the formal sector; and Promotion of Border Markets;

·

· ·

·

·

· ·

Programmes/ Projects and Indicative Allocations Priority Programes Commerce 44 Initiative The Commerce 44 initiative aims to develop and promote the export of eleven agricultural commodities, eleven manufactured products and eleven solid mineral products with high potentials for marketing in eleven countries /regions of the world. The initiative seeks to adopt universally acceptable best practices in agricultural production, manufacturing, processing, packaging and marketing of identified products to enhance their competitiveness in the world market. The overall objective is to take advantage of the concessions offered by the subsisting Bilateral and Multilateral Agreements as well as MOUs to facilitate the smooth export of Nigerian Products. Trans-National Border and Regional Markets The imperative of the establishment of these border markets consist in their capability at formalizing the informal trade currently prevailing at the Country's borders. It also has the additional benefit of employment creation, boosting business and investment activities as well as generation of revenue. Furthermore, it has the spill-over benefit of curtailing incidence of smuggling across the borders and stemming the tide of illegal immigrants.

134

Nigeria Vision 2020

National Focal Point on Trade Matters This is an Institutional Framework or Committee charged with the responsibility of articulation and coordinating Nigeria's position and participation in all trade related negotiations. It is also a framework for the implementation of Nigeria's trade policy. Investment Promotion and Protection Agreements. In order to attract foreign direct investment and to boost investor's confidence in the Nigerian economy the Country needs to vigorously pursue the consummation of these Agreements with Countries that seeks to do business with her. One-Product-One Local Government Initiative This initiative should be sustained for wealth creation and employment generation.

Table 31: In addition to above priority programmes the following are also essential investment programmes /projects for the sector during the plan period: S/N 1 Projects Implementing Agency Establishment of Trade Facilitation FMC&I, SGs, NEPC, OPS Centers in the 36 states and FCT. Development of Nigerian capacities in NEPC, FMC&I, OPS logistics and supply chain management Establishment of Industrial Clusters in the FMC&I, NEPC, SGs, OPS States to boost processing and production of exportable products. Procurement of Scanners to enhance NCS, NPA, FMC&I ASYCUDA Increase value addition to Nigeria's RMRDC, NEPC, OPS, FMC&I export potentials in Agriculture, Minerals, Oil & Gas, etc Establishment of an Export House and a NEPC, FMC&I, OPS Market Intelligence Center Strengthening of institutions responsible NEPC, ANE, for export promotion. Group, FMC&I. Strengthening agencies. of trade MAN Export

2

3

4

5

6

7

8

regulatory NCS, SON, NAFDAC

135

Nigeria Vision 2020

9

Improved inter-institutional coordination NPC, FMC&I, OPS, CSOs of trade policy among MDAs, the OPS and CSOs Continued implementation of Commerce FMC&I, NEPC, MFA, FMM&P, 44 initiative. FMA&WR, OPS Implementation of one local government, FMC&I, SMEDAN, NEPC, NPC, one product(OLOP) initiative SGs, OPS, LGAs

10

11

12 13

Promotion of Trans-National Border FMC&I, SGs, OPS, NPC, NEPC Markets Agricultural produce processing including FMC&I, OPS, industrial linkage Development/production of liberalized FMC&I, FMF, NPC, NCS, OPS WTO- compatible trade regime devoid of unpredictability, uncertainty and lack of transparency. Strengthening of the National Focal Point FMC&I, NPC, FMF, MFA, OPS on Multilateral Trade

14

15

Sub- sectors Relevant for the Deliverables Government will collaborate with the private sector to promote: · · · · · · · · Stable macroeconomic framework Sound regulatory framework Comprehensive national export practice Incentive package for the promotion of non-oil products Quality standards Business environment Solid trade information network , and Capacity building for all stakeholders

Which are very germane to the realization of the objectives and goals of the Trade and Commerce sector.

136

Nigeria Vision 2020

National Priority Projects

Table 327: The flagship projects for the trade and commerce sector during the plan period

S/N Thematic Areas Productive Sector

Flagship Projects Establishment of Industrial Clusters in the States to boost processing and production of exportable products.

Procurement ASYCUDA

of

Scanners

to

enhance

Increase value addition to Nigeria's export potentials in Agriculture, Minerals, Oil & Gas, etc Establishment of an Export House and a Market Intelligence Center Continued implementation of Commerce 44 initiative. Promotion of Boarder Markets

Agricultural produce processing including industrial linkage Development/production of liberalized WTO- compatible trade regime devoid of unpredictability, uncertainty and lack of transparency Total

137

Nigeria Vision 2020

Trade & Commerce Sector Table 33: Summary of Investrment Plan 2010 ­ 2013 Thematic Area - Productive Sector Trade and Commerce Costs in N'm Priority Projects S/N Procurement of Scanners to enhance ASYCUDA 1 2 3 4 5 6 7 8 Non Priority Projects 9 14,698.60 138 390.72 1,602.64 454.08 1,862.52 475.20 1,949.15 1,320.00 20,112.91 Agricultural produce processing including industrial linkage Development/Production of liberalized WTOcompatible trade regime Projects 14,698.60 14,698.60 Increase value addition to Nigeria's export potentials in Agriculture, Minerals, Oil etc Establishment of an Export House and a Market Intelligence Continued implementation of Commerce 44 initiative Promotion of Boarder Markets 275.44 110.17 55.09 320.10 128.04 64.02 334.99 134.00 67.00 930.53 372.21 186.11 330.52 110.17 110.17 220.35 384.12 128.04 128.04 256.08 401.99 134.00 134.00 267.99 1,116.63 372.21 372.21 744.42 2010 2011 2012 2013 Total

Nigeria Vision 2020

Chapter 13:

Introduction

Culture and Tourism

The proposed public sector (Federal) investment in the sector, during the period of the Plan, is to N27.91 billion. The breakdown of annual estimates is annexed. Culture and tourism sector has been identified as a major growth driver for achieving the nation's vision. This is in recognition of its huge potential, to contribute significantly, to employment generation, wealth creation and sustainable poverty reduction, though the numerous activities in the sector. It is a key result area for the 1st.NIP, as Nigeria has untapped potentials for the promotion of domestic as well as international tourism. The rich biodiversity and ecosystem as well as the traditional cultural diversity, historical sites, crafts, etc if properly harnessed, are possible sources of revenue, employment generation and wealth creation, as activities in the sector such as the hospitality industry, are usually labour intensive. This has been the case in many countries including sub-Saharan African countries such as Kenya and South Africa where tourism contributes substantially to their national income, compared to the less than 3 per cent contribution of the sector to the nation's GDP. Nigeria is poised to harness this source of growth in order to achieve her aspiration of becoming one of the largest 20 economies by the year 2020. The sectoral vision is to make Nigeria the preferred destination in Africa. Given the importance of the sector and the projected contribution to GDP, government is poised to ensure that the sector attains its mandate. Situation Analysis A major step taken to improve the sector in recent times include, placing the sector as one of the centre piece for economic development. This is in line with global trend where most countries have turned to culture and tourism as part of their development agenda. It is in realization of this that government in recent time took steps to review existing policy document. This includes the review of the existing culture policy document of 1988 and the introduction of a National Tourism Policy. The policy sought for the following: · · · Establishment of the Presidential Council, on Tourism which is chaired by his Excellency, Mr. Presidency. Establishment of National Committee on Oral and Intangible Culture Heritage, chaired by the Honourable Minister of Culture and Tourism. Introduction of Stakeholder Forum on National Council on Culture and Tourism.

Since the creation of the Council significant progress was made during the review period. For example there was introduction and hosting of Abuja Carnival which started since year 2005, formulation of a National Policy on Tourism, production of the Tourism Development Master Plan, formulation of a National Tourism Satellite Account (TSA), a review of the 1988 Culture Policy for Nigeria. The enlistment of Sukur World Heritage site at Adamawa and Osun Osogbo Sacred Groove into the World Heritage List (WHL). The sustained efforts of some states in using Tourism for wealth creation has been recognized. Tourism as flagship for development and poverty reduction in Cross River, Kebbi, Osun and Kano has lead to increase revenue generation and employment opportunity in these States. The National Tourism Development Master plan has poverty alleviation as its primary focus. The main objective of the Abuja Carnival is centered on promoting and marketing the rich and robust 139

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Cultural Heritage of Nigeria and her artistic expressions. The carnival is held annually to serve as essential tourism product. To strengthen the nation's foothold on the ecotourism sub-sector, the following laws have been enacted: · · · · Endangered Species Act Cap 108LFN 1990. National Park Services Act 46 of 1999. Federal Environmental Protection Agency Act Cap 131LFN1990. The ratification of the 1999 global code of ethics and similar Culture and Tourism related convention by government.

The greatest challenge is how to coordinate the efforts of states in a manner whereby the nation will derive economic and social benefits from Culture and Tourism. In this regard the National Orientation Agency comes to play a critical role in driving the sector by promoting the value of tourism, culture, propagation of Nigeria languages and arts, (including music, food and entertainment). Issues And Challenges Despite the resolve of government to use Culture and Tourism as a major driver of growth, the current performance of the sector is below the expectation of government. Some of the reasons responsible for the poor performance include: · Infrastructural Inadequacies. Although tourism has benefited from the telecommunication revolution, the underdevelopment of other infrastructural facilities such as transportation and power are still hindrances to the growth of the sector. Weak Regulation: The enabling laws to fast-drive the industry are inadequate. For instance, the provisions in the NTDC Act of 1992 are not adequate in sustaining the current efforts of Government. There are overlapping and conflicting roles and responsibilities of various public sector institutions at Federal and State levels. The enabling laws for agencies and parastatals under the Ministry of Culture and Tourism are being reviewed to address this challenge. Low and Inadequate Funding: The cost of capital to Banks does not encourage lending to a sector of long-gestation as tourism. Although the small and medium enterprise scheme of CBN would have lessened this burden, many small investors in tourism enterprises are however not sufficiently aware of the programme. Besides, the conditions for the facilities are stringent and cumbersome. Weak Marketing approach and Poor Tourism Package: The approach to marketing Nigeria appears weak despite efforts of Government through her "Heart of Africa" Project. A survey of most tour operators in the UK, Europe and USA indicated a lack of adequate information about Nigeria as a destination. The packaging of our tourism offering is still narrow in scope; compared to Nigeria's potential. Product Development: The development of unique and outstanding tourism products, based on our cultural heritage, has been neglected. The image of Nigeria as a destination - brand is below international standards. This has also resulted in low publicprivate partnership. Security: There are still challenging security and safety issues in the country. In the past few years, Nigeria witnessed a spate of air-crashes and high profile crimes as well as the youth restiveness in the Niger Delta.

·

·

·

·

·

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Hospitality Industry: Except for a few, most hotels still operate below acceptable international standards. · Non-Competitive Visa Regime: The current visa regime is not tourism friendly as applicants need to produce letters of invitation to Nigeria and apply at the Embassy or the High Commission in the country where they reside. This makes Nigeria less competitive, as a destination in the region. · Neglect and underdevelopment of Tourism assets: The poor condition in terms of maintenance, preservation, protection and sanitation of museums, monuments, historic and natural sites etc. (which form the core of our tourist attractions) is a great drawback. Some are being destroyed and looted. Similarly, many of such attractions are not properly documented. · Human Capital Development: There are low level capacity building and skill acquisition facilities. The industry, in most cases, is being managed by non-professionals. There is a need for value re-orientation of personnel at these locations. Besides, Training Institutes are under funded and ill-equipped, running programmes without specifying skills or measurable outcomes. · Statistics: There is a dearth of reliable statistics for planning. No collective database of vital statistical information is available. In many cases there is also no frame work for information sharing and integration between agencies and institutions involved in tourism development at various levels. · Enclave Practices: The few international tourists that come to Nigeria still go about in "packaged" tours without interaction with the locals. Tourism (and Cultural Studies) is not yet entrenched in the curriculum of Nigerian pre-tertiary Schools. · Policy Thrust The policy thrust of government in the Plan is to place Nigerians at the heart of its Culture and Tourism Development efforts and to make Nigeria the preferred destination in Africa. Given the importance of the sector and the projected contribution to GDP, government has poised to ensure that the sector attains its mandate. The main policy thrust includes the following: · · · · · · · Culture will be used as a vector of development Tourism will be private sector driven Government will provide the enabling environment for the industry to flourish Effective Community involvement will form the basis of tourism growth Tourism development will be underpinned by sustainable environmental practices Tourism Development will be used for wealth creation and employment generation and poverty reduction Nigeria's Cultural Heritage will be a resource for driving tourism.

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Objectives, Strategies And Targets (2110-2013) Objectives for Tourism The objectives include the following; To make Nigeria become a major Tourism destination in Africa and within the Top 20 in the world. To make Tourism one of the five major income earners in Nigeria Strategies for addressing the objectives · · · · · · · · · · · · Revise, update and implement the recommendation of the Tourism Development Master Plan Develop clusters of resorts in five climatic regions Enhance human capacity and capabilities Promote and develop varied tourism products Review the existing tourism Legislations to eliminate the overlapping functions in the industry Develop pro-active safety and security strategy to enhance tourist safety Immediately establish the Tourism Satellite Account as a way of measuring performance in the Sector Post tourism officers to Nigeria Embassies to facilitate visa processing procedures Professionalize and certify the arts of management in hospitality and tourism enterprises Strengthen NIHOTOUR through better funding and capacity building of staff Strengthen Nigeria Tourism Development Cooperation through better funding and capacity building Vigorously pursue the implementation of the Tourism Development Master Plan

Targets for the plan period · · · · · · · · Achieve a 10 per cent annual growth rate in tourists' arrival at Nigerian airports and land borders from 2010 Increase contribution of tourism to GDP from 2.5 per cent in 2007 to 5 per cent by 2013 Increase the number of registered hotels in Nigeria from 1,700 in 2008 to 2,500 by 2013 Promote the occupancy rates of hotel from 85 per cent in 2007 to 90 per cent in 2013 Develop 5 tourism clusters for Nigeria by year 2013 Develop a two-day entry visa processing procedure for Nigerian Embassies Train additional 10,000 tourism and hospitality workers by 2013 Achieve a 10 per cent growth rate in film production by 2013

Objective for Culture The objective for Culture is "to develop, preserve, promote and present our various cultural products in order to reposition them for revenue generation".

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Strategies for addressing the objective Review the Acts of all implementing Agencies under the Culture and Tourism Ministry towards repositioning them for better performance · Encourage the Nigerian youth to have interest in skill acquisition in arts and craft · Strengthen the National Institute for Cultural Orientation through better funding and capacity building of staff · Establish a National Theatre and National Gallery in Abuja · Encourage state governments to establish Theatres and Galleries, and develop carnivals and festivals Targets for the plan period · · · · · · · · · · Increase the contribution of cultural Industries from 2 per cent in 2007 to 70 per cent by 2013 Reduce the rate of theft of artifacts and museums objects by 80 per cent by 2013 Train youths in arts and crafts at the rate of 3,000 youths per annum from 2010 Generate a minimum of N2 billion annually from Nigerian theatre/carnival from 2010. Generate a minimum of $100 million in crafts exports by 2013 Promote the establishment of 2 arts galleries in each of the States of the federation and FCT annually from 2010 Train at least 3,000 cultural workers and stakeholders on cultural orientation annually from 2010. Generate a minimum of N2 billion annually from Nigerian theatre/carnival from 2010. To reduce the number of reported cases of human rights violation by 50 per cent

Objectives for National Orientation The objective for National Orientation is "to encourage Nigerians to commit themselves to renewed values of honesty, integrity, respect for the rule of law (order and decorum) and respect for society". Strategies for addressing the objective In achieving this objective under the plan period, government will · · · Vigorously create in the citizenry (the leaders and the led ) an awareness on human rights and obligations. Deepen the commitment of Nigerians to the goals of nation building Promote the tenets of Social Justice and Rule of Law

Targets for the plan period To reduce the number of reported cases of human rights violations by 50 per cent

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PROGRAMMES

Table 34: Priority projects and programmes for Culture, Tourism and National Orientation Sector

S/N

Priority Project

Establishment of Culture and Tourism Fund to promote culture and tourism. Upgrade Abuja Carnival to international standards. Development of 2 UNESCO World Heritage sites in Nigeria: Osun Oshogbo sacred groove in Osun state & Sukuru cultural landscape in Adamawa state. (Contribution to UNESCO funding). Establishment of a National Theatre and National Gallery of International standard in Abuja. Total

Conclusion Culture and Tourism are strategic sectors that are capable of driving growth, generating employment and new sources of wealth for the country both in the medium and long term. The projects and programmes that have been identified are capable of putting Nigeria on the path of sustainable growth. Therefore, during the medium term government will pursue the identified programmes and projects to their logical conclusion.

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Culture and Tourism Sector Table 35: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Productive Sector Culture and Tourism Priority Projects S/N 1 2 3 2010 Establishment of Culture and Tourism Fund to promote culture and tourism. Upgrade Abuja Carnival to international standards. 22.22 Development of 2 UNESCO World Heritage sites in Nigeria: Osun Oshogbo sacred groove in Osun state & Sukuru cultural landscape in Adamawa state. (Contribution to UNESCO funding). Establishment of a National Theatre and National Gallery of International standard in Abuja. Culture & NOA Projects 7,920.66 6 Non Priority Projects 7,920.66 1,396.46 5,916.70 1,622.91 6,876.16 1,698.40 7,195.99 4,717.77 27,909.51 7,920.66 10.41 16.27 48.90 Costs in N'm 2011 4,444.68 2012 5,204.67 2013 5,421.69 15,071.04 Total

44.45

34.70

48.80

127.94

4

8.89

3.47

10.84

23.20

5

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PART III: HUMAN CAPITAL AND SOCIAL DEVELOPMENT

Thrust: Building a productive, competitive and functional human resources base, for economic growth and social advancement The human capital and social development thematic area, covers the eight critical Social sectors of the economy. These include: Education; Health; Labour Employment and Productivity; Women Affairs and Social Development Youth Development; Sports Development; Food and Nutrition and Social Protection. The social sector is strategic for national development, as it deals with improvements in the quality and capacity of a nation's human resources, which is a critical element for national development. Investment in the social sector is targeted at ensuring that the nation's human resource endowment is knowledgeable, skilled, productive and healthy to enable the optimal exploitation and utilization of other resources to engender growth and development. It is people that drive the economy; improving their productivity, protecting the vulnerable in the society and enhancing their wellbeing and quality of life are the essence of development planning. While the nation aspires to grow the economy at high rate, there is need to ensure that the growth is inclusive for societal harmony and sustainable development. The seven chapters are presented below:

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Chapter: 14

Introduction

Education

The proposed total investment for the Education sector, for the Plan period is N611.658 billion. The breakdown of the annual estimates is presented in the annex. Education constitutes the core of human development. It opens up opportunities for both individual and group empowerment. It is a vital tool for transformation and the key to the sustainable development of a nation. Human capacity development anchored on strong learning systems is central to the attainment of Vision 20: 2020. Education is the most crucial instrument for empowering young people with knowledge and skills which in turn provide them access to productive employment in future. The goal of Vision 20:2020 in education sector is to ensure that all children, irrespective of ethnicity, gender, or disability, complete a full course of basic education which is 12 years of formal education comprising three years of Early Childhood Care Development and Education (ECCDE), six years of primary schooling and three years of junior secondary schooling. In addition to Universal Primary Education being one of the Millennium Development Goals (MDGs), education is crucial for the achievement of the MDGs. Attaining the goals of eradicating extreme poverty and hunger, promoting gender equality and the empowerment of women, reducing child mortality, improving maternal health, combating HIV/AIDS and ensuring environmental sustainability are predicated on sound education. The acquisition and dissemination of the requisite knowledge and skills, their effective application to address challenges that cumulatively result in sustainable development are highly dependent on a strong education system. The first Pillar of the Vision 20:2020 is to guarantee the well-being and productivity of the people with education as the bedrock. Vision and Goals "To establish a modern and vibrant education system that ensures the maximum development of the potentials of individuals and promotes a knowledge-driven society that propels the nation's development" The ability to acquire and utilize knowledge and skills effectively is the key to the growth and development that will propel Nigeria to become one of the 20 largest economies by the year 2020. A modern and vibrant education system entails wide­ranging activities that would ensure functional, qualitative education of the highest possible standards at basic, post-basic and tertiary levels. The primary goals to achieve this include providing access to quality education at all levels, improved learning and teaching infrastructure, according greater importance to science, information technology, technical, vocational education and training. Situation Analysis The Nigerian education system is categorised into three main vertical segments: basic education, post-basic education (or senior secondary education) and tertiary education. Early Childhood Care and Development (ECCDE or pre-primary education) is viewed as a specialised part of basic education for younger children who are not yet of primary school age. Similarly, Nomadic Education is part of basic education for special groups of migrants. Adult and NonFormal Education may be part of basic education or may transcend it, as it can go as high as the post-basic level. Technical/vocational education cuts across basic, post-basic and tertiary education while teacher education is a sub-set of tertiary education. 147

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Early Childhood Care and Development Education (ECCDE) ECCDE includes training offered in day care centres largely by the private sector and social development services for children between 0-3 years; and the education of those of ages 3-5 provided within the formal education sector. Learning at this early stage of life is important for better educational performance in later years and enables children to derive maximum benefits from education and learning. Available statistics indicate that enrolment and patronage of ECCDE centres vary across the States of the Federation. Access to such centres, majority of which are in the urban areas, has been identified as a factor in their utilisation. Table 1 indicates the trend in enrolment in pre-primary education. There is a need for skilled teaching personnel in pre-primary schools.

Table 1: Pre- Primary Enrolment (2005 ­ 2007)

Year 2005 2006 2007

Male 956,475 1,035,587 1,086,067

Female 903,796 1,005,324 1,049,326

Total Enrolment 1,860,271 2,040,911 2,135,396

Source: The State of Education in Nigeria 2009, Federal Ministry of Education, Abuja Primary and Post-Basic Secondary Primary education is free and compulsory although not all eligible children are in school. Despite the considerable progress made with the Universal Basic Education (UBE), it is estimated that only 22.3million of the 42.1million eligible children are in school, clearly indicating that access remains a problem. Figure 1 shows the national enrolment in primary schools. There is strong participation of the private sector in primary education but government is the dominant provider of education at this level.

