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Again, Nigeria fails to make list of 63 world competitive economies; here’s why

Despite being the largest economy in Africa, Nigeria was not rated among the world’s most competitive according to the latest ranking by @IMD_Bschool.

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Despite being the largest economy in Africa, Nigeria was not rated among IMD‘s world competitive economies in the latest ranking that contains sixty-three countries. Only one African country has been ranked on the list over the last ten years.

The IMD World Competitiveness Ranking is a list of various countries considered competitive, regardless of their continent and political system. The competitiveness is driven by the government’s economic policies which facilitate growth and create competition among businesses.

The ranking weighs the approach of countries to the issues of the economy. According to the statement released by IMD, economies are affected by issues ranging from reservations over globalisation, skepticism over automation, and the challenge of sustainability to that of implementation. Note that not all economies approach these problems in the same way.

These four factors are considered:

  • Government efficiency
  • Economic performance
  • Business Efficiency
  • Infrastructure

The list ranked South Africa 56th, dropping three places. South Africa is the second largest economy in Africa and a non-oil country. While South Africa has regularly been featured on the ranking, Nigeria has not ben considered among worthy economies in the last eleven years (2008 & 2009, 2010 & 20112012 & 2013, 2014, 2016, 2017 & 2018 and 2019), according to checks by Nairametrics.

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Why Nigeria missed out: Nigeria’s global business image isn’t encouraging due to its poor business environment, unfavourable policies, and infrastructure decay. The business environment, political and economic uncertainty are the negative factors dragging the country back and killing competition in the business circle.

What this means: The IMD World Competitiveness Rankings can be viewed as an image molder for countries looking to lure foreign investment. Special attention is given to countries ranked regardless of whether they drop or rise on the list. Being on the list says the country’s business environment is business-friendly and competitive to some extent. On the other hand, not being on the list sends bad signals to prospective investors.

A blow to Africa: The presence of one African country on a list containing 63 countries is not reflective of the narrative about Africa’s status as an emerging market with growth opportunities. A continent that is lacking business-friendly policies will find it difficult to attract investors willing enough to establish businesses.

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Note that other emerging markets from South East Asia are well represented on the ranking.

Ranking of top Economies: The list ranked Singapore as the world’s most competitive economy for the first time since 2010, with the United States dropping two places to the third position, while Hong Kong SAR remained second for the second year running. Switzerland, UAE, Netherlands, Ireland, Denmark, Sweden, and Qatar completed the top ten of the World Competitiveness Ranking.

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Source: IMD

About IMD World Competitiveness RankingsIMD is an independent business school with Swiss roots and global reach.  Focused on developing leaders and transforming organizations, IMD designs and delivers interventions that challenge what is and inspire what could be.

For the last 7 consecutive years, IMD has been ranked No.1 in the world for Open executive programs and in the top three overall for executive education (Financial Times 2012-2018).

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Around the World

Trump administration acknowledges likely election loss, agrees to transition with Biden

Trump administration seems to have officially commenced the transition to Biden after weeks of delay and law suits.

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President Trump leaves Walter Reed Hospital

The Donald Trump administration seems to have acknowledged the loss of the presidential election as the General Services Administration (GSA), after weeks of non-cooperation has informed President-elect, Joe Biden that the administration is ready to begin the formal transition process.

According to a report from CNN, this was disclosed in a letter from the Administrator of DSA, Emily Murphy on Monday afternoon, November 23, 2020.

The letter is the first major step taken by the Trump administration to acknowledge its defeat in the presidential election after over 2 weeks that Joe Biden was declared the winner.

Monday’s letter is coming hours after Michigan formally certified the election results and some Republican senators had called for the transition process to start. This is also as more lawsuits from Trump’s legal team were dismissed, and Georgia election earlier certified on Friday and Pennsylvania set to be certified as well.

While making the decision to cooperate with the President-elect, Murphy said she had not been pressured by the White House to delay the formal transition and did not make a decision out of fear or favouritism.

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She said, “Please know that I came to my decision independently, based on the law and available facts. I was never directly or indirectly pressured by any Executive Branch official, including those who work at the White House or GSA, with regard to the substance or timing of my decision. To be clear, I did not receive any direction to delay my determination.”

The letter signifies Murphy’s formal acknowledgment of Joe Biden’s victory, a normally perfunctory process known as ascertainment. This action will allow the transition process, which has been delayed for some weeks, to officially commence, ensuring that current administration agency officials cooperate with the incoming Biden team, and providing millions in government funding for the transition.

For some weeks after his announcement as the winner of the presidential election, the Biden team who have been denied access to government information and agencies by the Trump administration, had worked informally to kick start the transition process with some actions which include setting up a coronavirus task force, consulting with public health officials outside the government, meeting with top corporate leaders, amongst others.

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The delay in ascertainment meant that Biden’s team was denied access to government data and could not make contact with federal agencies, nor spend $6.3 million in government funding now available for the transition. A Biden official said the most urgent need was for the transition to be given access to Covid-19 data and the vaccine distribution plans.

The Biden team is expected to have access to additional office space inside the agencies and the ability to use federal resources for background checks on Biden’s White House staff appointments and Cabinet appointments.

Moments after the letter was sent, Donald Trump tweeted thanking Murphy for her work and affirming the decision to start the transition.

