Wednesday, September 9, 2009
how falling investments in oil threatens nigerias economy
•Oil majors’ preoccupation in PIB too The continuing fall in investments in oil, Nigeria’s major foreign exchange earner, is threatening the fragile economy, experts have warned. Besides, the preoccupation of the oil majors in the proposed Petroleum Investment Bill (PIB) due to the fact that it allows arbitrary renegotiation of the financial terms of existing contracts is also having adverse effects on the economy. These views were expressed by experts at the monthly Economic News and Views at the Lagos Business School (LBS), Executive Breakfast Meeting. Experts at the September meeting observed that disruption of production activities by the militants is mainly responsible for the dwindling fortunes. Consequently, they said that investment cutbacks in upstream by the majors is now taking a toll on the economy. “Oil majors are concerned about the proposed PIB because it allows an arbitrary renegotiation of financial terms of existing contracts,” experts said Indeed, they further said that the exaggerated revenue decline of 21 percent relative to a production cut of 4.5 percent is mainly due to the composition of the liftings. The resultant effect, according to them, is that Nigerian production and exports are now more from the deep off shore fields Also, they faulted the oil concessions which are mostly under the Production Sharing Contract (PSC), but which are less revenue favourable than the Joint Ventures (JVs) The shrinking oil revenue was also compounded by sharp drop in corporate tax collection by the Federal Inland Revenue Service (IFRS), they further observed. Consequently, while total tax collected declined by 11.6 percent from the first quarter of 2009, total expenditure increased by 30.8 percent over the last quarter. Also, while 63.1 percent of expenditure was recurrent, 31.3 percent was for capital expenditure. They said that the increase in capital expenditure was driven mainly by the fiscal stimulus package by the Federal Government Observers said at the weekend that the Niger Delta issue and the PIB must be effectively tackled by the government if the much needed leap in power generation is to be achieved.
Nigeria: EFCC Recovers Over N70 Billion Bank Debt
But it has a long way to go yet, as it had confirmed last weekend that 60 per cent of another $3.6 billion stashed away by bank chiefs has been traced to Dubai in the United Arab Emirate (UAE), with efforts still being made to repatriate it.
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The biggest debt recovery last week came from Zenon Oil and African Petroleum (AP) Chairman, Femi Otedola, who returned N3 billion to Afribank on Friday.
But the top slot belongs to Intercontinental which had N15.5 billion of its debt repaid, said EFCC Spokesman, Femi Babafemi.
Union got back N10 billion and Oceanic N15 billion.
Babafemi noted that the rate at which the debtors have responded to the directive to repay the loans they had failed to service for years is encouraging.
He said the EFCC makes such recoveries on a daily basis.
By last Friday, it had got back about N66.7 billion from over 90 debtors.
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Babafemi lamented that while the Nigerian economy battles to get out of coma, those entrusted with public funds take them to other countries, "And today the United Arab Emirate's economy ranks among the best performing in the world, but at the expense of the Nigerian economy."
He said the EFCC will not be swayed by the ethnic coloration that critics give to the drive to recover looted funds.
"Imagine a whopping 60 per cent of the total funds going to Dubai, while our own economy is suffocating, and the rest of the funds are shared between Europe, America, and Asia.
"Imagine what such a whopping sum of money would do to Nigerian economy. The EFCC will bring back that money."
Relevant Links
West Africa
Nigeria
Banking
Crime
Business
Meanwhile, former Rivers State Governor, Peter Odili, is expected to appear at the EFCC for questioning today over a N189 million loan he took from FinBank.
Also expected are Nigerian Stock Exchange (NSE) Director General, Ndi Okereke-Onyiuke, and five Directors of Transcrop over N40.8 billion owed Union Bank.
EFCC Chairman, Farida Waziri, explained to journalists on Monday that detectives "need to see her to settle certain issues concerning that loan. While we were in Lagos, she was invited but failed to show up. She rather sent her officers. She needs to show up herself."
In a twin drive, Lower House lawmakers have also urged the EFCC to intensify the recovery of about N680 billion owed banks.
GA_googleFillSlot( "AllAfrica_Story_InsetA" );
The biggest debt recovery last week came from Zenon Oil and African Petroleum (AP) Chairman, Femi Otedola, who returned N3 billion to Afribank on Friday.
But the top slot belongs to Intercontinental which had N15.5 billion of its debt repaid, said EFCC Spokesman, Femi Babafemi.
Union got back N10 billion and Oceanic N15 billion.
Babafemi noted that the rate at which the debtors have responded to the directive to repay the loans they had failed to service for years is encouraging.
He said the EFCC makes such recoveries on a daily basis.
By last Friday, it had got back about N66.7 billion from over 90 debtors.
GA_googleFillSlot( "AllAfrica_Story_InsetB" );
Babafemi lamented that while the Nigerian economy battles to get out of coma, those entrusted with public funds take them to other countries, "And today the United Arab Emirate's economy ranks among the best performing in the world, but at the expense of the Nigerian economy."
He said the EFCC will not be swayed by the ethnic coloration that critics give to the drive to recover looted funds.
"Imagine a whopping 60 per cent of the total funds going to Dubai, while our own economy is suffocating, and the rest of the funds are shared between Europe, America, and Asia.
"Imagine what such a whopping sum of money would do to Nigerian economy. The EFCC will bring back that money."
Relevant Links
West Africa
Nigeria
Banking
Crime
Business
Meanwhile, former Rivers State Governor, Peter Odili, is expected to appear at the EFCC for questioning today over a N189 million loan he took from FinBank.
Also expected are Nigerian Stock Exchange (NSE) Director General, Ndi Okereke-Onyiuke, and five Directors of Transcrop over N40.8 billion owed Union Bank.
EFCC Chairman, Farida Waziri, explained to journalists on Monday that detectives "need to see her to settle certain issues concerning that loan. While we were in Lagos, she was invited but failed to show up. She rather sent her officers. She needs to show up herself."
In a twin drive, Lower House lawmakers have also urged the EFCC to intensify the recovery of about N680 billion owed banks.
AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF THE INSTITUTE OF CHARTERED ECONOMISTS OF NIGERIA
A BILL
FOR
AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF THE INSTITUTE OF CHARTERED ECONOMISTS OF NIGERIA TO PROVIDE FOR AMONG OTHER THINGS, THE REGULATION, CONTROL AND TO DETERMINE THE STANDARDS OF KNOWLEDGE TO BE ATTAINED BY PEOPLE SEEKING TO BECOME CHARTERED ECONOMISTS AND FOR CONNECTED PURPOSES.
Sponsor: Sen. Ibrahim Umar Tsauri
(Kastina Central)
Commencement Establishment of the Institute of Chartered Economists
1. (1) There is hereby established a body to be known as the Institute of Chartered Economists of Nigeria (in this Act referred to as the “Institute”) which shall be a body corporate under the name and be charged with the general duties of:
(a) Determining what standards of knowledge and skill are to be attained by persons seeking to become registered as Chartered Economists and raising those standards from time to time as circumstances may permit:
(b) Securing in accordance with the provisions of this Act the establishment and maintenance of a register of members, and the publication from time to time of the list of those persons; and
(c) Provide an umbrella organization national and international in scope for all economists, treasurers, and financial officers’ etc. working in both the public private sectors of the economy.
(d) Unite all holders of and/or foreign qualification in economics and related disciplines employed as economists in the public sector, industry and commerce.
(e) Ensure that the study and practice of the art and science of economics are done professionally in Nigeria.
(f) Provide consultancy services on economic matters to the public as well as the private sector;
(g) Hold conferences, workshops seminars and symposia on contemporary economic issues;
(h) Performing any other duties as the council may deem fit from time to time.
(2) The institute shall be professional body corporate with perpetual succession and a common seal, which shall be kept in such custody as the council may, from time to time, authorize.
(3) The institute may sue and be sued in its corporate name and may, subject to the land use Act, hold, acquire and dispose of any property, movable or immovable.
Establishment and composition of the Government Council of the Institute
2. (1) There is hereby established for the institute a Governing Council of the Institute (in this Act referred to as “the Council”) which shall be charged with the responsibility for the administration and general management of the institute.
(2) Subject to the provision of this Act, the council shall consist of:
(a) The National President of the Institute, who shall be the Chairman
(b) The National Vice-President of the Institute, who shall be the Vice-Chairman,
(c) Two persons from Institution of higher learning offering courses leading to relevant qualifications such that the two representatives does not come from the same institution;
(d) Two persons each from the six geopolitical Zones.
(e) All members of the Board of trustees
(f) Ten persons from affiliated professional bodies in the Country in rotation;
(h) Immediate past President of the Institute shall be entitled to serve on the Council for a maximum period of two years from the expiration of his term of office.
(i) The Registrar of the Institute who shall also be the Executive Secretary to the Council.
(3) The council may advisedly an increase to the membership of the council as may be deemed fit when necessary.
(4) The provisions set out in schedule 1 to this Act shall have effect to the qualifications and tenure of office of members of the council and the other matters therein mentioned.
3. (1) There shall be for the institute a President, 1st Vice-President and 2nd Vice-President who, shall be members of the institute, elected at the Annual General Meeting of the institute and shall hold office each for a term of two years renewable for not more than one term
(2) The President shall be chairman at meetings of the council, however, in the event of death, incapacity or inability for any reason of the President, the Vice-President shall act in his stead for the unexpired period of term of the term office as the case may require, and the reference in this Act to the President shall be construed accordingly.
(3) The President and the 1st Vice-President shall respectively be Chairman and Vice-Chairman of the council established by Section 2 of this Act.
(4) If the President, 1st and 2nd Vice-President ceases to be a member of the institute, he shall Ipso facto cease to hold any offices designated under this Section.
4. (1) There is hereby established for the Institute a Board of Trustees which membership shall-
(a) be for life
(b) not be subjected to any election; and
(c) ensure that in the event of death of a member, the Board shall appoint a successor.
(2) The Board shall comprise of –
(a) A Chairman
(b) A Vice Chairman
(c) A Secretary.
(d) Other Trustee Members.
(3) The Board of trustees shall be the highest law making body of the institute and it shall hear and determine complaints that be brought before it by member (who are arrears of their subscriptions and (levies) Its decision on any issue is not subjected to any further debate.
(4) The Board shall hold its meeting, from time to time as may be scheduled by the Board.
(5) A member of the Board shall be present during the meetings of the Council.
(6) No decision or resolution taken by the Council shall be subjected to the scrutiny of the Board.
(7) No member of the Board shall dispose any policy matter except with prior approval of the Board.
(8) Where disciplinary Committee is unable to resolve any matter brought before it shall refer the matter to the Council. In the event that the Council is unable to resolve same, it shall in turn refer it to the Board and any decision taken on the matter shall be final.
5. (1) Members of the institute shall be drawn from diverse professions with work in areas of the economics and related matters including Sciences, Engineering, Management Arts, Health and Social Sciences, Law etc.
(2) Subject to the Provision of this Act, members admitted into the Institute shall possess adequate interest, knowledge and understanding of the economics and related matters and must be registered as members according to their disciplines in the category of-
(i) Fellows
(ii) Associate
(iii) Graduate diploma
(3) Subject to the provision of this Act, the privileges and invitations of members of the institute shall be as follows
(a) The use of abbreviation Institute of Chartered Economists of Nigeria (ICEN).
(b) The right to affix a member seal and stamp on every document endorsed by or emanating form them.
(c) Members in the class of fellow shall be entitled to use the abbreviation of “FCE” (Fellow Chartered Economists)
(d) Members in the class of Associate shall be entitled to use the abbreviation “ACE” (Associate Chartered Economists)
(e) Members in the class of Graduate Diploma shall be entitled to use the abbreviation “ICEN, DIP” (Institute of Chartered Economists, Diploma)
(f) Fellow shall be the highest grade in the institute;
(4) No other title or abbreviation shall be used to describe membership of the institute.
(5) The provisions of schedule 2 this Act shall, so far as applicable to the question of admission to the institute, have effect with respect to the categories of members listed in Subsection(2) of this Section.
6. (1) It shall be the duty of every registered member of the institute to abide by the rules, regulations, code of conduct and any other policy established by the institute for the purpose of sound practice. Every member of the institute shall be bound to further to the best of his ability and judgment the objects, purposes and interest of the institution.
(2)Every member of the institute shall subject to Section 9 and 10 of this Act, comply with the code of conduct set out by the council in schedule 3 to this Act
(3) Every member shall also order his conduct as to uphold the dignity and reputation of the institute and shall observe the provision of this Act and other regulation as may be enacted by the institute of minister.
7. The institute shall have the following incidental powers, that is to say, it may-
(a) Obtain from any authority or persons, charters, and concessions necessary for the attainment of its purposes;
(b) Acquire from any person, government, body or organizations, by way of gift, purchase, exchange or lease whether absolutely in trust, any property, real or personal, requite or necessary to carry the objects of the Institute, with power, subject to any trust, to hold or dispose of any such property;
(c) Borrow money and grant loans with the approval of the Council without prejudice to any other provision of this Act relating to the provisions of funds;
(d) Do and perform anything necessary in the opinion of the institute, to further the purpose and attain the objects of the institute;
(e) Acquire any such shares, stocks, debentures, bond, notes, obligations or securities by original subscription, tender purchases, exchange or otherwise and subscribe for the same either conditionally or otherwise, and under written or guarantee the subscription thereof and exercise and enforce all rights and powers conferred and incidental to the ownership thereof.
8. (1) The council shall establish and maintain a fund into which shall be paid all monies received by the council. The management and control of the fund shall be by the council.
(2) The revenue of the institute shall be-
(a) All fees and other monies payable to the council in pursuance of this Act;
(b) All relevance from other sources both locally and internationally
(3) There shall be paid out of the fund of the institute-
(a) All expenditure incurred by the council in the discharge of its functions under this Act.
(b) Remunerations and allowance of the Registrar and other staff of the institute; and
(c) Such reasonable traveling subsistence allowances of members of the council, committee members and other co-opted persons in respect of the time spent on duties of the council as applicable to similar institutes.
(d) The Council may invest moneys of the fund in any security created or issued by or on behalf of the federal government or in any other security in Nigeria’s
9. (1) The council shall keep proper accounts and records on behalf of the institute in respect of each year; and the council shall cause the accounts to be audited by an Auditor appointed from the list of auditors and in accordance with the guidelines supplied by the Auditor-General of the Federation.
(2) The auditor appointed for the purposes of subsection(1) of this section shall not be a member of the council.
10. The council shall prepare and submit to the council not later than twelve month of its establishment and once in a year thereafter, a report on the activities of the council in the last preceding year and shall include in the report a copy of the audited accounts of the council for that year and of the auditor’s report thereon.
11. (1) It shall be the duty of the council to appoint-
(a) A fit and proper person who shall be a member of the institute to be the registrar for the purposes of this Act; and
(b) Such other persons as the institute may, from time to time, deem necessary to work and perform functions as specified by the council.
(2) It shall be the duty of the Registrar to prepare and maintain in accordance with rules made by the council, a registrar of names, addresses and approved qualifications and of such other particulars, as may be specified in the rules of all persons who are entitled in accordance with the provisions of this Act to be registered as members of the institute.
(3) The register shall consist of parts established according to professional disciplines approved by council. Council shall review parts of the disciplines as need arises.
(4) The council may make regulations with respect to the form and keeping of the register and the making of entries therein and in particular-
(a) Regulating the making of applications for or registration, and providing for the evidence to be produced in support of applications;
(b) Providing for the notification to the Registrar, by the person to whom any registered particulars relate, of any change in those particulars;
(c) Authorizing a registered person to have any qualification which is in relation to economics, either an approved qualification so registered;
(d) Specifying the fees, including any registration fees, to be paid to the institute in respect of the entry of names on the register and authorizing the registrar to refuse to enter a name on the register until any fee specified for the entry has been paid.
(5) Any rules made for the purposes of paragraph (d) of subsection (4) of this section shall not come into force until they are approved by the Annual General Meeting (AGM).
12. The Registrar shall perform the following duties-
(a) Correct, in accordance with the direction of the council, any entry in the register, which the council, directs him to correct as being in the opinion of the council an entry, which was incorrectly made;
(b) Make from time to time, any necessary alterations to the registered particulars of registered persons;
(c) Record the names of members of the institute who are in debt for more than six months in the payment of annual or practicing fee and to take such action in relation thereto (including removal of the name of defaulter from the register) as the council may be direct or require;
(d) Cause the register to be printed, published and put out on sale to members of the public not later than two years from the commencement of this Act;
(e) In each year after that in which a register is first published under paragraph (d) of this subsection, to cause to be printed, published and put on sale as afore said, either a corrected edition of the register or list of alterations made to the register since it was last printed, and;
(f) Cause a print of each edition of the register and of each list, corrections to be deposited at the headquarters of the institute, and it shall be the duty of the council to keep the register and list so deposited, available at all reasonable times for inspection by members of the public.
13. (1) A person shall be deemed to practice as a Chartered economists if-
(a) Engages himself in work in the areas of economics and related matters within any of the diverse profession including sciences, engineering, management, law, social and health sciences; etc
(b) Such work shall for the purposes of registration be designated as approved by the council; or
(c) Renders any other service which may by regulation made by the council with the approval of the council be designated as service constituting practice as Chartered Economists.