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Figure 1: Primary 25,000,000

School Enrolment

20,000,000

15,000,000 Total Enrolment Male Enrolment 10,000,000 Female Enrolment

5,000,000

0 2004 2005 2006 2007 2008

Source: Federal Ministry of Education, Abuja/Universal Basic Education Commission, Abuja The infrastructure in schools, including those in the higher institutions are dilapidated. The adverse learning conditions in schools include paucity of teaching and instructional materials, absence of adequate infrastructure, as well as over-crowded classrooms. The hygiene and sanitary conditions are also critical and have been identified as contributory to the effective retention and participation of girls in education, particularly in some parts of the country. Furthermore, there is a dearth of qualified and competent teachers in schools and institutions thereby adversely affecting the quality of education.

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Figure 2: Summary 25,000,000

of Selected Primary School Indicators

20,000,000

15,000,000 Total Enrolment 10,000,000 Total Teachers Total Classrooms 5,000,000

0 2004 2005 2006 2007 2008

Source: National Bureau of Statistics The gross enrolment in secondary schools is a major concern because less than 30 per cent of eligible children in the 14 -17 age bracket are enrolled nationwide. Effective youth empowerment and harnessing the enormous potential of this segment of the population cannot be realised without proper education and skills acquisition. It is important that the underlying factors of the high drop-out rate be identified and addressed including proper guidance and counselling to enable young people identify strengths, talents and vocations early; it is also crucial to provide conducive learning and teaching environment that will definitely encourage self discovery and actualisation. The issue of fees at this level is a likely critical factor in the drop-out rate if parents are unable to pay the required fees.

Table 37: National Summary of Secondary School Statistics

Year 2004 2005 10,913 Total No of Schools 10,913 6,279,463 6,398,343 Total student enrolment 2,739,754 2,854,718 Total female enrolment 3,539,709 3,543,625 Total male enrolment 154,594 144,413 Total No of teachers 98,077 98,077 Total No of classrooms Source: National Bureau of Statistics

2006 2007 2008 18,238 18,238 18,238 6,536,038 6,068,160 6,625,943 2,893,167 2,608,014 2,943,802 3,642,871 3,460,142 3,682,141 199,163 98,077, N/A 98,077 N/A 98,077

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The quality of education is of considerable concern using the achievement of candidates in the WASC examinations as a yardstick. In the recent past, less than 10 per cent of the candidates have obtained the minimum of five credits including English and mathematics and this trend has continued even with the examinations conducted by the National Examinations Council (NECO). Table 2 shows the performance of candidates from 2004 to 2008.

Table 38: National Summary of WAEC Examination Results May/June 2004-2008

2004 1,051,246 Total number of candidates Total number with 5 191,938 credits including English and maths Total male candidates 96,268 with 5 credits Total female candidates 95,670 with 5 credits Total per cent with 5 18.26 credits including English and mathematics Source: National Bureau of Statistics

2005 2006 2007 2008 1,091,763 1,184,223 1,275,832 1,369,171 203,991 110,417 98,133 127,147

104,378

60,986

55,079

72,118

99,613

44,514

43,178

55,029

18.68

9.32

7.69

9.29

According to the UNDP Human Development Report on education in Nigeria 2008-2009, the adult literacy rate is 64.2 per cent which indicates that about 50 million Nigerians are unable to read and write. This level of illiteracy combined with poor educational quality and standards are antithetical to the rapid economic growth required for the actualisation of Vision 20: 2020. Adult and Non-Formal Education must be given greater impetus to enable this large segment of the population to acquire functional literacy that would make then contribute more effectively to national development. Tertiary Tertiary education encompasses all forms of post secondary education which includes education that takes place in universities, colleges of education, polytechnics and monotechnics. There are 104 universities in Nigeria presently; 27 Federal, 36 State and 41 being privately owned, indicating a very strong presence of the private sector in tertiary education. There are 72 colleges of education, 57 polytechnics, and 90 specialised colleges and monotechics. The statistics from the Joint Admissions Matriculation Board (JAMB) examinations show that more students opt for university education rather than other tertiary institutions. The preference for universities has been largely attributed to the compensation system in the public service which accords higher rewards to university degrees than other qualifications. Access, quality of education, dearth of learning/instructional materials and inadequate numbers of teaching personnel are also critical issues that require careful attention at this level of education. Furthermore, there is need to actively involve key industry stakeholders in the review and development of tertiary education curricula in order to improve the employment chances of the products.

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Funding It is difficult to calculate the total public expenditure on education because of the funding policies in the three-tiered federal system. Basic education is funded by the Federal, State and Local Governments. The Federal Government supports basic education through the UBE Intervention Fund which is targeted towards the provision of classrooms, instructional materials, equipment and furniture as well as teacher training, among others. Post-basic education is funded by both the State Governments and the Federal Government; a substantial proportion of the budget of the Federal Ministry of Education is allocated to the running of the 104 Unity Schools. The Federal and State Governments also fund tertiary education; most of the tertiary institutions are government ­owned. The issue of funding is a major challenge in addition to serious impediment in access to UBE intervention and Education Trust fund (ETF). The Fund in the ETF that are yet to be accessed by tertiary institutions are as follows: · Universities N6,434,000,000 · Polytechnics N2,884,030,919 · Colleges of Education N1,272,738,750 Issues and Challenges The main issues that need to be addressed during this plan period include working towards complete access to education by all school-age children and to implement measures that would improve access to post-basic and tertiary education. Providing opportunities for professional development of existing teachers, training and recruiting more qualified teachers, creating the appropriate learning and teaching environment with all the requisite equipment to improve quality and standards are necessary in the overhaul of the education system to reposition it for the critical role it must play in enabling the attainment of the Vision. Funding is likely to be a major challenge, given the state of dilapidation in many public schools and institutions of higher education and the need for skilled manpower in adequate numbers. Policy Thrust The policy thrust of 1st NIP in Education will be: · · · · To consolidate the gains achieved in the past years in education Promote primary education enrolment of all children in school going age irrespective of income profile of the parent. Provision of infrastructure such as classrooms across all levels would ease overcrowding and increase access and reduce pupil/teacher ratio. Enhance the efficiency, resourcefulness, and competence of teachers and other educational personnel through training, capacity building, and motivation.

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·

· ·

Strengthen Nigeria's technological and scientific base by revamping technical, vocational, and entrepreneurial education and making optimal use of information and communication technologies to meet the economy's manpower needs. Re-establish and enforce guidelines for standards and education quality assurance. Enhance the competence and performance of teachers, education managers, and other education personnel through quality pre-service training, continuous development programmes and motivation

Medium Term Objectives & Targets Objectives: · Provide and sustain unfettered access to education for the total development of the individual Ensure regular review of curriculum and other policies at all levels for skill acquisition, job creation and poverty reduction

·

·

Assure high quality education programmes that are globally competitive at all levels Collaborate with development partners, the private sector, civil society organisations and local communities to support and fund education Promote Information and Communication Technology Capability at all levels Promote Gender Equality in Education

· ·

Targets: Increase net primary enrolment from 61.5 per cent to 75 per cent by 2013 Increase access to nomadic education from 22 per cent to 40 per cent by 2013 Special Education Increase Adult literacy rate for women from 55 per cent to 65 per cent by 2013 Increase coverage for awareness and advocacy programmes by 2013 Review and update of all teaching and learning support materials by 2013 Upgrade of 13,396 unqualified teachers by 2013 Convert at least 40 per cent of current Science Teachers to teach IT and use IT tools in Teaching by 2013 40 per cent gender parity attained by 2013

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Nigeria Vision 2020 Below are the priority programmes and projects for the Education Sector

S/n Project/ Programme

Infrastructure Development

National Campaign on Access

Create Centres of Excellence in one university, polytechnic and College of Education in each geo-political zone 4 Establish a National Commission for Education Quality Assurance 5 Train and retrain teachers on the 9-year Basic Education curriculum 6 Strengthen the Education Management Information System (EMIS) 7 Upgrading / provision of additional laboratories, workshops, studios and research facilities in all Federal Universities and inter university centres, colleges of education and polytechnics 8 Capacity building for staff of federal tertiary institutions and NUC 9 Upgrading of ICT facilities in Federal Universities and inter university centres, colleges of education and polytechnics

It is expected that the implementation of the programmes and projects will revitalise and reposition the education sector to produce competent individuals that are well equipped with the knowledge and skills required to drive the rapid national development that will propel Nigeria into the league of the top 20 world economies.

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Education Sectro Table 40: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Ministry of Education Priority Projects S/N 1 2 Construction of classroom blocks at all levels of education National Canpaign on Access Create Centres of Excellence in one university, polytechnic and college of Education in each geo-political zone Establish a National Commission for Education Quality Assurance Train and Retrain teachers on the 9-year Basic Education curriculum Strenghten the Education Management Information System (EMIS) Upgrading/Provision of laboratories, workshops, studios and research facilities in all Federal Universities and Inter University Centre Capacity building for staff of federal tertiary institutions and NUC Upgrading of ICT facilities in Federal Universities and Inter University centres Education Projects Non Priority Projects 97,208.44 97,208.44 30,202.06 159,426.86 35,099.70 175,221.14 36,732.24 179,802.00 102,034.00 611,658.44 440.49 72,079.56 2010 2011 19,625.54 Costs in N'm 2012 16,575.62 499.22 81,690.17 2013 17,550.65 528.58 86,495.47 53,751.81 1,468.29 240,265.20 Total

3 4 5 6

149.97 800.88 94.10

169.96 907.67 106.65

179.96 961.06 112.92

499.89 2,669.61

313.68 51,718.23

19,015.47

18,384.20

14,318.56

7 8 9 10 11

8,008.84 9,009.95

9,076.69 12,711.27

9,610.61 13,311.93

26,696.13 35,033.15

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Chapter 15

Introduction

Health Sector

The proposed total investment for the health sector, in the Plan is N487.448 billion. The breakdown of the annual estimates is presented in the annex. Nigeria operates a pluralistic healthcare delivery system with the orthodox and traditional health care delivery system operating alongside each other. The private and the public sectors provide orthodox health care services, while the traditional health care system is managed by traditional health care practitioners. The Public Health service is organized into primary, secondary and tertiary levels. National Health Policy ascribes responsibilities for primary healthcare to local government, secondary healthcare to states and tertiary healthcare to the Federal Government. Situation Analysis According to the results of the Federal Ministry of Health (FMoH) survey conducted in 2005, the country has 23,640 health care facilities of which 85.8 per cent are primary, 14.0 per cent are secondary and 0.2 per cent are tertiary. Of this number, 38 per cent are owned by the private sector which accounts for 60 per cent of health care services in the country. Even though 60 per cent of the primary healthcare facilities are located in the northern zone of the country, they are mainly health posts and dispensaries that provide only basic curative services. The private Out-of-Pocket (OOP) expenditure in Nigeria accounts for more than 60 per cent of the estimated $10 per capita expenditure on health, limiting equitable access to quality healthcare. The Primary Health Care (PHC) delivery system is the bedrock of the national health system. However, it is currently underfunded and there is lack of capacity at the LGA level, which is the main implementing organ of primary health care. The Human Development Index (HDI) Report (2007) rated Nigeria's health status as poor. The high rates of maternal and under-5 mortality rate is estimated at 800 per 100,000 and 75 per 1000 live births respectively. The prevalence of HIV/AIDS pandemic is 5.2 per cent, and other communicable diseases, pose formidable challenges to the nation's effort at meeting the MDGs by the year 2015. Other inhibiting factors include poor health infrastructure, unavailability of drugs in hospitals, inadequate health personnel (28 doctors to 100,000 patients) and other related matters. It is therefore imperative that a more focused attention is given to the health sector, if Nigeria is to meet the MDGs, improve her ranking in the world HDI and guarantee the well-being of her human capital stock, in order to accelerate economic growth and development. Nigeria is still at the first stages of the epidemiological transition; communicable diseases are the major causes of mortality and morbidity in the country. In children, the major causes of mortality and morbidity are malaria, diarrhoea, Acute Respiratory Infections (ARI), measles and other vaccine preventable diseases (VPD), and the exacerbating effect of children's malnutrition. These diseases, are however preventable and/or can be treated at very low costs.

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Figure 7: Causes of under five, maternal and newborn mortality :

A

Figure 8: :

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Nigeria Vision 2020

Issues and Challenges The Nigerian health care system is faced with numerous challenges. These include: Size and diversity of the country: The size of the country, the diversity in culture, social and economic conditions and the wide disparity of health resource availability, access to health services and health outcomes across the zones of the country are major challenges to health planning in the country. Governance: Systems for good governance is weak, especially at the lowest level. This is especially worrisome at the LGA level, the level with responsibility for PHC services provision. The flow and utilization of resources is unclear while roles and responsibilities of the different service delivery levels and the coordination of the activities are very poor. Service delivery: Health care services are fragmented, skewed in distribution, limited in coverage and of poor quality. Also, there is a dearth of resources and referral systems are weak. Resource Generation: There is a dearth of resources for the health sector (drugs, infrastructure, equipment and human resources). One critical challenge to quality health care delivery is the dearth in the number, distribution, mix and motivation of health care providers. Health Care Financing: Providing financial access to all citizens has long been a cornerstone of modern health care systems and globally health care expenditures have risen from 3 per cent of the GDP in 1948 to 7.9 per cent in 1997. Per capita health expenditure for Nigeria was $53 in 2007. Countries with better health outcomes spend more e.g. Brazil spend $1520, UK $2560 and Sweden $2828. In Nigeria, health care expenditure is not only low, but two thirds of it is out-of pocket, thus reducing access especially to the poor and vulnerable groups. Policy Thrust The policy thrust of the sector is targeted at the following issues: · · · · · · · National Health Systems and Management; National Health Care Resources; National Health Interventions; National Health Information System; Partnerships for Health Development; Health Research; and National Health Care Laws

Medium Term Strategic Objectives 2010-2013

·

To create and sustain an enabling environment for the delivery of quality health care and development in Nigeria;

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·

· · ·

To revitalize integrated service delivery towards a quality, equitable and sustainable healthcare; To plan and implement strategies to address the human resources for health needs in order to ensure its availability as well as ensure equity and quality of health care; To ensure that adequate and sustainable funds are available and allocated for accessible, affordable, efficient and equitable health care provision and consumption at local, state and federal levels; To provide an effective national health management information system (NHMIS) by all the governments of the federation to be used as a management tool, including monitoring & evaluation, for informed decision-making at all levels; To attain effective community participation and responsibility in health development; To enhance harmonized implementation of essential health services in line with national health policy goals; To utilize research to generate knowledge to inform policy, in order to achieve nationally and internationally health-related development goals;

N.B. 1st NIP Policy Targets 2010-2013 ­ To confirm the Rates Reduce under-five mortality rate from 157 per 1000 in 2008 to 103/1000 live births by 2013; Reduce infant mortality rate from 75/1000 live births in 2008 to 45/1000 live births by 2013; Increase the proportion of 1 year old immunized against measles from 41.4 per cent in 2008 to 80 per cent by 2013; Reduce the prevalence of underweight children under five years of age from 23.1 per cent in 2008 to 19.2 per cent by 2013; Increase the proportion of children under 5 sleeping under insecticide-treated bed nets from 5.5 in 2008 to 26.9 by 2013; Reduce the maternal mortality ratio from the estimated 545/1000 live births in 2008 to 273/1000 live births by 2013; Reduce the HIV prevalence among population aged 15-24 years from 19.4 per cent in 2008 to 10 per cent by 2013; Increase the per cent of HIV infected pregnant women who receive ARV prophylaxis to reduce the risk of MTCT to 60 per cent by 2013; Increase the proportion of population with advanced HIV infection with access to antiretroviral drugs to 40 per cent by 2013 Reduce Proportion of tuberculosis cases detected and cured under directly observed treatment short course to 1 per cent by 2013 Increase the per cent of women receiving intermittent preventive treatment for malaria during pregnancy from 6.5 per cent in 2008 to 60 per cent by 2013; Increase the proportion of 12-23 months-old children fully immunized from 22.7 per cent in 2008 to 71 per cent by 2013; Increase the proportion of children under 5 with fever who are treated with appropriate anti-malarial drugs from 33.3 per cent in 2008 to 65 per cent by 2013; Reduce the number of new wild polio virus cases from 382 in 2009 to 0 cases by 2013; Increase the proportion of births attended by skilled health personnel from 38.9 in 2008 to 70 per cent by 2013;

· · · · · · · · · · · · · · ·

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Nigeria Vision 2020 · · · · · · · · ·

Reduce the number of health facilities experiencing stock-outs of key health commodities to 40 per cent by 2013; Increase the proportion of doctors to 100,000 of the population from the low level of 28 to 100. Increase in the public expenditure on health as per centage of GDP from the present level of 1.4 to 3 by 2013. Increase in the per cent of Nigerians covered under any form of risk pooling mechanism to 40 per cent Increase to 60 per cent, the per centage of states with routine HMIS returns meeting minimum requirement for data quality standard by 2013; Increase to 60 per cent the per centage of states submitting timely disease surveillance reports by 2013; 50 per cent Reduction in counterfeit and fake drugs, 50 per cent Reduction in substandard food products

Strategic Objectives of the National Health Policy The over-aching goal of the health sector isto establish a comprehensive health care system, based on primary health care that is promotive, protective, preventive, restorative and rehabilitative to every citizen of the country. Health services that are affordable, freely available, easily accessible and acceptable within the available resources, so that individuals and communities are assured of productivity, social well being and enjoyment of living. The strategic objective, is to strengthen the national health system to enable it provide effective, efficient, quality, accessible and affordable health services that will improve the health status of Nigerians through the achievement of the health-related Millennium Development Goals (MDGs). Programmes and Projects: The National Strategic Health Development Plan In order to fast track the actualization of the goals of the various development agenda in the health sector. The Federal Government of Nigeria through the FMoH, developed the National Strategic Health Development Plan (NSHDP). The document is an overarching, all encompassing reference material for the health sector designed to ensure transparency and mutual accountability. This is the platform within which the implementation of the 1st NIP for the health will be pursued as detailed below.

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National Strategic Health Development Priorities

· · · · · · · ·

Leadership and Governance for Health Health Service Delivery Human Resources for Health Financing for Health National Health Management Information System Partnerships for Health Community Participation and Ownership Research for Health.

Figure 9: National Health Development Priorities

In line with the NSHDP, 13 priority programmes, with their corresponding 83 priority projects have been selected as part of the medium term implementation for the plan. All the programmes as prioritised are tied to specific outcomes which are set out in the sectoral targets, and have direct bearings on improving service delivery, and control of diseases. These programmes are highlighted in table 1 below.

Table 41: Health Sector priority programmes (2010 ­ 2013)

S/N

Programme

1

Disease Control and Health Emergency Response Programme

2 3

Expanded Immunization Programme Federal Health Institutions Development Programme Revitalization, Modernization and

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S/N

Programme

4 5

Health Research and Development Programme Human Resources for Health Development Programme

6

Integrated Management of Maternal, Newborn and Child Health Programme National Emergency Ambulance Services National Health Insurance Programme National Health Promotion Programme National Health System Strengthening and Development Programme

7 8 9

10

11 12 13

NHMIS/M&E Programme National Food and Drugs Control Programme National Professional Health Regulatory Institutions Strengthening Programme

Source: National Planning Commission In order to achieve the objectives of the (2010-2013) Medium Term Plan in the Health Sector, a total of N687.206 billion will be spent by the Federal Government. This amount will be expended on priority programmes which include:

· · · · ·

Health Policy and Strategies Strengthening Programme N248.7 milllion. Health System Performance Enhancement Programme -N429.606 million. Health Legislation and Regulation Strengthening Programme - N268.265 million Programme to increase access to health care services ­ N202.88 billion Health training institutions' strengthening programme N166.148 billion.

These programmes represent about 50 per cent of the total investment by the Federal Government in the health sector.

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The health component of the Human Capital Development thematic area of the Vision provides strategic direction for collective action by the Nigerian health system partners to achieve the vision and goal of the health sector to promote and protect health for all, eliminate health disparities, and transform the Nigerian health system towards creating a healthy population that is capable of contributing optimally to wealth creation and development.

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Table 42:

HEALTH SECTOR 1ST IMPLEMENTATION PLAN (2010 ­ 2013) BASELINE YEAR 2010 Status

National Health Goals/Objectives (8)

Strategic Programmes (27) Projects (49)

Targets Indicators

1. To create and sustain an enabling environment for the delivery of quality health care and development in Nigeria 1.0 Health Policy and Strategies All stakeholders are informed Strengthening Programme regarding health development policy directives by 2011 Strengthen capacity for 1 Improved Policy and Strategic Planning at Federal and State levels Health Legislation and Regulations Strengthening Programme Ensure enactment of National 2 Health Act and institute mechanism its implementation and that of other Health laws Modernise and strengthen 3 professional health regulatory agencies for greater effectiveness Health System Performance Enhancement Programme per centage of States adopting the National Health Bill (to their LGAs) 50 per cent of State adopting the National Health Bill (to their LGAs) by 2013 Health Bill enacted into Law New

2.0

Ongoing

availability of new guidelines for professional licensing that requires CPD/CME as pre-requisite

New

3.0

4

1. 50 per cent of States (and their LGAs) updating SHDP annually 2. 50 per cent of States (and LGAs) with costed SHDP by end 2011 Institute systems and number of federal tertiary health modalities for monitoring and institutions implementing a improving health systems suitable QA model performance

New

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Sustaining the Federal Tertiary Number of FTHCI modernised Care Institutions and providing services 5 Health Modernisation Initiative 2. To revitalize integrated service delivery towards a quality, equitable and sustainable healthcare 4.0 Universal Access to Essential 55 per cent wards with a Health Care Package Programme functioning public health facility providing minimum health care package according to quality of care standards by 2013 Support for the per cent wards with a functioning 5 implementation of an public health facility providing Essential Package of Care minimum health care package according to quality of care standards. Strengthen human and Reduction in Under-five mortality 6 structural capacities and rate provide for sustained Reduction in Infant mortality rate essential commodities for Increase in Proportion of 1 year communicable and non old immunized against measles communicable disease Reduction in prevalence and incidence of HIV/AIDS, TB, control programmes Malaria and other communicable diseases Reduction in prevalence and incidence of NCDs, hypertionsion, diabetes, blindness See results framework in annex 1 for more details.

