The National Competitiveness Council of Nigeria (NCCN) plans to launch its Nigeriaâ€™s first Sub-National Competitive Index this week.
The council explained that the move would help spur growth-friendly policies.
According to the NCCN, the index to be launched evaluates the competitiveness of Nigeriaâ€™s 36 states and FCT through metrics that examine growth, development and productivity potential.
It explained in a statement that the NCCNâ€™s index drew from resources of the World Economic Forum, World Bank, Mexicoâ€™s IMCO and HBSâ€™s Prof Michael Porter.
The NCCN also stated that it received funding from Ford Foundation, the Tony Elumelu Foundation, and resource support from the EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) to drive initiatives targeted at fiscal balance, healthy public-private policy contestation and unleashing private enterprise potential.
â€œThe NCCN Sub-National Index is a potent tool for catalysing business-friendly policies that will spur job-rich growth in Nigeriaâ€™s 36 states,â€ NCCN Chief Executive Officer, Chika Mordi said.
â€œThe findings of NCCN Sub-National Index underscore the salience of state governments in Nigeriaâ€™s overall economic growth potential.â€
The NCCN sub-national is expected to enable states to identify ways to maximise growth and development potential. State policies and actions hold the key to boosting Nigeriaâ€™s overall growth.
It added: â€œNigeria faces a well-documented overdependence on oil for fiscal revenue that has stifled incentives for private sector growth and remains insufficient for sustainable poverty reduction.â€
According to OPEC, the oil and gas sector accounts for about 35 per cent of gross domestic produc t and petroleum exports revenue represents over 90 per cent of total exports revenue.
In the last four years, oil contributed over 60 per cent of governmentâ€™s revenue (2016 – 64.27%, 2015 – 65.38%, 2014 – 67.47%, 2013 – 69.77%) according to the National Bureau of Statistics.
Gross capital formation as a percentage of GDP remained inadequate for growth compared to other emerging economies (Algeria 51%, Mexico – 23%, South Africa – 21%, Nigeria – 15%).
Also, operational costs are high, the lack of adequate infrastructure constitutes a binding constraint for manufacturing and agriculture, and structural rigidities suffocate diversification and industrialisation efforts.
â€œPerhaps the most disturbing aspect of todayâ€™s context is Nigeriaâ€™s rising youth population, which is an unutilised demographic window of opportunity that is fast turning to a ticking demographic bomb in the form of a massive army of unemployed youths. 62.27% of the population is under the age of 25, Countries such as the US, China, Japan, and South Korea achieved economic growth and poverty reduction by exploiting a similar demographic window of opportunity.
â€œWhile national data is widely known, state performance remains obscured by a previous lack of reliable data. Over 50 per cent of revenue from Nigeriaâ€™s federation account is controlled by state and local governments especially when you account for derivations and bailouts from federal to state governments. â€œBeyond that, the majority policies affecting businesses are controlled by states.
NCCN is a nonpartisan private effort aimed at enhancing the productivity of businesses operating in Nigeria with the ultimate goal of improved socio-economic outcomes for Nigeria,â€ it added.