National Economic Empowerment & Developent Strategy …

1 March 2004 For Comments and Suggestions ONLY NIGERIA: National Economic Empowerment and Development Strategy NEEDS All comments and suggestions to: The NEEDS Secretariat, National Planning Commission, Federal Secretariat, Abuja Tel/Fax: 09- 5236625 Table of Contents Page Table of Contents 2 List of Acronyms

2 3 Executive Summary 5 The NEEDS at a glance 10 Institutional Framework for the Implementation of NEEDS 11 What s New or Different about NEEDS 12 Selected Targets under NEEDS 13 Proposed Allocation of Federal Government Capital Budget among Key Priority Sectors 15 Part One: Introduction and Macroeconomic Framework 16 Introduction/Next Steps 17 Chapter One: Nigeria s Development Challenges/Background of NEEDS 19 Chapter Two.

3 Statement of Vision, Values, and Principles 27 Chapter Three: The Macroeconomic Framework 31 The Real Sector Fiscal Operations and Policy: Budget, Tax Reforms and Public expenditure Management Balance of Payments Monetary and Exchange Rate Policies Part Two: Reforming Government and Institutions 43 Chapter Four: Towards a More Efficient and Responsive Public Sector 44 Chapter Five: Security and Administration of Justice 54 Chapter Six: Tackling Corruption, and Promoting Transparency and Accountability 59 Part Three: Growing the Private Sector 62 Chapter Seven: Towards a Competitive Private Sector 63 Chapter Eight.

4 Specific Sectoral Strategies 75 Chapter Nine: Trade and Regional Integration Policies 90 Part Four: The Social Charter and Implementation Strategy 93 Chapter Ten: The Social Charter: Human Development Agenda 94 Chapter Eleven: Implementation and Financing 111 Annexes 126 List of Acronyms ACP-EU: African Caribbean, Pacific, European Union trade pact ADR: Alternative Dispute Resolution System AIAE: African Institute for Applied Economics BMIU: Budget Monitoring and Intelligence Unit BOI: Bank of Industry BOT: Build, Operate and Transfer BOOT: Build, Own, Operate and Transfer CBN: Central Bank of Nigeria CEDAW.

5 UN Convention on the Elimination off all forms of Discrimination Against Women CET: Common External Tariff CRF: Consolidated Revenue Fund CSO: Civil Society Organization DAS: Dutch Auction System DFRRI: Directorate of Foods, Roads and Rural Infrastructure DMO: Debt Management Office DPRS: Department of Planning, Research and Statistics EFCC: Economic and Financial Crimes Commission ECOMOG: ECOWAS Monitoring Group ECOWAS: Economic Community of West African States EITI Extractive Industries Transparency Initiative FAAN: Federal Airports Authority of Nigeria FDI: Foreign Direct Investment FEC: Federal Executive Council FGN: Federal Government of Nigeria FOS: Federal Office of Statistics GDP: Gross Domestic Product HIPC: Heavily Indebted Poor Countries HIV/AIDS: Human Immune Deficiency Virus/Acquired-Immune Deficiency Syndrome ICPC: Independent Corrupt Practices Commission ICT: Information and Communications Technology IMF: International Monetary Fund IPP: Independent Power Plants Programmes IPO: Initial Public Offer ISO.

6 International Standards Organization JPB: Joint Planning Board JV/JVC: Joint Venture (Cash) Operations MDG: Millennium Development Goals MTEF: Medium Term Expenditure Framework NAFDAC: National Agency for Food and Drug Administration and Control NAPEP: National Poverty Eradication Programme NARCDB: Nigeria Agricultural, Rural and Cooperative Development Bank NCDP National Council on Development Planning NCS: Nigeria Customs Service NDE: National Directorate of Employment NEAC: National Economic Advisory Council NEC: National Economic Council NEEDS: National Economic Empowerment and Development Strategy NEIC: National Economic Intelligence Council NEPAD: New ( Economic ) Partnership for African Development NEPA: National Electric Power Authority NERC: Nigerian Electricity Regulatory Commission NES: Nigeria Economic Society NESG: Nigeria Economic Summit Group NEXIM: Nigeria Export Import Bank NGOs: Non governmental Organizations NISER: Nigeria Institute for Social and Economic Research NITEL: Nigeria Telecommunications NOA.

7 National Orientation Agency NPC: National Planning Commission NPI: National Programme on Immunization NSITF: Nigeria Social Insurance Trust Fund ODA: Official Development Assistance OPEC: Organization of Petroleum Exporting Countries PPMC: Pipelines and Products Marketing Company PPPRA: Petroleum Products and Price Regulatory Agency PRSP: Poverty Reduction Strategy Process REWAMA Federation of West African Manufacturers RPED: Regional Programme on Enterprise Development ROT: Rehabilitate, Operate and Transfer SEEDS: State Economic Empowerment and Development Strategy SME: Small and Medium Scale Enterprises SMEDAN: Small and Medium Scale Enterprise Development Agency of Nigeria SMEIES: Small and Medium Enterprise Investment Equity Scheme TFP: Total Factor Productivity UBE: Universal Basic Education UEMOA: Union Economique et Monetaire l Ouest Afrique UNDP: United Nations Development Programme UNICEF: United Nations International Children s Emergency Fund UNIDO: United Nations Industrial Development Organization US-AGOA.

8 United States African Growth and Opportunity Act USAID: United States Agency for International Development WAMZ: West African Monetary Zone EXECUTIVE SUMMARY NEEDS is Nigeria s home- grown poverty reduction Strategy (PRSP). NEEDS builds on the earlier two-year effort to produce the interim PRSP (I-PRSP), and the wide consultative and participatory processes associated with it. NEEDS is not just a plan on paper, it is a plan on the ground and founded on a clear vision, sound values, and enduring principles. It is a medium term Strategy (2003- 07) but which derives from the country s long-term goals of poverty reduction, wealth creation, employment generation and value re-orientation.

9 NEEDS is a nationally coordinated framework of action in close collaboration with the State and Local governments (with their State Economic Empowerment and Development Strategy , SEEDS) and other stakeholders to consolidate on the achievements of the last four years (1999- 2003) and build a solid foundation for the attainment of Nigeria s long-term vision of becoming the largest and strongest African economy and a key player in the world economy. Although NEEDS is essentially a federal government programme, it is fully owned by Nigerians.

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