Ongoing

Ongoing

Ongoing

5.0

Develop, disseminate and ensure 7 use of Standard Operating New procedures (SOPs) for delivery of services at all levels Programme to Increase Access to Health 55 per cent wards with a Care Services functioning public health facility New providing minimum health care package according to quality of care standards by 2013 Institute systems to increase number of PHC appropriately 8 geographic access to PHC refurbished/upgraded/constructed New Strengthen procurement supply chain Health facilities experiencing stockmanagement systems to ensure outs of key tracer health commodities New 167

9

Nigeria Vision 2020

availability of drugs and equipment at within the last one month all levels 10 Establish a sustainable system for number of biomedical engineers the maintenance of equipment at providing services at hospitals New Federal Tertiary Health Institutions Strengthening three way referral and number of health institutions feedback Systems to improve service adapting a suitable model and New efficiency documenting effective referrals

11

6.0

Establish and implement strategies to number of private care providers incentivise and involve private health providing outreach/scheduled New care providers to make services services to hard-to-reach areas available in hard to reach areas Health Care Serviced Demand All stakeholders are informed Improvement Programme regarding health development New policy directives by 2011 Support for the implementation of the number of states adopting/adapting 13 National Health Promotion Strategy to the National Health Promotion Policy; New create/improve effective demand for number of health promotion initatives healthcare services implemented by the national programme 12 New

Financial Access to Health Care for 1. Vulnerable groups identified Vulnerable Groups and quantified by end 2010 2. Vulnerable people access services free by end 2015 Support States to pilot results based number of states piloting suitable 14 financing nechanisms - conditional results based financing mechanism cash transfers and contracting to improve access of identified vulnerable groups to health care services 3. To plan and implement strategies to address the human resources for health needs in order to enhance its availability as well as ensure equity and quality of health care HRH Policy Strengthening Programme All States and LGAs are actively 8.0 using adaptations of the National HRH policy and Plan by end of 2015 Facilitate implementation of the per cent of wards that have 15 Human Resource for Health Policy at appropriate HRH complement as per the Federal level and support for its service delivery norm (urban/rural). adoption/adaptation at State Levels Proportion of Health Professionals per population 7.0

New

New New

New

9.0

Programme to strengthen the 1. 50 per cent of States have institutional framework for human functional HRH Units by end 2010 New resources management practices in the 2. 10 per cent of LGAs have health sector functional HRH Units by end 2010

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Nigeria Vision 2020

16

To establish and strengthen the HRH per cent of wards that have Units and functions at the different appropriate HRH complement as per New levels service delivery norm (urban/rural). Proportion of Health Professionals per population Institutions'

One major training institution per Zone producing health workforce New graduates with multipurpose skills and mid-level health workers by 2015 Review and adapt relevant training Proportion of Health Professionals 17 programmes for the production of per population New adequate number of community health oriented professionals based on national priorities Strengthen in-service training for per cent of wards that have 18 health workforce to improve skill appropriate HRH complement as per New mix, task shifting and productivity service delivery norm (urban/rural).Proportion of Health Professionals per population Programme to improve organizational 50 per cent of States have 11.0 and performance-based management implemented performance New systems for human resources for health management systems by end 2012 Implement strategies to achieve Availablity of HRH database; number 19 equitable distribution, right mix of of states deploying HRH according to New the right quality and quantity of a clear strategy and needs based human resources for health 4. To ensure that adequate and sustainable funds are available and allocated for accessible, affordable, efficient and equitable health care provision and consumption at New Local, State and Federal levels Financing Policy and Strategies 15 per cent of federal, state and 12.0 Improvement Programme LGA budget allocated to the health New sector by 2013 10.0 20 Develop and implement policies for effective, efficient, equitable and sustainable health care financing Programme to ensure that people are protected from financial catastrophe and impoverishment as a result of using health services Support to NHIS for implementation of 21 safety nets for financial health risk protection for the poor and vulnerable per cent increase in Federal, State, LGA allocation to health New

Health Training Strengthening Programme

13.0

10 per cent of Nigerians covered by any risk-pooling mechanisms New by 2013 Proportion of Nigerians covered by any risk-pooling mechanisms New Out-of pocket expenditure as a per cent of total health expenditure

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Nigeria Vision 2020

14.0

Programme to ensure increased funding for health at all levels 22

New New

To improve coordination of donor availability of an effective donor funding mechanisms coordination mechanism; per cent increase in donor resources allocated to health Programme to ensure efficiency and 1. Federal, 60 per cent States and 15.0 equity in the allocation and use of health LGA levels have transparent sector resources at all levels budgeting and financial management systems in place by end of 2015 2. 60 per cent of States and LGAs have supportive supervision and monitoring systems developed and operational by Dec 2012 Establishing systems to improve PER and NHA repors; per cent 23 health budget implementation, increase in effective health budget performance, monitoring and reporting implementation for greater transparency and accountability 5. To provide an effective National Health Management Information System (NHMIS) by all the governments of the Federation to be used as a management tool for informed decision-making at all levels and improved health care Data collection and transmission 1 - 60 per cent of States making 16.0 improvement programme routine HMIS returns that meet minimum requirement for data quality standard by 2013 1 - 60 per cent of Federal and State plans and strategies that are based on routine HMIS data to improve coverage and quality of high impact Ensure availability and periodic 24 review of NHMIS indicators/minimum dataset and data collection tools at all levels 25 Coordinate data collection from all programmes at all levels and ensure smooth transmission to the National Health Management Information System To build capacity of health managers and workers at at all levels in data management Provide a legal framework for the implementation of the NHMIS policy and strategy 170 -

New

New

New

New

New

New

New New

26

27

Nigeria Vision 2020

17.0

Strengthen existing, and support for 28 complementary data sources for New monitoring health system performance Sub- Health Systems' Health Information ICT infrastructure and staff System Strengthening Programme capable of using HMIS in 50 per New cent of States by 2012 Strengthen the Hospital Information 29 System and better align with NHMIS New Strengthen the Disease Surveillance per cent of States that timely submit System & Vital events monitoring disease surveillance reports New Strengthen HRH MIS and health financing MIS Institutionalize routine data analysis and dissemination at all levels evaluation NHMIS evaluated annually New New New New

30

31 32

18.0

NHMIS monitoring and strengthening programme 33

Establish monitoring protocols for NHMIS implementation at all levels

6. To attain effective community participation in health development and management, as well as community ownership of sustainable health outcomes New Programme to strengthen community 60 per cent States with policy and 19.0 participation in health development implementation framework for New community participation in health with multi-sectoral focus in place by 2013 To provide enabling policies for 35 community participation New 36 To provide policy implementation frameworks and support stakeholder forums to enable meaningful community participation New

20.0

Programme to empower communities All States offer training to with skills for positive health actions FBOs/CBOs and community New leaders on engagement with the health system by end 2012

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Nigeria Vision 2020

37

Engagement and support for communities to take responsibility for their health and engender ownership for their health services

New

21.0

22.0

Community - health services linkage 60 per cent of public health strengthening programme facilities in all States have active Committees that include community representatives by end 2013 To restructure and strengthen the 38 interface between the community and the health services delivery points To increase national capacity for 60 per cent of States have active integrated multisectoral health intersectoral committees with promotion other Ministries and private sector by end 2013 To develop and coordinate 39 multisectoral strategies and actions that facilitate community involvement in health development

New

New

New

New

23.0

Documentation and scaling up of Health research policy adapted to effective community partnerships and include evidence-based New ownership efforts programme community involvement guidelines by end 2010 To develop and implement systems 40 for analysis of community New involvement and inclusion of community involvement as performance indicators

7. To enhance harmonized implementation of essential health services in line with national health policy goals New Public-public, public-private partnership 1. FMOH has an active ICC with 24.0 strengthening programme Donor Partners that meets at least New quarterly by end 2010 2. FMOH has an active PPP forum that meets quarterly by end 2010 3. All States have similar active committees by end 2011 Review and develop an implementation framework for the Public Private Partnerships (PPP) for Health Policy New

41

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Nigeria Vision 2020

42

Establish systems for more formal engagement and licensing of traditional health practitioners

New

8. To utilize research to inform policy, programming, improve health, achieve nationally and internationally health-related development goals and contribute to the New global knowledge platform Research and knowledge management 1. ENHR Committee established 25.0 systems governance and stewardship by end 2009 to guide health New strengthening programme research priorities 2. FMOH publishes an Essential Health Research agenda annually from 2010 Strengthen Nigeria's compliance 43 with the principles of and New implementation of an Essential National Health Research System 44 To establish ethical standards and practise codes for health research at all levels New

26.0

Programme to build institutional Increase to 40 per cent the capacities to promote, undertake and proportion of research and New utilise research for evidence-based evaluation studies undertaken on policy making in health at all levels identified critical areas in the NSHDP framework. Strengthening National health 45 research institutes and medical New colleges to generate knowledge and products towards service improvement Building capacity for high quality 46 research and craftsmanship New Institute mechanism and provide support for commissioning and implementing research on identified health research priority area(s) To develop strategies for getting research findings into strategies and practices New

47

New

48

27.0

Health research communication A national health research strategy strengthening programme communication strategy is in place New by end 2012 To create a framework for sharing 49 research knowledge and its New applications 173

Nigeria Vision 2020

Health Sector Table 43: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Health Priority Projects S/N 1 2 3 4 5 6 7 8 9 10 11 Disease control and health emergency response programme Expanded immunization programme Federal Health Institutions revitalisation, modernisation and development programme Health research and development programme Human Resources for health development programme Integrated management of maternal, newborn and child health programme National Emergency Ambulance Services National Health Insurance Programme National Health Promotion Programme National Health System strenghtening and development programme NHMIS/M&E Programme 2010 2011 21,884.47 3,166.37 20,879.95 801.46 4,699.75 16,907.74 1,492.98 2,590.41 1,130.31 10,345.13 995.01 Costs in N'm 2012 36,135.73 3,588.55 16,330.61 908.32 5,326.39 28,828.77 1,692.05 2,935.79 1,281.02 7,391.15 1,127.68 2013 28,261.36 3,799.64 39,055.94 961.75 5,639.70 22,289.29 1,791.58 3,108.49 1,356.37 8,414.16 1,194.01 86,281.55 10,554.56 76,266.51 2,671.52 15,665.84 68,025.80 4,976.61 8,634.69 3,767.69 26,150.44 3,316.70 Total

174

Nigeria Vision 2020 Thematic Area - Human Capital Development Health Priority Projects S/N 12 13 14 15 National Food and Drugs Control Programme National Professional Health Regulatory Institutions Strengthening Programme Health Projects Non Priority Projects 67,277.03 67,277.03 30,681.94 120,501.71 37,279.02 148,408.09 29,478.04 151,261.76 97,439.00 487,448.59 2010 2011 2,664.63 2,261.56 Costs in N'm 2012 3,019.92 2,563.10 2013 3,197.56 2,713.87 8,882.11 7,538.52 Total

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Nigeria Vision 2020

Chapter 16:

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Nigeria Vision 2020

Labour, Employment and Productivity

Introduction The estimated total investment for the sector during the Plan period, is N47.853 billion The annual breakdown is presented in the annex. The quality and capability of a nation's human resource is a major determinant of its productivity and competitiveness. This is in recognition of the fact that people drive all other activities in the economy, as such, a highly skilled , flexible and mobile labour force, will produce higher value of goods and service due, to its adaptability to labour market demands and the rapid changing technologyalthough Nigeria is blessed with abundant human resources with a population of 140m (NPoC), of which the labour force constitutes over 33 percent, labour productivity has remained relatively low, while the unemployment rate is high, especially among the youths. Over the years, the labour market has remained inflexible and unresponsive to the demands of the global market, due to many factors, including, poor quality of the manpower stock, low technology base, poor incentives and lack of appropriate skills, among others . In the context of the Vision, the nation's labour force is an asset, in the sense that it has a vibrant youth population age 16-35, estimated to be 60 per cent of the labour force. Given the right environment and with appropriate polices,, this young work force can be easily transformed, to enhance their productivity and to create wealth for the nation.

During the plan period, concerted efforts will be made to mobilize and harness the potentials of the labour force to engender accelerated economic growth and development through the creation of the enabling environment for expansion of economic activities, skill development and appropriate training. It is envisaged that employment generation will derive from two main sources: expansion of activities in existing production units and new investments in Agriculture, Infrastructure, ICT, Industry, SME, Trade and Public works.

Policy Thrust The strategic objectives during the Plan period are: · · · · Promoting of industrial peace and harmony Facilitating social security and safety nets Creating high quality job opportunities Promoting occupational safety and health protection of workforce and infrastructures

In line with the policy thrusts, government will pursue the following key initiatives: · · · · · Implementation of National Policy on Employment Enactment of the employees' Compensation Bill Creation of a National Policy on Labour and productivity Creation of a comprehensive framework for increased productivity nationwide Stricter enforcement of labour laws 177

Nigeria Vision 2020

Situation Analysis During the period 2003- 2008, the country experienced sustained high growth rates, butr employment responded rather sluggishly. The structure of unemployment remained basically the same during the period as agricultural self employment continued to dominate the country's labour market. The most remarkable employment development was the expansion of jobs in the communication sector as a direct consequence of the deregulation in the sector. Employment response to economic growth in other sectors was weak. This may be explained in terms of the quality of growth that the country has experienced in recent times. The growth in the agricultural sector, reflected the expansion in crop production derived from expansion of farmlands, rather than productivity enhancement. Although sustaining and improving upon the recent expansion in economic activity is important, strengthening both forward and backward linkages among the sectors is a more critical requirement for pro-poor growth and poverty reduction through increased employment and income generation Nigeria's labour force has continued to grow in line with growth in population and natural agespecific transition in the economy. The labour force is estimated to be 47 million. Aggregate wage employment in industries and businesses increased from 3.66 million in 1990 to about 4.52 million in 2005. Overall aggregate employment in Nigeria grew at 3.76 per cent per annum between 1999 and 2005. It has also been observed that in 2004 Nigeria's unemployment rate of over 11 per cent is higher than the average rate of 9.5 per cent for sub-Saharan Africa. There are two major characteristic of unemployment in Nigeria: its youthfulness and the high level education. While the youth account for roughly one-third of the labour force, they account for between 60 and 75 per cent of the unemployed labour force. The higher incidence of youth unemployment is as result of their lack of sufficient work experience, vocational skill and maturity. Unemployment has also increased among the tertiary graduates in Nigeria. The government, over the last 20 years has established The National Directorate of Employment (NDE), Small and Medium-term Enterprises Development Agency (SMEDAN) and National Agency for Poverty Eradication Programme(NAPEP) to address the issues of unemployment and poverty respectively . However, the poor performance of the economy in providing opportunities for significant proportion of the working population is arguably one of the most striking manifestations of the socio-economic crisis and development failure in Nigeria. Issues And Challenges The major issues and challenges, in the sector are: Lack of functional education system that is responsive to the needs of the labour market - The Nigeria education system does not prepare graduates to become employers of labour as entrepreneurship development has not been mainstreamed in schools curricula Inadequate managerial personnel: - Executive capacity is low, as most of the employees have inadequate professional and requisite technical skills Poor health status: - The debilitating effects of malnutrition, poor sanitation, HIV/AIDS and other communicable diseases affect labour productivity adversely Poor state of infrastructural facilities, especially energy and transport: 178

Nigeria Vision 2020

The deplorable state of the nation's infrastructure has continued to raise cost of doing business resulting in high rate of mortality among SMEs, which increases unemployment Lack of requisite skills: - The inability of the nation to formulate a national skills development policy has continued affect the labour productivity adversely as most workers lack appropriate skills required to enhance productivity. Inadequate financial intermediation: - Lack of access to credit, limits the ability of firms to expand business and grow. Low technology base of the industrial sectors: - The very poor technology base has continued to hinder the creation of high value, new products that generate employment and high income, as obtained in high performing economies. This diminishes Nigerian firms global competitiveness Poor Incentives structure; - The relative poor wages/salaries, reduces the ability to save, as well as invest in profitable enterprises that promote employment in Nigeria. The poor savings culture, coupled with poor financial intermediation, ensure that the rate of new start up enterprises remains low. Poor work ethics: - The increasing poor attitude to work, arising from bad governance, cultural issues and poor remunerations affect labour productivity adversely. Structural rigidity in the economy: - This has been partly responsible for the poor performance of the industrial sector, as dependence on the oil and gas for over 90 per cent of the nation's revenue, has led to the neglect of other sectors of the economy such as Manufacturing and Agriculture. Objectives, Strategies and Targets Objective 1: Creating job opportunities for Nigerians and enhancing labour productivity.

-

Strategies: · · · · · Target: · Encourage State Governments to establish job services centres in all state capitals to provide employment information to job seekers Create the enabling environment for business development and growth through reducing administrative procedures and cost Implement the local content policy in all sectors of the economy Substantial bridge the infrastructural gap Strengthen the institutions that promote employment generation such as NDE , NAPEP and SMEDAN

Create 1 million jobs annually

179

Nigeria Vision 2020

Objective 2 Formulating appropriate implementation framework, structure and governance for productivity improvement ( skill development and productivity enhancement schemes) Strategies · Formulating and enforcing labour laws and standards · · · · · · · · · · · Targets: · · Develop skills and competencies of the workforce by 10 per cent annually by the year 2020 Develop 50,000 to 100,000 new entrepreneurs annually Create a critical mass of entrepreneurs that can generate productive Review Labour laws; Create Labour Market Information System to collect and analyse labour data on entrepreneurs and enterprises nation-wide Establish a Credit Guarantee Scheme, promote joint venture and cooperative Review of the Nigeria Investment Promotion Act to sharpen its impact Strengthening the institutional framework for promotion of SMEs Strengthening the Entrepreneurship Development Programme at all levels of education Increase the number of SMEs SMEDAN should be strengthened to coordinate and enhance entrepreneurship skill development Government should strengthen existing institution responsible for skill acquisition and training Develop national skill training system and strengthen skill development institutions Create more vocational institutions

Objective 3: Formalizing the informal economy to boost employment generation Strategies: · · · · · · · · Simplify enterprise registration procedures Conduct awareness campaigns to inform the informal sector operators Create incentives such as Tax rebate, benefits to be derived from formalizing their business and micro finance to attract their registration Improve access to Credit and other financial intermediation Government at all levels, OPS and NGOs to provide skills upgrade to informal operators Encourage cooperative society development Intensify training and skill upgrading All States to develop a data bank for SMEs and report on their health and performance annually. 180

Nigeria Vision 2020

· Target: · · · · ·

Promote value-chain development of products in Agriculture Provide skills upgrade to 10 per cent of informal operators per year Achieve 20 percent conversion rate from informal to formal businesses annually Achieve awareness creation to cover at least 40 per cent of the target group annually Ensure that 60 per cent access to credit 10 per cent of domestic intermediate input requirement of formal sector to be derived from informal sector annually

Objective 4: Enhance industrial peace and harmony, and the protection of worker

Strategy: · · · · · · Targets: · · · · · Reduce annually the spate of industrial action in the nation by 25 per cent; Curb unfair labour practices emanating from casualisation at an annual rate of 10 per cent Reduction in the number of factory accidents and injuries by 10 annually Increase in number of regular inspection of workplaces nation-wide and enforcement of Labour Laws by 10 per cent annually Increase the coverage of Registration of Boilers and lifting Equipment by competent persons by 10 per cent annually Promote social dialogue Strengthen alternate dispute measure Promote improvement of working conditions in accordance with the international human rights standards Develop techno-entrepreneurs park and incubation centres Provide incentive regime Strengthen labour administration and compliance to labour standard.

181

Nigeria Vision 2020

Project/ Programme Establishment of Job Resource Centres Construction of Additional Skills Up-grading Training Centres Agricultural Skills Training Centres(ASTC) for Rural Employment Promotion Establishment of Integrated National Social Security Policy

Conclusion The strategic objectives to be pursued under the 1st NIP is the creation of high quality job opportunities through improving the business environment to allow inflow of investments, enhanced efficiency and productivity and promotion of industrial peace and harmony. Other objectives include: · Strengthen the social security and safety nets · Improving occupational safety and health protection of workforce · Promote the development of SMEs and enhance their survival rates. · To enhance the efficiency of Labour Market Information System (LMIS) The policy targets are: · Developing skills and competencies of the workforce by 10 per cent annually by the year 2020 · Expose 50 per cent of students to Entrepreneurship Development Programme (EDP) at all levels of education especially in the tertiary Institution · To develop 74,000 to 100,000 new entrepreneurs annually · Reduce annually the spate of industrial action in the nation by 25 per cent · Curb unfair labour practices emanating from casualisation on annual increment rate of 10 per cent · Reduction in the number of factory accidents and injuries by 10 per cent annually · Increase in number of regular inspection of workplace nation ­wide by 10 per cent annually and enforcement of labour laws · Improvement of ease of doing business in Nigeria environment · Create 2 million jobs Nigeria's socio-economic conditions in the last two decades have been characterized by unemployment crises and mass poverty. Although, significant progress has been made in achieving appreciable growth in the development indices, It has been noted that this is at the expenses of job creation and poverty reduction. In order to provide urgent solution to the twin problem of poverty and unemployment, the present administration has unfurled a 7-Point 182

Nigeria Vision 2020

Agenda with employment creation as one of its cardinal points. Nigeria within the short period of time must face the challenge of unemployment, underemployment and social exclusion. The Oil and Gas sector will undergo massive expansion and reorganization, leading to privatization of business activities in the downstream sub-sector. More jobs will be generated through the medium term of increased IT penetration in the states and local governments. The rapid growth and development of entrepreneurial culture shall spur the nation to reclaim its largely untapped industrial potentials and global opportunities.

