Dr. Ifediora Ameobi, a policy economist, is the Executive Director of the African Institute for Applied Economics (AIAE). He was Senior Special Assistant to the Vice President on National Development Matters between 2007 and 2011. In this interview with TOBA AGBOOLA, Ameobi seeks the governments’ support for the Organised Private Sector (OPS), which he describes as the engine of growth. He speaks on job creation, domestic debts and diversification of the economy.
What is your advice to the government on economic management strategy for the masses?
In the past, I had said employment generation is what is needed at all levels to ensure both increased productivity and security. But this obviously depends on a number of factors – the first being electricity. Substantial improvement in power supply would not only generate employment, but it would create considerable wealth for many. Second, our debt has to be watched closely, especially our domestic debt. Finally, Nigeria needs more structural decentralisation and economic diversification. Too much is dependent on the centre that taking a lot of government time and space. The federal structure as constituted is bloated, too heavy and it is weighing down on delivering services effectively to the people. I believe that more than half of the federal ministries, departments and agencies can operate effectively at the geo-political level.
In what ways have AIAE research output and policy dialogue efforts contributed to the advancement of the economy?
Very positive impacts have been recorded. I will tell you about a couple of them. When President Goodluck Jonathan presented his Transformation Agenda, our institute was the first to organise a roundtable on the economic transformation process in collaboration with the Office of the Special Adviser to the President on Project Monitoring and Evaluation. From this event, the government agreed and implemented the signing of a performance contract between Mr President and ministers. Also, before now there was no known indigenous research mechanism through which the business environment was measured across the states in Nigeria. Between 2003 and 2005, we conducted the Better Business Initiative research study. This received national acclaim and led to the introduction of the Business Environment and Competitiveness Across Nigerian States, what is known as BECANS. Today, BECANS is nationally accepted as a research-based mechanism for benchmarking, peer review and advocacy on business environment across the 36 states and the Federal Capital Territory (FCT).
What are the challenges facing research efforts in Nigeria?
The key challenges to research efforts in Nigeria include access to available, verifiable and accurate data; funding – particularly non-existing research grants from the government, analytical skills, and the environment to conduct research.
In most cases, data exist, however, having access to it could come at a price. Also, confirming the accuracy or validity of that data is another thing. Students and other researchers can attest to this. International institutions provide most of our data from abroad, and our government relies more on these figures than the data figures generated by local research institutions, such as ours. Another challenge we face is the dearth of analytical skills. Data means nothing if it cannot be properly analysed. And finally, research can only be conducted in a conducive environment devoid of the distractions seen in a lot of our academic institutions.
How is your institute collaborating with other stakeholders to boost the impact of research in the country?
Research work is not what a single institution can do alone; that is why we need to collaborate with other stakeholders. We have been working with Nigerian universities and other thinktanks on various topical research areas. For instance, we worked with some state and federal universities on a project named Linking University Research In Industry. The project addressed gaps in the provision of scientific and research products and innovations to industry due to the under utilisation of research in policymaking. We also collaborated with the Organised Private Sector and the media. Very soon, the dissemination would be done and you will see how the impact of that study would be felt not only in Nigeria, but also across sub-Saharan Africa.
What is the institute’s relationship with the state governments, especially the host geo-political zone (Southeast)?
From inception we have had a very good relationship with the state chief executives, not only in the Southeast, but also across the federation. For the Southeast in particular, our institution has been part of the development programmes in various ways. You will recall that the Southeast Nigeria Economic Commission (SENEC) was the brainchild of our Institute. The initiative is a product of the recommendations of the stakeholders’ forum on industrial clusters held in September 2006 in Enugu. SENEC serves to facilitate investments in the Southeast zone, as well as develop large physical infrastructural schemes, among others. AfriHeritage demonstrates a high level of corporate social responsibility that impacts our immediate economic environment. We also partner with the Southeast Economic Summit Group in organising the yearly Southeast Economic Summit.
Can you shed more light on BECANS? How will it impact on the economy?
BECANS is the flagship of the institute. Its objective is simply to systematically assess, update and report the business environment and level of competitiveness among the states. We had observed that there was no way of analysing the business environment and investment climate among states, as the data was aggregated for Nigeria. Rather, all the assessments were cross-country comparisons, which rightly treated Nigeria as a homogenous entity. This thinking, basically, formed the rationale to disaggregate national data across the states of the federation.