14. (1) The council may make rules for-
(a) Prescribing the amount and date of the annual practicing fees;
(b) Prescribing the form of license to practice to be issued;
(c) Restricting the right to practice as a member in default continues for longer than such period as may be prescribed by the council;
(d) Restricting the right to practice as a member if the qualification granted outside Nigeria does not entitled the holder to practice as a Chartered Economists;
(e) Prescribing the period of practical training and experiences in the office of a member in practice, to be completed before a person qualifies for registration or a license to practice as chartered economists.
(2) Rules when made shall, if the chairman of the council so direct be published in the Institute Journal.
15. (1) Any regulations made under this Act, shall be published in the Institute Journal as soon as or after they are made; and the council shall lay a copy of any such regulations before the Annual General Meeting as soon as or after they are so published.
(2) Rules made for the purposes of this Act shall be published to all members of institute.
16. (1) The headquarters of the institute shall be established and maintain in a suitable location in Nigeria
(2) The council may make rules providing for the establishment and maintenance of offices of the institute in the State of the Federation.
17. (1) There shall be established a standing ethics/Disciplinary Tribunal (in this Act referred to as “the Tribunal”) which shall be charged with the duty of considering and determining any referred to it by the panel under subsection (3) of this section and any other case which the Tribunal has cognizance under the following provision of this Act.
(2) The Tribunal shall consist of the council and four other members of the council elected by the council
(3) There shall be an adhoc Investigation Panel (in this Act referred to as the “Panel”) which shall be charged with duty-
(a) Conducting a preliminary investigation into any case where it is alleged that a member of the institute has misbehaved in his capacity as a member;
(b) Submitting a report of their investigation to the Tribunal.
(4) The panel shall be appointed by the council and shall consist of two members of the council. The chairman of the panel shall be one of the council members, and one non-council member shall be in the relevant discipline of the member being investigated.
(5) The provisions of schedule 4 to this Act shall, so far as they are applicable to the Tribunal and panel respectively, have effect with respect to those bodies.
(6) The council may further to section 6 of this Act, make rules not inconsistent with this Act, as to acts which constitute professional misconduct.
18. (1) Where-
(a) A member registered under this Act is adjudge by the Tribunal to be guilty of an act under section 18 (2) of the offences and penalties or contravenes the code of conduct of the institute as specified in schedule 3;
(b) A member convicted, by any court in Nigeria or elsewhere having power to award imprisonment of an offence (whether or not punishable with imprisonment) which in the opinion of the Tribunal is incomplete with his states in the institute, or
(c) The tribunal is satisfied that the name of any person has been fraudulently registered
(2) The Tribunal may, if it deems fit, give a direction reprimanding that person or ordering the registrar to strike his name off the relevant part of the register.
(3) The Tribunal may, if it deems fit, defer or further defer its decision as to the giving of a direction under the foregoing subsection until a subsequent meeting of the Tribunal, but-
(a) No decision shall be deferred under this subsection for periods exceeding one year in the aggregate; and
(b) So far as possible no person shall be a member of the Tribunal for the purpose of reaching a decision present as a member of the Tribunal when the decision was deferred.
(4) For the purposes of section 18(1), a person shall not be treated as convicted as therein mentioned unless the conviction stands at a time when no appeal or further appeal is pending or may (without extension of time) be brought in connection with the conviction.
(5) When the Tribunal gives a direction under section 18(1), the Tribunal shall cause notice of the direction to be served on the person to who it relates.
(6) The person to whom such direction relates may, at anytime within twenty-eight days from the date of service on him of notice of the direction, appeal against the direction to the Federal High Court, and the tribunal may appear as respondent to the appeal and for the purpose of enabling directions to be given as to the costs of the appeal and of proceedings before the tribunal, the tribunal shall deemed to be a party thereto whether or not if appears on the hearing of the appeal.
(7) A direction of the tribunal given for the purpose of section 18(1) shall take effect-
(a) Where no appeal under this section is brought against the direction within the time limited for such an appeal, on the expiration of that time, or
(b) When such an appeal is brought as is withdrawn or struck out for want of prosecution, or the withdrawal or striking out of the appeal;
(c) Where such an appeal is brought and is not withdrawn or stuck out as aforesaid if and when the appeal is dismissed.
(8) A person whose name is removed from the register in pursuance of a direction of the Tribunal under this section shall not be entitled to be registered against except in pursuance of a direction in that behalf given by the Tribunal on the application of that person.
(9) A direction under this section for the removal of a person’s name from the register may prohibit an application under subsection 8 of section by that person until the expiration of such period from the date of the direction (and where he has duly made such an application from the date of his last application) as may be specified in the direction.
19. (1) If any person for the purpose of procuring the registration of any name, qualification or other matter-
(a) Makes a statement which he knows to be false in a material particular; or
(b) Recklessly makes a statement which is false in a material particular; he is guilty of an offence
(2) If any member deliberately betrays the trust of his clients by such as collecting remuneration for services not rendered or certification of jobs, which do not meet specifications; he is guilty of an offence.
(3) If on or after the relevant date of the enactment of this Act, any person who is not a member of the Institute practices as Chartered Economists for or in expectation of reward or takes or uses any name, title, addition or description implying that he is in practice as a Chartered Economists he is guilty of an offence.
(4) If the Registrar or any other person employed by or on behalf of the Institute willfully makes any falsification in any matter relating to the register; he is guilty of an offence
(5) A person guilty of an offence under this section is liable-
(a) On summary conviction, to a fine of an amount not exceeding N50,000 or;
(b) On conviction to his name being removed from the register, or
(c) On conviction or indictment, to a fine of an amount not exceeding N200,000 or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.
20. In this Act, unless the context otherwise requires-
“Board” means the Board of Trustees
“Council” means the Council established as the governing body of the Institute under section 2 of this Act;
“Fees” includes registration fee and annual practicing fee;
“Institute” means the Institute of Chartered Economists of Nigeria (ICEN) under section 1 of this Act;
“Member” means individual member of the Institute;
“Ethics/Disciplinary Committee” has the meaning assigned thereto by section 9 of this Act;
“President” and “Vice President” means respectively the office holder under those names in the Institute;
“Register” means the register maintained in pursuance of section 8 of this Act;
“Profession” means the profession in the areas of Economics and sciences, and related disciplines;
“He” means a male of female member as the case may be.
21. This Bill may be cited as the Institute of Chartered Economists of Nigeria (Establishment, etc) Bill 2006.
SCHEDULES
SCHEDULE 1Section 2
SUPPLEMENTARY PROVISIONS RELATING TO THE COUNCIL AND THE INSTITUTE
Qualifications and Tenure of Office of members
1. Subject to the provisions of this paragraph, a member of Council shall hold office for a period of two years beginning from date of his appointment or election.
2. In the case of a person who is a member by virtue of having been President of the Institute, he shall hold office for period of two years from the date of having ceased to be President of the Institute.
3. Any member of the Institute, who ceases to be a member thereof, if he is also a member of the Council, shall cease to hold office on the Council.
4. Any elected member may, by notice in writing under his had addressed to the President of the Institute, resign his office, and any appointed member may, with the consent of the President, in the same manner resign his office.
5. A person who retires from or otherwise ceases to be an elected member of the Council shall be eligible again to become a member of the Council and any appointed member may be reappointed.
6. Members of the Council shall at its meeting before the annual meeting of the Institute arrange for the five members of the Council appointed or elected and longest in office to retire at that annual meeting.
7. Elections of officers of the Council shall be held in such manner as may be prescribed by rules made by the Council.
8. If for any reason there is a vacation of office by a member-
(a) Such member was appointed by the Council, and shall appoint another fit and proper person to replace such member; or
(b) The Council may, if the time between the unexpired portion of the term of office and the next meeting of the Institute appears to warrant the filling of vacancy, direct the appoint or for a replacement of the member for the unexpired term.
Powers of Council
2. The Council shall have power to do anything, which in its opinion is calculated to facilitate the carrying on of the activities of the Institute.
3. (1) Subject to the provisions of this Act, the Council may in the name of the Institute make standing orders regulating the proceedings of the Institute, the Council or any of the Committees of the Council or Institute.
(2) The standing orders shall provide for decisions to be taken by a majority of the members, and in the event of equality of votes, the President of the Institute, as the case may be, shall have a second or casting vote.
(3) The standing orders made for a committee shall provide that the committee reports back to the council for ratification.
(4) The quorum of the Council shall be seven including the President and the quorum of a committee of the Council shall be determined by the council.
ANNUAL GENERAL MEETING OF THE INSTITUTE
4. (1) The Institute shall meet once a year.
(2) The Council shall convene the annual meeting of the Institute on a specific date to be determined by the Council every year or not later than fifteen months between respective dates of two meetings.
(3) The AGM shall elect the President, 1st and 2nd Vice-President of the Institute and approve the budget, work programme of the Council and rules made by the Council in accordance with Section 8 (5) of this Act.
Meeting Of The Council
5. (1) Council shall meet at least twice a year.
(2) Subject to the provisions of any standing orders of the Council, the Council shall meet whenever it is summoned by the Chairman; and if the chairman is required to do so by notice in writing given to him by not less than seven other members, he shall summon a meeting of the Council to be held within seven days from the date on which the notice is given.
(3) At any meeting of the Council, the Chairman or in his absence, the Vice-Chairman shall preside.
(4) Where the Council desires to obtain the advice of any Person on a particular matter, the council may co-opt him as a member for such period as the Council thinks fit; but a person who is a member by virtue of this sub-paragraph, shall not be entitled to vote at any meeting of the Council and shall not count towards a quorum.
(5) Notwithstanding, anything in the foregoing provisions of this paragraph, the President shall summon the inaugural meeting of the Council.
Committees
6. (1) The Council shall appoint the following standing committees.
(a) Admission and registration committee;
(b)Education and training committee;
(c) Ethics/disciplinary tribunal committee
(d) Finance and general purpose committee
And such other ad-hoc committees to carry out on behalf of the Council, such functions as the Council may determine.
(2) A committee appointed under this paragraph shall consist of the number of persons determined by the Council of whom not more than one third be person who are not members of the Council shall hold office on the committee in accordance with the terms of the letter by which he is appointed.
(3) Seventy percent of membership of this committee shall be drawn from registered members outside Council who are professionally competent to be so appointed. Membership of any standing committee shall not be less than five and not more than seven and shall be chaired by a Council member so appointed.
(4) A decision of a committee of the Council shall be of no effect until the Council considers and ratifies or approves it.
Miscellaneous
7. (1) The fixing of the seal of the Institute shall be authenticated by the signature of the President of the Institute.
(2) Any contract or instrument which, if made or executed by a person not being a body corporate, would not be required to be under seal, may be made or executed on behalf of the Institute or of the Council, as the case may require, by any person generally or specially authorized to act for that purpose by the Council.
(3) Any document purporting to be a document duly executed under the seal or authorization of the Council shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.
8. The validity of any proceeding of the Institute or the Council or of a committee of the Council shall not be adversely affected by any vacancy in membership, or by any defect in the appointment of a member of the Institute or of the Council or of a person to serve the committee or by reason that a person not entitled to do so took part in the proceeding.
9. Any member of the Institute or of the Council, and any person holding office on a committee of the Council, who has a personal interest in any contract or arrangement entered into or proposed to be considered by the Council on behalf of the Institute, or on behalf of the Council or a committee thereof, shall forthwith disclose his interest to the Council of the Institute and shall not vote on nay question relating to the contract or arrangement.
SCHEDULE 2
Section 4 (5)
SUPPLEMENTARY PROVISIONS RELATED TO THE
ADMISSION OF MEMBERS INTO THE INSTITUTE.
1. (1) Subject to sections 4(2) and 4(5) of this Act, admission of members into the Institute shall be registration.
(2) A person accorded by the Council established by this Act, status as a chartered economists shall be entitled to the use of that name and shall be registered as-
(a) A member if:
(i) He holds qualification(s) approved by the Council or,
(ii) He passes the qualifying examination for registration recognized or conducted by the Institute under this Act and completes the practical training prescribed. However, the admissions committee may consider waiving certain aspects subject to Council approval or,
(iii) He has sufficient practical experience in economic related work of at least five years and holds a testimonial/certificate of experience from the Institute of Chartered Economists or he is a member of the Institute and has been so recommended; a higher degree in relevant field would normally account for 2 and 3 years of experience for masters and PhD respectively or,
(iv) He holds the relevant professional registration from outside Nigeria and is acceptable to the Council provided there are no encumbrances thereto.
(3) An applicant for registration under this Act shall in addition to evidence of qualification, satisfy the Council that-
(a) He is of good character
(b) He has attained the age of 21 years; and
(c) He has not been convicted in Nigeria or elsewhere of an offence involving fraud, dishonesty or any other criminal conduct.
(4) The Council shall, from time to time, publish in the Journal, particulars of qualifications accepted for registration by the Institute.
(5) The Institute shall conduct continuing education programmes to upgrade the skills and competence of members.
(6) The continuing education and training committee of the Institute shall conduct training for the qualifying examination required for registration.
(7) The Institute shall provide and maintain a library comprising standards, regulatory laws and policy, books, publications for the promotion and advancement of knowledge in Economics and such other books and publications that the Council may deem fit.
(8) The Institute shall encourage research into economics and allied subjects to the extent that the Council may from time to time determine.
SCHEDULE 3
Section 5
CODE OF CONDUCT FOR MEMBERS
Every member of the Institute when discharging his professional duty shall abide by the code of conduct. The Council as may be deemed necessary may from time to time review this code of conduct.
A member shall:
(1) Not accept professional obligations which he believes he has not sufficient competence and authority to perform;
(2) Accept due responsibility for all work done by him or under his direct supervision and shall take all reasonable steps to ensure that persons working under his authority and supervision are competent and dutiful to carry out the tasks assigned to them;
(3) When called upon to give an opinion in his professional capacity and based on the facts disclosed to him, give an opinion that is objective and reliable to the best of his ability;
Membership by registration
(4) If his professional advice is not accepted, take all reasonable steps to ensure that the person or body over-ruling or neglecting his advice is aware of the possible consequences which may arise there from;
(5) Take all reasonable care in his professional capacity to minimize the risk of any mishap or damage to the practice of economics and shall respect all laws and statutory regulations;
(6) Not maliciously or recklessly injure or attempt to injure whether directly or indirectly the professional reputation of another;
(7) Not improperly solicit work as an independent adviser of consultant, either directly or by an agent, or shall he improperly pay any person, by commission or otherwise, for the introduction of such work;
(8) Who works in a country other than Nigeria, shall order his conduct according to this Act; but where there are different standards of professional conduct and practice in that country which are recognized and Acceptable by the Council, he shall adhere to both standards;
SCHEDULE 4
Section 13
SUPPLEMENTARY PROVISIONS RELATED TO THE ETHICS/DISCIPLINARY TRIBUNAL AND INVESTIGATION PANEL OF THE TRIBUNAL
1. The quorum of the Tribunal shall be three including the President of the Institute.
2. (1) The Attorney-General of the Federation may make rules as to the selection of members of the Tribunal for the purposes of any proceeding and as to the procedure to be followed and the rules of evidence to be observed in proceedings before the Tribunal.
(2) The rules shall in particular provide-
(a) For securing that notice of the proceedings shall be given at such time and in such manner as may be specified by the rules, to the person who is the subject of the proceedings;
(b) For determining who in addition to the person aforesaid, shall be party to the proceedings;
(c) For securing that any party to the proceedings shall, if so required be entitled to be heard by the Tribunal;
(d) For enabling any party to the proceedings to be represented by a legal practitioner;
(e) Subject to the provisions of section 18 (6) of this Act, as to the costs of proceedings before the Tribunal
(f) For requiring in a case where it is alleged that the person who is subject of the proceedings is guilty of infamous conduct in any professional respect, that where the Tribunal adjudges that the allegation has not been proved, it shall record a finding that the person is not guilty of such conduct in respect of the matters to which the allegation relates;
(g) For publishing in the Journal notice of any direction of the tribunal which has taken effect providing that a person’s name shall be struck off a register.
3. For the purposes of any proceedings before the Tribunal, any member of the Tribunal may administer oaths and any party of the proceedings may issue out of the registry of the Court of Appeal writs of subpoena and testificandum and dunces rectum; but no person appearing before the Tribunal shall be compelled-
(a) To make any statement before the Tribunal tending to incriminate himself; or
(b) To produce any document under such a writ which he could not be compelled to produce at the trial of an action.
4. For the purpose of advising the Tribunal on questions of law arising in the proceedings before it. There shall, in all such proceedings, be an assessor to the Tribunal who shall be appointed by the Council on the nomination of the Attorney-General of the Federation and shall be a legal practitioner of not less than ten years standing.
5. (1) The Attorney-General of the Federation shall make rules as to the functions of assessors appointed under this paragraph, and in particular such rules shall contain provisions for securing that-
(a) Where an assessor advises the Tribunal on any question of law as to evidence, procedure or any other matters specified by the rules, he shall do so in the presence of every party or person representing a party to the proceedings who appears thereat or, if the advice is tendered while the Tribunal is deliberating in private, that every such party of person as aforesaid shall be informed what advice the assessor has tendered.
(b) Every such party or person as aforesaid shall be informed if in any case the Tribunal does not accept the advice of the assessor on such a question as aforesaid.
(2) An assessor may be appointed under this paragraph either generally or for any particular proceedings or class of proceedings and shall hold and vacate office in accordance with the terms of the instrument by which he is appointed.
The panel
6. The quorum of the Panel shall be three
7. (1) The Panel may, at any meting of the panel attended by all the members of the Panel, make standing orders with respect to the panel.