Table 45: Real Growth rate of employment in Industries & Businesses (2000-2005)

Economic Activity Agriculture Manufacturing & Processing Building & Construction Hotel, Restaurant & Tourism Transportation Communications Education Services Mining & Quarrying Utilities Banking Finance Distributive trade Private professional Services Real estate & business services Health Total

2000 4.42 -4.26 5.9 -5.10 2.25 62.80 7.65 -66.62 -2.59 -39.46 16.82 -0.73 19.89 3.74 -1.39 -3.26

2001 0.97 3.81 54.74 12.24 13.28 583.38 40.50 0.00 0.38 41.86 0.09 11.67 -9.58 9.95 5.55 15.24

2002 0.68 -2.93 -13.96 -2.77 7.64 2.69 47.88 6.39 1.89 2.56 1.98 9.00 2.07 8.69 8.71 -1.48

2003 8.78 5.13 -2.72 -2.14 5.39 58.39 10.82 60.23 2.23 -1.78 -11.82 3.64 12.91 1.31 0.35 5.62

2004 23.90 2.24 8.26 -1.2 3.18 3.18 7.32 5.50 1.82 3.51 5.90 4.03 8.97 -0.22 2.43 2.58

2005 13.01 -3.75 6.32 -3.28 43.75 43.75 17.79 6.44 -3.57 18.06 95.18 2.91 6.39 9.95 -7.22 3.88

Source: NBS, 2006 Core Welfare Indicator Questionnaire Survey (CWIQ)

Projected Investment The total estimated budget for the Ministry Medium Term Goals (2010-2013) in line with its Projects and Programmes in the key result areas is N40,673,297,217

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Labour and Productivity Sector Table 46: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Ministry of Labour and Productivity Priority Projects S/N 1 2 3 4 5 6 Establishment of Job Resources Centres Construction of additional skills upgrading Training Centres Agricultural Skills Training Centres (ASTC) FOR Rural Employment Promotion Establishment of Integrated National Social Security Policy Projects Non Priority Projects 7,277.45 7,277.45 2,407.84 12,140.23 2,798.30 13,828.33 2,928.46 14,607.32 2010 2011 1,849.06 4,509.91 554.72 2,818.69 Costs in N'm 2012 2,095.60 5,111.23 628.68 3,194.52 2013 2,218.88 5,411.89 665.66 3,382.43 6,163.54 15,033.03 1,849.06 9,395.64 7,277.45 8,134.60 47,853.33 Total

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Chapter 17: Women Affairs and Social Development

Introduction The proposed total investment for the sector during the Plan period is N 25.243 billion. The breakdown on the annual estimates has been provided in the annex. The empowerment of women, and the advancement of protection of children, as well as, the provision of support and the enabling environment for the physically challenged to actualise their potentials and fully participate in the development of Nigeria, is a critical policy that will be sustained during the Plan period. Women constitute about 50 per cent of the total population and contribute in many ways to national development. However various studies and surveys have shown that women are in the lowest income level in most organizations and constitute the highest percentage of the poor and vulnerable. They are also, predominantly in the informal sector of the economy. Gender disparity is significant in all strata of economic and social activities in Nigeria, and is exacerbated by cultural rigidities, harmful traditional practices and religious beliefs. Similarly the physically challenged are yet to be fully mainstreamed into the planning process as evident in the physical development of our towns and cities. The Government recognises that harnessing the potentials of the entire citizenry, will fast track development and social harmony. This accounted for the adoption of the 30 per cent affirmative action under NEEDS in 2004-2007. Under the Plan, government will continue to strengthen the national machinery and institutional capacity for the advancement of women, children and the physically challenged. Efforts will also be made to meet the 30 percent affirmative action, for women in decision-making positions in the political and public sectors. In addition, effort will be made to encourage women to contest electoral office. Situation Analysis Gender development recognises the important roles women play as workers, in both spheres of production and reproduction. There are many social/cultural practices that have reinforced gender inequalities in Nigeria, as in other developing countries. Although there is no constitutional provision for gender disparity, however this exists, particularly in the rural areas due to low literacy rate. While the affirmative action has begun to yield results in terms of the increase in the number of women in decision making bodies in the public sector, as evident from the increase in women representation in the National Assembly, from 3.1 per cent in 2000 to 7.7 per cent in 2007*. Similarly, at the executive level, women holding top positions have continued to increase in number since 2000. The inadequacy of gender disaggregated data in Nigeria has made analysis and effective policy making an uphill task in this respect. However, the overall representation of women is still far below the 30 per cent affirmative action stipulation. Issues and Challenges The Women Affairs and Social Development Sector is confronted with various challenges cut across many sectors. These include: · Failure to integrate women's concerns and gender issues in National policies and planning; Low technical capacity for implementation of gender policies and frameworks;

·

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·

Nigerian Constitution, and Laws are generally gender blind and in some instances, gender biased; Gender Imbalance in opportunities and distribution of critical resources of the nation e.g. land, capital, entrepreneurship; educational opportunities; employment and infrastructures etc.; Weak Institutions that address women issues: Most of the institutions currently handling gender and women issues are not efficient because of weak support from government Low capacity for gender education: Gender Studies is new in the curriculum of most of the Nigerian institutions of higher learning. Hence, government spends a lot of money sending technocrats abroad to attend training programmes; A biased representation of the perceived role of men and women in society, especially as it relates to national development Absence of sex disaggregated and gender statistics necessary for policy and planning in different sectors; A general neglect of all the vulnerable groups (women, children, the aged, the persons living with disabilities, the widowed etc) in policies and planning processes; and Poor literacy levels to access and process information on their strengths and opportunities.

·

·

·

·

·

·

·

Policy Thrust: The thrusts under the 1st NIP will be to · · · · · · · · Advance and empower women, children and the physically challenged to ensure substantial improvement in their productivity well-being and quality of life. Ensure the well-being and safety of women at the workplace ­ amend Employment act to ensure to prohibit all forms of sexual harassment. Adopt measures to enforce laws and speed up court decisions Enhance participation in business and entrepreneurial activities. Improve access to finance, training and information Provide opportunity for women to participation in Agro-based business activities Encourage women entrepreneurs to be expand their businesses Promote gender equity in education, particularly in the Science, ICT and Engineering courses, by targeting scholarships or financial support to girls desirous to pursue such courses Exposing women to international conferences to enrich their knowledge, in global demands and practice. Supporting the NGO's to facilitate gender mainstreaming in the planning process at all levels of governance.

· ·

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Objectives, Targets and Strategies Objectives: · Provide Gender focal points in public Agencies to ensure the inclusion of Gender perspective in polios strategies programmes of Agency Gender sensitization for public makers Collection of gender disaggregate data to facilitate effective analysis monitoring and impact assessment Implementation of Gender sensitive budget Emphasis on gender mainstreaming through routinely inclusion in the formulation of sectoral policies and plans Establish a gender related index to provide information on gender equality in the country Establish councils for women and family development at States and LG areas to strengthen linkages with comers unities in order to address issues affecting women at the grassroots Encouraging NGOs to complement Governments efforts Participate at international level to share experience and gain more knowledge in areas such as poverty reduction, educational attainment, health improvement and promotion of a holistic developmental arrangement. Reducing incidence of poverty and improving quality of life

· · · · ·

· ·

·

Objective 1 Reducing violence against women - creation of awareness on safety and well-being of women and children prevent abuse and violence, resolve conflicts and ensuring family harmony Strategies: · · · · · · · Embark on public enlightenment campaigns using the mass media Strengthen and enforce family laws Provide shelter facilities for abused women Provide shelter for victims of human trafficking Ensure availability of support mechanism for victims of violence Organize gender sensitization workshops hardly violence against women Involve private sector participation

Objective 2. Empower and support women to improve their income Strategies; · · Create opportunities and programmes that will involve women income generating activities Formalize the informal sector

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·

· ·

Provide skills to single mothers or divorced women, such as in tailoring, handicraft, beauty therapy, entrepreneurships, childcare business, waste to wealth, farming Implement through smart partnership with private sector Government to complement by providing incentives such as tax rebates to companies

Objectives 3 : Promote gender equity and significantly bridge gender divide in all aspects of the economy, particularly in higher education and digital divide. · · Promote equal opportunities for people with disabilities (PWDs) to participate in education, health care, economic, social and political frontiers; Formulate policies and develop strategic frameworks for provision of appropriate social and economic safety nets to foster sustainable livelihood for women, children, elderly and other vulnerable groups Provide administrative, technical and material support for mobilization of women and focused organizations, in order to achieve the goals of women empowerment and gender mainstreaming, particularly the attainment of at least 30 per cent women participation in decision making positions. Strengthen the capacity of the vulnerable group to have increased access to essential services including health, education, nutrition, and birth and death registration.

·

·

Objective 4: Develop mechanism to increase socio-economic and socio-political participation of women. Strategy: · · · · · · Facilitate participation in Economic Activities by targeted micro-credit schemes Ensure that women's contribution is visible in the national accounting system Conduct skills development and capacity building programmes for women organ Sensitizing and educate the public on harmony Develop community based support system for women Encourage private sector to provide financial support for education of children of single mothers

Objective v: Improve the Health status of Women Strategies: · Promote healthy living programmes ­ health awareness, promoti9ng prevention, making screening and early intervention for special diseases such as cancer special targeting low income group climatic adaptation, general cleanliness ­ strengthen reproductive health provide mobile clinics

· ·

Targets:

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· · ·

· · · · · · · · · · · ·

Mainstream gender issues in budget at the National and State Government Levels by 2013; Mainstream gender issues in the fogender equality in access to basic education by 2013; Increase women's access to paid employment land credit and other productive resources from 42.9 per cent in 2007 to 65 per cent of Women population by the year 2013; Increase proportion of women in executive positions in the work-force to at least 30 per cent by 2013; Review, domesticate and implement international and regional conventions' agreements that aim to advance the rights of women and the girl child; Increase the percentage of women in Agro-business by 5 percent annually. Improve the health status of women by 5 per cent annually 2010 ­ 2013 Reduce incidence of poverty among women by 10 per cent Establish a gender-related national index to provide information on gender equality by 2011. Provide shelter for abused women in each of the geo-polical zones Improve the collection of gender disaggregated date Increase the percentage of female students undertaking Science and Technology courses (Engineering) by 10 per cent annually Reduce mother to child transmission of HIV/AIDS by 10 per cent annually. Provide requisite skills, entrepreneur training and equipment for 50 women in each local government annually 2010 - 2013 Facilitate gender responsive plans, budgets, programmes and outcomes in MDA's by 2013.

Table 47: Prioritised programmes and projects for Women Affairs and Social Development

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Project/ Programme National Support and Re-Integration of ex-offenders, destitute and vulnerable persons Establishment of Community Based Vocational Rehabilitation (CBVR) centres in the six (6) Geo-Political zones of the country Capacity Building for Social Workers in the Federation. Establishment of Nigeria Farm Craft Centre for the blind in the six (6) geo-politic al zones of the country Skill Acquisition Centres Business Development Fund for Women (BUDFOW) Baseline Survey on Maternal Mortality, Chid health indicators, Girl Child Education, People with Disabilities (PWDs) and the Elderly and Families

Projected Investment

The projected investment in the sector is in excess of N4.503 billion over the next four years. This is the investment that would fund all the projects that have been proposed by the sector to enable them achieve the stated objectives.

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Women Affairs and Social Development Table 48: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Ministry of Women Affairs Costs in N'm Priority Projects S/N 1 2 3 4 5 6 National Support and Re-integration of ex offenders, destitute and vulnerable persons Establisment of community based vocational rehabilitation in the 6 Geo Political zones Capacity Building for Social workers in the Federation Establishment of Nigeria Farm craft Centre for the Blind in 6 Geo Political Zones Skill Acquisition Centre Business Development Fund for Women Baseline survey on Maternal Mortality, Child Health indicators, Girl Child Education, PWDs and the Elderly and Families Women Affairs Projects Non Priority Projects 4,782.23 4,782.23 2010 2011 2012 2013 3,893.16 4,226.86 926.94 9,269.43 426.39 255.84 1,112.33 333.70 378.19 400.44 Total

1,167.95 1,268.06 278.08 2,780.83 127.92 76.75

1,323.68 1,437.13 315.16 3,151.61 144.97 86.98

1,401.54 1,521.67 333.70 3,336.99 153.50 92.10

7 8 7

60,000.00 1,494.39 67,527.67

62,000.00 1,736.72 70,574.45

63,000.00 1,817.50 72,057.44

189,782.23 5,048.60 214,941.79

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CONCLUSION Government will continue to support and strengthen the responsible institutions to net work with non state actors to advance the course of women, children and the physically challenged. The private sector will be expected to deepen its contribution to gender development and gender equity during the Plan period.

Chapter 18: Youth Development

Introduction The proposed investment for the sector for the Plan period is N42.593 billion. The breakdown of the estimates is presented in the annex. Youth Development is a core element in the development agenda of the country in view of its enormous potentials to propell the growth and development of other sectors of the economy. Consequently, the thrust of the programmes is to ensure that opportunities exist for gainful employment of youths and that they are adequately prepared for the challenges of informed participation in governance, decision making, and leadership. Some of the programmes and projects that directly impacted the effective development of the youths, include the following: · Youth Empowerment Scheme (YES), · Mandatory Attachment Programme (MAP); · National Youth Service Corps (NYSC) scheme and ; · Citizenship and Leadership Training Programmes. During the Plan period, the sector will support the three major pillars of the Vision which are. · · · "Guaranteeing the productivity and well being of our people"; "Optimizing our key sources of economic growth"; and "Fostering sustainable social and economic development"

These are all pro-youth in focus, as well as, youth dependent in attain and sustain. The development of the youth sector is therefore very crucial to the overall development of the country. This underscores the renewed emphasis on youth empowerment through training and skills acquisition, involvement in governance and a drive towards self reliance through entrepreneurial development. In this regard, the projects and programmes of the sector will be directed towards strengthening the capacity of the Nigerian youth through access to formal and informal education, skills acquisition and entrepreneurial training to enhance access to employment, promote and 192

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strengthen youth participation in decision-making process at all levels of governance including mainstreaming of youth issues in all sector programmes and projects. The vision of the sector is "To empower the Nigerian Youth to become self reliant and socially responsible". Situation Analysis Nigeria has a large youthful population. About 32.4 per cent of the total population is below the age of 18 years and given a total population of 140 million people (NPoPC, 2006) this is quite a large number. The National Youth Policy defines Youth as persons between the ages of 18 and 35 years between 1991 and 2006, the youth population in Nigeria grew from 22.5 million to well over 30 million. If these two groups are taken together, the population of Nigerians below the age of 35 years comprises 60 per cent of the entire population of the country. In absolute terms there are more young people in Nigeria today than any other segment of the population with its peculiar social and economic implications. From the 1991 census, 6.1 million young people between the ages of 12 ­ 24 years were illiterates (NPoPC, 2003), and a survey in 2003 shows that 10.24 per cent of male young people and 12.4 per cent of those aged 20 ­ 24 had no formal education (NDHS, 2003). According to the National Bureau of Statistics (2006) the youth literacy for persons aged 15-24 years who are able to read and write in any language was 76.5 per cent with males recording 80.7 per cent and females, 72.2 per cent. Over the last few years, however, due to the introduction of the UBE programme, school enrolment levels have increased significantly yet there are serious concerns about the quality of the services delivered (Nigeria's EFA Report Card, 2004). Furthermore, 13 per cent of Nigeria's population is unemployed and 70 per cent of those unemployed in Nigeria are young people (MDG, 2004). Currently the unemployment rate is 19.7 percent (NDS 2009). Tertiary graduate unemployment remained at an average of 15 per cent per annum. Nigerian youth (15-24 years) bear the greatest burden of unemployment with rates averaging 40-60 per cent in the last two decades. The number of students graduating from the school system into the labour market annually is estimated at about 3 million. The labour market is estimated to absorb only 10 per cent of this number annually. At 21 per cent, youth unemployment in Africa is much higher than the world average of 14.4 per cent (ILO, 2004. majority of young people are dependent on poor parents and live in rural areas where the poverty rate is very high. The prevalence rate of HIV/AIDS in Nigeria is about 4.4 per cent translating to about 7 million people. The highest infection rate is among young people aged 2029 years. Despite the fact that more than half of Nigeria's population are young people below the age of 35, they are for the most part, excluded from policy and decision-making on issues that affect them (DPI, 2007). The performance of this segment of the Nigerian population is again aptly captured by the Youth Development Index (2008) developed by Federal Ministry of Youth Development using guidelines by the World Programme of Action for Youth (WPAY) and the Commonwealth Youth Programme (CYP). The overall youth development Index for Nigeria was put at 0.34 (below average) (NYDI 2008). The domain areas examined under the Nigerian Youth Development Index includes the following, Health, Education, Employment, Participation, Nutrition, Media Influence, Security, Leisure, Economic wellbeing, Social support etc. The Index provides a measure of the well being of the Nigerian youth.

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Issues and Challenges From the above, the issues and challenges of the sector are quite enormous cutting across the following:i. Very high unemployment rates (probably one of the highest number of unemployed graduates in the world); ii. A significant percentage of the youth is illiterate; iii. Limited access to quality education at all levels; iv. Increased poverty and deprivation among youth; v. Increased youth restiveness and crime and; vi. Young people used as cannon fodders in times of political, ethnic, and religious conflicts around the country; vii. Inadequate parental care and breakdown of family and positive traditional values in Society; viii. Gender inequality; ix. Teenage pregnancies, child marriages, harmful traditional practices, and obstetric fistula; x. Girls and young women bearing the brunt of HIV infection; and xi. Youth exclusion in the political and policy development processes.

Policy Thrust, Objectives, Strategies and Targets The strategic thrust is to develop and empower the youths to be innovative, gainfully employed, have voice and participate fully in the development process of the nation. Objectives The major objectives of the Youth Development Sector therefore are:· Development and improvement of entrepreneurial skills and competencies with a view to increasing employment opportunities for youth; · Strengthening of Youth participation in decision making process at the local, state and national levels of governance; · Strengthening the prevention of HIV/AIDS among youths and provision of care and support for young people living with and affected by the disease; and · Strengthening family systems, institutional and legal framework for youth development. · Promoting national unity through social integration of youth and facilitating socio economic development. Targets The specific targets during the plan period:· Strengthening relevant government agencies, NGOs and private sector organisations to provide and promote educational, vocational talent and skill development to 40 per cent of the youth by 2013; · Investment in mass employment based programmes and projects that are youth targeted from the end of 2009 to reduce the current high unemployment rate of 19.7 per cent; · Ensure 25 per cent youth participation in decision making process at the local, state and national levels of governance by the year 2013; 194

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·

Reduce the prevalence of HIV/AIDs, substance abuse, cultism and violence of young people by 30 per cent by the year 2013; Develop an enduring implementation, monitoring and evaluation mechanism that will ensure the continuous and full implementation of the national youth policy and the domestication of international convention on young persons by the year 2013; Strengthen family and community education to inculcate responsible parenting skills for the development of at least 80 per cent of youth by 2013.

Strategies and Initiatives to achieve the objectives In order to attain the objectives of the sector as outlined above, the following strategies and initiatives will be adopted:· Strengthening of vocational and technical education for talent and skills development for the youth. This will be achieved through increase in the number of technical and vocational schools, adequate equipment of the schools as well as massive training of trainers; · Establishment and funding of mass employment-based programmes and projects such as agriculture, construction, infrastructure etc. in order to boost youth development. In this regard, the collaboration of the private sector will be solicited in order to guarantee the absorption of the youths once trained; · Encouragement and development of leadership potentials in the youths through the establishment of functional leadership and development centres in all local government areas; · Ensuring the effective collaboration between government and NGOs, Community Based Organisations (CBOs), Faith Based Organisations (FBOs) and other relevant agencies to reduce the prevalence of HIV/AIDS, substance abuse, cultism and other vices among young people. This will involve the collaboration with donor agencies and civil society organisations to accelerate HIV/AIDS prevention, further empowerment of NACA, SACA and LACA to function effectively and efficiently and re-engagement of family, traditional institutions, NGOs, and CBOs in reducing cultism, substance abuse and other vices among youths; · Implementation of the National Youth Policy and the domestication of international conventions on young persons. This will be accomplished through the establishment of an independent national monitoring and evaluation committee to ensure full implementation of the Policy and domestication of the conventions; · Development of an institutional framework for family and community life education to enhance the well being of the youth. In order to achieve this, active participation of family, community, traditional rulers, Faith-based organisations, community-based organisations in promoting family and community life education will be facilitated. · Upgrading the facilities for effective mobilization of corps members and resuscitation of the NYSC pilot farms and empowerment of corps volunteers under the war against poverty programme.

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Youth Development Table 49: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Youth Development Costs in N'm Priority Projects S/N 1 2 3 4 5 6 7 8 Education and Youth Development PMI - Construction, Equipment and Furnishing of National Youth Development Centres Network and Social Mobilisation Enterprise development and promotion National Youths Service Corps Citizenship Leadership Training Centre Youth Development Non Priority Projects 7,887.80 7,887.80 2,134.65 10,366.79 2,480.81 11,839.89 2,596.20 12,498.76 2010 2011 281.43 3,576.91 300.96 491.16 2,739.63 842.05 2012 358.53 4,454.15 352.28 635.86 3,011.80 546.46 2013 380.41 4,537.28 384.67 812.50 3,623.86 163.85 Total

1,020.37 12,568.34 1,037.91 1,939.52 9,375.29 1,552.36 7,887.80 7,211.66 42,593.24

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Chapter 19: Sports Development

Introduction: The proposed investment for the sector for the Plan period is N27.415 billion. The breakdown of the estimates is presented in the annex. Sports remain a crucial instrument for human capital development and economic growth. It is essential for the sustenance of good health, development of competitive spirit, entertainment, promotion of social harmony and inculcation of discipline and team spirit in youths. Nigerians are involved in various sporting activities including high performance activities such as football, tennis, basket ball and athletics . As a recreation, a growing number of Nigerians are recognizing the importance of sports and physical activities in relieving health issues, such as obesity, diabetes, high blood pressure and stress, attributed mainly to the fast pace of living and rapid globalization and are joining various social clubs, at a very high cost. Sports is a great unifying tool for purposes of nationalism. Such expression was exhibited by the oneness in celebration, which followed the victory of the Golden Eaglets at the FIFA World Youth Championship in Seoul, South Korea, 2007; same was the expression following the success of the U-23, 1996 Olympic Team victory in football at Atlanta. Globally, sports is a big business, creating jobs and wealth and Nigeria has all the potentials and prospects of turning sports around considering our population, sports followership and the outstanding performances of our athletes internationally, which has been on the decline in the past decade or more. Government intends to address the challenges facing sports development in Nigeria through the implementation of the national policy on sports. This will involve creating a properly structured sports environment with effective community based participation and necessary legislation. There is no doubt that the private sector is critical in driving sports development in an investment friendly environment. However, public sector support is mandatory to transform the nation into an international tourism centre. In line with the policy on Private Public Partnership (PPP), the National Sports Commission has involved the private sector in the administration of 8 out of the 35 National Sports Federations. Realising the low level of corporate involvement in the funding of sports in the country, the Commission has embarked on a sensitisation campaign aimed at assisting the organised private sector to maximally exploit tax Incentives on sports sponsorship. Nigeria, through the National Sports Commission, is championing the cause for repositioning sports in Africa. The country has engineered and hosted the ECOWAS Ministers' of Sports Meeting, the AU Sports Ministers' Conference and won the bid for the relocation of Association of National Olympic Committees for Africa (ANOCA) Headquarters from Cameroun to Nigeria. The country also successfully hosted the 13th ANOCA General Assembly, attracting the likes of the IOC President, Jacque Rogges, Edison Arantes Do Nascimento (aka Pele) and all cities bidding for major international Games to Abuja.