In 2007, the institute launched the first BECANS study, BECANS I, which was widely received by the government and the business community in Nigeria. The BECANS Report was used by some states as an instrument for planning, while the private sector and civil society used BECANS to advocate and dialogue with the government. Based on the lessons from BECANS I, the second cycle, BECANS II, was successfully launched in 2010 and represented a vital update on the state of business environment across the 36 states and the Federal Capital Territory. BECANS II revealed that businesses needed to have more access to energy and transportation infrastructure if they are to expand and create jobs, and job creation is fundamental to poverty reduction. Infrastructure is also critical to help meet the Millennium Development Goals and, ultimately, attain Nigeria’s vision 20:2020. The prospects for BECANS as an independent evidence-based monitor and accountability platform for business environment are ever increasing as the country’s democratic space widens. In all fronts, state governments try to as much as possible to improve their ratings on the different benchmarks of BECANS – infrastructure and utilities; regulatory services; business development support and investment promotion; and security in order to create a more friendly business environment, especially for potential investors.
What is your view about the Organised Private Sector (OPS)?
The Organised Private Sector (OPS), through the respective Chambers of Commerce, Manufacturers Association of Nigeria (MAN), the Nigeria Association of Small Scale Industrialists (NASSI), and so on, has been very dynamic, vibrant and forward-looking. I think they have also been very assertive and vocal, particularly in those aspects of the economy that directly affect their business, such as excessive tariff, multiple taxes, reforming the regulatory environment, and even the state of road infrastructure, amongst others. The private sector is the engine of growth, therefore a very strong understanding, co-operation and support from the government is required for them to confront the challenges to economic growth and industrial development. However, to make a more lasting impact, they have to expand beyond manufacturers and include importers, dealers and merchants, since these groups also contribute substantially to Nigeria’s revenue base.
You have spent six months as the Executive Director of AIAE. What has been your experience?
The experience has been extremely positive. Coming back to Enugu from Abuja after four years in government was a great home-coming for me, primarily because I had done quite a lot of work as an Associate Fellow of the institution prior to my appointment. Also, I was the Managing Consultant of Skoup and Company here in Enugu, as well as a lecturer at ESUT Business School.
The past six months have been very fulfilling. The institution has grown both in prominence and in its operations. With a new strategic direction and a pool of dedicated staff, we are re-positioning the organisation, deepening research, attracting new skills and now being reckoned with continentally as an African think tank. Our ultimate objective is to be part of the global ranking of research institutions and think tanks in the not too distant future.
What new things or ideas are you bringing into the institute? What are your objectives and how do you want to achieve them?
Working very closely with the Board of Directors, the institution is on a trajectory. Our first objective is to operate beyond the hob of our traditional applied economics space and explore new areas such as governance, the political economy, foreign relations, and so on. The thinking, basically, is to enrich our output to our public and private sector clients as well as our numerous global audiences. This has necessitated the need for us to rebrand. We have officially been approved to operate under our new name African Heritage Institution or AfriHeritage for short, and we have commenced the full rebranding process. Our new identity will position us better to deliver value and give us the much-desired platform to showcase more of our offerings and capabilities as an evidenced-based research institution. Other things we have started doing in the last six months is renewing our policy dialogue seminar series – the Enugu Forum, enhancing our technological capabilities to deepen research, upgrading our library facilities, and expanding our network of partners and our reach beyond Nigeria.
What is your plan with the media? How do you plan to carry them along in BECANS III?
There is no gainsaying the fact that media as a communicator of policy reforms needs to be properly carried along in the process of policy formulation of which economic research is fundamental. We also believe that working with the media is one of the best ways to carry out advocacy. Even more than before, our institute is committed to working with you to bring about the needed change in the nations quest for socio economic development. As an integral partner, we are committed to building the capacity of the press especially those whom we have been working with on this project. Ours is not just briefing the press, but carrying them along on how research output are communicated to the man on the street. On BECANS III, we are already putting our strategies together to work with the press as we begin the fieldwork across Nigeria. This will continue from time to time till we are set to commence our dissemination seminars, which will make it easier for proper communication and greater impact.