(2) Subject to the provisions of any such standing orders, the panel may regulate its own procedure.
Miscellaneous
8. (1) A person ceasing to be a member of the Tribunal or the panel shall be eligible for re-appointment as a member of that body.
(2) A person may, if otherwise eligible, be a member of both the Tribunal and the Panel; but no person who acted as a member of the panel with respect to any case shall act as a member of the panel with respect to any case shall act as a member of the Tribunal with respect to case.
9. The Tribunal or the Panel may act notwithstanding any vacancy in its membership; and the proceedings of either bodies shall not be invalidated by any irregularity in the appointment of a member of that body, or (subject to paragraph 8 (2) of this Schedule) by reason of the fact that any person who was not entitled to do so took part in the proceedings of that body.
10. Any document authorized or required by virtue of this Act to be served on the Tribunal or the panel shall be served on the Registrar appointed in pursuance of section 8 of this Act.
11. Any expenses of the Tribunal or the panel shall be defrayed by the Institute.
EXPLANATORY NOTE
This Act seeks to establish the Institute of Chartered Economists of Nigeria and charges it with the responsibility for determining the standard of knowledge and skill to be attained by persons seeking to become Chartered Economist.
It further seeks to establish the Governing council of the Institute which shall have the responsibility of managing the Institute and setting the standard of education.
www.icennig.org/icenbill.htm, http://www.icennig.org/contactus.htm
FOR
AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF THE INSTITUTE OF CHARTERED ECONOMISTS OF NIGERIA TO PROVIDE FOR AMONG OTHER THINGS, THE REGULATION, CONTROL AND TO DETERMINE THE STANDARDS OF KNOWLEDGE TO BE ATTAINED BY PEOPLE SEEKING TO BECOME CHARTERED ECONOMISTS AND FOR CONNECTED PURPOSES.
Sponsor: Sen. Ibrahim Umar Tsauri
(Kastina Central)
Commencement Establishment of the Institute of Chartered Economists
1. (1) There is hereby established a body to be known as the Institute of Chartered Economists of Nigeria (in this Act referred to as the “Institute”) which shall be a body corporate under the name and be charged with the general duties of:
(a) Determining what standards of knowledge and skill are to be attained by persons seeking to become registered as Chartered Economists and raising those standards from time to time as circumstances may permit:
(b) Securing in accordance with the provisions of this Act the establishment and maintenance of a register of members, and the publication from time to time of the list of those persons; and
(c) Provide an umbrella organization national and international in scope for all economists, treasurers, and financial officers’ etc. working in both the public private sectors of the economy.
(d) Unite all holders of and/or foreign qualification in economics and related disciplines employed as economists in the public sector, industry and commerce.
(e) Ensure that the study and practice of the art and science of economics are done professionally in Nigeria.
(f) Provide consultancy services on economic matters to the public as well as the private sector;
(g) Hold conferences, workshops seminars and symposia on contemporary economic issues;
(h) Performing any other duties as the council may deem fit from time to time.
(2) The institute shall be professional body corporate with perpetual succession and a common seal, which shall be kept in such custody as the council may, from time to time, authorize.
(3) The institute may sue and be sued in its corporate name and may, subject to the land use Act, hold, acquire and dispose of any property, movable or immovable.
Establishment and composition of the Government Council of the Institute
2. (1) There is hereby established for the institute a Governing Council of the Institute (in this Act referred to as “the Council”) which shall be charged with the responsibility for the administration and general management of the institute.
(2) Subject to the provision of this Act, the council shall consist of:
(a) The National President of the Institute, who shall be the Chairman
(b) The National Vice-President of the Institute, who shall be the Vice-Chairman,
(c) Two persons from Institution of higher learning offering courses leading to relevant qualifications such that the two representatives does not come from the same institution;
(d) Two persons each from the six geopolitical Zones.
(e) All members of the Board of trustees
(f) Ten persons from affiliated professional bodies in the Country in rotation;
(h) Immediate past President of the Institute shall be entitled to serve on the Council for a maximum period of two years from the expiration of his term of office.
(i) The Registrar of the Institute who shall also be the Executive Secretary to the Council.
(3) The council may advisedly an increase to the membership of the council as may be deemed fit when necessary.
(4) The provisions set out in schedule 1 to this Act shall have effect to the qualifications and tenure of office of members of the council and the other matters therein mentioned.
3. (1) There shall be for the institute a President, 1st Vice-President and 2nd Vice-President who, shall be members of the institute, elected at the Annual General Meeting of the institute and shall hold office each for a term of two years renewable for not more than one term
(2) The President shall be chairman at meetings of the council, however, in the event of death, incapacity or inability for any reason of the President, the Vice-President shall act in his stead for the unexpired period of term of the term office as the case may require, and the reference in this Act to the President shall be construed accordingly.
(3) The President and the 1st Vice-President shall respectively be Chairman and Vice-Chairman of the council established by Section 2 of this Act.
(4) If the President, 1st and 2nd Vice-President ceases to be a member of the institute, he shall Ipso facto cease to hold any offices designated under this Section.
4. (1) There is hereby established for the Institute a Board of Trustees which membership shall-
(a) be for life
(b) not be subjected to any election; and
(c) ensure that in the event of death of a member, the Board shall appoint a successor.
(2) The Board shall comprise of –
(a) A Chairman
(b) A Vice Chairman
(c) A Secretary.
(d) Other Trustee Members.
(3) The Board of trustees shall be the highest law making body of the institute and it shall hear and determine complaints that be brought before it by member (who are arrears of their subscriptions and (levies) Its decision on any issue is not subjected to any further debate.
(4) The Board shall hold its meeting, from time to time as may be scheduled by the Board.
(5) A member of the Board shall be present during the meetings of the Council.
(6) No decision or resolution taken by the Council shall be subjected to the scrutiny of the Board.
(7) No member of the Board shall dispose any policy matter except with prior approval of the Board.
(8) Where disciplinary Committee is unable to resolve any matter brought before it shall refer the matter to the Council. In the event that the Council is unable to resolve same, it shall in turn refer it to the Board and any decision taken on the matter shall be final.
5. (1) Members of the institute shall be drawn from diverse professions with work in areas of the economics and related matters including Sciences, Engineering, Management Arts, Health and Social Sciences, Law etc.
(2) Subject to the Provision of this Act, members admitted into the Institute shall possess adequate interest, knowledge and understanding of the economics and related matters and must be registered as members according to their disciplines in the category of-
(i) Fellows
(ii) Associate
(iii) Graduate diploma
(3) Subject to the provision of this Act, the privileges and invitations of members of the institute shall be as follows
(a) The use of abbreviation Institute of Chartered Economists of Nigeria (ICEN).
(b) The right to affix a member seal and stamp on every document endorsed by or emanating form them.
(c) Members in the class of fellow shall be entitled to use the abbreviation of “FCE” (Fellow Chartered Economists)
(d) Members in the class of Associate shall be entitled to use the abbreviation “ACE” (Associate Chartered Economists)
(e) Members in the class of Graduate Diploma shall be entitled to use the abbreviation “ICEN, DIP” (Institute of Chartered Economists, Diploma)
(f) Fellow shall be the highest grade in the institute;
(4) No other title or abbreviation shall be used to describe membership of the institute.
(5) The provisions of schedule 2 this Act shall, so far as applicable to the question of admission to the institute, have effect with respect to the categories of members listed in Subsection(2) of this Section.
6. (1) It shall be the duty of every registered member of the institute to abide by the rules, regulations, code of conduct and any other policy established by the institute for the purpose of sound practice. Every member of the institute shall be bound to further to the best of his ability and judgment the objects, purposes and interest of the institution.
(2)Every member of the institute shall subject to Section 9 and 10 of this Act, comply with the code of conduct set out by the council in schedule 3 to this Act
(3) Every member shall also order his conduct as to uphold the dignity and reputation of the institute and shall observe the provision of this Act and other regulation as may be enacted by the institute of minister.
7. The institute shall have the following incidental powers, that is to say, it may-
(a) Obtain from any authority or persons, charters, and concessions necessary for the attainment of its purposes;
(b) Acquire from any person, government, body or organizations, by way of gift, purchase, exchange or lease whether absolutely in trust, any property, real or personal, requite or necessary to carry the objects of the Institute, with power, subject to any trust, to hold or dispose of any such property;
(c) Borrow money and grant loans with the approval of the Council without prejudice to any other provision of this Act relating to the provisions of funds;
(d) Do and perform anything necessary in the opinion of the institute, to further the purpose and attain the objects of the institute;
(e) Acquire any such shares, stocks, debentures, bond, notes, obligations or securities by original subscription, tender purchases, exchange or otherwise and subscribe for the same either conditionally or otherwise, and under written or guarantee the subscription thereof and exercise and enforce all rights and powers conferred and incidental to the ownership thereof.
8. (1) The council shall establish and maintain a fund into which shall be paid all monies received by the council. The management and control of the fund shall be by the council.
(2) The revenue of the institute shall be-
(a) All fees and other monies payable to the council in pursuance of this Act;
(b) All relevance from other sources both locally and internationally
(3) There shall be paid out of the fund of the institute-
(a) All expenditure incurred by the council in the discharge of its functions under this Act.
(b) Remunerations and allowance of the Registrar and other staff of the institute; and
(c) Such reasonable traveling subsistence allowances of members of the council, committee members and other co-opted persons in respect of the time spent on duties of the council as applicable to similar institutes.
(d) The Council may invest moneys of the fund in any security created or issued by or on behalf of the federal government or in any other security in Nigeria’s
9. (1) The council shall keep proper accounts and records on behalf of the institute in respect of each year; and the council shall cause the accounts to be audited by an Auditor appointed from the list of auditors and in accordance with the guidelines supplied by the Auditor-General of the Federation.
(2) The auditor appointed for the purposes of subsection(1) of this section shall not be a member of the council.
10. The council shall prepare and submit to the council not later than twelve month of its establishment and once in a year thereafter, a report on the activities of the council in the last preceding year and shall include in the report a copy of the audited accounts of the council for that year and of the auditor’s report thereon.
11. (1) It shall be the duty of the council to appoint-
(a) A fit and proper person who shall be a member of the institute to be the registrar for the purposes of this Act; and
(b) Such other persons as the institute may, from time to time, deem necessary to work and perform functions as specified by the council.
(2) It shall be the duty of the Registrar to prepare and maintain in accordance with rules made by the council, a registrar of names, addresses and approved qualifications and of such other particulars, as may be specified in the rules of all persons who are entitled in accordance with the provisions of this Act to be registered as members of the institute.
(3) The register shall consist of parts established according to professional disciplines approved by council. Council shall review parts of the disciplines as need arises.
(4) The council may make regulations with respect to the form and keeping of the register and the making of entries therein and in particular-
(a) Regulating the making of applications for or registration, and providing for the evidence to be produced in support of applications;
(b) Providing for the notification to the Registrar, by the person to whom any registered particulars relate, of any change in those particulars;
(c) Authorizing a registered person to have any qualification which is in relation to economics, either an approved qualification so registered;
(d) Specifying the fees, including any registration fees, to be paid to the institute in respect of the entry of names on the register and authorizing the registrar to refuse to enter a name on the register until any fee specified for the entry has been paid.
(5) Any rules made for the purposes of paragraph (d) of subsection (4) of this section shall not come into force until they are approved by the Annual General Meeting (AGM).
12. The Registrar shall perform the following duties-
(a) Correct, in accordance with the direction of the council, any entry in the register, which the council, directs him to correct as being in the opinion of the council an entry, which was incorrectly made;
(b) Make from time to time, any necessary alterations to the registered particulars of registered persons;
(c) Record the names of members of the institute who are in debt for more than six months in the payment of annual or practicing fee and to take such action in relation thereto (including removal of the name of defaulter from the register) as the council may be direct or require;
(d) Cause the register to be printed, published and put out on sale to members of the public not later than two years from the commencement of this Act;
(e) In each year after that in which a register is first published under paragraph (d) of this subsection, to cause to be printed, published and put on sale as afore said, either a corrected edition of the register or list of alterations made to the register since it was last printed, and;
(f) Cause a print of each edition of the register and of each list, corrections to be deposited at the headquarters of the institute, and it shall be the duty of the council to keep the register and list so deposited, available at all reasonable times for inspection by members of the public.
13. (1) A person shall be deemed to practice as a Chartered economists if-
(a) Engages himself in work in the areas of economics and related matters within any of the diverse profession including sciences, engineering, management, law, social and health sciences; etc
(b) Such work shall for the purposes of registration be designated as approved by the council; or
(c) Renders any other service which may by regulation made by the council with the approval of the council be designated as service constituting practice as Chartered Economists.
14. (1) The council may make rules for-
(a) Prescribing the amount and date of the annual practicing fees;
(b) Prescribing the form of license to practice to be issued;
(c) Restricting the right to practice as a member in default continues for longer than such period as may be prescribed by the council;
(d) Restricting the right to practice as a member if the qualification granted outside Nigeria does not entitled the holder to practice as a Chartered Economists;
(e) Prescribing the period of practical training and experiences in the office of a member in practice, to be completed before a person qualifies for registration or a license to practice as chartered economists.
(2) Rules when made shall, if the chairman of the council so direct be published in the Institute Journal.
15. (1) Any regulations made under this Act, shall be published in the Institute Journal as soon as or after they are made; and the council shall lay a copy of any such regulations before the Annual General Meeting as soon as or after they are so published.
(2) Rules made for the purposes of this Act shall be published to all members of institute.
16. (1) The headquarters of the institute shall be established and maintain in a suitable location in Nigeria
(2) The council may make rules providing for the establishment and maintenance of offices of the institute in the State of the Federation.
17. (1) There shall be established a standing ethics/Disciplinary Tribunal (in this Act referred to as “the Tribunal”) which shall be charged with the duty of considering and determining any referred to it by the panel under subsection (3) of this section and any other case which the Tribunal has cognizance under the following provision of this Act.
(2) The Tribunal shall consist of the council and four other members of the council elected by the council
(3) There shall be an adhoc Investigation Panel (in this Act referred to as the “Panel”) which shall be charged with duty-
(a) Conducting a preliminary investigation into any case where it is alleged that a member of the institute has misbehaved in his capacity as a member;
(b) Submitting a report of their investigation to the Tribunal.
(4) The panel shall be appointed by the council and shall consist of two members of the council. The chairman of the panel shall be one of the council members, and one non-council member shall be in the relevant discipline of the member being investigated.
(5) The provisions of schedule 4 to this Act shall, so far as they are applicable to the Tribunal and panel respectively, have effect with respect to those bodies.
(6) The council may further to section 6 of this Act, make rules not inconsistent with this Act, as to acts which constitute professional misconduct.
18. (1) Where-
(a) A member registered under this Act is adjudge by the Tribunal to be guilty of an act under section 18 (2) of the offences and penalties or contravenes the code of conduct of the institute as specified in schedule 3;
(b) A member convicted, by any court in Nigeria or elsewhere having power to award imprisonment of an offence (whether or not punishable with imprisonment) which in the opinion of the Tribunal is incomplete with his states in the institute, or
(c) The tribunal is satisfied that the name of any person has been fraudulently registered
(2) The Tribunal may, if it deems fit, give a direction reprimanding that person or ordering the registrar to strike his name off the relevant part of the register.
(3) The Tribunal may, if it deems fit, defer or further defer its decision as to the giving of a direction under the foregoing subsection until a subsequent meeting of the Tribunal, but-
(a) No decision shall be deferred under this subsection for periods exceeding one year in the aggregate; and
(b) So far as possible no person shall be a member of the Tribunal for the purpose of reaching a decision present as a member of the Tribunal when the decision was deferred.
(4) For the purposes of section 18(1), a person shall not be treated as convicted as therein mentioned unless the conviction stands at a time when no appeal or further appeal is pending or may (without extension of time) be brought in connection with the conviction.
(5) When the Tribunal gives a direction under section 18(1), the Tribunal shall cause notice of the direction to be served on the person to who it relates.
(6) The person to whom such direction relates may, at anytime within twenty-eight days from the date of service on him of notice of the direction, appeal against the direction to the Federal High Court, and the tribunal may appear as respondent to the appeal and for the purpose of enabling directions to be given as to the costs of the appeal and of proceedings before the tribunal, the tribunal shall deemed to be a party thereto whether or not if appears on the hearing of the appeal.
(7) A direction of the tribunal given for the purpose of section 18(1) shall take effect-
(a) Where no appeal under this section is brought against the direction within the time limited for such an appeal, on the expiration of that time, or
(b) When such an appeal is brought as is withdrawn or struck out for want of prosecution, or the withdrawal or striking out of the appeal;
(c) Where such an appeal is brought and is not withdrawn or stuck out as aforesaid if and when the appeal is dismissed.
(8) A person whose name is removed from the register in pursuance of a direction of the Tribunal under this section shall not be entitled to be registered against except in pursuance of a direction in that behalf given by the Tribunal on the application of that person.
(9) A direction under this section for the removal of a person’s name from the register may prohibit an application under subsection 8 of section by that person until the expiration of such period from the date of the direction (and where he has duly made such an application from the date of his last application) as may be specified in the direction.
19. (1) If any person for the purpose of procuring the registration of any name, qualification or other matter-
(a) Makes a statement which he knows to be false in a material particular; or
(b) Recklessly makes a statement which is false in a material particular; he is guilty of an offence
(2) If any member deliberately betrays the trust of his clients by such as collecting remuneration for services not rendered or certification of jobs, which do not meet specifications; he is guilty of an offence.
