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By Giuseppe Iarossi

Nigeria has a transparent imaginative and prescient of the place it desires to be. the rustic s imaginative and prescient 2020 expresses a daring wish to be one of the most sensible twenty economies by means of the 12 months 2020. The economic climate has published amazing progress figures due to the fact 2003 pushed by way of larger oil costs and a sequence of home-grown, monetary reforms. the rustic is now firmly at the highway to middle-income prestige. yet what else do govt and the non-public zone have to do to create the roles and progress that may underpin the nationwide improvement method? What are the demanding situations that Nigeria s companies face at the present time? What can executive do to advertise task production? What are the jobs of the Federal and nation governments in selling inner most area development? This funding weather research goals to supply solutions to those questions. it really is equipped on a 2,300 company survey and gives evidence-based options designed to help the imaginative and prescient 2020 and the President s seven element time table. we discover that executive needs to movement quick to take on activity construction and poverty relief. different key demanding situations contain a determined scarcity of strength and a bad transportation community in addition to low-levels of schooling and carrying on with unrest within the Niger Delta. Nigeria s employees have to be extra effective to compete in a globalized twenty first century economic system. even if they're poorly paid Nigerian employees are even much less efficient than their opposite numbers in additional dynamic nations corresponding to Kenya, Brazil and India. enhancing productiveness will take simultaneous efforts to foster pageant, to enhance the enterprise setting in addition to to facilitate greater administration and coaching inside of person businesses. Nigeria s most sensible businesses haven't been capable of develop their marketplace proportion. to permit this to take place, policy-makers have to deal with and do away with the stumbling blocks to pageant together with boundaries to access, convoluted taxation, estate registration and licensing.

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Extra resources for An Assessment of the Investment Climate in Nigeria

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The aggregate data, however, mask considerable variation across firm groupings. 4). More than 90 percent of Nigerian firms are small-size enterprises with low employment, fragmented production activities, and limited access to finance and technology. 5). Combining Labor Costs and Labor Productivity: Unit Labor Costs Labor costs and labor productivity taken in isolation give only a partial picture of a country’s competitive position. 5 Kenya small Nigeria medium India Indonesia large Capacity Utilization in Selected Countries 78 76 percent 74 72 70 68 66 64 62 South Africa Brazil Indonesia Kenya China India Nigeria high, a country can be competitive as long as labor productivity is high.

Firm Productivity in Nigeria 19 5. We opt for value added, defined as sales minus total raw materials, to allow for comparison with previous assessment of Nigeria’s private sector performance (World Bank, RPED Nigeria 2002). 6. The analysis in this chapter excludes firms with outlier observations. Thus, the mean values reported here are “trimmed” means, which exclude 10 percent of most extreme values (outliers). 7. The survey results across countries have revealed outliers, which have subsequently been removed from the analysis.

Brazil ranked second with $13,504, followed by China ($11,607) and Kenya ($13,078). The aggregate data, however, mask considerable variation across firm groupings. 4). More than 90 percent of Nigerian firms are small-size enterprises with low employment, fragmented production activities, and limited access to finance and technology. 5). Combining Labor Costs and Labor Productivity: Unit Labor Costs Labor costs and labor productivity taken in isolation give only a partial picture of a country’s competitive position.

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