Summit Summary

1. Summit Summary

2. Outline

3. Introduction • Vision 20: 2020 is to be 20th largest economy by 2020 • At current pace, we will be 27th largest economy by 2020 and 20th by 2035 (NESG estimates) • An accelerated pace of reforms and growth can shorten the time frame • Double digit growth rate from 2013 will double the size of the economy in 6 – 7 years • The primary indicator of economic performance is the number of jobs created annually • Four key sectors have been identified for accelerated creation of jobs: Power, Housing, Downstream Oil & Gas and Agriculture • Tracking jobs created becomes a key metric

4. Framework for job-creating growth Agriculture Downstream Oil & Gas Housing Construction Power Massive Investment in Infrastructure Human Capital Development Reduction in Cost of Government

5. Power • NES #18 acknowledges FGN’s efforts at implementing the Roadmap for Power Sector Reform • Electricity generation stabilised at about 4,200mw • Effort ongoing to strengthen weak transmission network • Sale of PHCN successor companies • NES#18 further recommends the following: • BPE/FGN concludes negotiations with labour expeditiously • Fast-track development of Gas infrastructure to guarantee supply availability • Complete and sell NIPP generating plants

6. Housing Construction • Estimated housing deficit of 17.2 million • To close this gap by 2020, the economy requires an average of 2 million housing units per annum • Evident opportunity for massive job creation • This can be achieved through social housing and private development schemes • NESG commits to working with Federal and State Governments in the areas of: • Financing solutions • Land reforms • Human capital requirements

7. Agriculture • NES #18 applauds the ongoing reforms in the Agricultural sector • However, commercial funding remains an ongoing challenge • Fast-track implementation of the Abuja Commodities Exchange by Q4 2013; • to actualise fair pricing, empower farmers and improve food security

8. Downstream Oil & Gas • PIB continues to be the major outstanding issue in unlocking the full potential of the industry • Bill already passed through 2nd reading in the House of Representatives • Public hearing scheduled for Q1, 2013 • NESG commits to facilitate stakeholders’ fora to harmonise divergent views before the public hearing • NESG remains supportive of the removal of subsidy on petroleum products; however there should be wider public engagement/education

9. Framework for job-creating growth Agriculture Downstream Oil & Gas Housing Construction Power Massive Investment in Infrastructure Human Capital Development Reduction in Cost of Government

10. Infrastructure: Roads • To underpin this job-creating growth, there needs to be massive investment in infrastructure (China Example) • NES#18 recommends Government funding should kick-start this process • E.g in the road sector, re-construct and expand the major existing Trunk A roads in the next 24 months • FGN could issue Infrastructure Bonds to finance road construction

11. Infrastructure: Aviation • NES#18 applauds the ongoing intervention by the Federal Government in fast-tracking the upgrade of airport infrastructure • Thereafter major airports should be concessioned to private sector operators with international expertise • FAAN should continue to manage other non-commercially viable airports • NCAA Act should be amended to allow the regulator financial and professional autonomy • Poor reputation/trust deficit of Nigerian airlines with lessors • FGN could provide a guarantee scheme to lessors, on behalf of Nigeria airline operators

12. Infrastructure: Railway • NESG recognizes the on-going refurbishments of the railway lines • Lagos-Kano to be concluded by end 2012 • Ajaokuta/Itakpe- Warri is 80% completed • PH-Maiduguri is 20% completed • Abuja-Kaduna is estimated at 40% • Fast-track process of amending the Railway Act (1955) to open up the sector to private sector participation

13. Framework for job-creating growth Agriculture Downstream Oil & Gas Housing Construction Power Massive Investment in Infrastructure Human Capital Development Reduction in Cost of Government

14. Human Capital Development • With a population of 167 million, this represents a huge potential to develop a skilled workforce, which is necessary to support our aspiration for double digit economic growth. • However, the skills gap needs to be addressed • The skills development should then be aligned to the job creating sectors of the economy • The challenge remains how we facilitate the development of an industry-ready workforce

15. Human Capital Development • Each of the 11 vocational centers in the country should be made to specialize in key areas and have them certified • The NNSML scheme of LNG can be replicated (where skills set are matched against industry need) • A technical and value reorientation approach can be infused into the specialization of each of the vocational centers in order to tackle youth attitudinal problems • NESG commits to a Public Private Partnership framework required in collaboration with the Federal Ministry of Labour and Productivity

16. Framework for job-creating growth Agriculture Downstream Oil & Gas Housing Construction Power Massive Investment in Infrastructure Human Capital Development Reduction in Cost of Government

17. Cost of Government • The current cost and size of government is not sustainable at all three tiers and levels • The imbalance between recurrent and capital expenditure is a drag on economic growth and does not create jobs • Capital expenditure should be redefined as long-term development capital as opposed to fixed assets • 50 : 50 target relationship between capital and recurrent is advocated • Fast-track the implementation of the Oronsanye Report • Re-evaluate our current model of governance

18. Conclusion Power Housing Construction Downstream Oil & Gas Agriculture Massive Investment in Infrastructure Human Capital Development Reduction in Cost of Government Economic Growth that impacts the common man