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The federal
government and the World Bank have signed an agreement to facilitate
the creation of over 100,000 jobs in six key sectors of the economy
over the next two years. The process will be carried out under the
auspices of the Nigerian Growth and Employment Pact with additional
support from the UK’s Department for International Development (DFID).

The pact, which is
designed to boost growth, investment and job creation, is expected to
cover the construction, entertainment, information & communication
technology (ICT), meat, leather and tourism sectors. World Bank’s
Private Sector Development Specialist, Richard Sandall, noted that
despite Nigeria’s status as a growing economy as a result of her huge
riches from oil, the country’s waged employment, put at less than 10
percent of the total labour force, has been declining in recent times.
“The World Bank, DFID and the federal government are partnering in the
implementation of the Growths and Employment in States (GEMS) project
designed to support select industries in accelerating their growth and
job creation. We are committed to create about 100,000 jobs in the
target sectors in the next couple of years,” he said.

Lead Economist,
World Bank Nigeria, Volker Treichel, said the goal of the bank is to
ensure a world free of poverty, and this cannot happen unless jobs are
created for the people. Noting that growth in Nigeria has been very
strong across all sectors of the economy, even in the wake of very
difficult global circumstances in recent times, Mr. Treichel said this
has hardly translated into jobs development for the people in the
formal sector, except in agriculture.

Minister of
Finance, Segun Aganga, described the new pact as an unprecedented
collaboration between key stakeholders to determine steps necessary to
ensure that the country’s economy continues to grow and create
employment, assuring that government, through its policies, has already
begun the implementation of some of the recommendations identified by
the stakeholders during their group interactions held in Abuja last
week.

Improved infrastructure

Mr. Aganga listed
some of the areas to include the review of the process for the
establishment of a more tourist-friendly visa regime; improvement of
airport facilities through private public participation (PPP) and
review of the tax system to eliminate multiple-taxation. Others include
a comprehensive reform of Land Use Act and unlocking credits for
investment by de-risking the banking system to recommence lending; and
review of the Evidence and Bankruptcy Acts. He said government is on
course to ensure that the recently established Asset Management
Corporation of Nigeria commences operations soon, to make banks begin
injecting money to the formal sector. The minister also said government
is considering establishing special commercial courts to ensure that
those who get collateral for loans are able to take possession of their
property without much hassles. Representatives of the various sectors
that participated in the two-day deliberations identified areas they
want government to intervene to open up the system and create jobs.
Most of the issues centred on the need for improved communication
between government and its agencies as well as with the private sector;
strengthening of the capacities of the various regulatory authorities
through improved legislative processes; improved access to finance;
harmonization of taxes and review of incentives, as well as enhancement
of capacity building for operators. While urging stakeholders to come
up with workable business plans, Mr. Aganga disclosed that government
plans to liaise with the Lagos Business School (LBS) to provide about
26 enterprise centres nationwide to help entrepreneurs develop and
nurture business plans for about one year to help them understand how
to set up and run successful businesses “The resolutions we have
arrived at have been very promising. The next step is for stakeholders
to show commitment to timelines and deadlines for their implementation
to ensure that we build on the momentum when the meeting reconvenes
next November,” the minister said.