(3) If on or after the relevant date of the enactment of this Act, any person who is not a member of the Institute practices as Chartered Economists for or in expectation of reward or takes or uses any name, title, addition or description implying that he is in practice as a Chartered Economists he is guilty of an offence.
(4) If the Registrar or any other person employed by or on behalf of the Institute willfully makes any falsification in any matter relating to the register; he is guilty of an offence
(5) A person guilty of an offence under this section is liable-
(a) On summary conviction, to a fine of an amount not exceeding N50,000 or;
(b) On conviction to his name being removed from the register, or
(c) On conviction or indictment, to a fine of an amount not exceeding N200,000 or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.
20. In this Act, unless the context otherwise requires-
“Board” means the Board of Trustees
“Council” means the Council established as the governing body of the Institute under section 2 of this Act;
“Fees” includes registration fee and annual practicing fee;
“Institute” means the Institute of Chartered Economists of Nigeria (ICEN) under section 1 of this Act;
“Member” means individual member of the Institute;
“Ethics/Disciplinary Committee” has the meaning assigned thereto by section 9 of this Act;
“President” and “Vice President” means respectively the office holder under those names in the Institute;
“Register” means the register maintained in pursuance of section 8 of this Act;
“Profession” means the profession in the areas of Economics and sciences, and related disciplines;
“He” means a male of female member as the case may be.
21. This Bill may be cited as the Institute of Chartered Economists of Nigeria (Establishment, etc) Bill 2006.
SCHEDULES
SCHEDULE 1Section 2
SUPPLEMENTARY PROVISIONS RELATING TO THE COUNCIL AND THE INSTITUTE
Qualifications and Tenure of Office of members
1. Subject to the provisions of this paragraph, a member of Council shall hold office for a period of two years beginning from date of his appointment or election.
2. In the case of a person who is a member by virtue of having been President of the Institute, he shall hold office for period of two years from the date of having ceased to be President of the Institute.
3. Any member of the Institute, who ceases to be a member thereof, if he is also a member of the Council, shall cease to hold office on the Council.
4. Any elected member may, by notice in writing under his had addressed to the President of the Institute, resign his office, and any appointed member may, with the consent of the President, in the same manner resign his office.
5. A person who retires from or otherwise ceases to be an elected member of the Council shall be eligible again to become a member of the Council and any appointed member may be reappointed.
6. Members of the Council shall at its meeting before the annual meeting of the Institute arrange for the five members of the Council appointed or elected and longest in office to retire at that annual meeting.
7. Elections of officers of the Council shall be held in such manner as may be prescribed by rules made by the Council.
8. If for any reason there is a vacation of office by a member-
(a) Such member was appointed by the Council, and shall appoint another fit and proper person to replace such member; or
(b) The Council may, if the time between the unexpired portion of the term of office and the next meeting of the Institute appears to warrant the filling of vacancy, direct the appoint or for a replacement of the member for the unexpired term.
Powers of Council
2. The Council shall have power to do anything, which in its opinion is calculated to facilitate the carrying on of the activities of the Institute.
3. (1) Subject to the provisions of this Act, the Council may in the name of the Institute make standing orders regulating the proceedings of the Institute, the Council or any of the Committees of the Council or Institute.
(2) The standing orders shall provide for decisions to be taken by a majority of the members, and in the event of equality of votes, the President of the Institute, as the case may be, shall have a second or casting vote.
(3) The standing orders made for a committee shall provide that the committee reports back to the council for ratification.
(4) The quorum of the Council shall be seven including the President and the quorum of a committee of the Council shall be determined by the council.
ANNUAL GENERAL MEETING OF THE INSTITUTE
4. (1) The Institute shall meet once a year.
(2) The Council shall convene the annual meeting of the Institute on a specific date to be determined by the Council every year or not later than fifteen months between respective dates of two meetings.
(3) The AGM shall elect the President, 1st and 2nd Vice-President of the Institute and approve the budget, work programme of the Council and rules made by the Council in accordance with Section 8 (5) of this Act.
Meeting Of The Council
5. (1) Council shall meet at least twice a year.
(2) Subject to the provisions of any standing orders of the Council, the Council shall meet whenever it is summoned by the Chairman; and if the chairman is required to do so by notice in writing given to him by not less than seven other members, he shall summon a meeting of the Council to be held within seven days from the date on which the notice is given.
(3) At any meeting of the Council, the Chairman or in his absence, the Vice-Chairman shall preside.
(4) Where the Council desires to obtain the advice of any Person on a particular matter, the council may co-opt him as a member for such period as the Council thinks fit; but a person who is a member by virtue of this sub-paragraph, shall not be entitled to vote at any meeting of the Council and shall not count towards a quorum.
(5) Notwithstanding, anything in the foregoing provisions of this paragraph, the President shall summon the inaugural meeting of the Council.
Committees
6. (1) The Council shall appoint the following standing committees.
(a) Admission and registration committee;
(b)Education and training committee;
(c) Ethics/disciplinary tribunal committee
(d) Finance and general purpose committee
And such other ad-hoc committees to carry out on behalf of the Council, such functions as the Council may determine.
(2) A committee appointed under this paragraph shall consist of the number of persons determined by the Council of whom not more than one third be person who are not members of the Council shall hold office on the committee in accordance with the terms of the letter by which he is appointed.
(3) Seventy percent of membership of this committee shall be drawn from registered members outside Council who are professionally competent to be so appointed. Membership of any standing committee shall not be less than five and not more than seven and shall be chaired by a Council member so appointed.
(4) A decision of a committee of the Council shall be of no effect until the Council considers and ratifies or approves it.
Miscellaneous
7. (1) The fixing of the seal of the Institute shall be authenticated by the signature of the President of the Institute.
(2) Any contract or instrument which, if made or executed by a person not being a body corporate, would not be required to be under seal, may be made or executed on behalf of the Institute or of the Council, as the case may require, by any person generally or specially authorized to act for that purpose by the Council.
(3) Any document purporting to be a document duly executed under the seal or authorization of the Council shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.
8. The validity of any proceeding of the Institute or the Council or of a committee of the Council shall not be adversely affected by any vacancy in membership, or by any defect in the appointment of a member of the Institute or of the Council or of a person to serve the committee or by reason that a person not entitled to do so took part in the proceeding.
9. Any member of the Institute or of the Council, and any person holding office on a committee of the Council, who has a personal interest in any contract or arrangement entered into or proposed to be considered by the Council on behalf of the Institute, or on behalf of the Council or a committee thereof, shall forthwith disclose his interest to the Council of the Institute and shall not vote on nay question relating to the contract or arrangement.
SCHEDULE 2
Section 4 (5)
SUPPLEMENTARY PROVISIONS RELATED TO THE
ADMISSION OF MEMBERS INTO THE INSTITUTE.
1. (1) Subject to sections 4(2) and 4(5) of this Act, admission of members into the Institute shall be registration.
(2) A person accorded by the Council established by this Act, status as a chartered economists shall be entitled to the use of that name and shall be registered as-
(a) A member if:
(i) He holds qualification(s) approved by the Council or,
(ii) He passes the qualifying examination for registration recognized or conducted by the Institute under this Act and completes the practical training prescribed. However, the admissions committee may consider waiving certain aspects subject to Council approval or,
(iii) He has sufficient practical experience in economic related work of at least five years and holds a testimonial/certificate of experience from the Institute of Chartered Economists or he is a member of the Institute and has been so recommended; a higher degree in relevant field would normally account for 2 and 3 years of experience for masters and PhD respectively or,
(iv) He holds the relevant professional registration from outside Nigeria and is acceptable to the Council provided there are no encumbrances thereto.
(3) An applicant for registration under this Act shall in addition to evidence of qualification, satisfy the Council that-
(a) He is of good character
(b) He has attained the age of 21 years; and
(c) He has not been convicted in Nigeria or elsewhere of an offence involving fraud, dishonesty or any other criminal conduct.
(4) The Council shall, from time to time, publish in the Journal, particulars of qualifications accepted for registration by the Institute.
(5) The Institute shall conduct continuing education programmes to upgrade the skills and competence of members.
(6) The continuing education and training committee of the Institute shall conduct training for the qualifying examination required for registration.
(7) The Institute shall provide and maintain a library comprising standards, regulatory laws and policy, books, publications for the promotion and advancement of knowledge in Economics and such other books and publications that the Council may deem fit.
(8) The Institute shall encourage research into economics and allied subjects to the extent that the Council may from time to time determine.
SCHEDULE 3
Section 5
CODE OF CONDUCT FOR MEMBERS
Every member of the Institute when discharging his professional duty shall abide by the code of conduct. The Council as may be deemed necessary may from time to time review this code of conduct.
A member shall:
(1) Not accept professional obligations which he believes he has not sufficient competence and authority to perform;
(2) Accept due responsibility for all work done by him or under his direct supervision and shall take all reasonable steps to ensure that persons working under his authority and supervision are competent and dutiful to carry out the tasks assigned to them;
(3) When called upon to give an opinion in his professional capacity and based on the facts disclosed to him, give an opinion that is objective and reliable to the best of his ability;
Membership by registration
(4) If his professional advice is not accepted, take all reasonable steps to ensure that the person or body over-ruling or neglecting his advice is aware of the possible consequences which may arise there from;
(5) Take all reasonable care in his professional capacity to minimize the risk of any mishap or damage to the practice of economics and shall respect all laws and statutory regulations;
(6) Not maliciously or recklessly injure or attempt to injure whether directly or indirectly the professional reputation of another;
(7) Not improperly solicit work as an independent adviser of consultant, either directly or by an agent, or shall he improperly pay any person, by commission or otherwise, for the introduction of such work;
(8) Who works in a country other than Nigeria, shall order his conduct according to this Act; but where there are different standards of professional conduct and practice in that country which are recognized and Acceptable by the Council, he shall adhere to both standards;
SCHEDULE 4
Section 13
SUPPLEMENTARY PROVISIONS RELATED TO THE ETHICS/DISCIPLINARY TRIBUNAL AND INVESTIGATION PANEL OF THE TRIBUNAL
1. The quorum of the Tribunal shall be three including the President of the Institute.
2. (1) The Attorney-General of the Federation may make rules as to the selection of members of the Tribunal for the purposes of any proceeding and as to the procedure to be followed and the rules of evidence to be observed in proceedings before the Tribunal.
(2) The rules shall in particular provide-
(a) For securing that notice of the proceedings shall be given at such time and in such manner as may be specified by the rules, to the person who is the subject of the proceedings;
(b) For determining who in addition to the person aforesaid, shall be party to the proceedings;
(c) For securing that any party to the proceedings shall, if so required be entitled to be heard by the Tribunal;
(d) For enabling any party to the proceedings to be represented by a legal practitioner;
(e) Subject to the provisions of section 18 (6) of this Act, as to the costs of proceedings before the Tribunal
(f) For requiring in a case where it is alleged that the person who is subject of the proceedings is guilty of infamous conduct in any professional respect, that where the Tribunal adjudges that the allegation has not been proved, it shall record a finding that the person is not guilty of such conduct in respect of the matters to which the allegation relates;
(g) For publishing in the Journal notice of any direction of the tribunal which has taken effect providing that a person’s name shall be struck off a register.
3. For the purposes of any proceedings before the Tribunal, any member of the Tribunal may administer oaths and any party of the proceedings may issue out of the registry of the Court of Appeal writs of subpoena and testificandum and dunces rectum; but no person appearing before the Tribunal shall be compelled-
(a) To make any statement before the Tribunal tending to incriminate himself; or
(b) To produce any document under such a writ which he could not be compelled to produce at the trial of an action.
4. For the purpose of advising the Tribunal on questions of law arising in the proceedings before it. There shall, in all such proceedings, be an assessor to the Tribunal who shall be appointed by the Council on the nomination of the Attorney-General of the Federation and shall be a legal practitioner of not less than ten years standing.
5. (1) The Attorney-General of the Federation shall make rules as to the functions of assessors appointed under this paragraph, and in particular such rules shall contain provisions for securing that-
(a) Where an assessor advises the Tribunal on any question of law as to evidence, procedure or any other matters specified by the rules, he shall do so in the presence of every party or person representing a party to the proceedings who appears thereat or, if the advice is tendered while the Tribunal is deliberating in private, that every such party of person as aforesaid shall be informed what advice the assessor has tendered.
(b) Every such party or person as aforesaid shall be informed if in any case the Tribunal does not accept the advice of the assessor on such a question as aforesaid.
(2) An assessor may be appointed under this paragraph either generally or for any particular proceedings or class of proceedings and shall hold and vacate office in accordance with the terms of the instrument by which he is appointed.
The panel
6. The quorum of the Panel shall be three
7. (1) The Panel may, at any meting of the panel attended by all the members of the Panel, make standing orders with respect to the panel.
(2) Subject to the provisions of any such standing orders, the panel may regulate its own procedure.
Miscellaneous
8. (1) A person ceasing to be a member of the Tribunal or the panel shall be eligible for re-appointment as a member of that body.
(2) A person may, if otherwise eligible, be a member of both the Tribunal and the Panel; but no person who acted as a member of the panel with respect to any case shall act as a member of the panel with respect to any case shall act as a member of the Tribunal with respect to case.
9. The Tribunal or the Panel may act notwithstanding any vacancy in its membership; and the proceedings of either bodies shall not be invalidated by any irregularity in the appointment of a member of that body, or (subject to paragraph 8 (2) of this Schedule) by reason of the fact that any person who was not entitled to do so took part in the proceedings of that body.
10. Any document authorized or required by virtue of this Act to be served on the Tribunal or the panel shall be served on the Registrar appointed in pursuance of section 8 of this Act.
11. Any expenses of the Tribunal or the panel shall be defrayed by the Institute.
EXPLANATORY NOTE
This Act seeks to establish the Institute of Chartered Economists of Nigeria and charges it with the responsibility for determining the standard of knowledge and skill to be attained by persons seeking to become Chartered Economist.
It further seeks to establish the Governing council of the Institute which shall have the responsibility of managing the Institute and setting the standard of education.
..ICEN should cease its operation, and beg for फोर्गिवेनेस..
ICEN; QUO VADISThere is a common saying that spells “look before you leap” which presupposes the need for critical evaluation before embarking on any activity. It is quite unfortunate that we revolve in a society where we tend to follow the bandwagon of the joneses as the English will call it. The hunch is not being part of a thing, but being part of a relevant and recognized thing, this brings us to the discourse of today; the unquenchable appetite for the accumulation of certificates, in lieu to these; can economics as a discipline go ‘chartered’ even though it is not a professional course? Well that is a food for thought. The institute of chartered economists of Nigeria (ICEN) is a professional body set up by a group of persons who just want to be pioneers of a work-in progress, without properly evaluating both sides of the coin. I, for a good number of reasons disagree intoto with the idea behind the conception, formation and operation of the body. It is axiomatic to say that the ICEN has little or no industrial acceptance in our small but growth-potential economy unlike other professional bodies namely; ICAN, CIBN, CISA, ACA, CIMA, NIMN, SAP, and the like. It is simply because economics as a course of study is developmental in curricular and as such relatively research-oriented than courses in management sciences especially accounting. Accounting for instance is a basic industrial application required for use in any company or organization. Designed in a way that people from different areas of study can be part of it, same applies to management generally. Besides who accepts ICEN in the Nigerian labour market and beyond, unlike other professional bodies highlighted above. the Nigerian economic society (NES) is the body charged with the responsibility of regulating the practice of economics in Nigeria, other similar bodies include the Nigerian society of engineers(NSE),Nigerian medical association(NMA),Nigerian institute of statisticians(NIS),COREN and a host of others too numerous to mention. so if one aspires to becomes recognized locally and internationally in the practice of economics, then he/she must have a first degree in economics, possibly a second degree so as to be accepted as a life member of the NES. there are other professional bodies that ensures that the relevance of economists and economics is made consistent, they are: African econometric society(AES),African economic research consortium(AERC), Nigerian institute of social and economic research(NISER), Centre for econometric and applied research(CEAR), African institute of applied economics(AIAE) and so on.One cannot be regarded as a true economist if he/she does not contribute in the policy making, prescription and implementation process either in the private or public sector or both, and that can only be possible through and research which has a direct impact on development, with these and much more, you will agree with me that as a professional in the area of accounting and management, you don’t need to comply by the aforementioned. a click away from the present will usher in an era of complete craze for setting up unnecessary professional bodies, and then who knows, mathematics, statistics, physics, industrial chemistry, microbiology, political science, psychology, sociology, geography, engineering and agricultural sciences to mention a few will go ‘chartered’My sincere advice to the pioneers, inducted members, students and prospective students is that the name chartered is not just a nomenclature, but denotes something of a kind, as a matter of fact and transparency, the ICEN should cease its operation, and beg for forgiveness. the time has come for the truth to be told amid the circumstances.
Nigerian Economy In The 21st Century
The Nigerian Economy In The 21st CenturyToday:Wednesday, September 09, 2009
By
B.J.St Matthew-Danial
The challenges confronting the Nigerian econ omy in the 21st Century are diverse and enor mous. The unacceptable state of Nigeria's economy is most galling given Nigeria's enormous endowments of natural and human resources. This is more so given the fact that Asian countries, such as Singapore and Malaysia, with similar colonial heritage and attributes attendant thereto, and simi lar natural resource endowments, have recorded significant successes in the development of their economies since 1965 when they were at par or even behind Nigeria.
