In a significant stride towards business growth and investment promotion, Abia State has improved its Ease of Doing Business (EoDB) ranking, moving from the 33rd position (4.48) in 2021 to the 21st position (5.59) in 2023. According to the 2023 Nigeria Subnational Ease of Doing Business Report by the Presidential Enabling Business Environment Council (PEBEC), Abia State now ranks thirdamong the five states in South-Eastern Nigeria. This remarkable achievement is partly attributed to the technical and financial support provided to the Abia State Government through the Integrated National Financing Framework (INFF) Phase II Program.

Abia State is one of the pilot states where the INFF action plans on investment promotion as well as enhancement of tax administration and revenue collection are being implemented. The State has greatly benefitted from the support provided, leading to improvements across several sub-indicators of the 2023 EoDB ranking. Notably, there has been a 103.2% increase in Investment Promotion and a 38.6% increase in Skills and Labor satisfaction scores, accounting for the highest percentage increases in EODB satisfaction scores for Abia state.

Key Reforms and Commitments

The journey to this remarkable achievement began with a two-day stakeholder roundtable meeting on EoDB, which brought together key public and private sector stakeholders across Abia state government ministries, departments, and agencies, as well as private sector business associations. The roundtable helped identify challenges to EoDB with a comprehensive Action Plan developed to address the challenges. It also galvanized support for the proposed EoDB Law and the establishment of the State’s EoDB Council. The roundtable also set the tone for better communication and collaboration among Ministries, Departments and Agencies (MDAs) and the private sector, with a focus on improving the EoDB ranking and enhancing public service delivery to boost resource mobilization in Abia State.

Following the roundtable, several Ease of Doing Business reforms and actions were committed for 2023/2024. These included establishing small claims courts to expedite dispute resolution and reducing the time to obtain a Certificate of Ownership (C of O) for businesses within 30 days of document submission – both successfully implemented by December 2023. The Action Plan also involved setting up One-Stop Shops for business registration and other business needs, offering tax rebates for certain investors and allocating land to them, consolidating revenues so that internally generated revenue (IGR) payments can be done annually or twice a year, and improving the road network and other infrastructures to attract investors. Additionally, an Abia state business and investment brochure was proposed to guide investors, and an Abia Industrial Innovation Park (AIIP) to be established. More transparent budget drafting and presentation involving civil society and broader stakeholders were also committed to. Enhancing the efficiency of land administration and streamlining/automating tax and payment processes in line with the State Actions on Business Enabling Reforms (SABER) program was also a key focus. The Action Plans were prioritized with a six-month work plan developed to implement priority solutions.

Ongoing Initiatives Supported by INFF Phase II

Other ongoing initiatives in Abia State supported by the INFF Phase II Program in line with the priorities of Ministry of Budget and Economic Planning include:

• Passing the EoDB Law, setting up the EoDB Council, and launching an EoDB Portal and website.

• Preparing an Abia State Investment Guide.

• Setting up One-Stop Investment Centers (OSICs) in Aba and Umuahia.

• Supporting the equipping of the Abia State Shoemaker Centre and building the capacity of Abia state shoemakers in using modern equipment, as well as providing training on safety and health standards.

• Campaigning and public sensitization on tax matters.

• Enhancing IT facilities to support the digitalization and ease of tax collection in Abia Internal Revenue Service (ABIRS).

• Supporting tax administration in 17 LGAs to harmonize and digitalize revenue in collaboration with the Tax for SDGs initiative.

• Improving governance, reporting, and evaluation of tax expenditure for tax enumerators in collaboration with the Tax for SDGs initiative.

Abia State's rise in the EoDB rankings is a testament to the effectiveness of the collaborative efforts of the state's stakeholders, with the support of the INFF Phase II Program. This progress is expected to not only improve the business environment and financing inflows but also sets a solid foundation for sustainable economic growth of the state. Looking ahead, more integrated financing policy solutions and reforms are needed for resource mobilization towards a resilient, inclusive, and sustainable development in Abia state.

About Nigeria Integrated National Financing Framework (INFF): 

The Nigeria Integrated National Financing Framework (INFF) aims to mobilize greater amounts of private and public resources to finance Nigeria’s sustainable development goals in line with national priorities. The implementation of the INFF leverages both conventional and innovative financing mechanisms, while tackling the barriers to public and private sector participation towards addressing financing needs for economic recovery.  The Nigeria INFF is an initiative of the Federal Government of Nigeria whose Steering Committee is chaired by the Federal Minister of Finance and Coordinating Minister of the Economy, with Secretarial support provided by the Office of the Senior Special Assistant to the President on SDGs (OSSAP-SDGs), and technical support from the Federal Ministry of Budget and Economic Planning. Current funding partners of the INFF include United Nations Development Programme (UNDP) and the European Union (EU) Delegation in Nigeria. Global INFF resources: Link  | Nigeria INFF resource: Link.

Written By: Precious Akanonu, National Economist, UNDP Nigeria 

Editor: Christabel Chanda – Ginsberg, Public Engagement, Outreach and Partnerships Lead, UNDP Nigeria