Strategic Objectives and Target 197

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Objectives

·

· ·

To consciously reposition sports from purely social and recreational activity to an instrument for effective national socio-economic re-engineering with very strong private sector participation. To ensure that at least every community has access to recreational and sports facility within a reasonable distance of their abode. Develop Athletes, Coaches, Technical Officials, Sports Scientists, Sports Medicine Practitioners and Administrators to be among the best in the world Attract major international sporting events to Nigeria and exploit their benefits for tourism development and the economy Promote school and institutional sports development and competitions at the three tiers of Government Use sports as an avenue to minimize anti-social behavior Encourage mass participation in sports and recreation with a view to using exercise for the improvement of the general health and fitness of the citizen

·

·

· ·

Targets

· · · · · · · · · · · · · · · · · · ·

Develop 24 community Sports centres nationwide by 2013; Create employment opportunities for at least 30,000 formal National athletes by the year 2013; Design appropriate mechanism for national sports information centres nationwide by 2011; Build at least one high performance centre in each of the 12 zonal sports offices by 2013 To be the best sporting country in Africa by 2013 To get to the last four in the 2010 FIFA World Cup To be the best African country at the 2010 Commonwealth Games To win the All Africa Games in 2011 To win 4 gold medals at the London 2012 Olympic Games To win 8 gold medals at the London 2012 Paralympic Games To establish a National Coaches Council by 2010 To establish a High Performance Centre by 2013 To establish Talent Development Centres in the 6 geopolitical zones by 2013 To establish a fully equipped Sports Science and Sports Medicine Centre by 2013 To increase private sector contribution to sports from less than 10 per cent to 40 per cent by 2013 To pursue the enshrinement of participation in sports in the Constitution to ensure its place as a fundamental right of the Nigerian youth by 2010 To ensure the sustenance of good health through involvement in both recreational and competitive sports by 2013 To revitalise schools, colleges and institutional sports by 2013 To encourage the manufacture of sports equipment and kits locally by 2013

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Enabling Policies A new consciousness to encourage successful performances through celebration of national athletes as heroes and heroines will be sustained by:· ·

· · ·

·

· · · ·

Encouraging States and Federal Government to offer generous educational and health insurance coverage for its athletes; All governments to create award and recognition schemes for individuals, institutions and organizations that make significant contributions to sports development, training and talents discovery; Create a hall of fame for the different sports; Naming of streets, monuments and landmarks after outstanding sports men and women who have brought honour to the country. The current policy of government since the statutory responsibility of formulating and executing policies and programme was transferred to the newly created National Sports Commission (NSC) has been a conscious effort to reposition sports from purely social and recreational activity to an instrument for effective national socio-economic reengineering with very strong private sector participation. A policy which will ensure that at least 30 per cent of the population have access to recreational or sports skill facility within a reasonable distance from their residential home to encourage healthy living conditions and offer youths the best opportunity to optimize their natural physical endowments. Also embedded in the policy are the needs to:Encourage the optimization of the commercial potentials of sports in tourism, manufacturing, fashion and merchandising; Create legislative frame work for sports administration; and Offer attractive package of incentives for participation and sponsorships of sport programs. Make right to play a constitutional right of every citizen (274) Sports is one platform that can turn the nation into an investors haven.

The broad policy aspiration for the planned period would be to:

· Promote sports and make physical fitness a way of life; · Develop sports as an instrument of national unity and international diplomacy by

· · · · · · · ·

ensuring Nigeria becomes the best African country at the Olympic Games in London 2012; Encourage the building of community sports facilities across the country under public private partnership; Develop sport to provide broad youth empowerment/ employment opportunities; Encourage a vibrant local sports goods industry; Encourage capacity building in sports through upgrading of the National Institute for sports to grade `A' parastatal as a "National Centre for Sport Sciences and training; Encourage best practices in sports administration; Attract major international sporting events to Nigeria and exploit their tourism potentials; Strive to be within the top 10 countries on the medals table of any Olympics competition from 2011; Encourage growth of professionalism in sport.

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Nigeria Vision 2020 Table 50: Analysis of Sport Development Sectoral Priorities

SN

OBJECTIVES

TARGETS

PROJECT

STATUS

1.

Community New/Ongoi To ensure that youth at To build community Pilot ng grassroot level have facilities sports center in all Sports Centre. senatorial district. to develop their talent. To determine the status of personnel, facilities and To determine base development infrastructure as tied to base line Sports data by the development year. end of the year 2010 and from there ensure availability of reliable data on sports. To encourage mass establish a participation through To and providing for athletes and structured office in and out of active life. standard reward and award system by the end of the year To ensure sustained 2012. development of elite athletes. Baseline Data studies for sport development planning

2.

3.

Installation of sustainable incentives and reward system.

To build at least one high performance To ensure a sustained centre in each of the stream of elite athletes 12 sports zonal through early identification offices within the High Performance and nurturing of talents. medi center 4. To build up capacity of various sports personnel to ensure that Nigeria achieves the target of being among the best 20 sporting nations in the world. To offer a reliable information network 5. To institute a phased introduction of scientist approach to talent, identification and nurturing by 2012. Application of Sports Sciences to To immediately boost performance. commence intensified training and retraining of 200

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sports personnel. Human Building. To establish an information center by 2011 which is optimally maintained through zonal sports centers. National Sports Information Center. Capacity

6.

7.

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Sports Development Sector Table 51: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Ministry of Sports Costs in N'm Priority Projects S/N 1 2 3 4 5 6 7 8 9 Pilot Community Sports Centre Baseline Data studies for sport development planning Installation of sustainable incentives and reward system High Performance centre Application of Sports Sciences to boost performance Human Capacity Building National Sports Information Centre National Sports Commission Projects Non Priority Projects 10,698.10 10,698.10 1,201.52 4,999.12 1,396.36 5,700.30 1,461.31 6,018.42 27,415.94 2010 2011 1,656.53 16.57 1,242.40 219.49 231.91 244.34 186.36 207.07 230.07 245.41 76.69 69.80 2012 1,993.98 16.87 1,533.83 2013 5,660.63 2,010.12 16.89 1,744.90 233.82 244.29 237.31 660.37 706.27 727.06 332.85 10,698.10 4,059.20 50.33 4,521.13 Total

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Chapter 20: Food and Nutrition

Introduction The proposed investment for the sector for the Plan period is N25.575 billion. The breakdown of the estimates is presented in the annex. The Food and Nutrition sub sector of the Human Capital Development Thematic sector is to contribute to the transformation of the Nigerian human capital capacity and catalyze the economic and social growth of Nigeria through improved productivity, reduction of disease burden and poverty reduction. Food security exists when all people have adequate physical, social and economic access to sufficient safe and nutritious foods that meet their dietary needs and food preferences for an active healthy life while Nutrition security is achieved when such access is achieved within a sanitary environment with adequate health services and care. The subsector will address 2 of the 3 pillars of the NV 20:2020 which are guaranteeing the productivity and wellbeing of the people as well as optimizing the key sources of economic growth in the economy during the plan period. Government will make deliberate effort to increase investment and mainstream nutrition into relevant development process. Vision and Goals The vision of the Food and Nutrition sub sector of the Human Capital development is: "To achieve sustainable food and nutrition security for all Nigerians by the year 2020 while the food and nutrition program and activities will contribute to the realization and attainment of the NV20:2020" This vision is aimed at: · Achieving Prosperity · Achieving sustainable peace · chieving citizens participation and nation building The goals to be achieved during the plan period among others include the establishment of a viable system that will guide and coordinate food and nutrition activities undertaken in the MDAs and at all levels from the community to the national as well as the use of nutrition indicators for the monitoring and evaluation of development policies, plans and programs. Other goals include the promotion of good indigenous food cultures and healthy dietary habits of Nigerians for a healthy living and development, promote habits and activities that will reduce malnutrition and improve nutritional status of the population. Situation Analysis Food security is a pre-requisite for development, but global experience confirms that sufficient food supply alone is not enough. Nigeria achieved over 23 per cent rise in par capita energy supply between 1970 and 2001(FAO, 2003). Dietary diversity, food quality, maternal knowledge, caring practices for young children access to health services, water and sanitation and other public health measures have proven to be indispensable. Thus achieving nutrition security requires multiple channels, integrating contributions of the public and private sectors, to provide a strategic mix of food, health, care, education and other "enablers" of good nutrition. 203

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Malnutrition is one of the most important developmental, welfare, social and health challenges being faced in Nigeria especially by infants, children, women and the elderly as well as one of the leading causes of death among children under the age of five years. Malnutrition is both a cause and consequence of poverty, disease and mortality. 41 per cent of under-five year old children in this country are chronically malnourished, making Nigeria the leading country in Africa and 3rd globally with over 10 million children chronically undernourished (NDHS 2008). Under nourishment is synonymous with Hunger and exists when caloric intake (food) is below the minimum dietary energy requirement needed to undertake light activity and a minimum acceptable weight for expected height. Food Hygiene and Safety practices in Nigeria are below standard and to a large extent are responsible for the high prevalence of food borne diseases in the country. Food borne diseases have continued to form a significant part of the morbidity and mortality of Nigerians and have been on the increase in recent times. The open display and exposure of cooked foods meant for human consumption to contaminants such as dust and flies is a common practice which has largely contributed to the etiology of food borne diseases. It is common knowledge that many registered food establishments do not have adequate water supply and toilet facilities and food vendors do not routinely undergo the prescribed periodic medical examination. Inadequate knowledge of food safety practices in the country in the preparation, preservation, transportation, processing and handling of food largely contribute to the incessant food borne disease and food related outbreaks which in most cases has assumed pandemic proportion in the country. To this end, the role of food safety in achieving sustainability in the health care delivery system as well as improving the economy of the citizenry cannot be wished away, as a nation that consumes safe food is a wealthy nation. Productivity losses arising from malnutrition is estimated to total several billions of Naira annually, conservatively put at 6.5 billion naira annually arising from iodine and iron deficiencies along with stunting alone. It is equally estimated that over 100,000 infant deaths occur annually due to sub optimal energy malnutrition, while over 6,000 maternal deaths occur annually due to iron deficiency anaemia (PROFILES, 2003). Well over 18 per cent of our children under 5 years lack iron, vital to developing nervous systems, they will grow to have trouble concentrating and coordinating brain signals with movements, like holding a pencil, that are crucial to education. The trend over the years has been very slow on all indices reflecting poor progress. In prevalence of stunting between 1992 and 2008 revealed that the figures worsened by 2008 with 50 per cent prevalence compared to 2000 with 40 per cent. Similar trend was recorded for underweight in the same time period worsening from 40 per cent in 2000 to 44 per cent in 2008. The exclusive breastfeeding rate fluctuated from 3 per cent in 1992 to 17.2 per cent in 2003 and further reduced to 13 per cent in 2008. Areas of some progress are in vitamin A supplementation which was mainly driven by our development partners whose coverage has been slightly over 70 per cent excepting in 2007 and 2008 where coverage dropped to only 25.8 per cent. Significant progress was made with universal coverage of iodine consumption through the universal salt iodization coverage. The coverage of iron folic acid consumption of pregnant mothers was only 21 per cent in 2008. Only 47 per cent of Nigerians have access to potable water in 2008 (Table 1).

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Nigeria Vision 2020 Table 52: Trend performance in some key nutrition indicators (Percent)

Nutrition Indicator 2003 (NDHS) 2007 (MICS) Stunting 42.4 34.3 Wasting 11.0 10.8 Underweight 24.3 25.3 Exclusive Breastfeeding 17.2 11.7 Vit. A supplementation 33.7 36.6 Access to potable water 41.2 Prevalence of LBW 1.3 13.7 Adapted from NDHS 2003, 2008 and MICS 2007

2008 (NDHS) 40.6 13.9 23.1 13 25.8 47 7.6

One of the indirect methods to assess household food insecurity is through food related coping strategies, i.e. actions families adopt when they do not have enough food. Table 2 below (culled from the findings from the 2003 NFCNS) indicates the different coping strategies and further reveals that as much as 24 per cent of the sampled national population reported they either ate foods that were less preferred or less expensive as a means of coping with lower real income or food insecurity. Majority of the sampled women in a number of surveys fell within normal range with 62.5 per cent being minimum in 2003 and increasing slightly to 65.7 per cent with a narrow range across agro-ecological zones from 62.5 per cent - 70.4 per cent; however chronic under-nutrition though above 10 per cent nationally was more prevalent in North East, North West, South South and South west in descending order of prevalence in 2003. Marginal improvements were noticed in the 2008 status both in terms of prevalence of chronic underweight and obesity among adult women. The study further revealed that obesity was more prevalent in the urban areas while under-nutrition is not significantly different between rural and urban areas (Table 3).

Table 53: Percentage Distribution of Households according to Coping Strategy in Response to Food Insecurity

Coping Strategy National Dry Savanna Moist Savanna Rely on less preferred food 11.9 15.1 9.9 Rely on less expensive food 12.1 15.4 9.2 Borrow to buy foodstuff 11.5 12.5 14.5 Borrow foodstuff 6.7 10.7 5.9 Purchase food on credit 13.3 7.9 11.0 Rely on help from relative 10.9 12.1 13.3 Limit portions at meal times 9.7 6.7 9.2 Ration money to household 2.6 4.2 1.4 Limit your own intake 9.9 7.9 10.9 Reduce number of meals 8.5 5.8 9.4 Skip whole day without eating 1,1 0.1 2.3 Others 2.0 1.8 2.7 Adapted from Nigeria Food Consumption and Nutrition Survey 2001-2003

Table 54: Percentatge Distribution of Body Mass Indices (BMI) of Women in Nigeria

Humid forest 10.8 11.3 8.9 4.4 18.5 8.7 12.0 2.1 10.6 9.8 1.1 1.7

Category <18.5 2003 6.6 2008 8.5 18.5 ­ 24.99 2003 2008 70.3 70.4 205 25.0 ­ 29.9 2003 2008 16.9 15.8 30 and above 2003 2008 6.2 5.3

North Central

Nigeria Vision 2020

North East

23,0

20.7

62.9 66.6 65.3 57.9 64.2 62.5 66.6 63.7 62.4 65.7

10.4 9.7 10.7 25.5 16.8 15.0 11.5 21.0 19.7 18.8

3.7 4.2 8.4 8.0 5.9

3.0 3.4 8.5 8.2 7.9

North West 19.7 18.6 South East 8.2 6.8 South West 11,1 9.7 South South 16.7 7.7 Adapted from DHS 2003 and 2008

Table 55: Consumption Pattern of Main Food Items in Nigeria Reflecting Trend

Share in total Dietary Energy Consumption ( per cent) Country name Nigeria Food items Sorghum Millet Cassava Rice (Milled Equivalent) Yams Maize Palm Oil Wheat Sugar (Raw Equivalent) Groundnut Oil Palmkernel Oil Pulses, Other Beverages, Fermented Plantains Sweet Potatoes Groundnuts (Shelled Eq) Vegetables, Other Nuts Soyabeans 1990-92 12 12 12 9 7 12 6 2 2 4 2 3 3 1 0 1 1 1 1 1995-97 14 12 13 8 8 10 6 2 3 3 2 3 2 1 1 1 1 1 1 2003-05 13 11 9 9 8 7 5 5 4 4 3 3 3 2 2 1 1 1 1

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Source: Extracted from FAOSTAT, 2008 Akinyele et al (2009)

and Food and Nutrition situation in Africa by IO

The food consumption patterns of Nigerians over the years has not reflected major shifts though our par capital caloric consumption over the years has witnessed impressive increases, over 23.6 per cent, but this has not diminished the indices of hunger and malnutrition as earlier reflected in the tables above for under five children and adults. Tables 4 a and b above reflects the main sources of our foods.

Table 56: Consumption Pattern of Main Food Items in Nigeria reflecting trend Consumption Pattern of Main Food Items in Nigeria Share in total Dietary Protein Consumption ( per cent) Country name Nigeria Food items Sorghum Millet Pulses, Other Maize Rice (Milled Equivalent) Wheat Yams Soyabeans Vegetables, Other Groundnuts (Shelled Eq) Pelagic Fish Cassava Nuts Eggs Oil crops, Other Bovine Meat Mutton & Goat Meat Freshwater Fish Sweet Potatoes Demersal Fish 1990-92 17 14 9 14 9 2 5 2 3 3 1 2 1 2 1 2 1 1 0 2 1995-97 19 13 9 12 7 3 6 3 3 3 2 2 1 1 1 2 1 1 1 1 2003-05 18 12 9 9 8 6 5 4 3 3 2 2 2 2 1 1 1 1 1 1

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Source: Extracted from FAOSTAT, 2008 and adapted from Food and Nutrition situation in Africa by IO Akinyele et al (2009)

Table 57: Showing Exclusive Breastfeeding rates over Five year period

Age group in months EBF (2003)DHS <2 months 26.2 2 ­ 3 months 19.3 4 -5 months 8.7 6 -7 months 3.9 8 ­ 9 months 1.6 10 ­ 11 months 2.6 12 ­ 15 months 3.8 Adapted from DHS 2003 AND 2008 Binding Constraints ·

EBF (2008)DHS 20.1 14.2 7.2 2.7 0.9 0.5

·

· · ·

Presence of multiple public and international stakeholders resulting in multiple nutrition policies and programs along sectoral lines that often led to programs and plans implementation by separate institutions in an uncoordinated manner. Clarifying leadership and coordination among sectors is a major challenge to securing political support, building consensus, and mobilizing resources to stem the tide of malnutrition in Nigeria; Nutrition presently belongs to no sector and responsibility of no one sector as a cross- cutting issue. Non- implementation of the National Policy and Plan on Food and Nutrition as well as the Food Safety and Hygiene policy Inadequate public funding of program and projects in nutrition. Inadequate implementation capacity of MDAs.

Policy Thrust The policy thrust is to meet the shared common vision for a better Nigeria that witness accelerated economic growth, redress the poverty challenge as well as assure full human capital development. The thrust is predicated on the National Policy on Food and Nutrition. Medium Term Objectives, Strategies & Targets Objectives: · Improve food and nutrition security at the household and aggregate levels to guarantee that families have access to adequate (both quantity and quality) and safe food to meet nutritional requirements for a healthy and active life. · Improve capacity within the country to address food and nutrition problems. Targets: · Reduce underweight among children under five years of age and women by 30 per cent of the current level by 2013; · Reduce under-nutrition, in particular, severe acute malnutrition among children under five years of age by 30 per cent of the current level by the year 2013; · Reduce malnutrition among women and the aged, by 30 per cent of the current level by the year 2013; 208

Nigeria Vision 2020

Increase exclusive breastfeeding rate from 13 to 50 per cent by the year 2013 Reduce vitamin A deficiency (VAD), zinc deficiency and iron deficiency anaemia (IDA) by 50 per cent of current levels by 2013; · Eliminate iodine deficiency disorders (IDD), by 2013; · Reduce low birth weight (2.5kg or less) to 10 per cent of current levels by 2013; · Reduce diet ­ related non ­ communicable diseases by 25 per cent of current levels by 2013; · Increase access to safe drinking water and disposal of human waste by 30 per cent of the current level by 2013. Strategies: · · · Multi-sectoral collaboration aimed as facilitating capacity building and mobilizing resources for food and nutrition intervention program with the establishment of the National Nutrition Council and the National Committee on Food and Nutrition. "Fast-track" sections to build credibility for food and nutrition-linked programs and enhance commitment of political leaders as well as capacity of institutions. (e.g. training, agriculture and health) Control and prevention of micronutrient deficiency through food fortification by large, medium-scale and cottage food industries, as part of the National Food Fortification Programme. Encouraging introduction of nutritional enhancements to mitigating nutrition risks including vitamin mineral supplementation program. Encouraging the expansion of production, distribution and marketing high energy and high-nutrients-density foods or snacks for vulnerable groups including the control of severe acute malnutrition as well as nutritional support for OVCs as well as PLWAs. Comprehensive packages of educational, health and nutritional interventions delivery through the School Feeding and Health Program and other similar intervention programmes. Comprehensive package of nutrition education and services to rural communities along with investment to expand agricultural extension services. Comprehensive package of essential nutrition interventions delivered as part of health services and programs particularly at primary health care level Sustained and regular, coordinated national and sub-national media strategies for nutrition advocacy and public education. Sustainable capacity development to address various food and nutrition challenges at all levels of Nigeria's development. Strengthening coordination of food and nutrition mechanism at all levels particularly at primary health care level. Enhance the condition of services of public sector nutrition officers and improve their work environment. Harmonization of all existing food laws in the country.

·

·

· ·

·

· · · · · · ·

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Prioritized Projects

Table 58: The flagship projects prioritized for Food and Nutrition Sub-Sector (2010 ­ 2013)

S/No 1

2.

