In a major step towards business growth and investment promotion, Abia State has improved its Ease of Doing Business (EoDB) ranking, moving from 33rd position (4.48) in 2021 to 21st position (5.59) in 2023. According to the 2023 Nigeria Subnational Ease of Doing Business Report by the Presidential Enabling Business Environment Council (PEBEC), Abia State now ranks third out of five states in South-East Nigeria. This remarkable achievement is partly attributable to the technical and financial support provided to the Abia State government through the Integrated National Financing Framework (INFF) Phase II Programme.
Abia State is one of the pilot states where the INFF action plans for investment promotion and improvement of tax administration and revenue collection are being implemented. The state has benefited immensely from the support provided, leading to improvements in several sub-indicators of the 2023 EoDB ranking. Notably, there has been a 103.2% increase in investment promotion and a 38.6% increase in skills and labour satisfaction scores, accounting for the highest percentage increases in EODB satisfaction scores for Abia State.
Key reforms and commitments
The journey to this remarkable achievement began with a two-day stakeholder roundtable on EoDB, which brought together key stakeholders from the public and private sectors across Abia State Ministries, Departments and Agencies as well as private sector business associations. The roundtable helped identify challenges facing EoDB with a comprehensive action plan developed to address the challenges. It also mobilized support for the proposed EoDB Act and the establishment of the State EoDB Council. The roundtable also set the tone for better communication and collaboration between Ministries, Departments and Agencies (MDAs) and the private sector, with a focus on improving EoDB ranking and improving public service delivery to boost resource mobilization in Abia State.
Following the roundtable, several reforms and actions in the area of Ease of Doing Business were set out for 2023/2024. These included setting up small claims courts to speed up dispute resolution and reducing the time to obtain a Certificate of Ownership (C of O) for companies within 30 days of filing the document – both successfully implemented by December 2023. The action plan also included setting up one-stop shops for company registration and other business needs, offering tax refunds to certain investors and allocating land to them, consolidating revenues so that internally generated revenue (IGR) can be paid annually or bi-annually, and improving the road network and other infrastructure to attract investors. In addition, an Abia State Business and Investment Brochure was proposed to guide investors, and an Abia Industrial Innovation Park (AIIP) to be established. There was also a commitment to be more transparent in the preparation and presentation of the budget, involving civil society and broader stakeholders. Improving the efficiency of land administration and streamlining/automating tax and payment processes in line with the Program of State Action for Enterprise Reforms (SABER) was also a key focus. The action plans were prioritised with a six-month work plan developed to implement priority solutions.
Ongoing initiatives supported by INFF Phase II
Other ongoing initiatives in Abia State supported by the INFF Phase II programme, in line with the priorities of the Ministry of Budget and Economic Planning, include:
-
Adopting the EoDB Act, establishing the EoDB Council and launching an EoDB portal and website.
-
Preparing an investment guide for Abia State.
-
Establishment of One-Stop Investment Centres (OSICs) in Aba and Umuahia.
-
Supporting the equipping of Abia State Shoemaking Centre and building the capacity of Abia State shoemakers to use modern equipment. In addition, we provide training on safety and health standards.
-
Campaigning and raising public awareness on tax issues.
-
Enhancement of IT facilities to support digitalization and simplification of tax collection at Abia Internal Revenue Service (ABIRS).
-
Supporting the tax administration in 17 LGAs to harmonize and digitalize revenues in collaboration with the Tax for SDG initiative.
-
Improving governance, reporting and evaluation of tax expenditures for tax investigators in partnership with the Tax for SDGs initiative.
The rise of Abia State on the EoDB ranking is a testament to the effectiveness of the concerted efforts of the state stakeholders, with the support of the INFF Phase II programme. This progress is expected to not only improve the business environment and financial inflows but also provide a solid foundation for sustainable economic growth in the state. Looking ahead, more integrated financing policy solutions and reforms are needed for resource mobilization for resilient, inclusive and sustainable development in Abia State.
About the Nigeria Integrated National Financing Framework (INFF):
The Nigeria Integrated National Financing Framework (INFF) aims to mobilize greater amounts of private and public resources to finance Nigeria’s Sustainable Development Goals in line with national priorities. The implementation of the INFF utilizes both conventional and innovative financing mechanisms while addressing barriers to public and private sector participation to meet financing needs for economic recovery. The Nigeria INFF is an initiative of the Federal Government of Nigeria, whose Steering Committee is chaired by the Federal Minister of Finance and the Coordinating Minister of Economy, with secretarial support from the Office of the Senior Special Assistant to the President on SDGs (OSSAP-SDGs) and technical support from the Federal Ministry of Budget and Economic Planning. Current funding partners of the INFF include the United Nations Development Programme (UNDP) and the Delegation of the European Union (EU) to Nigeria. Global INFF Resources: Clutch | Nigeria INFF source: Clutch.
Written by: Precious Akanonu, National Economist, UNDP Nigeria
Editor: Christabel Chanda – Ginsberg, Head of Public Engagement, Outreach and Partnerships, UNDP Nigeria