Singapore, some 30 years later had a per capita income of some US $10,000; whilst that of Nigeria was US $300. Nigeria's eco nomic decline, especially during the last 20 years is illustrated by the fact that per capita income, which was US $1000 in 1965 had declined to US $300 by 1998. Within some 18 years, Nigeria had declined from being a low middle income country and amongst the fifty richest countries in the world to one of the 30 poorest.
The major causes of the decline in Nigeria's economic fortunes have been political instability and bad governance, most especially in the 1990s. Military rule in Nigeria, as has been the case in most other countries with prolonged military rule, led to economic and social stagnation and decline. Similarly, the advent of an elected government at the dawn of the 21st Century after almost three decades of military rule should afford Nigeria the opportunity to arrest the decline in her socio-eco nomic development and embark on economic revival.
This chapter examines the prospects and challenges ahead. There is no doubt that Nigeria is endowed with enormous human and natural resources which if efficiently harnessed and managed will ensure that Nigeria's immense potentials are realised. The Obasanjo Administration has pledged to provide efficient, transparent, honest and democratic gov ernance which will facilitate and enhance the process of reviving the Nigeria's economic fortunes pursuant to the Administration's economic pro gramme.
Chapter 5 provides an overview of the Nigerian economy since 1960 and the Administration's economic programme. Political changes facilitated to a great extent by advances in technology, especially in communica tions, have, especially during the last decade of the lage.
The demise of the Soviet Union coupled with the increasing acceptance by most countries, espe 's cially China and India, of market informed econom JS ic policies especially during the last two decades of is the 20th Century is transforming the world into a global village.
Economic liberalism is virtually the universal norm; and increasingly so, political liber ii- alism. This is not surprising given the logical con 'd sequences of the adoption by the world's most pop iir ulous countries of free market inspired economic or policies which are derived from liberal philosophy with its emphasis on the individual and freedom of choice.
Nigeria in the process of making up for the sub is stantial ground she has lost in her quest for devel :h opment, especially in the last 20 years, must do so )y within the context of a world economy charac >d terised by some significant features. These fea id tures include the following: (i) Advances in technology will continue at a rapid pace, and is more likely to be exponentially rather than arithmetically.
(ii) Investment in science and technology in will become more important than invest e, ment in equipment as investment in human capital will become the major at element of capital formation.
(iii) Information technology will become the main engine of economic growth. It will displace oil, just as oil displaced steel in the second half of the last century, as the main engine of economic growth.
(iv) Consumption of energy and primary raw materials per unit of manufactured out if put will continue to decline as a result of at advances in technology and environ ie mental factors.
(v) Production will increasingly be knowl v- edge based and an increasing propor ie tion of the knowledge will be privately owned and protected by various forms of intellectual property rights.
(vi) Increasing advances in information technology, especially in the telecom munications sectors, will quicken the pace of globalisation of finance and trade.
(vii) Environmental management, including conservation and orotection, will increasingly become a people driven rather than government driven process.
The Obasanjo Administration recognises that Nigeria's efforts to revive and grow her economy must be effected within the context of a world econ omy dominated by globalisation, liberalisation and technology; especially information technology. It also appreciates the imperative tor Nigeria, within the shortest possible time, to become integrated into the emerging 21st Century global economy. In this regard, the Administration must succeed in its efforts to attract investment, local and foreign, in the Nigerian Economy, once again .
The end of military rule, the advent of an elect ed civilian administration, the renewed national commitment to the nation's development coupled with the country's natural and human endowments provide the bases for optimism that the Administration will succeed in the efforts to attract foreign investment to hasten the process of eco nomic revival in Nigeria. However, the issue of Nigeria's debt burden must be satisfactorily resolved to enable the Administration meet its tar get of attracting net in flows of US.$10 billion per annum within the next 10 years for the purpose of providing required infrastructure, diversifying the economy and making the required investment in science and technology to enable the economy be competitive in the 21st Century. In addition, those policies and practices which hitherto hindered investment in the Nigerian economy must be removed.
The process of creating linkages between the productive sectors of the economy through the use of knowledge so as to facilitate the formulation of policies which will promote the adaptation and use of science and technology in production can then be meaningfully implemented. Through a combina tion of investment in the application of biological, mechanical and information technology (IT), pro duction in the agro allied sector can be enhanced.
The formulation of policies to ensure maximum use of the results of research findings and their delivery to farmers through the efficient use of IT for instance by way of interactive 2-way wireless con ference systems is imperative to enhance produc tivity in the agriculture sector.
Nigeria is well endowed with raw materials and natural resources which, with the application of appropriate technology and production processes, will promote linkages between her raw and natural resources, production capability, and industry. It is the continued lack of this linkage between the oil and gas sector and industry which has largely been responsible for the oil and gas sector being exoge nous to the rest of the economy. To promote this linkage, the Administration must implement as promptly as possible its proposal to deregulate the downstream sector of the oil and gas industry.
Again, the examples of Malaysia and Indonesia demonstrate the need for the prompt implementa' lion ot the proposal. The integration of the oil anc gas industry into the domestic economy will facili tale the emergence of a modern productive sectoi based on the knowledge industry. Thus, the contrr bution of the oil and gas sector to the Nigeriar economy will cease to be essentially that of £ provider of rent.
Brain power is already emerging as the majo engine of economic growth world-wide. This is true of both developing and developed countries, lr India, for instance, the export of computer software as of 1999 was already in excess of U.S. $2 billior and is set to be become India's largest expor industry before the end of the first decade of the 21st Century.
The impact of the information tech. nology industry on the domestic economy is aisc impressive and is responsible for creating new investment and employment opportunities in India Nigeria has those attributes which have attracted IT companies, such as Microsoft, to invest in the IT industry in India: large domestic market, skilled labour and extensive use and knowledge of the English language.
Focused and imaginative pro motional efforts by the Administration are desirable so as to attract investment in the IT sector. Such efforts must include the prompt and efficient imple mentation of its policy on the deregulation of the telecommunications industry so as to provide for an investor friendly industry with a responsive, consis tent and transparent regulatory regime.
The Administration's success or otherwise in implementing its economic agenda will determine the nature of Nigeria's participation in the 21st Century's emerging global and technology driven economy. What are the prospects that Nigeria will succeed in her quest to create and nurture an econ omy with the attributes that will ensure her partici pation in the emerging 21st Century global econo my along with the progressive and advanced economies of the world?
The essential ingredients for success exist. What is required is the will to suc ceed; and the prognosis is that it exists and will con tinue to impact positively on the process of eco nomic revival in Nigeria. Support for this view is provided by the renewed national commitment to succeed. In the words of Chief Philip Asiodu, Chief Economic Adviser to the President.
The imperatives for success are the will and the resolute commitment of the lead ership, the continuous striving for excel lence and to meet international standards; persistence - staying the course for as long as it takes to succeed, patience and, of course, doing every thing continuously to carry all stakeholders along.
No doubt, given the disappointments and degradation of the past, the goals and the required discipline may appear very ambitious, and the odds may appear daunting especially in the much harsher and more difficult world we are about to enter in the next millennium.
However, our own achievements in the 50s, 60s and 70s, and the recent Asian success stories demonstrate that those goals are achievable with our enormous resources and present leadership. We shall succeed.
By
B.J.St Matthew-Danial
The challenges confronting the Nigerian econ omy in the 21st Century are diverse and enor mous. The unacceptable state of Nigeria's economy is most galling given Nigeria's enormous endowments of natural and human resources. This is more so given the fact that Asian countries, such as Singapore and Malaysia, with similar colonial heritage and attributes attendant thereto, and simi lar natural resource endowments, have recorded significant successes in the development of their economies since 1965 when they were at par or even behind Nigeria.
Singapore, some 30 years later had a per capita income of some US $10,000; whilst that of Nigeria was US $300. Nigeria's eco nomic decline, especially during the last 20 years is illustrated by the fact that per capita income, which was US $1000 in 1965 had declined to US $300 by 1998. Within some 18 years, Nigeria had declined from being a low middle income country and amongst the fifty richest countries in the world to one of the 30 poorest.
The major causes of the decline in Nigeria's economic fortunes have been political instability and bad governance, most especially in the 1990s. Military rule in Nigeria, as has been the case in most other countries with prolonged military rule, led to economic and social stagnation and decline. Similarly, the advent of an elected government at the dawn of the 21st Century after almost three decades of military rule should afford Nigeria the opportunity to arrest the decline in her socio-eco nomic development and embark on economic revival.
This chapter examines the prospects and challenges ahead. There is no doubt that Nigeria is endowed with enormous human and natural resources which if efficiently harnessed and managed will ensure that Nigeria's immense potentials are realised. The Obasanjo Administration has pledged to provide efficient, transparent, honest and democratic gov ernance which will facilitate and enhance the process of reviving the Nigeria's economic fortunes pursuant to the Administration's economic pro gramme.
Chapter 5 provides an overview of the Nigerian economy since 1960 and the Administration's economic programme. Political changes facilitated to a great extent by advances in technology, especially in communica tions, have, especially during the last decade of the lage.
The demise of the Soviet Union coupled with the increasing acceptance by most countries, espe 's cially China and India, of market informed econom JS ic policies especially during the last two decades of is the 20th Century is transforming the world into a global village.
Economic liberalism is virtually the universal norm; and increasingly so, political liber ii- alism. This is not surprising given the logical con 'd sequences of the adoption by the world's most pop iir ulous countries of free market inspired economic or policies which are derived from liberal philosophy with its emphasis on the individual and freedom of choice.
Nigeria in the process of making up for the sub is stantial ground she has lost in her quest for devel :h opment, especially in the last 20 years, must do so )y within the context of a world economy charac >d terised by some significant features. These fea id tures include the following: (i) Advances in technology will continue at a rapid pace, and is more likely to be exponentially rather than arithmetically.
(ii) Investment in science and technology in will become more important than invest e, ment in equipment as investment in human capital will become the major at element of capital formation.
(iii) Information technology will become the main engine of economic growth. It will displace oil, just as oil displaced steel in the second half of the last century, as the main engine of economic growth.
(iv) Consumption of energy and primary raw materials per unit of manufactured out if put will continue to decline as a result of at advances in technology and environ ie mental factors.
(v) Production will increasingly be knowl v- edge based and an increasing propor ie tion of the knowledge will be privately owned and protected by various forms of intellectual property rights.
(vi) Increasing advances in information technology, especially in the telecom munications sectors, will quicken the pace of globalisation of finance and trade.
(vii) Environmental management, including conservation and orotection, will increasingly become a people driven rather than government driven process.
The Obasanjo Administration recognises that Nigeria's efforts to revive and grow her economy must be effected within the context of a world econ omy dominated by globalisation, liberalisation and technology; especially information technology. It also appreciates the imperative tor Nigeria, within the shortest possible time, to become integrated into the emerging 21st Century global economy. In this regard, the Administration must succeed in its efforts to attract investment, local and foreign, in the Nigerian Economy, once again .
The end of military rule, the advent of an elect ed civilian administration, the renewed national commitment to the nation's development coupled with the country's natural and human endowments provide the bases for optimism that the Administration will succeed in the efforts to attract foreign investment to hasten the process of eco nomic revival in Nigeria. However, the issue of Nigeria's debt burden must be satisfactorily resolved to enable the Administration meet its tar get of attracting net in flows of US.$10 billion per annum within the next 10 years for the purpose of providing required infrastructure, diversifying the economy and making the required investment in science and technology to enable the economy be competitive in the 21st Century. In addition, those policies and practices which hitherto hindered investment in the Nigerian economy must be removed.
The process of creating linkages between the productive sectors of the economy through the use of knowledge so as to facilitate the formulation of policies which will promote the adaptation and use of science and technology in production can then be meaningfully implemented. Through a combina tion of investment in the application of biological, mechanical and information technology (IT), pro duction in the agro allied sector can be enhanced.
The formulation of policies to ensure maximum use of the results of research findings and their delivery to farmers through the efficient use of IT for instance by way of interactive 2-way wireless con ference systems is imperative to enhance produc tivity in the agriculture sector.
Nigeria is well endowed with raw materials and natural resources which, with the application of appropriate technology and production processes, will promote linkages between her raw and natural resources, production capability, and industry. It is the continued lack of this linkage between the oil and gas sector and industry which has largely been responsible for the oil and gas sector being exoge nous to the rest of the economy. To promote this linkage, the Administration must implement as promptly as possible its proposal to deregulate the downstream sector of the oil and gas industry.
Again, the examples of Malaysia and Indonesia demonstrate the need for the prompt implementa' lion ot the proposal. The integration of the oil anc gas industry into the domestic economy will facili tale the emergence of a modern productive sectoi based on the knowledge industry. Thus, the contrr bution of the oil and gas sector to the Nigeriar economy will cease to be essentially that of £ provider of rent.
Brain power is already emerging as the majo engine of economic growth world-wide. This is true of both developing and developed countries, lr India, for instance, the export of computer software as of 1999 was already in excess of U.S. $2 billior and is set to be become India's largest expor industry before the end of the first decade of the 21st Century.
The impact of the information tech. nology industry on the domestic economy is aisc impressive and is responsible for creating new investment and employment opportunities in India Nigeria has those attributes which have attracted IT companies, such as Microsoft, to invest in the IT industry in India: large domestic market, skilled labour and extensive use and knowledge of the English language.
Focused and imaginative pro motional efforts by the Administration are desirable so as to attract investment in the IT sector. Such efforts must include the prompt and efficient imple mentation of its policy on the deregulation of the telecommunications industry so as to provide for an investor friendly industry with a responsive, consis tent and transparent regulatory regime.
The Administration's success or otherwise in implementing its economic agenda will determine the nature of Nigeria's participation in the 21st Century's emerging global and technology driven economy. What are the prospects that Nigeria will succeed in her quest to create and nurture an econ omy with the attributes that will ensure her partici pation in the emerging 21st Century global econo my along with the progressive and advanced economies of the world?
The essential ingredients for success exist. What is required is the will to suc ceed; and the prognosis is that it exists and will con tinue to impact positively on the process of eco nomic revival in Nigeria. Support for this view is provided by the renewed national commitment to succeed. In the words of Chief Philip Asiodu, Chief Economic Adviser to the President.
The imperatives for success are the will and the resolute commitment of the lead ership, the continuous striving for excel lence and to meet international standards; persistence - staying the course for as long as it takes to succeed, patience and, of course, doing every thing continuously to carry all stakeholders along.
No doubt, given the disappointments and degradation of the past, the goals and the required discipline may appear very ambitious, and the odds may appear daunting especially in the much harsher and more difficult world we are about to enter in the next millennium.
However, our own achievements in the 50s, 60s and 70s, and the recent Asian success stories demonstrate that those goals are achievable with our enormous resources and present leadership. We shall succeed.
KNOW MORE ABOUT ICEN (Institute of Chartered Economists of Nigeria )
The Institute of Chartered Economists of Nigeria was established by the Companies and Allied Matters Act, 1990, had the pioneering statutory rights to regulate the practice of Economics in Nigeria and still has these rights today.
OBJECTIVES
The objectives of the institute are:
a. To provide an organization, National and International in scope and activity for all economists, treasurers, financial officers in both public and private sectors of Nigeria economy.b. To unite all Nigerians holding local and foreign qualifications who are being employed as economists in the public services of the federation, industrial and commercial sectors.c. To ensure a professional status necessary to promote and encourage the study and development of the art and science of economics in public practices, industry, commerce and public sectors.d. To develop from time to time standards in economics and economic matters which will meet both Nigeria and International standards.e. To hold examinations in economics and other subjects relevant to the profession and to issue certificates of merit on the results therefore and to make other awards as desirable.f. To ensure the highest professional standard by admitting to membership, persons who qualified through examinations and who have practical experience.g. To regulate the activities of the members and discipline any member for professional misconduct.h. To hold conferences, workshops, seminars and symposia for discussion on economic matters and duties, presentation of papers, literature, and to issue copies of abridgment of position paper, books, lectures, records and other memoranda.i. To instill a high standard of professional ability by means of regular publication of journals of the institute and to disseminate professional economics knowledge.j. To practice as economists and to advise the government and the private sectors on economic matters.k. To help in regulating and establishing standard prices on essential commodities for the benefits of the public.l. The establishment and maintenance of register of Fellows, Associates, Technicians and Registered students.m. To provide opportunities for contacts between members of the institute or connected thereto professional organisation for chartered economists and to protect their mutual interest.n. To increase, disseminate and promote knowledge, education, training and exchange information and ideas in respect of all questions relating thereto.o. To make it mandatory for all students and graduates of economics to write the professional examination of the Institute in order to acquire higher professional status as chartered economists.Why Becoming a Professional Economists? There is no gainsaying the fact that education is fast becoming an essential commodity that everyone is aspiring to have. High unemployment rate coupled with severe economic crunch often necessitate people at the middle cadre to seek an alternative means of training themselves to acquire more skills while still retaining their jobs. The Institute therefore, serves as a viable option for such category of people because of its capacity to provide them with their professional training needs and at the same time guaranteeing them job security in their work places. Also Economics contributes a great deal towards the performance of managerial duties and responsibilities. Just as Biology contributes to the medical profession, Economics contributes to the managerial profession. All other qualifications being the same. Managers with a working knowledge of Economics can perform their functions more efficiently than those without it. The basic function of the managers of a business firm is to achieve the objective of the firm to the maximum possible extent with the limited resources placed at their disposal. The emphasis here is on the maximization of the objective and limitedness of the resources. Had the resources been unlimited, like sunshine and air, the problem of economizing on resources or resource management would have never been chosen. Resources at the disposal of a firm, whether finance, human or materials, are by all means limited. Therefore, the basic task of the management is to optimize the use of the resources. The Institute, therefore, has the pleasure to welcome you on board to her programmes.Rationale for the Professional Membership The need to truly professionalize economics makes it imperative for practising economists to acquire deeper knowledge of the job which they are doing. University graduates who have not been professionally trained and who are either economists or preparing to take up economists appointment will need to be trained as professional economists in order to fit well into the job.Categories of Membership. The members of the Institute comprises of:
(a) Those members who constitute the Institute at the commencement.