3

4.

Flagship Project Increase access to food through production and consumption of high yielding disease/drought resistant crops Promote the production and utilization of low cost pre-packaged appropriate complementary foods Develop appropriate framework for the implementation of school feeding programme Upscale community management of acute malnutrition (CMAM)

Sectors Agric. & Resources

Water

Science &Tech/ Commerce & Industry Education

Health

5.

6

7

Promote improved food processing, preservation and packaging technologies centered on small and medium scale entrepreneurs Protect, promote and support exclusive breastfeeding through community support groups and work places Conduct regular monitoring of compliance at factory, wholesale, retail and household levels of Universal salt iodization

Science & Tech, Agric & Water resources

NPHCDA (Health)

SON,MOE,NAFDAC, NPHCDA (Commerce, Industry, Health and Education

Projected Investment The projected investment in the sector is in excess of N25 billion over the implementation period. This is the investment that would fund all the projects that have been proposed by the sector to enable them achieve the stated objectives.

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Food and Nutrition Table 59 Table 51: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Human Capital Development Food and Nutrition Priority Projects S/N Increase access to food through production and consumption of high yielding disease/drought resistance crops Promote the production and utilization of low cost prepackaged appropriate complementary foods 2 3 4 Develop appropriate framework for the implementation of school feeding programme Upscale community management of acute malnutrition Promote improved food processing, preservation and packaging technologies centered on SMEs 5 Protect, promote and support exclusive breastfeeding through community support groups and workplaces Conduct regular monitoring of compliance at factory, wholesale, retail and household levels of Universal salt iodization Non priority Projects 418.50 549.19 654.72 1,622.41 697.50 575.44 915.32 732.25 982.08 818.40 2,594.90 2,126.09 2010 Costs in N'm 2011 2012 2013 Total

1,569.38

1,647.57

1,636.80

4,853.74

1

-

697.50

732.25

818.40

2,248.15

-

1,220.63

1,281.44

1,473.12

3,975.19

6

-

959.06

1,098.38

982.08

3,039.52

7 8

-

1,514.04 7,652.04

1,759.56 8,715.96

1,841.40 9,207.00

5,115.00 25,575.00

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Chapter 21: Social Protection And Safetynets

Introduction The proposed investment for the sector for the Plan period is N186.060 billion. The breakdown of the estimates is presented in the annex. The Federal Government is aware that effective social protection policy environment is a political, economic and social imperative, for sustainable economic growth and development. The Nigeria's Vision 20: 2020 would require the translation of the nation's economic growth into improvement in the wellbeing of the majority of the citizen. Therefore the Social Protection imperative in Nigeria is to reduce poverty and protect vulnerable groups from shocks that may arise from social insecurity such as destitution, old age, disability, accidents and disasters, as well as creation of effective safety nets for the vulnerable, mitigates the adverse impacts of shocks on the poor. Public investment in human capital facilitates risk taking endeavours, limits risks and also enables the poor to prevent, cope with and mitigate risks. In the past five years, the government has introduced various reforms and initiatives aimed at improving Nigeria's social security system which had hitherto been the preserve of family and community social systems. Some of these initiatives include; Pension Reforms, National Social Insurance Trust Fund (NSITF), National Health Insurance Scheme, Virtual Poverty Funds (VPF), Micro- credit, National Poverty Eradication Program (NAPEP) Conditional Cash transfers. With the exemption of VPF, these initiatives cover predominantly the public sector workers, leaving a larger segment of Nigerians that are in the private and informal sectors unprotected. The government is committed to deepening social protection that deals with vulnerability and risks of the poor and the non-poor in the face of shocks at different stages of the life cycle from birth to old age during the plan period 2010-2013. Vision and Goals The Vision of Social Protection in Nigeria is to institutionalize universal social protection for all Nigerians to motivate workers in the public and private sector to increase productivity and free them of domestic worries. The goal is to increase productivity and income, reduce poverty and vulnerability by diminishing people's exposure to risk and enhancing their capacity to protect themselves against hazards and loss of income. Situation Analysis In Nigeria, social protection and security were traditionally taken care of by the family and community systems . Increasing urbanization and westernization resulted into the breakdown of the traditional systems and values leading into social crisis such as destitution, child labour, loss of income, poverty and abandonment. Government realization of the social crisis arising from the breakdown of the traditional system led to the creation of formal institutions to deal with the issues and challenges. The concept of social protection is to provide safety mechanism through public intervention against economic and social distress caused by stoppage or substantial reduction in earnings. The initial social protection institutions so created were to cater for the needs of workers in the formal public sectors, however, in recent times; workers in the private sector have been included. Available evidence indicates some measure of improvement in the performance of the sector, in terms of reducing vulnerability and poverty. Some of the policies and programmes aimed at protecting the poor and vulnerable group in the country include: 212

Nigeria Vision 2020

Early Childhood Age (0-5): Nigeria has a young population structure with 19.6 per cent of the population falling between 0-5 years old. For this age group, some public intervention programmes currently on ground to help mitigate the risks include the following: · Vitamin A Supplementation Programme: This is aimed at controlling Vitamin A Deficiency (VAD). In terms of coverage, the average coverage of Vitamin A distribution in the country is 70 per cent of children aged 6-59 months. In terms of targeting, the programme is targeted at all children with no allowance made for the poor and vulnerable. Expanded Programme on Immunizations (EPI): The aim is to achieve universal child immunization in Nigeria. It is being implemented in all the 774 Local Government Areas of the 36 States of the federation and the Federal Capital Territory mainly through the routine and supplemental immunization activities. The distribution and administration of the vaccines are done under the auspices of the National Primary Health Care Development Agency (NPHCDA), an agency of the Federal Ministry of Health.

·

Social Protection Activities for Age 6-14: The proportion of population of Nigeria in the age group 6-14 years is 25.3 per cent and 66. 7 per cent of them are poor, 30.1 per cent being core poor and 36.3 per cent being moderate poor. Some of the intervention programmes for this age group include: · Universal Basic Education (UBE): The aim is to ensure that every Nigerian child has access to qualitative basic education. The strategy is to make basic education compulsory and universal up to the junior secondary level. However, the nation has not been able to achieve this universal education due to a number of gaps in the operational modalities of the educational programmes among which are infrastructure, equipment and inadequate teacher-pupil ratio. · Education Tax Fund (ETF): The education tax fund is meant for all levels of education and it is designed to improve the financing of infrastructures and resources that will lead to improvement in the quality of education in the country. Presently, the ETF has no mechanism of targeting the poor or the schools they attend which makes it regressive in nature. Social Protection Activities for Ages 15-24 and Ages 25-64: There are more than 31 million people within the age range 15 ­ 24 years and 23.4 million people within the age group 25-64 years in Nigeria representing 19.1 and 32.7 per cent of the population respectively. Within these groups, the poor accounts for about 63.1 per cent and 67 per cent respectively. The major social issue is gainful employment. Intervention programmes for this age group include: · National Directorate of Employment (NDE): NDE was created and mandated to design and implement programmes to combat mass unemployment, through the articulation of policies aimed at developing programmes with labour intensive contents. The major obstacle to the full realization of the programme objective is the shortage of loanable funds as well as the high rate of default by loan 213

Nigeria Vision 2020

·

beneficiaries. The sustainability of the programme thus depends on the commitment of the Federal Government in terms of finance and outcomes of the Directorate's reform. In addition, most of the activities of the NDE are being duplicated by NAPEP. National Poverty Eradication Programme (NAPEP): The main objective of the programme is to oversee, monitor and coordinate all government initiatives aimed at eradicating poverty, and to periodically extend intervention projects to complement the efforts of the implementing MDAs throughout the country. Although some successes have been reported in the implementation of NAPEP programmes, however, the performance remains below the expectation of Nigerians.

Social Protection Activities for over 65 year old : Government Pension Scheme: The public sector pension scheme has been reformed to be a contributory scheme and being handled by private firms to make for more effectiveness and to ameliorate public workers suffering on retirement. · Nigeria Social Insurance Trust Fund (NSITF): The main objective of the scheme is to provide necessary support to workers after retirement or in the event of disability or loss of job. In addition, it provides social protection in old age and provide death benefit for those who died as a result of injury associated with employment. As a risk management agency, NSITF targets people working in the private sector and the procedure for targeting are age and type of occupation. The risks that are of paramount importance to the scheme are job insecurity, income insecurity, life insecurity (including death), and physical disability.

Social Protection Activities for the General Population · National Emergency Management Agency (NEMA): This agency is mandated to formulate policies relating to emergency management activities as well as coordinate programmes and plans directed at responding to disasters in Nigeria. The Agency over the year has been able to respond appropriately to emergency and disaster situation in Nigeria. National Health Insurance Scheme (NHIS): The objectives of the Scheme are to ensure that every Nigerian has access to good health care services; protect families from the financial hardship of huge medical bills; limit the rise in the cost of health care services; ensure equitable distribution of health care costs among different income groups; maintain high standard of health care delivery services within the Scheme; ensure efficiency in health care services, ensure the availability of funds to the health sector for improved service e.t.c. Some of the problems confronting the scheme are poor health care facilities, low quality housing and lack of basic infrastructure, and violence/natural disaster.

·

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Nigeria Vision 2020

Constraints/Challenges The major constraint of the Social Protection in Nigeria is that of co-ordination. Social Protection has no coordinating MDA and as such the projects and programmes to accomplish the objectives and targets is embedded in various MDAs. Other constraints include: · Increase number of vulnerable persons attributed to disasters, chronic poverty and limited traditional social protection · Inadequate statistical information on the level of poverty and vulnerability · Absence of reliable tracking system to identify vulnerable groups and population · Corruption and lack of transparency in the administration of social protection programmes Policy Thrust The main thrust of social protection in Nigeria is to reduce poverty and protect vulnerable groups through effective and sustainable prevention mechanism thereby achieving sustainable social protection by the year 2013. Major areas of intervention will include basic education, primary health care, nutrition, water and sanitation, housing, cultural facilities e.t.c Objectives, Strategies and Targets Objective: Expand Social Protection measures to protect people from becoming vulnerable and reduce vulnerability to enhance the productivity of human resource Strategy: · Harmonize the provision of Social Protection measures in the country · Formulate a comprehensive social protection policy and strengthen the mechanism for co-ordination of social programmes · Diversify social security measures to cover more people, those employed in the formal and informal sector as well as the unemployed · Establish a data management system for different categories of vulnerable group and workers in the formal and informal sector Objective:

· ·

Diversify and provide comprehensive social protection for different Categories of the population

Strategy:

· · ·

Sustain and strengthen the National health insurance scheme to cover both private and public sector workers. Develop and implement social transfer programme. During the plan period, Government will intensify the implementation of cash transfer programmes to elderly, persons with disability and the poorest quartile of the population.

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Nigeria Vision 2020 · · ·

Support comprehensive community response programme for vulnerable groups (OVCs, widows, old persons and ethnic minorities)partnerships with civil society organization Provide entrepreneurial, employable and adolescent life skills to youth outside school and provide them with start up kits Provide social protection for abused and neglected children and babies who are in need of care and protection. To achieve this, a collaboration mechanism would be designed between government and civil society organizations.

Target: The target for the plan period (2010 ­ 2013) is to reduce the poverty and vulnerability level from 65 per cent to 50 per cent

Programme Coordination

Social Protection has no coordinating agency.As a result, the programmes and projects under social protection are reflected in the programmes of various MDAs that have social and safetynet component such as Labour and Productivity, Health, Education, Women Affairs, Youths.

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Nigeria Vision 2020

Social Protection and Safety Net Table 60: Summary of Investrment Plan 2010 ­ 2013 Thematic Area - Human Capital Development Social Protection and Safety Net (NAPEP) Priority Projects S/N Coordinate and close all areas of gaps of all the activities of all Line Ministries, Depts and Agencies to ensure reduction of poverty by 10% by 2013 1 Create an enhanced pool of funds for the purposes of providing tools for economic empowerment of the poor people through wealth generating activities Intervene in all areas of poverty reduction initiatives in Nigeria for the purpose of job creation, rural industrialisation and modernisation Research, monitor and evaluate all poverty reduction activities of all line MDAs Non Priority Projects 7,967.38 2,390.21 2,708.91 2,868.26 2010 2011 Costs in N'm 2012 2013 4,610.43 1,383.13 1,567.55 1,659.76 Total

2

124,576.11 37,372.83 42,355.88 44,847.40

3 4 5

3,405.02 11,116.58 55,667.78

3,859.03 12,919.26 63,410.62

4,086.03 13,520.16 66,981.60

11,350.08 37,556.00 186,060.00

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Nigeria Vision 2020

PART IV: DEVELOPING A KNOWLEDGE-BASED ECONOMY

INTRODUCTION Developing a national framework for transforming the nation into a knowledge-based economy is a Key Result Area (KRA) for the 1st. NIP. This is in recognition of the increasing role of knowledge in engendering economic growth and development as well as social transformation and modernisation. It is crucial for igniting significant improvement in total factor productivity which enables efficiency gains in resource utilization and achieving strategic change in production though through more efficient use of resources and innovation which combine to improve the nationas global competitiveness. In the context of the Vision, the role of knowledge in driving growth is very strategic as it impacts on all activities in the economy. For instance, raising the size of the nation's GDP from the current US$173.36b (CBN, 2008) to the projected US$ 900b by the year 2020, will require among others, significant expansion in the production and delivery of quality goods and services. This will entail raising productivity and efficiency at individual and corporate levels and shifting the structure of production to high value-added activities capable of improving quality, increasing output and employment in the economy. it is acknowledged that output and employment are expanding fastest in high-technology industries, such as ICT, electronics and aerospace. This thematic area deals with two main chapters; Information and Communication Technology ( ICT) and Science Technology and Innovation (STI). It also contains the sub-sector; Postal Services. The thematic area compliments the human capital development thematic area in the sense that it aims at enthroning knowledge, as the main driver of the economy. In that respect Education becomes the pillar for national development. ICT, STI and Postal Services are strategic for effective penetration and diffusion of knowledge. Under this Plan the policy direction will be on developing a national strategy for evolving a knowledge-based economy. There will be a needs assessment that will include the role and relevance of the existing institutions, the manpower requirement for a knowledge based economy, identification of areas of priority needs of the economy as well as the strategic tenyear investment plan where knowledge based activities can be strenghthened to make quick and sustainable gains to lay a solid foundation for a knowledge driven economy. The proposed total public sector investment in this thematic area during the plan period is N294.709billion. The sectoral breakdown is as shown below: ICT-------------------------------N26.620b Science and Technology-----------N268.088b Strategic Context: As highlighted earlier, the KBE is strategic to achieving all the three Pillars of V20:2020 and the goals as indicated below: Guaranteeing the productivity and wellbeing of the people:

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Nigeria Vision 2020

This is underpinned by human capital development that will breed better informed citizenry with higher creative capacity to generate wealth, employment and reduce the level of poverty. The adoption and adaptation of new technologies will create longer-term gains in productivity and employment; as well as significantly improve the skills base of the nation's labour force. Optimizing the Key Sources of Economic Growth This is contingent on value addition to primary raw materials such as internal refining of crude oil, development of high-end petrochemical products, pharmaceuticals and others. Moreover, infusion of high-technology and knowledge-intensive production processes will throw-up new investment opportunities and stimulate the creation of completely new products and services. This will increase the long-term growth potential and afford the basis for continued sustainable rapid growth of the Nigerian economy. For instance, small nations with very low natural resource base such as Ireland and Singapore have harnessed knowledge to advance their economy, successfully. Fostering Sustainable Social and Economic Development The KBE, through its instruments of e-governance, e-economy, e-commerce, telemedicine and others, will take governance, economic activities and social facilities to the door step of all Nigerians. KBE is hinged on the tripod of (i) human resource development (HRD), (ii) Information and Communication Technology (ICT) and (iii) Science, Technology and Invention (STI). The private sector will be the engine of growth, while the public sector will continue to provide the enabling and supporting environment. Therefore, in charting Nigeria's path to KBE, it is important to assess the current state of nations in terms of trivets of HRD, ICT and STI. However, given the centrality of HRD to the success of our transition to KBE, the 1st NIP has dedicated a full chapter to HRD and the embracing caption of Human Capital Development. Hence, emphasis of the situation analysis in this Chapter will centre on ICT and STI while consideration of HRD will be limited to the needs for ICT and STI. Issues and Challenges: The poor ranking of Nigeria in the global competiveness index (GCI), underscores the magnitude of the task in implementation of the V20:2020: The challenge for the nation, is to improve significantly her ratings in all spheres of KBE. These include building of a knowledge work-force; refocusing the existing institutions to be more result driven; ensuring access and affordability of ICT, Internet and Telecommunication facilities nation wide; and developing a world class infrastructure and info-structure fundamental to the sustenance of KBE and bridging the knowledge and digital divided across all dimensions. This will offer investment opportunities along the value chain by opening up areas in product conceptualization, design, development, testing, packaging, marketing and distribution, to mention a few. Also, a major challenge that the nation must tackle is the issue of human resources development.

Human Resource Development for a KBE:

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In the area of human resources development, the eroding quality and standard of education coupled with the increasing disconnect between industry need and product of the nation's tertiary institutions remain worrisome. This is because the nucleus of a knowledge-based economy is human capital which entails the capacity to conceive, create, innovate, generate and exploit new ideas as well as apply technology and exercise superior entrepreneurial skills to remain ahead of competitors. The ratio of student enrolment in Science and Technology based courses to Arts and Humanities courses in our tertiary institutions has not fared well in our bid to meet the national policy of 60:40 as evident from Table 3. Although, for the same period the ratio of academic staff in Science based courses to those in Arts and Humanities courses was in favour of Science based courses as seen in the same table. It is also obvious from Table 3 that the ratio of science based to arts and humanities based graduates is low at all three levels. In fact, trend analysis over the period 2001 to 2005 reveals that the percentage of science based graduates is declining at bachelors and doctoral levels and increasing for masters level. If the trend persisted, current (2010) graduation rate for science based students would decline to 21per cent and 19per cent for bachelor and doctoral levels and increase to 56per cent for masters level. The corresponding figures for the year 2013 will be 17, 74 and 15per cent for bachelors, masters and doctoral levels, respectively. Moreover, the rapid decline in the innovative capacity of our scientists is underscored by the practical absence of registered national and international patents as shown in Table 4. Therefore, institutional reforms are imperative in order to reposition our research institutions for high level competition in cutting edge technologies. Table 61: Science to Art and Humanities' Student Ratio in Nigerian Universities Science : Arts Humanities Ratios Students Enrolment [1] Staff Academic [1] Bachelors Graduate[2] Masters Graduate [2] Doctoral Graduate [2] 2001/02 47:53 53:47 32:68 13:87 32:68 2002/03 50:50 55:45 29:71 16:84 29:71 2003/04 45:55 55:45 30:70 14:86 22:68 2004/05 48:52 54:46 31:69 19:81 28:72 2005/06 47:53 54:46 24:76 41:59 26:74

[1] Source of Data: National Bureau of Statistics, Social Statistics in Nigeria 2007 Tables 3.29a&b. the development of the human resources Thrust: The strategic thrusts for the Plan period, in respect of KBE will be as follows: · Assessing and building the critical mass of human capital through comprehensive revamping of the educational and training systems to stimulate creativity, adaptability, life-long learning, brain-gain, vocational training, technical training etc.; Fast-tracking development of ICT infrastructure, infostructure, penetration and diffusion to ensure universal access to bridge the digital divide;

·

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·

Encouraging software development (English, Hausa, Igbo and Yoruba) and foster conducive environment (Security, authentication, privacy, consumer protection, Intellectual property rights etc); Re-invigorating and refocusing STI and R&D in tertiary institutions and Research institutes to stress innovation and knowledge based product development and services; Repositioning of the public sector for effectiveness, efficiency and proficiency in knowledge acquisition, utilization and management; Restructuring the financial system to provide appropriate and affordable financing products to support KBE activities; and review the incentive packages to attract FDI and facilitate venture capital funding;

·

·

·

[2] Source of Data: National Bureau of Statistics, Social Statistics in Nigeria 2007 Tables 3.31a, 3.3.2a & 3.32b.

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Chapter 21: Information Technology and Communication

Introduction The proposed investment for the sector for the Plan period is N26.620 billion. The breakdown of the estimates is presented in the annex. This sector comprises of Telecommunications, Information Technology and Postal services. ICT percolates every human endeavour from food security, commerce and industry, physical and social infrastructure, to the entertainment industry among others. The increasing globalization driven by ICT makes it imperative for Nigeria as an emerging market to irreversibly consider the application and promotion of ICT strategy to facilitate its rapid growth and development. This will involve the development of a vibrant ICT sector to drive and expand the national production frontiers in agriculture, manufacturing and service sectors. It would also require the application of the new knowledge to drive other soft sectors: governance, entertainments, public services, media sector tourism, et cetera. Situation Analysis: Although a comprehensive study will be undertaken within the plan period to ascertain the nation's state of preparedness in fostering a KBE, however eight key indicators and thirty three Global Information Technology Report (2009/2010) Networked Readiness Indices have been used to assess Nigeria's state of readiness to transit to KBE compared using Brazil, China, India and Malaysia as comparator countries (Tables 1 and 2 below). An analysis of the indicators shows that Nigeria is at the bottom rung of the ladder, in all respect except in the cases of Mobile Phone Subscribers and Internet Users where Nigeria fared better than India. Particularly instructive are the facts that Nigeria ranked 127 in Infrastructure Environment, 128 in Education Investment and 101 in Government Readiness out of 133 countries (table 2). The nation is currently one of the least competitive countries in the world in both composite and individual sector competitiveness. It is currently ranked 94 out of 138 countries in the Global Competitive Index (GCI 2009). This is deterioration when compared to the ranking of 88 in 2006. In respect of knowledge and digital divide the situation remains worrisome. This is, in terms of knowledge generation, penetration of ICT, assess to and usage of internet and Telephone penetration (fixed and mobile) and physical infrastructure. The knowledge and digital divide cuts across geographical, gender and cultural dimensions. It exists among the 36 states of the Federation plus the Federal Capital Territory , the 774 Local Governments, rural and urban areas, men and women, rich and poor, young and old, able bodied and disabled, illiterate and educated. Issues and Challenges in ICT development in Nigeria: The major challenges for ICT development include the: · Disjointed and Inadequate policies coupled with the absence of legal and regulatory frameworks; inappropriate costing and poor funding of projects and programmes;

·

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·

Weak Public Private Partnership framework that is militating against active participation of the Private Sector; Inadequate and weak institutional framework precluding seamless synergy between existing ICT based institutions; and lack of ICT infrastructure and Inforstructure Poor state of the nation' physical and social infrastructure particularly power Lack of a deliberate effort to mobilize all Nigerians and fast track ICT penetration, access and affordability.

