By Osaze Ighoretin Ogbomo
Given the slow pace at which the business environment reforms has been implemented in Nigeria since its introduction in 2016, the Federal Government of Nigeria decided to collaborate with the World Bank to provide incentives to States to encourage the deepening of business environment reforms.
The collaboration created the State Action on Business Enabling Reforms (SABER) program potentially the first Program-for-Results (PforR) on Ease of Doing Business at a national scale in the World.
Riding on the back of States Fiscal Transparency, Accountability and Sustainability (SFTAS) program-for-results initiative, which has created a mutual accountability platform between the Federal Government and the States.
The SABER program will further consolidate and deepen gains from business environment reforms implemented across the country.
However, the SABER Program is a 3-year performance-based intervention jointly designed by the World Bank Technical team and the Presidential Enabling Business Environment Council (PEBEC) Secretariat with support from the Federal Ministry of Finance, Budget and National Planning, Home Finance Department (HFD) and the Nigeria Governors’ Forum (NGF) Secretariat, to incentivize and strengthen the implementation of business enabling reforms across Nigeria.
The SABER program is structured with features such as compliance of eligibility criteria for each year by participating States and the Federal Capital Territory (FCT), completion of a set of prior results within a stipulated timeline and the use of results-based financing targeted at improving the business environment.
The result areas also known as disbursement linked results (DLRs) are broken down into four categories that focus on concrete steps towards enhancing land administration and land investment process, improved business enabling infrastructure, increased sustainable large scale-investments through investment promotion frameworks and enabling firm operations in the regulatory environment.
Under each result area, a set of Disbursement Linked Indicators (DLIs) with requirements to be fulfilled by participants are specified with target dates for completion including specific disbursement amounts associated with each DLR.
In essence, the activities required to achieve the financial incentives attached to each DLR are to be performed by the participating State and it is subject to scrutiny by an independent verification agent usually a consultant of the World Bank before financial disbursement is made.
The program allows States to select which of the DLIs it aims to achieve during the 3-year period. Should a state choose to participate and achieve all DLRs it would potentially receive a total disbursement of the entire sum earmarked between 2022 and 2025.
The program design also makes provision for the delivery of wholesale technical assistance to all participating States and the FCT to support gaps in reform implementation that will provide opportunities for structural development and institutionalization of reforms across the country.
This promotes sustainable development of the benefits of business environment reforms at subnational level which will facilitate crowding in private investment at scale that is needed to achieve Nigeria’s development priorities.
However, Edo State is a participating state of the SABER program and it is leveraging on the opportunities from the program to meet the yearnings of its private sector.
Already it has adopted the subnational implementation structure recommended by the Presidential Enabling Business Environment Council and the National Economic Council.
The structure is comprised of the State ease of doing business secretariat reporting in the State ease of doing business council who also reports to the state executive council chaired by the Governor on business enabling reforms issues.
The ease of doing business council for instance is the most senior assembly of state officials and private sector representatives accountable for the business environment reforms in the state.
The council members include top decision-makers from the executive level, commissioners and heads of MDAs whose organizations are involved in the business environment reforms.
Its specific mandate is to set reforms target for implementing MDAs, oversee the implementation of the reforms and to resolve bottlenecks arising from the operations of government agencies. The council works with the ease of doing business secretariat to achieve its business environment reforms objectives.
The ease of doing business secretariat is the coordinating and operational arm of the ease of doing business council, which works with other MDAs to assist in coordinating their staff to the State’s reform program.
A crucial role of the secretariat is to assist MDAs in designing their reform approaches and consider alternative reform options. The secretariat operates from the Edo State Investment Promotion Office (ESIPO) and it acts as the engine room of the State’s ease of doing business council by coordinating the implementation of key activities in the reform process amongst the MDAs.
The secretariat focuses on the following key areas to deliver its mandate in ensuring Edo State creates an improved environment for business to thrive. Firstly, it provides technical support and facilitates the implementation of reform indicators in the MDAs. Also, it conducts baseline studies on each indicator to propose reforms for each participating MDA for council approval. More so, it interfaces with the business community to effectively communicate the reforms and receive feedback on the reforms.
In terms of interfacing with the business community, the secretariat recently facilitated a public-private dialogue (PPD) session between Ministries, Departments and Agencies of government (MDAs) and Edo State private sector representatives.
Some of the resolutions reached at the PPD include the following: that the Edo State Investment Promotion Office (ESIPO) will publish schedule of official fees and levies on the state government’s website to promote transparency and accessibility to information.
Also, ESIPO agreed to develop an investment incentives guidebook that will attract and encourage investments in the State. More so, ESIPO will collaborate with other MDAs on promotional and sensitization campaigns about business environment reforms’ milestones. Lastly, through the ease of doing business secretariat, ensure that MDAs deliver on their resolutions and prior results for SABER to be achieved.
Despite the government’s efforts, the success of the business environment reforms hinges on collaboration of implementing MDAs and stakeholders cooperating with the ease of doing business secretariat to achieve the reforms’ objectives.
Osaze Ighoretin Ogbomo is the Team Lead, Ease of Doing Business Secretariat, ESIPO.