(b) Persons who qualify for admission, shall be admitted under procedures adopted by the Council and Board of Directors.Membership of the Institute are divided into five (5) categories:(a) Fellows (FCE)(b) Associate (ACE)
(c) Graduate Diploma (ICE, DIP)
(d) Studentship
(e) Economics Executive Scheme (EES)Fellow Membership This category of membership is reserved strictly for the founding members and few individuals who have proven ability as renowned professional economists in their various areas of endeavours or specialization. Also, at the recommendation and approval of the council, individuals who have offered services of a special nature to the Institute or who have made the Institute proud by way of their constructive and direct useful contribution to National Economic Policy Implementation thereby enhancing the country’s economic growth and development. Furthermore, an associate member of the Institute, having practiced (and with evidence of being in practice) can apply after ten (10) years of demonstration of practical ability to the council, for fellowship. Such application is subject to ratification and approval of the council must justify the laid down requirements for the award of a fellowship. Holders of the fellowship are entitled to use the abbreviations FCE (Fellow Chartered Economist) after their names.Associate MembershipThe associate membership of the Institute is awarded to:a. Candidates who have passed all sections of the professional examinations and have satisfied all other laid down requirements of the Institute for the award of an associate.b. After due consideration based on responsibility, experience, education and training by the council, Directors in Ministries and public parastatals, Chief Executives in the private sectors who are professionally inclined to economic matters and related disciplines may be awarded this category of membership.c. Professors of Economics and Ph.D holders in Economics. The award of this category of membership entitles the holders to use abbreviations ACE (Associate Chartered Economist) after their names. An ACE holder stands a chance of direct entry into any of our universities for an MBA programme.Graduate DiplomaThis category of membership is awarded to the following category of people:1. University Graduates of economics or related disciplines with a final grade of above average2. Holders of higher academic qualification (M.Sc, MBA, Ph. D) in other specialised fields but with a bias in economic matters.3. Members of other professional bodies such as ICAN, ANAN, ICPAN, CIBN, CIMA, ACEAN, ICCAN.4. An individual with cognate practical experience in economic matters or a related discipline but whose educational qualification is below a University degree (e.g NCE). This is a special case whose acceptance is solely at the discretion of the council.Requirements for Admission to MembershipThe following persons are qualified for admission as Members of the Institute:
(a) Those who hold a valid Chartered Economists Certificate issued by the Institute;
(b) Those who have passed an examination in economics and related subjects satisfactory to the Board of Directors and Council at an accredited University or College of Technology
(c). Those who are engaged in the practice of economics as proprietors, partners, or as employees who have been licensed as Chartered Economists for more than two years and are practicing in firms enrolled in Institute approved monitoring programmes;
(d) Those who have passed the examinations of the approved professional bodies.
(e) To qualify as an associate member of the Institute, the holder of a Graduate Diploma is expected to sit and pass the Associate Qualifying Professional Examination (PEIII) of the Institute.Student MembershipStudent membership of the Institute is open to anybody who possess any of the following qualifications:
1. The West African School Certificate (WAEC) with five credits in one or two sittings, with credit in Economics, Mathematics and English Language.
2. The National Examinations Council Certificate (NECO) as in (1) above.
3. National Business & Technical Examination Board Certificate as in (1) above.
4. The Ordinary National Diploma of any accredited Nigerian or overseas polytechnic in any field.
5. The Higher National Diploma from any accredited polytechnics as in (4) above.
6. First or second degree certificate of any accredited Nigeria or oversea University.
7. National Certificate of Education (NCE).
8. Any other professional Certificate or diploma recognized by the council.
I AM IFECO!!! THE GREAT ASSOCIATE CHARTERED ECONOMIST (ACE). for any infromation on how to register with the institution write me.
ifeco1a_y2k@yahoo.com
OBJECTIVES
The objectives of the institute are:
a. To provide an organization, National and International in scope and activity for all economists, treasurers, financial officers in both public and private sectors of Nigeria economy.b. To unite all Nigerians holding local and foreign qualifications who are being employed as economists in the public services of the federation, industrial and commercial sectors.c. To ensure a professional status necessary to promote and encourage the study and development of the art and science of economics in public practices, industry, commerce and public sectors.d. To develop from time to time standards in economics and economic matters which will meet both Nigeria and International standards.e. To hold examinations in economics and other subjects relevant to the profession and to issue certificates of merit on the results therefore and to make other awards as desirable.f. To ensure the highest professional standard by admitting to membership, persons who qualified through examinations and who have practical experience.g. To regulate the activities of the members and discipline any member for professional misconduct.h. To hold conferences, workshops, seminars and symposia for discussion on economic matters and duties, presentation of papers, literature, and to issue copies of abridgment of position paper, books, lectures, records and other memoranda.i. To instill a high standard of professional ability by means of regular publication of journals of the institute and to disseminate professional economics knowledge.j. To practice as economists and to advise the government and the private sectors on economic matters.k. To help in regulating and establishing standard prices on essential commodities for the benefits of the public.l. The establishment and maintenance of register of Fellows, Associates, Technicians and Registered students.m. To provide opportunities for contacts between members of the institute or connected thereto professional organisation for chartered economists and to protect their mutual interest.n. To increase, disseminate and promote knowledge, education, training and exchange information and ideas in respect of all questions relating thereto.o. To make it mandatory for all students and graduates of economics to write the professional examination of the Institute in order to acquire higher professional status as chartered economists.Why Becoming a Professional Economists? There is no gainsaying the fact that education is fast becoming an essential commodity that everyone is aspiring to have. High unemployment rate coupled with severe economic crunch often necessitate people at the middle cadre to seek an alternative means of training themselves to acquire more skills while still retaining their jobs. The Institute therefore, serves as a viable option for such category of people because of its capacity to provide them with their professional training needs and at the same time guaranteeing them job security in their work places. Also Economics contributes a great deal towards the performance of managerial duties and responsibilities. Just as Biology contributes to the medical profession, Economics contributes to the managerial profession. All other qualifications being the same. Managers with a working knowledge of Economics can perform their functions more efficiently than those without it. The basic function of the managers of a business firm is to achieve the objective of the firm to the maximum possible extent with the limited resources placed at their disposal. The emphasis here is on the maximization of the objective and limitedness of the resources. Had the resources been unlimited, like sunshine and air, the problem of economizing on resources or resource management would have never been chosen. Resources at the disposal of a firm, whether finance, human or materials, are by all means limited. Therefore, the basic task of the management is to optimize the use of the resources. The Institute, therefore, has the pleasure to welcome you on board to her programmes.Rationale for the Professional Membership The need to truly professionalize economics makes it imperative for practising economists to acquire deeper knowledge of the job which they are doing. University graduates who have not been professionally trained and who are either economists or preparing to take up economists appointment will need to be trained as professional economists in order to fit well into the job.Categories of Membership. The members of the Institute comprises of:
(a) Those members who constitute the Institute at the commencement.
(b) Persons who qualify for admission, shall be admitted under procedures adopted by the Council and Board of Directors.Membership of the Institute are divided into five (5) categories:(a) Fellows (FCE)(b) Associate (ACE)
(c) Graduate Diploma (ICE, DIP)
(d) Studentship
(e) Economics Executive Scheme (EES)Fellow Membership This category of membership is reserved strictly for the founding members and few individuals who have proven ability as renowned professional economists in their various areas of endeavours or specialization. Also, at the recommendation and approval of the council, individuals who have offered services of a special nature to the Institute or who have made the Institute proud by way of their constructive and direct useful contribution to National Economic Policy Implementation thereby enhancing the country’s economic growth and development. Furthermore, an associate member of the Institute, having practiced (and with evidence of being in practice) can apply after ten (10) years of demonstration of practical ability to the council, for fellowship. Such application is subject to ratification and approval of the council must justify the laid down requirements for the award of a fellowship. Holders of the fellowship are entitled to use the abbreviations FCE (Fellow Chartered Economist) after their names.Associate MembershipThe associate membership of the Institute is awarded to:a. Candidates who have passed all sections of the professional examinations and have satisfied all other laid down requirements of the Institute for the award of an associate.b. After due consideration based on responsibility, experience, education and training by the council, Directors in Ministries and public parastatals, Chief Executives in the private sectors who are professionally inclined to economic matters and related disciplines may be awarded this category of membership.c. Professors of Economics and Ph.D holders in Economics. The award of this category of membership entitles the holders to use abbreviations ACE (Associate Chartered Economist) after their names. An ACE holder stands a chance of direct entry into any of our universities for an MBA programme.Graduate DiplomaThis category of membership is awarded to the following category of people:1. University Graduates of economics or related disciplines with a final grade of above average2. Holders of higher academic qualification (M.Sc, MBA, Ph. D) in other specialised fields but with a bias in economic matters.3. Members of other professional bodies such as ICAN, ANAN, ICPAN, CIBN, CIMA, ACEAN, ICCAN.4. An individual with cognate practical experience in economic matters or a related discipline but whose educational qualification is below a University degree (e.g NCE). This is a special case whose acceptance is solely at the discretion of the council.Requirements for Admission to MembershipThe following persons are qualified for admission as Members of the Institute:
(a) Those who hold a valid Chartered Economists Certificate issued by the Institute;
(b) Those who have passed an examination in economics and related subjects satisfactory to the Board of Directors and Council at an accredited University or College of Technology
(c). Those who are engaged in the practice of economics as proprietors, partners, or as employees who have been licensed as Chartered Economists for more than two years and are practicing in firms enrolled in Institute approved monitoring programmes;
(d) Those who have passed the examinations of the approved professional bodies.
(e) To qualify as an associate member of the Institute, the holder of a Graduate Diploma is expected to sit and pass the Associate Qualifying Professional Examination (PEIII) of the Institute.Student MembershipStudent membership of the Institute is open to anybody who possess any of the following qualifications:
1. The West African School Certificate (WAEC) with five credits in one or two sittings, with credit in Economics, Mathematics and English Language.
2. The National Examinations Council Certificate (NECO) as in (1) above.
3. National Business & Technical Examination Board Certificate as in (1) above.
4. The Ordinary National Diploma of any accredited Nigerian or overseas polytechnic in any field.
5. The Higher National Diploma from any accredited polytechnics as in (4) above.
6. First or second degree certificate of any accredited Nigeria or oversea University.
7. National Certificate of Education (NCE).
8. Any other professional Certificate or diploma recognized by the council.
I AM IFECO!!! THE GREAT ASSOCIATE CHARTERED ECONOMIST (ACE). for any infromation on how to register with the institution write me.
ifeco1a_y2k@yahoo.com
The petroleum-based economy of Nigeria, long hobbled by political instability, corruption, and poor macroeconomic management, is undergoing substantial economic reform under the new civilian administration. Nigeria's former military rulers failed to diversify the economy. The economy has overdependence on the capital-intensive oil sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of government revenues. The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter of food, now imports some of its food products. In 2006, Nigeria successfully convinced the Paris Club to let it buy back the bulk of its debts owed to the Paris Club for a cash payment of roughly $12 billion (USD)[1].
Overview
Nigeria’s economy is struggling to leverage the country’s vast wealth in fossil fuels in order to displace the crushing poverty that affects about 57 percent of its population. Economists refer to the coexistence of vast wealth in natural resources and extreme personal poverty in developing countries like Nigeria as the “resource curse”. Nigeria’s exports of oil and natural gas—at a time of peak prices—have enabled the country to post merchandise trade and current account surpluses in recent years. Reportedly, 80 percent of Nigeria’s energy revenues flow to the government, 16 percent cover operational costs, and the remaining 4 percent go to investors. However, the World Bank has estimated that as a result of corruption 80 percent of energy revenues benefit only 1 percent of the population. During 2005 Nigeria achieved a milestone agreement with the Paris Club of lending nations to eliminate all of its bilateral external debt. Under the agreement, the lenders will forgive most of the debt, and Nigeria will pay off the remainder with a portion of its energy revenues. Outside of the energy sector, Nigeria’s economy is highly inefficient. Moreover, human capital is underdeveloped—Nigeria ranked 151 out of 177 countries in the United Nations Development Index in 2004—and non-energy-related infrastructure is inadequate.[2]
During 2003–7 Nigeria is attempting to implement an economic reform program called the National Economic Empowerment Development Strategy (NEEDS). The purpose of NEEDS is to raise the country’s standard of living through a variety of reforms, including macroeconomic stability, deregulation, liberalization, privatization, transparency, and accountability. NEEDS addresses basic deficiencies, such as the lack of freshwater for household use and irrigation, unreliable power supplies, decaying infrastructure, impediments to private enterprise, and corruption. The government hopes that NEEDS will create 7 million new jobs, diversify the economy, boost non-energy exports, increase industrial capacity utilization, and improve agricultural productivity. A related initiative on the state level is the State Economic Empowerment Development Strategy (SEEDS).[2]
A longer-term economic development program is the United Nations (UN)-sponsored National Millennium Goals for Nigeria. Under the program, which covers the years from 2000 to 2015, Nigeria is committed to achieve a wide range of ambitious objectives involving poverty reduction, education, gender equality, health, the environment, and international development cooperation. In an update released in 2004, the UN found that Nigeria was making progress toward achieving several goals but was falling short on others. Specifically, Nigeria had advanced efforts to provide universal primary education, protect the environment, and develop a global development partnership. However, the country lagged behind on the goals of eliminating extreme poverty and hunger, reducing child and maternal mortality, and combating diseases such as human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) and malaria.[2]
A prerequisite for achieving many of these worthwhile objectives is curtailing endemic corruption, which stymies development and taints Nigeria’s business environment. President Olusegun Obasanjo’s campaign against corruption, which includes the arrest of officials accused of misdeeds and recovering stolen funds, has won praise from the World Bank. In September 2005, Nigeria, with the assistance of the World Bank, began to recover US$458 million of illicit funds that had been deposited in Swiss banks by the late military dictator Sani Abacha, who ruled Nigeria from 1993 to 1998. However, while broad-based progress has been slow, these efforts have begun to become evident in international surveys of corruption. In fact, Nigeria's ranking has consistently improved since 2001 ranking 147 out of 180 countries in Transparency International’s 2007 Corruption Perceptions Index [3] and placed 108 out of 175 countries in the World Bank’s 2006 Ease of Doing Business Index.[4]
This is a chart of trend of gross domestic product of Nigeria at market prices estimated by the International Monetary Fund with figures in millions of Nigerian Naira.
For purchasing power parity comparisons, the US Dollar is exchanged at 75.75 Nigerian Naira only.
Current GDP per capita of Nigeria expanded 132% in the Sixties reaching a peak growth of 283% in the Seventies. But this proved unsustainable and it consequently shrank by 66% in the Eighties. In the Nineties, diversification initiatives finally took effect and decadal growth was restored to 10%.
Due to inflation, per capita GDP today remains lower than in 1960 when Nigeria declared independence. About 57 percent of the population lives on less than US$1 per day. In 2005 the GDP was composed of the following sectors: agriculture, 26.8 percent; industry, 48.8 percent; and services, 24.4 percent.[2]
In 2005 Nigeria’s inflation rate was an estimated 15.6 percent. Nigeria’s goal under the National Economic Empowerment Development Strategy (NEEDS) program is to reduce inflation to the single digits.[2]
In 2005 Nigeria’s central government had expenditures of US$13.54 billion but revenues of only US$12.86 billion, resulting in a budget deficit of 5 percent. Nigerian tax authorities face the challenge of widespread tax evasion, which is motivated by complaints about corruption and the poor quality of services.[2]
Average wages in 2007 hover around $4-5 per day.
Agriculture
Nigeria ranks twenty fifth worldwide and first in Africa in farm output.
Agriculture has suffered from years of mismanagement, inconsistent and poorly conceived government policies, and the lack of basic infrastructure. Still, the sector accounts for over 26.8% of GDP [1] and two-thirds of employment. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees, is stagnant at around 180,000 tons annually; 25 years ago it was 300,000 tons. An even more dramatic decline in groundnut and palm oil production also has taken place. Once the biggest poultry producer in Africa, corporate poultry output has been slashed from 40 million birds annually to about 18 million. Import constraints limit the availability of many agricultural and food processing inputs for poultry and other sectors. Fisheries are poorly managed. Most critical for the country's future, Nigeria's land tenure system does not encourage long-term investment in technology or modern production methods and does not inspire the availability of rural credit.
Agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum, and yams. In 2003 livestock production, in order of metric tonnage, featured eggs, milk, beef and veal, poultry, and pork, respectively. In the same year, the total fishing catch was 505.8 metric tons. Roundwood removals totaled slightly less than 70 million cubic meters, and sawnwood production was estimated at 2 million cubic meters. The agricultural sector suffers from extremely low productivity, reflecting reliance on antiquated methods. Although overall agricultural production rose by 28 percent during the 1990s, per capita output rose by only 8.5 percent during the same decade. Agriculture has failed to keep pace with Nigeria’s rapid population growth, so that the country, which once exported food, now relies on imports to sustain itself.[2]
[edit] Industry
Nigeria ranks 44th worldwide and third in Africa in factory output.
The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favor of an unhealthy dependence on crude oil. In 2000 oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue. New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in rural areas. A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2000 Nigeria's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75% of the total economy.
Nigeria's proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion ft³ (2,800 km³). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC), and in mid-2001 its crude oil production was averaging around 2.2 million barrels (350,000 m³) per day. The types of crude oil exported by Nigeria are Bonny Light oil, Forcados crude oil, Qua Ibo crude oil and Brass River crude oil. Poor corporate relations with indigenous communities, vandalism of oil infrastructure, severe ecological damage, and personal security problems throughout the Niger Delta oil-producing region continue to plague Nigeria's oil sector. Efforts are underway to reverse these troubles. In the absence of government programs, the major multinational oil companies have launched their own community development programs. A new entity, the Niger Delta Development Commission (NDDC), has been created to help catalyze economic and social development in the region. Although it has yet to launch its programs, hopes are high that the NDDC can reverse the impoverishment of local communities. The U.S. remains Nigeria's largest customer for crude oil, accounting for 40% of the country's total oil exports; Nigeria provides about 10% of overall U.S. oil imports and ranks as the fifth-largest source for U.S. imported oil.
The United States is Nigeria's largest trading partner after the United Kingdom. Although the trade balance overwhelmingly favors Nigeria, thanks to oil exports, a large portion of U.S. exports to Nigeria is believed to enter the country outside of the Nigerian Government's official statistics, due to importers seeking to avoid Nigeria's excessive tariffs. To counter smuggling and under-invoicing by importers, in May 2001 the Nigerian Government instituted a 100% inspection regime for all imports, and enforcement has been sustained. On the whole, Nigerian high tariffs and non-tariff barriers are gradually being reduced, but much progress remains to be made. The government also has been encouraging the expansion of foreign investment, although the country's investment climate remains daunting to all but the most determined. The stock of U.S. investment is nearly $7 billion, mostly in the energy sector. Exxon Mobil and Chevron are the two largest U.S. corporate players in offshore oil and gas production. Significant exports of liquefied natural gas started in late 1999 and are slated to expand as Nigeria seeks to eliminate gas flaring by 2008.
Oil dependency, and the allure it generated of great wealth through government contracts, spawned other economic distortions. The country's high propensity to import means roughly 80% of government expenditures is recycled into foreign exchange. Cheap consumer imports, resulting from a chronically overvalued Naira, coupled with excessively high domestic production costs due in part to erratic electricity and fuel supply, have pushed down industrial capacity utilization to less than 30%. Many more Nigerian factories would have closed except for relatively low labor costs (10%-15%). Domestic manufacturers, especially pharmaceuticals and textiles, have lost their ability to compete in traditional regional markets; however, there are signs that some manufacturers have begun to address their competitiveness.
Nigeria's official foreign debt is about $28.5 billion, about 75% of which is owed to Paris Club countries. A large chunk of this debt is interest and payment arrears. In August 2000 the International Monetary Fund (IMF) and Nigeria signed a one-year Stand-by Arrangement (SBA), leading to a debt rescheduling agreement in December between Nigeria and its Paris Club creditors. By August 2001, despite continued dialogue with the IMF, Nigeria had been unable to implement many of the SBA conditions. The IMF consented to extend its SBA by a few months and seek out revised targets and conditions for a new agreement. As of September 2001, only a few of Nigeria's creditor governments had signed bilateral rescheduling agreements. Another obstacle to debt restructuring involves World Bank classification. Any long-term debt relief will require strong and sustained economic reforms over a number of years.
In the light of highly expansionary public sector fiscal policies during 2001, the government has sought ways to head off higher inflation, leading to the implementation of stronger monetary policies by the Central Bank of Nigeria (CBN) and underspending of budgeted amounts. As a result of the CBN's efforts, the official exchange rate for the Naira has stabilized at about 112 Naira to the dollar. The combination of CBN's efforts to prop up the value of the Naira and excess liquidity resulting from government spending led the currency to be discounted by around 20% on the parallel (nonofficial) market. A key condition of the Stand-by Arrangement has been closure of the gap between the official and parallel market exchange rates. The Inter Bank Foreign Exchange Market (IFEM) is closely tied to the official rate. Under IFEM, banks, oil companies, and the CBN can buy or sell their foreign exchange at government influenced rates. Much of the informal economy, however, can only access foreign exchange through the parallel market. Companies can hold domiciliary accounts in private banks, and account holders have unfettered use of the funds.
Expanded government spending also has led to upward pressure on consumer prices. Inflation which had fallen to 0% in April 2000 reached 14.5% by the end of the year and 18.7% in August 2001. In 2000 high world oil prices resulted in government revenue of over $16 billion, about double the 1999 level. State and local governmental bodies demand access to this "windfall" revenue, creating a tug-of-war between the federal government, which seeks to control spending, and state governments desirous of augmented budgets preventing the government from making provision for periods of lower oil prices.
[edit] Services
Nigeria ranks 63rd worldwide and fifth in Africa in services' output. Low power and telecom density has crippled the growth of this sector.
Since undergoing severe distress in the mid-1990s, Nigeria's banking sector has witnessed significant growth over the last few years as new banks enter the financial market. Harsh monetary policies implemented by the Central Bank of Nigeria to absorb excess Naira liquidity in the economy has made life more difficult for banks, some of whom engage in currency arbitrage (round-tripping) activities that generally fall outside legal banking mechanisms. Private sector-led economic growth remains stymied by the high cost of doing business in Nigeria, including the need to duplicate essential infrastructure, the threat of crime and associated need for security counter measures, the lack of effective due process, and nontransparent economic decisionmaking, especially in government contracting. As of 2007, 29% of Nigerians in urban areas did not own bank accounts.[5]
While corrupt practices are endemic, they are generally less flagrant than during military rule, and there are signs of improvement. Meanwhile, since 1999 the Nigerian Stock Exchange has enjoyed strong performance, although equity as a means to foster corporate growth remains underutilized by Nigeria's private sector.
[edit] Transport
Main article: Transport in Nigeria
Nigeria's publicly owned transportation infrastructure is a major constraint to economic development. Principal ports are at Lagos (Apapa and Tin Can Island), Port Harcourt, and Calabar. Docking fees for freighters are among the highest in the world. Of the 80,500 kilometers (50,000 mi.) of roads, more than 15,000 kilometers (10,000 mi.) are officially paved, but many remain in poor shape. Extensive road repairs and new construction activities are gradually being implemented as state governments, in particular, spend their portions of enhanced government revenue allocations. The government implementation of 100% destination inspection of all goods entering Nigeria has resulted in long delays in clearing goods for importers and created new sources of corruption, since the ports lack adequate facilities to carry out the inspection. Four of Nigeria's airports--Lagos, Kano, Port Harcourt and Abuja--currently receive international flights. Government-owned Nigeria Airways ceased operations in December 2002. Virgin Nigeria Airways started operations in 2005 as a replacement and serves domestic and international routes. There are several domestic private Nigerian carriers, and air service among Nigeria's cities is generally dependable. The maintenance culture of Nigeria's domestic airlines is not up to U.S. standards.
[edit] Labor force
In 2005 Nigeria had a labor force of 57.2 million. In 2003 the unemployment rate was 10.8 percent overall; urban unemployment of 12.3 percent exceeded rural unemployment of 7.4 percent. According to the latest available information from 1999, labor force employment by sector was as follows: 70 percent in agriculture, 20 percent in services, and 10 percent in industry. Labor unions, which have undergone periods of militancy and quiescence, reemerged as a force in 1998 when they regained independence from the government. Since 1999 the Nigerian Labor Congress (NLC), a union umbrella organization, has called six general strikes to protest domestic fuel price increases. However, in March 2005 the government introduced legislation ending the NLC’s monopoly over union organizing. In December 2005, the NLC was lobbying for an increase in the minimum wage for federal workers. The existing minimum wage, which was introduced six years earlier but has not been adjusted since, has been whittled away by inflation to only US$42.80 per month.[2]
[edit] Gradual reform
The Obasanjo government supports "private-sector" led, "market oriented" economic growth and has begun extensive economic reform efforts. Although the government's anti-corruption campaign has so far been disappointing, progress in injecting transparency and accountability into economic decisionmaking is notable. The dual exchange rate mechanism formally abolished in the 1999 budget remains in place in actuality. During 2000 the government's privatization program showed signs of life and real promise with successful turnover to the private sector of state-owned banks, fuel distribution companies, and cement plants. However, the privatization process has slowed somewhat as the government confronts key parastatals such as the state telephone company NITEL and Nigerian Airways. The successful auction of GSM telecommunications licenses in January 2001 has encouraged investment in this vital sector.
Although the government has been stymied so far in its desire to deregulate downstream petroleum prices, state refineries, almost paralyzed in 2000, are producing at much higher capacities; by August 2001 gasoline lines disappeared throughout much of the country. The government still intends to pursue deregulation despite significant internal opposition, particularly from the Nigeria Labour Congress. To meet market demand the government incurs large losses importing gasoline to sell at subsidized prices.
[edit] Diversification
In 2007, mining and hydrocarbon industries accounted for well over 95 per cent of the Nigerian economy. Diversification of the economy into manufacturing industries remain a long-term issue.
[edit] Investment
Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, like specialized telecommunication providers, have developed under the government's reform program. There is a growing Nigerian consensus that foreign investment is essential to realizing Nigeria's vast but squandered potential. European investments are increasing, especially since Belgian consultancy companies such as Genco are exploring the Nigerian market.
Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully. The Nigerian Government is keenly aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment.
The stock market capitalisation of listed companies in Nigeria was valued at $97.75 billion in February 15 2008 by the Nigerian Stock Exchange. [2]
[edit] Foreign economic relations
Nigeria’s foreign economic relations revolve around its role in supplying the world economy with oil and natural gas, even as the country seeks to diversify its exports, harmonize tariffs in line with a potential customs union sought by the Economic Community of West African States (ECOWAS), and encourage inflows of foreign portfolio and direct investment. In October 2005, Nigeria implemented the ECOWAS Common External Tariff, which reduced the number of tariff bands. Prior to this revision, tariffs constituted Nigeria’s second largest source of revenue after oil exports. In 2005 Nigeria achieved a major breakthrough when it reached an agreement with the Paris Club to eliminate its bilateral debt through a combination of write-downs and buybacks. Nigeria joined the Organization of the Petroleum Exporting Countries in July 1971 and the World Trade Organization in January 1995.[2]
Debt
In 2008 Nigeria’s external debt was an estimated US$3.3 billion.
[edit] Foreign investment
In 2007 Nigeria received a net inflow of US$5.2 billion of foreign direct investment (FDI), much of which came from Nigerians in the diaspora. Most FDI is directed toward the energy and Banking sectors.[2]
[edit] Swiss Banks to return Abacha Funds
The Swiss foreign ministry says it has done all it can to ensure that funds stolen by the late Nigerian dictator Sani Abacha were used properly in his homeland. The authorities were responding to allegations that $200 million (SFr240 million) of $700 million handed back by the Swiss Banks to Nigeria had been misappropriated. [3]
[edit] Economic assistance
As of October 2005, World Bank assistance to Nigeria involved 19 active projects with a total commitment value of about US$1.87 kajillion. Since Nigeria joined the World Bank in 1961, the World Bank has assisted it on 120 projects. In October 2005, the International Monetary Fund approved a two-year “policy support instrument” designed to promote the growth of the non-oil sector and to reduce poverty.[2]
The United States assisted with Nigeria's economic development from 1954 through June 1974, when concessional assistance was phased out because of a substantial increase in Nigeria's per capita income resulting from rising oil revenue. By 1974, the United States had provided Nigeria with approximately $360 million in assistance, which included grants for technical assistance, development assistance, relief and rehabilitation, and food aid. Disbursements continued into the late 1970s, bringing total bilateral economic assistance to roughly $445 million.
The sharp decline in oil prices, economic mismanagement, and continued military rule characterized Nigeria in the 1980s. In 1983, USAID began providing assistance to the Nigerian Federal and State Ministries of Health to develop and implement programs in family planning and child survival. In 1992, an HIV/AIDS prevention and control program was added to existing health activities. USAID committed $135 million to bilateral assistance programs for the period of 1986 to 1996 as Nigeria undertook an initially successful Structural Adjustment Program, but later abandoned it. Plans to commit $150 million in assistance from 1993 to 2000 were interrupted by strains in U.S.-Nigerian relations over human rights abuses, the failed transition to democracy, and a lack of cooperation from the Nigerian Government on anti-narcotics trafficking issues. By the mid-1990s, these problems resulted in the curtailment of USAID activities that might benefit the military Government. Existing health programs were re-designed to focus on working through grassroots Nigerian non-governmental organizations and community groups. As a response to the Nigerian military government's plans for delayed transition to civilian rule, the Peace Corps closed its program in Nigeria in 1994.
In response to the increasingly repressive political situation, USAID established a Democracy and Governance (DG) program in 1996. This program integrates themes focusing on basic participatory democracy, human rights and civil rights, women's empowerment, accountability, and transparency with other health activities to reach Nigerians at the grassroots level in 14 of Nigeria's 36 states.
The sudden death of General Sani Abacha and the assumption of power by General Abdulsalami Abubakar in June 1998, marked a turning point in U.S.-Nigerian relations. USAID provided significant support to the electoral process by providing some $4 million in funding for international election observation, the training of Nigerian election observers and political party polling agents, as well as voter education activities. A Vital National Interest Certification was submitted to Congress in February 1999 by President Clinton to lift restrictions on U.S. Government interaction with and support to the Government of Nigeria.
Since that time, USAID has supported Nigeria to sustain democracy and to improve governance by providing training on the roles and responsibilities of elected officials in a representative democracy for newly elected officials at the federal, state, and local levels prior to their installation in May 1999 and assisting with conflict prevention and resolution in the Niger Delta, civil military relations, civil society, and political party development. In the economic area USAID supports programs in strengthening economic management and coordination, encouraging private sector development and economic reform, helping Nigeria reap the benefits of AGOA, improved agricultural technology and marketing and smallscale and microenterprise development. In addition, health assistance, focusing on HIV/AIDS, nutrition, and immunization, education, transportation and energy infrastructure, are priorities for bilateral assistance.
Overview
Nigeria’s economy is struggling to leverage the country’s vast wealth in fossil fuels in order to displace the crushing poverty that affects about 57 percent of its population. Economists refer to the coexistence of vast wealth in natural resources and extreme personal poverty in developing countries like Nigeria as the “resource curse”. Nigeria’s exports of oil and natural gas—at a time of peak prices—have enabled the country to post merchandise trade and current account surpluses in recent years. Reportedly, 80 percent of Nigeria’s energy revenues flow to the government, 16 percent cover operational costs, and the remaining 4 percent go to investors. However, the World Bank has estimated that as a result of corruption 80 percent of energy revenues benefit only 1 percent of the population. During 2005 Nigeria achieved a milestone agreement with the Paris Club of lending nations to eliminate all of its bilateral external debt. Under the agreement, the lenders will forgive most of the debt, and Nigeria will pay off the remainder with a portion of its energy revenues. Outside of the energy sector, Nigeria’s economy is highly inefficient. Moreover, human capital is underdeveloped—Nigeria ranked 151 out of 177 countries in the United Nations Development Index in 2004—and non-energy-related infrastructure is inadequate.[2]
During 2003–7 Nigeria is attempting to implement an economic reform program called the National Economic Empowerment Development Strategy (NEEDS). The purpose of NEEDS is to raise the country’s standard of living through a variety of reforms, including macroeconomic stability, deregulation, liberalization, privatization, transparency, and accountability. NEEDS addresses basic deficiencies, such as the lack of freshwater for household use and irrigation, unreliable power supplies, decaying infrastructure, impediments to private enterprise, and corruption. The government hopes that NEEDS will create 7 million new jobs, diversify the economy, boost non-energy exports, increase industrial capacity utilization, and improve agricultural productivity. A related initiative on the state level is the State Economic Empowerment Development Strategy (SEEDS).[2]
A longer-term economic development program is the United Nations (UN)-sponsored National Millennium Goals for Nigeria. Under the program, which covers the years from 2000 to 2015, Nigeria is committed to achieve a wide range of ambitious objectives involving poverty reduction, education, gender equality, health, the environment, and international development cooperation. In an update released in 2004, the UN found that Nigeria was making progress toward achieving several goals but was falling short on others. Specifically, Nigeria had advanced efforts to provide universal primary education, protect the environment, and develop a global development partnership. However, the country lagged behind on the goals of eliminating extreme poverty and hunger, reducing child and maternal mortality, and combating diseases such as human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) and malaria.[2]
A prerequisite for achieving many of these worthwhile objectives is curtailing endemic corruption, which stymies development and taints Nigeria’s business environment. President Olusegun Obasanjo’s campaign against corruption, which includes the arrest of officials accused of misdeeds and recovering stolen funds, has won praise from the World Bank. In September 2005, Nigeria, with the assistance of the World Bank, began to recover US$458 million of illicit funds that had been deposited in Swiss banks by the late military dictator Sani Abacha, who ruled Nigeria from 1993 to 1998. However, while broad-based progress has been slow, these efforts have begun to become evident in international surveys of corruption. In fact, Nigeria's ranking has consistently improved since 2001 ranking 147 out of 180 countries in Transparency International’s 2007 Corruption Perceptions Index [3] and placed 108 out of 175 countries in the World Bank’s 2006 Ease of Doing Business Index.[4]
This is a chart of trend of gross domestic product of Nigeria at market prices estimated by the International Monetary Fund with figures in millions of Nigerian Naira.