·

· ·

Policy Thrusts for ICT Development: In line with the recommendations of the Information and Communication NTWG, the critical areas to consider in formulating enabling policies for the ICT Sub-sector are: · Developing a national KBE 10- year strategic plan · Sustained Human capacity development: creation of knowledge or technical workers is important for both the production and use of ICT; Creating favorable and friendly investment and enterprise environment through transparency in tax system, anti-trust laws, incentives and trade policies to stimulate foreign and local investment in ICT; Infrastructure and infostructure development, particularly global connectivity is a prerequisite to leveraging the benefits of the global economy, improving domestic productivity, and attracting foreign investment Creating enabling environment through appropriate policies, legal, regulatory and institutional frameworks Enhancing Public Private Partnership in project funding, financing and management

·

·

· ·

In order to reposition and refocus the ICT sub-sector to provide the necessary platform for enduring transition to KBE, the following strategies will be employed to achieve the outlined targets under each objective. Objectives, Strategies And Targets The strategies required to achieve the various targets outlined under each objective of the ICT sub-sector are given below: Objective 1: Develop sufficient, efficient and affordable ICT infrastructure to accelerate and sustain economic growth and development; Strategy Implement the Strategic Action Plan(ICT4D) to mainstream ICT policies, ICT-based processes, and ICT products and services into different sectors of the economy.

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put in place a national fibre-optic backbone infrastructure that ensures high Bandwidth availability, universal access, Internet Connectivity and telecommunications; Encourage private operators to rollout nationwide high speed broadband and data infrastructure Target: Attain 55per cent coverage of the fibre-optic backbone infrastructure of the country from current coverage of about 10per cent by 2013; Key Performance indicator: The performance indicators include · · · · % Increase in Internet access; % increase in computer density; % increased in teledensity; % increase in ICT penetration

Objective 2: Engender rapid ICT penetration and diffusion for efficient and affordable service across the socio-economic sectors of Nigeria; Strategies: · · · Facilitate increased awareness of potential of ICT by literate people in rural and urban areas of the country Promote the personal acquisition and ownership of computers by pupils, students, employees and households. Partner with Local manufacturers to produce affordable functional computer systems at subsidized rate

Targets: · Achieve computer density of 1:30 national, · 1:10 for rural and 1:5 for urban primary and secondary schools, · 1:3 for tertiary institutions; · Attain tele-density of 65per cent from the present 47per cent by 2013; KPI: · · ·

per cent increase in teledensity; per cent increase in computer density; per cent increase in internet users

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Objective 3: Develop globally competitive indigenous human capital and Knowledge based Products and Services in targeted areas of ICT (software, hardware, networks, card technologies, security/biometrics, web and digital content development, etc)

Strategy: · Put in place a functional educational curricula for ECCDE, primary, secondary and tertiary levels with appropriate ICT skills content and is ICT driven content philosophy by 2010; · · · · · Enact enabling legislation for e-Government, e.g. Digital Signature Act. Incentivize the commercial production and provision by the private sector of Nigerian digital content and online databases in English and Nigerian languages Provide recognition for non-formal and distance e-learning modes of education. Provide policies and fiscal incentives to encourage ICT Hardware manufacturers to invest towards improving the amount of local content in their products and services. Promote local adaptations of foreign ICT systems and solutions that do not infringe patent rights through support and incentives.

·

Promote the development of local software that interface with Nigerian languages in either voice-text or text-voice modes.

Targets: · Achieve 60per cent ICT Literacy among the literate population by 2013; · Achieve a ratio of computer scientists, engineers and technologists to population of 1:10,000 by 2013 · Achieve 30per cent of Nigerian content in ICT hardware, software and services by 2013 KPI: · · · per cent Increase in number of scientist, engineers and technologist; per cent increase in enrolment for computer science and computer engineering courses; per cent increase indigenous ICT products and services solution.

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Objective 4: Deploy ICT in government for transparency and accountability as well as to enhance efficiency, effectiveness and increase government capacity to deliver citizen centred services to attain national competitiveness. Strategy: · · · · · · · · Carry out Skills Gap Analysis to assess ICT skills deficiencies. Conduct intensive training programmes and workshop to development relevant ICT skills for workers Provide incentives for the workforce to acquire ICT skills, equipment and connectivity. Promote citizens online access to government information. Make the use of basic and specialized work-related ICT skills a requirement for employment and advancement in MDAs by 2010. Create an ICT cadre in the public service, and create ICT departments in all MDAs to be headed by Directors of ICT with ICT backgrounds. Enact enabling legislation for e-Government, e.g. Digital Signature Act. Create enterprise architecture document(s) at the different levels of the government to guide the acquisition, deployment and operation and maintenance of interoperable technology systems.

Target: · · · Build capacity of 40per cent of the workforce to acquire basic and work-relevant ICT skills 2013; Achieve 1:5 ratio of personnel to computer for 40per cent of the workforce by 2013 Achieve computerization of 30per cent of the business processes of MDAs by 2013;

KPI: per cent Increase in computerized government services and operations; per cent increase in MDAs forms accessible on-line; per cent decrease in visitors to MDAs; per cent decrease in time of doing business in MDAs.

Objective 5: Promote research and development (R&D) activities to stimulate and sustain innovation in ICT solutions. 226

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Strategies: · Strengthen the competencies and capabilities of researchers and research institutes and tertiary institutions to be globally competitive in targeted ICT areas. Provide high tech equipment and Internet connectivity for all institutions. Undertake institutional reforms to refocus the institutions in specialized and targeted research and development activities; Facilitate linkage between national research institutes and tertiary institutions with internationally recognized ICT based research institutes abroad. Facilitate linkage between ICT based companies and research institutes in targeted areas of ICT solutions. Establish legal and institutional framework for the protection of copyright and other Intellectual Property Right issues.

· ·

·

·

· Target: · · · KPI: · · ·

Achieve a ratio of computer scientists, engineers and technologists to population of 1:10,000 by 2013; Achieve a ratio of researchers to population of 1:15,000 by 2013; Achieve commercialization of 5per cent of annual R&D output.

per cent Increase in patents (resident and non-resident); per cent increase in development of prototypes; per cent increase in commercialization of ICT based solutions. Increase in international ranking or recognition of Researchers and Research Institutes.

Objective 6: Develop the ICT industry for the production of software and hardware to global standards. Strategies: · Formulate and implement an appropriate enabling ICT local content policy; · Put in place national standards for software, hardware and other ICT products and services, and a framework to ensure compliance with the standards; · Provide legal, regulatory and institutional frameworks to create investment-friendly and responsive environment for PSP sustainable transition to KBE. 227

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· · ·

Introduce a portfolio of appropriate incentives to attract sustained investment from both local and foreign companies; Provide policies and fiscal incentives to encourage ICT Hardware manufacturers to invest towards improving the amount of local content in their products and services. Promote the development of local software that interface with Nigerian languages in either voice-text or text-voice modes.

Target: · Achieve 30per cent of Nigerian content in ICT hardware, software and services by 2013; · Achieve 3per cent contribution by the ICT sector to GDP by 2013; · Achieve at least 0.1per cent of GDP investment in ICT R&D annually to improve local software and hardware capacity. · Attain 30per cent transition to Knowledge Based Economic (KBE) input in Flagship Sub-sectors (Agriculture, Manufacturing, Industry, Services) by 2013

KPI: In crease in High Tech industries, products and processes; · · · · · per cent Increase of ICT Sector to GDP; Increase private invest in ICT sector; per cent Increase of Manufacturing to GDP; per cent Increase in Industry to GDP; per cent Increase of Services to GDP; per cent Increase utilization of Local Raw materials;

Key Priority Programmes/Projects for ICT Sub-Sector Government recognizes ICT is the key enabler for the KBE, and the need to put in place necessary ICT infrastructure to provide the appropriate platform for effective governance and seamless business and commercial transactions. In this respect, government will continue to intensify efforts to encourage private sector investment in this sector, through providing appropriate legal, institutional and regulatory framework that will ensure a level playing field for all stakeholders. The private sector will therefore remain the engine of growth and public private partnership will be deepened.

Accordingly, a total of forty five (59) programmes/projects have been identified as priority projects for the ICT Sub-sector (Appendix IV)). The programmes/projects are further reprioritized into four categories, numbered 1 to 4: those with priority 1, are considered as foundational programmes/projects that need to be put in place within the first two years of the implementation of the V20:2020. Those with priority 2 are considered as necessary for the third and fourth years of the implementation of the plan while categories 3 and 4 are projects that could be embarked-upon if time and resources permit.

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Projected Investment The tentative cost estimate for fifty nine (59) priority programs and projects during the four year plan period, is two hundred and seventy six billion, six hundred and ninety three million six hundred and thirty thousand naira (N276,693.63) only. Sub ­Programmes: The ICT Sub-programmes are as shown in Table 5 below:

Table 62: Sub-Programmes for the ICT Sub-Sector

S/No 1 2 3 4 5 6 Total

Sub-Programme ICT Infrastructure Multimedia Super Corridor Local Content Development Information Security Research and Development in ICT Postal Services

No. of Programme & Projects 32 3 4 11 5 4 59

ICT Infrastructure Sub-programme: Since ICT is the key enabler for the transition and sustenance of KBE, a number of foundation programmes/projects have developed to ensure that the appropriate platform has been put in place. Some of these projects include (i) Coordination of the Implementation of the Nigerian ICT for Development (ICT4D) Plan (FMST); (ii) e-Readiness Capacity Building Programme; (iii) Backbone Transmission Infrastructure (BTRAIN); (iv) Internet Exchange Points Network; (v) Electronic Local Government Administration Platform.

Table 63: Key Indicators for State of Readiness of Nigeria for KBE in Relation to Developing Countries

S/No Indicator 1 Population (millions) 2 GDP per capita (PPP $), 2008 3 2

Nigeria 151.3 2,162

Brazil 192.0 10,466 78.5 230.45 2004

China 1,325.6 5,970.0 47.9 268.63 (2005)

India 1,140.0 2,780.0 29.4 45.45 (2005)

Malaysia 27.0 14,081 102.6 172.25 (2005)

Mobile Subscription per 41.7 1000 population (2008) Telephone Mainline per 459.3 1000 population (2009)

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5 8.

Television per 1000

Radio per 1000 (2009) 9. No. of PCs per 10,000 0.067 1.04 0.406 0.121 2.046 (2009) 4. Internet Users per 1000 15.9 37.5 22.3 4.4 55.8 (2008) 5 Internet bandwidth (Mb/s) 0 20.8 4.8 0.3 23.7 per 10,000 population, 2008 6. Utility patents per million 0 0.5 0.9 0.5 5.6 population, 2008 7. Environment (Rank out of 97 74 57 53 37 133) 8 Readiness (Rank out of 94 62 19 22 11 133) Source: 1. Global Information Technology Report 2009-1010: ICT for Sustainability; 2010 World Economic Forum and INSEAD 2. Nationmaster.com http://www.nationmaster.com/

186.3 (2009) people 450

196.12 (2005) 381.49

308.21 (2005) 319.22

58.32 (2005) 107.38

450.88 (2005) 455.06

Table 68: Nigerian Ranking in GTIR Networked Readiness Index amongst 133 Countries (2009/2010)

S/No 1.0 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5

Indicator Nigeria 97 Environment Component 70 Market Environment Venture capital availability 95 Financial market sophistication 74 Availability of latest technologies 85 Extent and effect of taxation 47 Time required to start a business, 90 2009 85 Political and Regulatory Environment Laws relating to ICT 77 Judicial independence 59 Intellectual property protection 88 Property rights 91 Time to enforce a contract, 2009* 45 127 Infrastructure Environment No. of Telephone Lines 2008 120 Secure Internet servers, 2008* 107 Electricity production, 2006* 116 Availability of scientists and 41 engineers Tertiary education enrollment, 2007* 105 230

Brazil 74 87 68 13 49 133 128 73 41 78 92 70 86 63 61 58 72 60 73

China 57 72 38 78 87 32 103 47 48 62 45 39 33 70 51 104 73 36 80

India 53 35 23 32 39 29 88 46 39 37 61 54 126 83 106 98 103 4 100

Malaysia 37 22 12 31 36 30 35 25 26 53 37 40 76 51 76 56 59 33 71

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1.3.6 1.3.7 1.3.8 2.0 2.1.0 2.1.1

Education expenditure, 2007* 128 55 123 94 Accessibility of digital content 101 58 34 84 Internet bandwidth, 2008* 124 51 78 107 94 62 19 22 Readiness Component 116 99 9 7 Individual Readiness Quality of math and science 97 123 35 22 education 2.1.2 Quality of the educational system 48 103 52 37 2.1.3 Mobile cellular tariffs, 2008* 85 118 17 3 2.2.0 Business Readiness 51 38 34 23 2.2.1 Extent of staff training 88 52 50 34 2.2.2 Local availability of research and 72 29 47 32 training 2.2.3 Company spending on R&D 40 29 23 36 2.2.4 University-industry collaboration in 87 34 23 46 R&D 2.3.0 Government Readiness 101 68 14 35 2.3.1 Government prioritization of ICT 111 75 17 19 2.3.2 Gov't procurement of advanced 115 60 13 68 tech. Products 2.3.3 Importance of ICT to gov't vision of 78 64 13 38 the future Source: Global Information Technology Report 2009-1010: ICT for Sustainability; 2010 Economic Forum and INSEAD

24 45 48 11 11 34 23 31 26 16 26 19 22 11 14 9 11 World

Objectives: The medium term objectives include the following: · Promotion of knowledge, technology and innovation in enhancing productivity in Agriculture, Manufacturing, SMEs, Health and Services Provision of adequate, affordable and sustained infrastructural support (Electricity, water, transportation, rail, seaports, cargo handling etc); and Provision of appropriate legal, regulatory and institutional framework to facilitate smooth transition to KBE

·

·

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Multimedia Super Corridor: The Multimedia Super Corridor (MSC), a concept adopted from the Malaysian Plan, is a government designated zone, earmarked for strategic high-technology ICT projects designed to provide the platform to launch Nigeria into the KBE orbit. The corridor, when established, will be the nerve centre for core ICT initiatives such as e-Government, e-business, e-commerce, Telemedicine, Research and Development Cluster as well as the backbone Transmission Infrastructure. It is obvious that a number of the projects under Infrastructure will be under MSC. The three projects identified: (i) Deployment of DTH Head-end for Unified Platform; (ii) VON Permanent Transmitting Station; (iii) VON Transmitting Station; are indicative. Local Content Development: This consists of programmes designed to ensure rapid indigenization and domestication of high technology ICT solutions. It also incorporates stimulates for indigenous innovative solutions. Examples of the programmes include: (i) Development and Implementation of ICT Local Content Policy for Nigeria; (ii) Construction of PCB Laboratory for manufacturing electronics printed circuit boards such as computer motherboards and mobile phone main boards; (iii) Establishment of Computer Training Laboratory/Standard Workshop. Information Security: This consists of projects designed to develop standards for the protection of information and ICT, both nationally and internationally. Areas of focus will include generic methods, techniques and guidelines to address both security and privacy aspects, such as: (i) Security requirements capture methodology; (ii) Management of information and ICT security, in particular information security management systems (ISMS), security processes, security controls and services; (iii) Cryptographic and other security mechanisms, including mechanisms for protecting the accountability, availability, integrity and confidentiality of information; and (iv) Security aspects of identity management, biometrics and privacy. Sample projects include (i) Deployment of National PKI platform for all ICT related activities; (ii) Development and Deployment of ICT Interoperability Framework; and (iii) Standardized File / Mail Tracking / Mail File Management System. Research and Development in ICT: In order to remain competitive and ensure sustained economic growth and development, nations must maintain active cutting edge high-technology research and development activities. Accordingly, the R&D sub-programmes is intended to put together strategically networked ICT R&D projects designed to culminate in high-technology solutions in targeted areas of national priority. The indentified R&D projects pull together activities with high ICT dependence some of which are (i) Acquisition of space technology for sustainable agricultural production, resource inventory, and management transportation, dams and utilities; and (ii) Geospatial business and marketing capability expansion.

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Information Communication Technology (ICT) Sub-Sector Table 65: Summary of Investrment Plan 2010 ­ 2013

Thematic Area - Knowledge Based Economy ICT Priority Projects S/N 1 2 3 4 5 6 7 8 ICT Infrastructure Multimedia Super Corridor Local Content Development Information Security Research & Development in ICT Postal Services ICT Projects Non Priority Projects 8,405.69 8,405.69 1,296.19 5,391.67 1,506.38 6,265.99 1,576.45 6,557.44 2010 2011 3,373.40 26.94 8.95 46.35 84.72 555.12 Costs in N'm 2012 3,920.43 31.31 10.41 53.87 98.46 645.13 2013 4,102.78 32.76 10.89 56.37 103.04 675.14 11,396.61 91.01 30.25 156.59 286.23 1,875.39 8,405.69 4,379.02 26,620.79 Total

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Nigeria Postal Services

The Postal system is a sub-key result area for the KBE. The extensive network, penetration into rural areas and variety of services it can offer make the postal system, a necessary tool for the promotion social, financial and digital inclusion. These are necessary components of a KBE. The Nigerian postal system, is being managed by Nigeria Postal Services (NIPOST), and has been undergoing restructuring, initiated in 2007, by the Bureau of Public Enterprises (BPE). The strategic objectives for the reform include the following: Clear delineation of roles and responsibilities in the postal sector Creating a level playing field for postal operators in Nigeria Transforming NIPOST into an autonomous and financially viable postal company, providing low cost universal postal services and a broad range of service including basic financial Services, government services , It services and retail Services, using the nation-wide retail network of postal services. Unfortunately, in the past 10 or more years the trend of government investment and service delivery in the Nigerian postal system has been in a state of decline. The last three years has witnessed unprecedented fall in resource availability to the industry, occasioned by the inaction and lack of funding arising from the slow pace of reforms in the sector. In terms of expansion of facilities, this has been in comatose due to lack of resources. For example out of the existing 774 Local Governments, in Nigeria a total of 237 LGs have no post offices, representing 30.6 per cent. The situation is exacerbated by the fact that majority of the existing post offices are lying idle due to protracted delay in completion of the reforms, aimed at increasing the viability of the postal system. The reform of the postal system, which commenced in 2007, is still progressing at a snail speed. It is, however expected to be completed in 2010. The draft policy, legal and regulatory framework have been produced. While the draft postal policy is awaiting Federal Executive Council approval, the draft postal Bill has undergone third reading and awaiting passage by the National assembly. A proposal for the establishment of an independent postal regulator is also awaiting approval. The drag in the reform of the postal system has continued to affect NIPOST's performance in terms of service delivery, revenue generation, and meeting international obligations, adversely resulting in its inability to generate enough revenue to meet its basic needs. However, the volume of mail traffic handled by NIPOST the last five years in increasing as shown on in Figure 4. This points to the viability of the postal industry and underscores the need for accelerating the reform of the postal sector.

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70.00 60.00 Mails (millions) 50.00 40.00 30.00 20.00 10.00 0.00 2005 2006 2007 2008 2009

Year

Figure 10: Mail Traffic Handled by NIPOST 2005 10: 2005-2009

Globally, the development of product mix in the postal industry has made it a potent instrument product-mix for socio economic development and transformation. This is important for bridging the digital sociotransformation. divide, and taking financial services and governance to the grassroots in order to reduce poverty and encourage life-long learning. For these reasons, transformation of the Nigerian Postal life-long Services to become ICT compliant is an imperative for successful transition to KBE. Thus, projects intended to achieve these goals are pulled together in th section. Examples are (i) this National Addressing System; (ii) Construction of New ICT Compliant Post Offices Addressing (NEIGHBOURHOOD PB4 TYPE); (iiii) Rehabilitation & Re modeling of Existing Post Office Re-modeling Buildings Nationwide to Become ICT Compliant. The invest plan for the postal Services, during the Plan period is as shown below -----Plan ------(

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Science, Technology and Innovation (STI)

The STI sector is a critical sub key result area for KBE. The Nigerian government recognizes the role of knowledge input in enhancing the productive capacity of the traditional factors of production as well as generating new channels of growth for the economy. STI creates the opportunity to drive sustainable growth and development through acceleration of applied technology, research and innovation. As experienced in other rapidly transitional economies, it is expected that a national emphasis on knowledge-based skills as a factor would help to expand production frontiers of the Nigerian economy. It is also important to note that the newly-industrialized countries took different paths in the development of their Science and Technology system. For instance, Brazil adopted the path of Western Europe and United States, by making Science and Technology a broader part of scientific culture linked to general education and specialized high-technology, modern professions. South Korea, on the other hand, focused on technology with a benchmark basic science focus in its universities and other R & D institutions. Most of the investments in technology were made in industrial firms rather than in large, isolated government agencies. Irrespective of the different approaches, a common phenomenon is the recognition that industrialization was key to economic growth and development, and that the foundation and backbone for industrialization are Research, Technology and Innovation. In countries that have achieved considerable technological and economic gains (e.g. Japan and South Korea), STI foresight had been an important instrument in providing and achieving economic reform objectives. This is neither an issue of identifying the so-called appropriate technologies nor a forecast of technologies; rather, technology foresight is about matching societal needs with appropriate and focused technological capabilities. Accordingly, the following objectives, strategies and targets have been designed to stimulate and accelerate the research and development activities in our research institutions as well as sharpen the innovative capacities of our scientists, engineers and technologists. Situation Analysis Successive Governments had put in place several measures and policies aimed at expanding Nigeria's capability and capacity in Science, Technology and Innovation to serve the economy. In particular, several STI institutions were established during the third and fourth Development Plan periods (1975-85) to promote R&D and ensure sustainable economic growth. Unfortunately, the Nigerian economy has remained structurally rigid over the years and the impact of the STI institutions is yet to be felt in terms of R&D output, innovation, patents, commercialization of research findings, scientific publications in international journals, new knowledge intensive products, total factor productivity enhancement, and general improvement in the quality life of Nigerians. This is apparently because the major emphasis had been on building institutional capacity, infrastructure and logistic support without commensurate investment in Human Resources Development as well as Research and Development activities. Though these tertiary institutions had annual budgets for capacity building in science, technology and innovation, the quantum of fund was always inadequate to train the critical mass of researchers required to kick-start the industrialization of the country. For instance, available statistics shows that, Nigeria ranks amongst the lowest in STI funding (0.01per cent of GDP) when compared to countries such as India (2.5per cent), Germany (2.8per cent), USA (2.8per cent ) and Russia ( 5per cent ). Moreover, the situation was compounded by uncoordinated and indiscriminate application of resources by the institutions. These underscore the inefficiency of public institutions and call for reforms of the STI sector to pave way for private sector 236

Nigeria Vision 2020

participation in R&D activities through the instrumentality of a tripartite partnership between government, industry and research institutions. In this regards, it is illustrative to highlight the contrasting fortunes of the Telecommunication and Postal Sub-sectors.

