To implement reforms aimed at improving the business environment, a new government programme is offering millions of dollars in incentives to states in Nigeria.
The State Action on Business Enabling Reforms (SABER) Programme, a collaboration between the Federal Ministry of Finance, the Nigeria Governors’ Forum (NGF), and the World Bank, is offering up to US$4.5 million to each participating state.
At a workshop on the Framework for Responsible and Inclusive Land-Intensive Agriculture (FRILIA), The National Programme Coordinator for SABER, Dr. Ali Mohammed, made public the initiative. He stresses on the programme’s potential to transform Nigeria’s economic landscape.
“This reform will strategically position your States for local and Foreign Investment, hence, creating more jobs and eventually, propel the much desired Economic Growth,” Dr. Mohammed said.
The US $750 million, three-year programme (2023-2025) targets four key areas for reform: SABER aims to streamline land administration processes, making it easier for businesses to acquire and utilize land.
According to the Nation’s newspaper, the programme seeks to create a more favorable regulatory environment for private investment in fiber optic infrastructure, crucial for improving internet connectivity.
SABER will inspire states to strengthen the services provided by investment promotion agencies and public-private partnership units.
The programme also wants to enhance the efficiency and transparency of government services for businesses operating in participating states.
Disbursements of the $4.5 million will be based upon verification by an independent body, ensuring that reforms are successfully implemented.
The workshop focused on FRILIA, a key reform advocated by SABER. Dr. Mohammed acknowledged Nigeria’s food production growth, but expressed worries over food security as a persisting challenge.
He assigned this partly to “systemic issues around land administration and compliance with best practice standards.”
FRILIA serves as a roadmap to address these challenges. It promotes responsible land-based investment in agriculture, ensuring that investments benefit both businesses and host communities.
This includes protecting the rights of communities, employing environmentally sustainable practices, and providing fair compensation for any land acquired.
The Federal Ministry of Finance, through SABER, is expected to provide participating states with the necessary support. This includes advisory services, technical workshops, and peer learning sessions facilitated by the NGF.
The NGF is playing a critical role in the SABER programme.
Director General of the NGF, Mr. Asishana Bayo Okauru, focused on the challenges that have plagued land-based investments in the past, including unclear governance structures, weak support systems, and inadequate consideration for social and environmental factors.
“These have impacted negatively on the cost of doing business, agriculture value chain, livelihood, environment and ultimately, economic development,” Mr. Okauru observed.
He underscored the importance of strong governance and administrative systems for states seeking large-scale land-based agricultural investments.
The NGF is advocating for the adoption of FRILIA and its principles by all stakeholders.
The NGF has already made significant progress. In collaboration with the World Bank, they convened a dialogue on FRILIA adoption in 2021.
Going further, seven states (Borno, Edo, Ekiti, Kebbi, Nasarawa, Niger, and Zamfara) have developed Executive Orders mandating FRILIA implementation with the NGF’s support.
The model Executive Order establishes governance and administrative mechanisms, while committing to international best practices regarding land and human rights, inclusion, gender equality, environmental and social sustainability, and responsible natural resource management.
Okauru expressed gratitude to the World Bank and the Federal Ministry of Finance for their ongoing support in advancing reforms for sub-national development.
saharandaily