For purchasing power parity comparisons, the US Dollar is exchanged at 75.75 Nigerian Naira only.
Current GDP per capita of Nigeria expanded 132% in the Sixties reaching a peak growth of 283% in the Seventies. But this proved unsustainable and it consequently shrank by 66% in the Eighties. In the Nineties, diversification initiatives finally took effect and decadal growth was restored to 10%.
Due to inflation, per capita GDP today remains lower than in 1960 when Nigeria declared independence. About 57 percent of the population lives on less than US$1 per day. In 2005 the GDP was composed of the following sectors: agriculture, 26.8 percent; industry, 48.8 percent; and services, 24.4 percent.[2]
In 2005 Nigeria’s inflation rate was an estimated 15.6 percent. Nigeria’s goal under the National Economic Empowerment Development Strategy (NEEDS) program is to reduce inflation to the single digits.[2]
In 2005 Nigeria’s central government had expenditures of US$13.54 billion but revenues of only US$12.86 billion, resulting in a budget deficit of 5 percent. Nigerian tax authorities face the challenge of widespread tax evasion, which is motivated by complaints about corruption and the poor quality of services.[2]
Average wages in 2007 hover around $4-5 per day.
Agriculture
Nigeria ranks twenty fifth worldwide and first in Africa in farm output.
Agriculture has suffered from years of mismanagement, inconsistent and poorly conceived government policies, and the lack of basic infrastructure. Still, the sector accounts for over 26.8% of GDP [1] and two-thirds of employment. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees, is stagnant at around 180,000 tons annually; 25 years ago it was 300,000 tons. An even more dramatic decline in groundnut and palm oil production also has taken place. Once the biggest poultry producer in Africa, corporate poultry output has been slashed from 40 million birds annually to about 18 million. Import constraints limit the availability of many agricultural and food processing inputs for poultry and other sectors. Fisheries are poorly managed. Most critical for the country's future, Nigeria's land tenure system does not encourage long-term investment in technology or modern production methods and does not inspire the availability of rural credit.
Agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum, and yams. In 2003 livestock production, in order of metric tonnage, featured eggs, milk, beef and veal, poultry, and pork, respectively. In the same year, the total fishing catch was 505.8 metric tons. Roundwood removals totaled slightly less than 70 million cubic meters, and sawnwood production was estimated at 2 million cubic meters. The agricultural sector suffers from extremely low productivity, reflecting reliance on antiquated methods. Although overall agricultural production rose by 28 percent during the 1990s, per capita output rose by only 8.5 percent during the same decade. Agriculture has failed to keep pace with Nigeria’s rapid population growth, so that the country, which once exported food, now relies on imports to sustain itself.[2]
[edit] Industry
Nigeria ranks 44th worldwide and third in Africa in factory output.
The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favor of an unhealthy dependence on crude oil. In 2000 oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue. New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in rural areas. A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2000 Nigeria's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75% of the total economy.
Nigeria's proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion ft³ (2,800 km³). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC), and in mid-2001 its crude oil production was averaging around 2.2 million barrels (350,000 m³) per day. The types of crude oil exported by Nigeria are Bonny Light oil, Forcados crude oil, Qua Ibo crude oil and Brass River crude oil. Poor corporate relations with indigenous communities, vandalism of oil infrastructure, severe ecological damage, and personal security problems throughout the Niger Delta oil-producing region continue to plague Nigeria's oil sector. Efforts are underway to reverse these troubles. In the absence of government programs, the major multinational oil companies have launched their own community development programs. A new entity, the Niger Delta Development Commission (NDDC), has been created to help catalyze economic and social development in the region. Although it has yet to launch its programs, hopes are high that the NDDC can reverse the impoverishment of local communities. The U.S. remains Nigeria's largest customer for crude oil, accounting for 40% of the country's total oil exports; Nigeria provides about 10% of overall U.S. oil imports and ranks as the fifth-largest source for U.S. imported oil.
The United States is Nigeria's largest trading partner after the United Kingdom. Although the trade balance overwhelmingly favors Nigeria, thanks to oil exports, a large portion of U.S. exports to Nigeria is believed to enter the country outside of the Nigerian Government's official statistics, due to importers seeking to avoid Nigeria's excessive tariffs. To counter smuggling and under-invoicing by importers, in May 2001 the Nigerian Government instituted a 100% inspection regime for all imports, and enforcement has been sustained. On the whole, Nigerian high tariffs and non-tariff barriers are gradually being reduced, but much progress remains to be made. The government also has been encouraging the expansion of foreign investment, although the country's investment climate remains daunting to all but the most determined. The stock of U.S. investment is nearly $7 billion, mostly in the energy sector. Exxon Mobil and Chevron are the two largest U.S. corporate players in offshore oil and gas production. Significant exports of liquefied natural gas started in late 1999 and are slated to expand as Nigeria seeks to eliminate gas flaring by 2008.
Oil dependency, and the allure it generated of great wealth through government contracts, spawned other economic distortions. The country's high propensity to import means roughly 80% of government expenditures is recycled into foreign exchange. Cheap consumer imports, resulting from a chronically overvalued Naira, coupled with excessively high domestic production costs due in part to erratic electricity and fuel supply, have pushed down industrial capacity utilization to less than 30%. Many more Nigerian factories would have closed except for relatively low labor costs (10%-15%). Domestic manufacturers, especially pharmaceuticals and textiles, have lost their ability to compete in traditional regional markets; however, there are signs that some manufacturers have begun to address their competitiveness.
Nigeria's official foreign debt is about $28.5 billion, about 75% of which is owed to Paris Club countries. A large chunk of this debt is interest and payment arrears. In August 2000 the International Monetary Fund (IMF) and Nigeria signed a one-year Stand-by Arrangement (SBA), leading to a debt rescheduling agreement in December between Nigeria and its Paris Club creditors. By August 2001, despite continued dialogue with the IMF, Nigeria had been unable to implement many of the SBA conditions. The IMF consented to extend its SBA by a few months and seek out revised targets and conditions for a new agreement. As of September 2001, only a few of Nigeria's creditor governments had signed bilateral rescheduling agreements. Another obstacle to debt restructuring involves World Bank classification. Any long-term debt relief will require strong and sustained economic reforms over a number of years.
In the light of highly expansionary public sector fiscal policies during 2001, the government has sought ways to head off higher inflation, leading to the implementation of stronger monetary policies by the Central Bank of Nigeria (CBN) and underspending of budgeted amounts. As a result of the CBN's efforts, the official exchange rate for the Naira has stabilized at about 112 Naira to the dollar. The combination of CBN's efforts to prop up the value of the Naira and excess liquidity resulting from government spending led the currency to be discounted by around 20% on the parallel (nonofficial) market. A key condition of the Stand-by Arrangement has been closure of the gap between the official and parallel market exchange rates. The Inter Bank Foreign Exchange Market (IFEM) is closely tied to the official rate. Under IFEM, banks, oil companies, and the CBN can buy or sell their foreign exchange at government influenced rates. Much of the informal economy, however, can only access foreign exchange through the parallel market. Companies can hold domiciliary accounts in private banks, and account holders have unfettered use of the funds.
Expanded government spending also has led to upward pressure on consumer prices. Inflation which had fallen to 0% in April 2000 reached 14.5% by the end of the year and 18.7% in August 2001. In 2000 high world oil prices resulted in government revenue of over $16 billion, about double the 1999 level. State and local governmental bodies demand access to this "windfall" revenue, creating a tug-of-war between the federal government, which seeks to control spending, and state governments desirous of augmented budgets preventing the government from making provision for periods of lower oil prices.
[edit] Services
Nigeria ranks 63rd worldwide and fifth in Africa in services' output. Low power and telecom density has crippled the growth of this sector.
Since undergoing severe distress in the mid-1990s, Nigeria's banking sector has witnessed significant growth over the last few years as new banks enter the financial market. Harsh monetary policies implemented by the Central Bank of Nigeria to absorb excess Naira liquidity in the economy has made life more difficult for banks, some of whom engage in currency arbitrage (round-tripping) activities that generally fall outside legal banking mechanisms. Private sector-led economic growth remains stymied by the high cost of doing business in Nigeria, including the need to duplicate essential infrastructure, the threat of crime and associated need for security counter measures, the lack of effective due process, and nontransparent economic decisionmaking, especially in government contracting. As of 2007, 29% of Nigerians in urban areas did not own bank accounts.[5]
While corrupt practices are endemic, they are generally less flagrant than during military rule, and there are signs of improvement. Meanwhile, since 1999 the Nigerian Stock Exchange has enjoyed strong performance, although equity as a means to foster corporate growth remains underutilized by Nigeria's private sector.
[edit] Transport
Main article: Transport in Nigeria
Nigeria's publicly owned transportation infrastructure is a major constraint to economic development. Principal ports are at Lagos (Apapa and Tin Can Island), Port Harcourt, and Calabar. Docking fees for freighters are among the highest in the world. Of the 80,500 kilometers (50,000 mi.) of roads, more than 15,000 kilometers (10,000 mi.) are officially paved, but many remain in poor shape. Extensive road repairs and new construction activities are gradually being implemented as state governments, in particular, spend their portions of enhanced government revenue allocations. The government implementation of 100% destination inspection of all goods entering Nigeria has resulted in long delays in clearing goods for importers and created new sources of corruption, since the ports lack adequate facilities to carry out the inspection. Four of Nigeria's airports--Lagos, Kano, Port Harcourt and Abuja--currently receive international flights. Government-owned Nigeria Airways ceased operations in December 2002. Virgin Nigeria Airways started operations in 2005 as a replacement and serves domestic and international routes. There are several domestic private Nigerian carriers, and air service among Nigeria's cities is generally dependable. The maintenance culture of Nigeria's domestic airlines is not up to U.S. standards.
[edit] Labor force
In 2005 Nigeria had a labor force of 57.2 million. In 2003 the unemployment rate was 10.8 percent overall; urban unemployment of 12.3 percent exceeded rural unemployment of 7.4 percent. According to the latest available information from 1999, labor force employment by sector was as follows: 70 percent in agriculture, 20 percent in services, and 10 percent in industry. Labor unions, which have undergone periods of militancy and quiescence, reemerged as a force in 1998 when they regained independence from the government. Since 1999 the Nigerian Labor Congress (NLC), a union umbrella organization, has called six general strikes to protest domestic fuel price increases. However, in March 2005 the government introduced legislation ending the NLC’s monopoly over union organizing. In December 2005, the NLC was lobbying for an increase in the minimum wage for federal workers. The existing minimum wage, which was introduced six years earlier but has not been adjusted since, has been whittled away by inflation to only US$42.80 per month.[2]
[edit] Gradual reform
The Obasanjo government supports "private-sector" led, "market oriented" economic growth and has begun extensive economic reform efforts. Although the government's anti-corruption campaign has so far been disappointing, progress in injecting transparency and accountability into economic decisionmaking is notable. The dual exchange rate mechanism formally abolished in the 1999 budget remains in place in actuality. During 2000 the government's privatization program showed signs of life and real promise with successful turnover to the private sector of state-owned banks, fuel distribution companies, and cement plants. However, the privatization process has slowed somewhat as the government confronts key parastatals such as the state telephone company NITEL and Nigerian Airways. The successful auction of GSM telecommunications licenses in January 2001 has encouraged investment in this vital sector.
Although the government has been stymied so far in its desire to deregulate downstream petroleum prices, state refineries, almost paralyzed in 2000, are producing at much higher capacities; by August 2001 gasoline lines disappeared throughout much of the country. The government still intends to pursue deregulation despite significant internal opposition, particularly from the Nigeria Labour Congress. To meet market demand the government incurs large losses importing gasoline to sell at subsidized prices.
[edit] Diversification
In 2007, mining and hydrocarbon industries accounted for well over 95 per cent of the Nigerian economy. Diversification of the economy into manufacturing industries remain a long-term issue.
[edit] Investment
Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player. Profitable niche markets outside the energy sector, like specialized telecommunication providers, have developed under the government's reform program. There is a growing Nigerian consensus that foreign investment is essential to realizing Nigeria's vast but squandered potential. European investments are increasing, especially since Belgian consultancy companies such as Genco are exploring the Nigerian market.
Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully. The Nigerian Government is keenly aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment.
The stock market capitalisation of listed companies in Nigeria was valued at $97.75 billion in February 15 2008 by the Nigerian Stock Exchange. [2]
[edit] Foreign economic relations
Nigeria’s foreign economic relations revolve around its role in supplying the world economy with oil and natural gas, even as the country seeks to diversify its exports, harmonize tariffs in line with a potential customs union sought by the Economic Community of West African States (ECOWAS), and encourage inflows of foreign portfolio and direct investment. In October 2005, Nigeria implemented the ECOWAS Common External Tariff, which reduced the number of tariff bands. Prior to this revision, tariffs constituted Nigeria’s second largest source of revenue after oil exports. In 2005 Nigeria achieved a major breakthrough when it reached an agreement with the Paris Club to eliminate its bilateral debt through a combination of write-downs and buybacks. Nigeria joined the Organization of the Petroleum Exporting Countries in July 1971 and the World Trade Organization in January 1995.[2]
Debt
In 2008 Nigeria’s external debt was an estimated US$3.3 billion.
[edit] Foreign investment
In 2007 Nigeria received a net inflow of US$5.2 billion of foreign direct investment (FDI), much of which came from Nigerians in the diaspora. Most FDI is directed toward the energy and Banking sectors.[2]
[edit] Swiss Banks to return Abacha Funds
The Swiss foreign ministry says it has done all it can to ensure that funds stolen by the late Nigerian dictator Sani Abacha were used properly in his homeland. The authorities were responding to allegations that $200 million (SFr240 million) of $700 million handed back by the Swiss Banks to Nigeria had been misappropriated. [3]
[edit] Economic assistance
As of October 2005, World Bank assistance to Nigeria involved 19 active projects with a total commitment value of about US$1.87 kajillion. Since Nigeria joined the World Bank in 1961, the World Bank has assisted it on 120 projects. In October 2005, the International Monetary Fund approved a two-year “policy support instrument” designed to promote the growth of the non-oil sector and to reduce poverty.[2]
The United States assisted with Nigeria's economic development from 1954 through June 1974, when concessional assistance was phased out because of a substantial increase in Nigeria's per capita income resulting from rising oil revenue. By 1974, the United States had provided Nigeria with approximately $360 million in assistance, which included grants for technical assistance, development assistance, relief and rehabilitation, and food aid. Disbursements continued into the late 1970s, bringing total bilateral economic assistance to roughly $445 million.
The sharp decline in oil prices, economic mismanagement, and continued military rule characterized Nigeria in the 1980s. In 1983, USAID began providing assistance to the Nigerian Federal and State Ministries of Health to develop and implement programs in family planning and child survival. In 1992, an HIV/AIDS prevention and control program was added to existing health activities. USAID committed $135 million to bilateral assistance programs for the period of 1986 to 1996 as Nigeria undertook an initially successful Structural Adjustment Program, but later abandoned it. Plans to commit $150 million in assistance from 1993 to 2000 were interrupted by strains in U.S.-Nigerian relations over human rights abuses, the failed transition to democracy, and a lack of cooperation from the Nigerian Government on anti-narcotics trafficking issues. By the mid-1990s, these problems resulted in the curtailment of USAID activities that might benefit the military Government. Existing health programs were re-designed to focus on working through grassroots Nigerian non-governmental organizations and community groups. As a response to the Nigerian military government's plans for delayed transition to civilian rule, the Peace Corps closed its program in Nigeria in 1994.
In response to the increasingly repressive political situation, USAID established a Democracy and Governance (DG) program in 1996. This program integrates themes focusing on basic participatory democracy, human rights and civil rights, women's empowerment, accountability, and transparency with other health activities to reach Nigerians at the grassroots level in 14 of Nigeria's 36 states.
The sudden death of General Sani Abacha and the assumption of power by General Abdulsalami Abubakar in June 1998, marked a turning point in U.S.-Nigerian relations. USAID provided significant support to the electoral process by providing some $4 million in funding for international election observation, the training of Nigerian election observers and political party polling agents, as well as voter education activities. A Vital National Interest Certification was submitted to Congress in February 1999 by President Clinton to lift restrictions on U.S. Government interaction with and support to the Government of Nigeria.
Since that time, USAID has supported Nigeria to sustain democracy and to improve governance by providing training on the roles and responsibilities of elected officials in a representative democracy for newly elected officials at the federal, state, and local levels prior to their installation in May 1999 and assisting with conflict prevention and resolution in the Niger Delta, civil military relations, civil society, and political party development. In the economic area USAID supports programs in strengthening economic management and coordination, encouraging private sector development and economic reform, helping Nigeria reap the benefits of AGOA, improved agricultural technology and marketing and smallscale and microenterprise development. In addition, health assistance, focusing on HIV/AIDS, nutrition, and immunization, education, transportation and energy infrastructure, are priorities for bilateral assistance.
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