The deregulation of telecommunication sector has dramatically impacted positively on the national economy as is evident in figures 1-3. The favourable policy climate engendered in 1998/99 attracted rapid private investment growth over the period 1999 to 2008 as shown in Figure 1. This culminated in corresponding subscribers' growth in both mobile and fixed lines with substantial impact in teledensity as shown in Figure 2. The result, of course, is significant contribution to the National GDP as shown in Figure 3.

Figure 11: Private Investment in Telecommunication 1999 to 2008

Source: Nigerian Communication Commission, http://www.ncc.ng/index5_e.htm Accessed 20-04-10.

Industry

Statistics,

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Figure 12: Mobile and Fixed Lines Subscription 1999-2009

Source: Nigerian Communication Commission, http://www.ncc.ng/index5_e.htm Accessed 20-04-10.

Industry

Statistics,

Figure 13: Contribution (per cent) of Telecom Industry to National GDP 2001-2008

Source: Nigerian Communication Commission, http://www.ncc.ng/index5_e.htm Accessed 20-04-10.

Industry

Statistics,

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Table 66: National and International Patent Profile (2005-2009)

Patent Type National International Source: NOTAP

2005 18 2

2006 14 1

2007 4 2

2008 2 0

2009 0 2

Issues and Challenges in STI Sub-Sector The key issues and challenges in the STI sector are: · · · · · Inadequate and low level of human capacity; Inadequate and poor institutional capacity; Absence of linkage between Government, Industry and Research Institutes; Appropriate costing and funding of programmes and projects Lack of Effective implementation, monitoring & evaluation

Objectives, Strategies and Targets Objective 1: Promote rapid and sustainable industrialization Strategies: · · · Establish a National Foundation for Science, Innovation and Competitiveness (NFSIC) to fund research and development activities. Strengthen the competencies and capabilities of research institutes and tertiary institutions to be globally competitive in targeted areas of STI; Provide Tax incentives for private sector organizations to invest in R&D activities in collaboration with Tertiary Institutions and Research Institutes. Re-establish the National Science and Technology Trust Fund (NSTF) into which 20per cent of the Education Trust Fund and 50per cent of Foreign Technology Transfer Proceeds will be paid;

·

Targets

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· · ·

Achieve technological capability for producing 15per cent of Process Equipment used in Small and Medium Scale Industries by the year 2013 Achieve 10per cent technological capabilities for sourcing 20per cent industrial Raw Materials locally by 2013 Attain 2per cent industrial growth by 2013

KPI: · · · · · Increase in customer base growth rate for strategic industries; Increase in Overall Equipment Effectiveness (OEE) for strategic industries; Increase in employment rate; Increase in share of manufacturing sector to GDP; Increase in share of services sector to GDP; increase of share of industry to GDP; Increase in industrial waste.

Objective 2: Lay foundation for establishing Nigeria as the Manufacturing hub for Sub-Saharan Africa;

Strategies: · · · · · · Establish special economic zone(s) with appropriate infrastructure to serve as nucleus for manufacturing hub; Identify niche products and services for which Nigeria has comparative advantage and promote rapid development of the relevant industries. Provide physical incentives to attract domestic and international investment in the relevant industries; promote creative industries in targeted areas; Engender favourable industry-labour relations to foster employer-employee confidence. Facilitate the establishment of Science and Technology Parks and One-Stop-Shops

Target: · Achieve 8per cent contribution of manufacturing sector to national GDP from current 4per cent by 2013.

KPI: 240

Nigeria Vision 2020

· · · ·

Increase in employment rate; Increase in share of manufacturing sector to GDP; increase in share of services sector to GDP; increase of share of industry to GDP

Objective 3: Promote and institutionalize a culture of R&D as the platform for global competitiveness Strategy: · Reform and Refocus Research Institutes to be specialized, high­technology driven and responsive to specific industry and societal needs. Enforce compliance with the original core mandates of technological institutions Strengthen the National Research and Development Coordinating Council (NRDCC) Strengthen Venture Capital Investment Scheme through funding and affordable interest rates to provide capital for commercialization of R&D results. Ensure synergy and linkages between the Public, Private and Academic sectors in the conception, design and execution of R&D initiatives; Establish strategic linkages between international recognized R&D Institutions/Organizations and Nigerian Tertiary Institutions and Research Institutes in targeted specialized areas.

· · ·

· ·

Targets: · · · Achieve R&D investment of 1per cent as percentage of GDP by 2013; Achieve Patenting of 5per cent of R&D outputs from 0.1per cent by 2013; Achieve commercialization of 5per cent of the Patented R&D `outputs by 2013

KPI: · · · · per cent Annual Increase in patents; per cent Annual increase in Commercialization of R&D out; Increase in scientific publication in high impact journals; Improved international ranking of Tertiary Institutions and Research Institutes

Objective 4:

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Nigeria Vision 2020

Build national capacity for development of indigenous technologies as well as adoption and adaptation of appropriate foreign technologies; Strategy: · Develop special human capacity development programme to fast track the domestication of advanced technologies such as nanotechnology, computer-aided design, computer aided manufacturing, modern factory automation for manufacturing, processing and machine control, etc Enforce the national policy of 60:40 ratio of Science based to art and humanities based students. Improve Teacher/Student ratio to 1:15 by 2015 in science based disciplines. Revive and enhance training in technical and vocational skills.

· · ·

Targets: · · · Achieve a ratio of 500 specialists Scientists, Engineers and Technologists to 1million national population. Attain 20per cent Science & Technology based competitive workforce by 2013 Achieve 52:48 enrolment ratio of Science based to art and humanities based students from current 47:63 by 2013.

KPI: · · · · · · Increase in annual enrolment of science based students; Number of domesticated foreign technology; Increase in High level manpower in advanced technology; Annual increase in science based graduates. Increased share of manufacturing sector in GDP from 4per cent to 10per cent by 2013. Strengthen the competencies and capabilities of research institutes and tertiary institutions to be globally competitive in targeted areas of STI;

Policy Thrust in the STI Sub-sector The policy thrusts for the STI Sub-Sector are: · Build the critical mass of human capital through comprehensive revamping of the educational and training systems to stimulate creativity, adaptability, life-long learning, brain-gain, vocational training, technical training etc;

242

Nigeria Vision 2020

·

Re-invigorate and refocus STI and R&D in tertiary institutions and research institutes to stress innovation and knowledge-based product development and services; Restructure the financial system to provide appropriate and affordable financing products to support STI activities; and review the incentive packages to attract FDI and facilitate venture capital funding; Formulate appropriate research funding policy anchored on properly articulated competitive proposal with clearly defined milestones and deliverables; Institute a Science and Technology Fund to ensure sustainable and competitive funding of STI activities.

·

·

·

Priority Projects and Programmes for STI The deplorable state of Science, Technology and Innovation in Nigeria cannot be illustrated better than the abysmal number of national and international patents registered by the NOTAP in the last five years (2005 to 2009) as shown in table 3. above. In order to reverse this ugly state of affairs, it is imperative to encourage tertiary institutions, research institutes and centres to develop appropriate programmes and projects that are development specific and responsive. To this end, a total of one hundred and thirty one (131) programmes and projects were classified as priority projects out of the 255 programmes/projects submitted by fifty three (53) MDAs. The priority projects were further classified into twelve (12) Sub-Programmes as indicated in

Table 9: Priority programmes/projects for STI

Sub-Programme Improving National R&D Activities Energy Research & Development Advanced Materials & Manufacturing Geo Science Research Small and Medium Enterprises Human Resource Development Standardization and Quality Assurance Bio & Nano Technology STI Infrastructure Health Agriculture Logistics Total Cost (N) Human Resource Development

S/No 1 2 3 4 5 6 7 8 9 10 11 12

No. of P&P 9 11 8 4 12 18 10 8 26 12 6 7 131

The 1st NIP recognizes Human Resource Development as an imperative in our bid to reposition Nigeria amongst the 20th Largest in economies in the world. Accordingly, human and institutional capacity building have been accorded highest priority in the 1st NIP. Therefore, domestic and international training programmes have been earmarked to produce globally 243

Nigeria Vision 2020

competitive industries driven by high level manpower and high technology research and training institutions. Examples of the projects include: (i) Manpower Training and Capacity Building for nuclear scientists, engineers and technologists: PhD (25), MSc (45), BSc (220), HND (210) (ii) Capacity Building on Technology Transfer, Acquisition, Adaptation and Adaptation; (iii) Capacity building in Biotechnology R & D: 1000 M.Sc. and 500 PhD graduates; (iv) Establishment of National Foundation for Science, Innovation and Competitiveness (NFSIC) . Improving National Research and Development Activities In order to become and remain globally competitive it is necessary to engender a culture of advance research and development in strategic areas of national advantage. The first step towards ensuring the attainment of this objective is to improve on the current state of Research and Development activities around the country. Hence, the conception of this Sub-programme within the 1st NIP of V20:2020. Some of the projects aimed at achieving this include: (i) National Raw Materials Research & Development Programme; (ii) Raw Materials Local Content Development Programme; (iii) Establishment of National Institute of Science Laboratory Technologists' (NISLT) Zonal and Equipment maintenance and Development Centre in Six Geo-political Zones in the country; (iv) Establishment of Science and Technology (S&T) Parks in Nigeria.

Energy Research and Development: Energy is a critical infrastructure for economic growth and development. It is crucial for all economic activities including production, regular supply of portable water, good health, instant communication; mobility of people, goods and services and others. Government deplores the current state of energy crisis in the country and the 1st NIP will redress the situation in order to set the stage for rapid economic development. Some of projects intended to ameliorate the situation include (i) Sustainable Energy Development: Studies on Medium-to-Long term Energy Demand and Supply projections for Nigeria; (ii) Energy Efficiency Programme; (iii) Technical Co-operation (TC) Projects with International Atomic Energy Agency (IAEA), Comprehensive Nuclear-Test Ban Treaty Organization (CTBTO) & African Regional Agreement on Training, Research and Development in Nuclear Science and Technology (AFRA); (iv) Processing Nigerian coal into tradable industrial domestic products. Advanced Materials and Manufacturing: The trajectory of science and technology has always mirrored the path of economic development of nations. Prosperity of humanity has progressed from Stone Age through the Iron and Steel Age to today's Age of Semi-conductors. Similarly, man has progressed from using his power to do work through persuading mechanical machines to take over his duties and today the micro-chips open his doors, drive his cars; pilot his planes and tell him when it will rain in a month's time. Today, the frontier of modern Science, Technology and Innovation is chartered by advanced thinking using advanced materials. Thus, to be among the twenty largest economies in the world, Nigeria must also develop the capacity to manipulate advanced materials to dance to our tunes. Some of the projects earmarked for such goals include:

·

Development of process technologies for the production of industrial chemicals from petrochemicals and their commercialization

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Nigeria Vision 2020 · · ·

Construction of PCB Laboratory: Manufacturing electronics printed circuit boards such as computer motherboards and mobile phone main boards Construction of PCB Laboratory: Manufacturing electronics printed circuit boards such as computer motherboards and mobile phone main boards Establishment of advanced multipurpose manufacturing centres in 6 zones

Geo Science Research The race to conquer space is the emerging frontier of global competition in the 21st century. India and China have joined America and Russia, there is no reason why Nigeria will not follow suite. The 1st NIP for Vision 20:2020 provides the proverbial first step on a thousand mile journey. The anchor projects include:

·

· ·

Integrated space-based approaches to natural resources inventory, desertification, climate change, flood risk assessment and hydrocarbon exploration in Nigeria NCRS, Jos Development of infrastructure and facilities for observatory stations. CGG, TORO, Bauchi Procurement of research library facilities and GIS laboratory equipment (NCRS,Jos)

Small and Medium Term Enterprises Small, they say, is beautiful. Thus, while the Nigerian Vision 20:2020 demands giant strides in our match to become one of the 20th largest economies in the world, the 1st NIP recognizes the value of short, quick steps as inevitable part of the journey. Thus, some SME projects have been incorporated as important packages in the 1st NIP: Examples include:

· · · ·

Production of Particle Board from Saw dust and Waste Polythene Bags; Development of various materials for packaging applications Setting up pilot-production lines for up and down-stream processing of palm fruit Setting up a pilot production line for the production of Cassava starch, gari (cassava flower), chips and pellets

Standardization and Quality Assurance In a world of high technology products and services, standards and quality are the norms and not the exception. Therefore, in Nigeria's quest to make a quantum leap into the 20th largest economies in the world, standardization and quality assurance must be the rule in production and service delivery. It is in recognition of the centrality of these twin characteristics of consumer demands that the 1st NIP put in place projects to ensure quality of products and services. Some of these include:

· · ·

Equipping of National Construction Testing Laboratory for Building Materials and road construction Development and equipping of the National Chemistry and Physics Advanced Laboratories; Establishment of E-library for Chemical Management Information System 245

Nigeria Vision 2020

Bio and Nano Technologies Today, the earning capacity of individuals is described in ten digits; hence we here of billionaires while the term millionaire is consigned to history: six zeros giving way to nine zeros in the economic sphere. Similarly, the power of the lens has empowered man to "see" and manipulate matter at the atomic and molecular levels. Thus, the term `micro' is giving way to the emerging term "nano": again six zeros giving way to nine zeros in the technology sphere. Our vocabularies are changing from micro processors, microwaves, micro computers, micro chips to nano-particles, nanotubes, nano-electronics, nano-medicine. These are signs of things to come. Therefore, the 1st NIP also places premium on preparing for the future. Some of the projects tailored towards this include:

· · ·

Nano-technology for Nano-materials, Energy, Water processing, Medicine and Agriculture Indigenous Bioremediation Process Development and Deployment Development of Bioprocesses and bio-products.

Science, Technology and Innovation Infrastructure Sub-Programme Power and water allied with workshops and laboratories well equipped high technology equipment and facilities are the critical infrastructure for a globally competitive Research and Development outfit. Therefore, the 1st NIP has accorded high priority to provision of appropriate and functional Research and Development infrastructure. Example projects aimed at achieving this include :

·

·

Construction of Nuclear Science and Engineering Laboratory at Center for Energy Research and Training, A.B.U, Zaria; Construction and equipping of Biotechnology Advanced Laboratory. Construction of Low/Medium Radioactive Waste Management Facility and Acquisition of Research Reactor and Nuclear Materials Laboratory

Health Sub-programme A health nation is a wealthy nation; this is because productivity is an intrinsic function of a healthy workforce. Moreover, creativity and innovation thrive in a healthy mind. Consequently, the 1st NIP seeks to infuse high tech infrastructure, facilities and processes in the health sector to ensure efficient health services delivery. Some of the identified projects include: (i) Development of new and effective strategies for health intervention; (ii) Development of biological markers for rapid diagnosis of public health diseases such as Schistosomiasis, onchocerciasis; (ii) Development and Production of Grouping Antisera I Nigeria; (iii) Novel mosquito vector control using indigenous Nigerian botanicals; (iv) Phase III clinical trial of medicinal products for malaria and sickle cell anaemia. Agriculture Sub-progammes Nigeria, with a population of 142million (2006) and annual population growth rate of 3.2per cent, requires modern high tech production techniques to ensure food security. Moreover, with 33.02per cent of the 910,768 sq km of land being arable, Nigeria could become the food basket of Sub-Saharan Africa if modern agricultural practices are employed to maximize land utilization, improve yield per hectare and improve seedlings. Accordingly, the 1st NIP has put together foundation programmes to initiative the transformation. Sample projects include (i) 246

Nigeria Vision 2020

Improvement of horticultural processing technologies and enhanced utilisation (procurement of modern processing equipment for fruit juices); Research into High yielding Variety of (HYV) of Rice; Conduct of National Ethno-botanical survey; (iii) Research into production of breeders and foundation seeds of vegetables (leafy and fruity) and mushroom spawns. Logistics Sub-programme. This sub-programmes simply pulls together facilities required by Ministries, Departments and Agencies for smooth execution of their programmes/projects. (i) Procurement of Project Execution and Monitoring Vehicles; (ii) Provision back-up power generating sets; and (iii) construction of boreholes for suitable water supply to critical facilities. Projected Investment For purposes of implementation, the priority programmes are further reprioritized into three categories labeled 1, 2 and 3. In view of the centrality of Human and Institutional capacity in KBE, all the programmes and projects under priority 1 are for Human and Institutional capacity building. Those in categories 2 and 3 are projects and programmes that will give impetus to conversion of existing facilities, industries and processes to knowledge intensive activities. Their implementation within the first plan period would be useful in fast-tracking the transition KBE. The estimated investment required for the one hundred and thirty one Programmes and projects is one hundred and fifty four billion one hundred nine hundred thirty million nine hundred and thirty thousand naira (N154,930,930,000.00) naira only. CONCLUSION Science, Technology and ICT are important determinants of innovation and knowledge generation and need to be given greater emphasis and priority. The proportion of STI and ICT expenditures to Nigeria's GDP are very low compared to those countries that have successfully built indigenous capability to innovate, produce new technology and design new products/services. Therefore, as we increase the ratio of KBE expenditure to the GDP, efforts must be made to ensure that these expenditures are directed to the right priority challenges. This is the first time that the issue of Knowledge-Based Economy is being addressed in our National Plan. Consequently, government will make concerted effort to put in place the building blocks for a successful KBE-driven economy. The major focus of this new knowledge-driven factor of production will require taking the following measures:

·

Building the knowledge manpower base through the comprehensive revamping of the education system, the introduction of a system of life-long learning and brain gain programme; Intensifying S&T, R&D, and ICT in order to strengthen innovation and diffusion of innovative ideas; Rapidly building the national capacity in infrastructure, infostructure and logistic support for the knowledge-based economy; Strategic liaison between the Federal Ministry of Science and Technology, Federal Ministry of Education, Federal Ministry of Labour and Productivity, National Planning 247

·

·

·

Nigeria Vision 2020

Commission and National Directorate of Employment to screen, select and retrain some of the unemployed graduates to provide the core workforce for KBE.

·

Restructuring of the financial system to take care of special purpose funding of R&D up to the point of patenting and commercialization;

·

Raising of the knowledge content in priority sectors of Agriculture, Manufacturing and Services; Getting the private sector and non-govermental organizations involved in STI and R&D.

·

·

Taking affirmative action to bridge the digital divide amongst income groups, ethnic, sex and age groups because experience in other countries have shown that the underprivileged groups lead in the cutting-edge R&D and ICT if given the opportunities. In order to reduce the time frame for re-inventing, the Federal Government, through its various agencies will seek strong international cooperation for the acquisition of technological know-how in high-tech fields. Government will put in place an endowment fund for building capacity for competitive R&D activities. A KBE Master Plan will be developed to ensure coordinated and consistent policy implementation to engender confidence in all stakeholders; Government will establish a KBE Transition Task Team under the National Planning Commission with membership drawn from Federal Ministry of Education, Federal Ministry of Science and Technology and other relevant stakeholders. The Team will provide a framework for coordinated and focused transition to Knowledge based economy. Government will through the Federal Ministry of Science and Technology will fast-track the approval and implantation of the: ­ ­ ­ Energy Master Plan by the Energy Commission of Nigeria; Renewable Energy Master Plan by the Energy Commission of Nigeria; ICT4D Master Plan by NITDA.

·

·

·

·

·

248

Science and Technology Sector Table 68: Summary of Investrment Plan 2010 ­ 2013 Thematic Area - Knowledge Based Economy Science & Tech Priority Projects S/N 1 2 3 4 5 6 7 8 9 10 11 12 Improving national R&D activities Energy Research & Development Advanced Materials & Manufacturing Marine Research Geo Science research Small and Medium enterprises Human Resource Development Standardization and Quality assurance Bio & Nano Technology STI Infrastructure Health Agriculture 249 2010 Costs in N'm 2011 1,845.40 325.05 758.52 210.13 145.78 223.85 2,585.11 580.68 623.58 2,739.55 117.24 2012 2,144.65 377.76 881.52 244.20 169.43 260.14 3,004.32 674.85 724.70 3,183.80 136.25 2013 2,244.40 395.33 922.52 255.56 177.31 272.24 3,144.06 706.23 758.41 3,331.88 142.58 6,234.45 1,098.14 2,562.56 709.89 492.52 756.24 8,733.49 1,961.76 2,106.68 9,255.23 396.07 Total

Thematic Area - Knowledge Based Economy Science & Tech Priority Projects S/N Logistics Science & Technology Projects Non Priority Projects 42,768.72 42,768.72 2010 Costs in N'm 2011 55.45 69.66 55,000.00 3,134.67 68,414.65 2012 64.44 80.96 60,000.00 3,642.99 75,590.00 2013 67.44 84.72 65,000.00 3,812.44 81,315.12 Total 187.32 235.34 222,768.72 10,590.10 268,088.50

13 14 15

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