ACHIEVING COMPETITIVENESS, INCLUSIVE GROWTH AND SUSTAINABILITY IN REAL SECTOR DEVELOPMENT IN NIGERIA: THE TOUGH CHOICES IN AN ERA OF CHANGE Presented By: Mr. Adekunle AbdulRazaq Oyinloye Managing Director, The Infrastructure Bank Plc

National Planning Commission Presentation Outline 1 Introduction 2 Global and Nigeria’s Competitiveness - Challenges & Way Forward 3 Inclusive Growth and Sustainability for Nigeria – An Overview 4 Closing the Gap 5 Conclusion

National Planning Commission Introduction  Nigeria is the largest economy in Africa.  The country lags behind its peers on global competitiveness and other key development and sustainability metrics.  Institutions, governments, donors, and NGOs are increasingly talking about ‘inclusive growth’ with more questions than answers.  How do we explore the tough choices that needs to be made to grow the real sector while ensuring inclusive growth and sustainability?

National Planning Commission Global Competitiveness Fundamentals of Competitiveness  Proximity Vs. Globality  Assets Vs. Processes  Attractiveness Vs. Aggressiveness  Individual Risk Taking Vs. Social Cohesiveness Methodology  Infrastructure  Business Efficiency  Government Efficiency  Economic Performance CountryCompetitiveness Ranking USA1 (China) Hong-Kong2 Singapore3 Switzerland4 Canada5 Luxembourg6 Norway7 Denmark8 Sweden9 Germany10 United Kingdom19 South Africa53 Source – 2015 IMD World Competitiveness Scoreboard Each of these is divided into five sub- factors South Africa is the highest ranking African Country

National Planning Commission Nigeria’s Competitiveness - Challenges  Huge Infrastructure Deficit – high cost of doing business, and non focus on real sector growth  Poor Educational & Human Capacity Development System – lack of innovation & skilled labour force  Inconsistent Fiscal Policies – enterprises cannot plan long-term strategies for business efficiency  Weak Legal and Regulatory Framework – affects corporate governance & sanctity of contracts  Innate Distrust & Believe System in Nigeria – affects productivity, investments decision & national orientation

National Planning Commission Nigeria still lags behind its peers on Doing Business in Africa despite its status as the No. 1 economy in Africa. Source: The World Bank Group Nigeria’s Competitiveness – Peer review

National Planning Commission Goods & Labour Market Efficiency Institutions Health & Primary Education Market Size Business Sophistication Higher Education & Training Financial Market Development Infrastructure Macroeconomic Environment Technological Readiness Innovation Government Efficiency Competitiveness The 12 Pillars of Competitiveness Nigeria’s Competitiveness – Way Forward

National Planning Commission Inclusive growth and Sustainability – An Overview What is inclusive growth?  A concept that allows people in a society to contribute to and benefit from economic growth; tackling inequalities in incomes, health outcomes, education & well-being; and realise their potential to share the benefits of growth and increased prosperity.  It advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society.  It implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth

National Planning Commission Important factors for achieving Inclusive Growth INCLUSIVE GROWTH Progressive Tax Policies Social Protection Non-Discrimination, Social Inclusion & Participation Strong Institutions Structural Transformation Job Creation Investment in Human Capital Inclusive growth and Sustainability – An Overview cont’d

National Planning Commission Closing the Gap Key resource for achieving competitiveness, inclusive growth and sustainability in real sector development in Nigeria include: Source: Commission on Growth and Development – The Growth Report

National Planning Commission Economic prosperity Improved human capital development Index, & High employment rate Low crime rate & High Productivity Low cost of doing business Enhanced healthcare Enhanced institutional capacity and regulatory framework Closing the Gap - Benefits

National Planning Commission Conclusion No country has sustained rapid growth without also keeping up impressive rates of public investment—in infrastructure, education, and healthcare. The policy underpinnings of sustained high growth create an environment for high levels of investment, job creation, competition, mobility of resources, social protections, equity, and inclusiveness. In the light of dwindling oil revenues, It is probably time to focus on real sector growth and broader sustainable human development objectives rather than just increasing incomes and GDP