His tweet reads, “I want to thank Emily Murphy at GSA for her steadfast dedication and loyalty to our Country. She has been harassed, threatened, and abused — and I do not want to see this happen to her, her family, or employees of GSA. Our case STRONGLY continues, we will keep up the good fight, and I believe we will prevail!” Trump tweeted. “Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.”

This letter from GSA now means that the Biden team will now have access to government agency staff with regular briefings in addition to details of administrative issues that need to be addressed immediately.

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The President-elect and his vice will also be receiving classified intelligence briefings as white house officials will start to cooperate.

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It can be recalled that Murphy, who was appointed by Donald Trump, had refused to go ahead with the ascertainment process, despite Biden’s clear victory. She has faced intense scrutiny and political pressure from Democrats and, in recent days, Republicans calling for the start of a smooth transition.

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Coronavirus

COVID-19: FG to inaugurate 18-man vaccine task team

FG has announced plans to set up an 18-man Covid-19 Vaccine Task Team with the responsibility to acquire and deploy vaccines in the country.

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Minster for health, FG ignores travel ban calls despite Uganda, US, others move against coronavirus, FG reports 10 new cases of COVID-19, COVID-19: FG to inaugurate 18-man vaccine task team

The Federal Government has announced through the Ministry of Health, that it will inaugurate an 18-man Covid-19 Vaccine Task Team, in a bid to ensure vaccine security In Nigeria.

This was disclosed on Monday by the Health Minister, Dr. Osagie Ehanire, during the daily briefing of the Presidential Task Force (PTF) on COVID-19 in Abuja.

He revealed that the need for a task force comes as vaccines would be made available globally. The responsibilities of the task force include the acquisition and deployment of vaccines in the country.

Now that vaccines are known to be close at hand, the Federal Ministry of Health is taking measures toward vaccine security, for which an 18-man National COVID-19 Vaccine Task Team with seven Terms of Reference (ToR) will be inaugurated.

“The ToR will include generating strategies for acquisition, deployment, and options for licensed production by Biovaccine Nigeria Ltd.

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“Our options with WHO/GAVI led Covax facility remains our first line of engagement,” he added.

(READ MORE:

(READ MORE: COVID-19 Palliatives: CACOVID donation is 95% complete – PTF)

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What you should know  

After news of the Pfizer vaccine went viral, Nairametrics reported that the Health Minister, Dr. Osagie Ehanire, said Nigerians will benefit early from COVID-19 vaccines when the product is made available for commercial use. He revealed that any vaccine that is deemed fit for commercial use in treating coronavirus will be made available early to Nigerians.

Nairametrics also reported plans by the Nigerian government to set up a vaccine production company in Nigeria to boost local COVID-19 vaccine production.

The G-20 nations announced a pledge to pay for vaccine distribution to developing nations that can’t afford it. The leaders also announced a debt extension programme to developing nations during the weekend’s G-20 summit.

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Economy & Politics

Gov. Makinde presents N266 billion budget to Oyo State House of Assembly

Governor Seyi Makinde has presented a ₦266.64billion budget proposal to the Oyo State House of Assembly.

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Gov. Makinde presents N266 billion budget to Oyo State House of Assembly

The Oyo State Governor, Seyi Makinde, presented the Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly. The total budgeted sum is ₦266.64billion, with education expected to receive N56.35billion – 21% of the budget and a rise from N12 billion budgeted in 2019.

This was disclosed by Governor Makinde in a social media post on Monday.

READ: Oyo State IGR increased by over 26% without increasing tax burden – Gov Makinde

According to NAN, Mr. Makinde disclosed on social media that the ‘Budget of Continued Consolidation’ was prepared with input from stakeholders in all seven geopolitical zones of the state.

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The total budgeted sum is ₦266.64billion The Recurrent Expenditure is ₦136.26billion, while the Capital Expenditure is ₦130.38billion. We are again, aiming for at least 70% implementation of the budget,” he said.

READ: Edo State to build Museum, set for more Benin Bronze returns in 2021

The News Agency of Nigeria also disclosed that infrastructure spending in the budget would be N46.06billion – representing 17.27% of the total budget and an increase of N33.66 billion over that of last year.

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Other sectors include Agriculture which represents 3.6% valued at N9.58billion and Healthcare taking 4.9% of the budget with an N13.29billion allocation.

(READ MORE: #EndSARS: Nothing wrong with social media bill – Ali Ndume)

The Governor disclosed that Oyo has reduced its infrastructure deficit and made improvements in the areas of healthcare, education, and others.

We have been able to lower our infrastructural deficit, make improvements in healthcare delivery, improve the quality of education, and achieve milestones in our security systems,” he said.

He also added that the state had recorded a 26% increase in IGR at N25.6 billion and hopes to increase IGR to over N100 billion for the 2021 budget.

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READ: Restructuting: Plans must pass through legal process from the National Assembly – Tambuwal

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As of September, we had recorded an IGR of N25.6 billion. And using the half-year figures, it represented a 26.4% increase in IGR year-on-year. Oyo State’s IGR is presently about 32% of actual aggregate revenue.

“We still have not achieved a total dependence on the state’s income outside of the federal allocation to fund the budget. Slowly, but surely, we are getting there.

READ: Snap to pay video creators $1 million daily

“For the 2021 budget, our plan is to increase our annual IGR to N102.82billion. We hope to achieve this by widening the tax net to bring in more taxpayers into the system,”  he added.

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