Putting Nigeria to Work

Volker Treichel

Description

Public debate in Nigeria on the country's progress since its return to democracy in 1999 has been dominated by two seemingly opposite themes. The first theme is the strong growth performance of the non-oil economy. This success has been marked by sharp increases in agriculture, trade, and construction and by the emergence of new industries in the financial, telecommunications, and entertainment sectors, supported by sound macroeconomic policies and structural reforms. The second, opposing theme is the seeming failure of Nigeria's much improved economic performance to reduce unemployment, especially among the young. Rising levels of unemployment have increased militancy among the young and impacted negatively on public order.
'Putting Nigeria to Work: A Strategy for Employment and Growth' looks at the ways in which Nigeria's improved economic performance has impacted the labor market. A number of relevant factors are carefully examined and analyzed, including industrial policy and the investment environment, the effects of restrictive trade policies on growth, and the ability of the technical and vocational education system to address the country's skills gap. The book proposes a strategy that will allow Nigeria to increase the availability of quality jobs, reduce rising youth unemployment, and sustain and further accelerate the country's economic performance and growth. At the core of this strategy are targeted interventions aimed at removing binding constraints to growth in sectors of the economy that are already growing fast, but have the potential to grow faster and have significant employment-creating potential.

Informations

• Publié par: world-bank-publications
• Publié le: 17 juin 2010
• Nombre de lectures: 19
• EAN13: 9780821380734
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

DIRECTIONS IN DEVELOPMENT
Countries and Regions
Putting Nigeria to Work
A Strategy for Employment and Growth
Volker Treichel
EditorPutting Nigeria to WorkPutting Nigeria to Work
A Strategy for Employment and Growth
Volker Treichel
Editor© 2010 The International Bank for Reconstruction and Development / The World Bank
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ISBN: 978-0-8213-8072-7
eISBN: 978-0-8213-8073-4
DOI: 10.1596/978-0-8213-8072-7
Cover photo: Curt Carnemark/World Bank; © iStockphoto.com/hronos7 (flag).
Cataloging-in-Publication data is available from the Library of Congress.Contents
Foreword xv
Preface xix
Acknowledgments xxi
Abbreviations and Measurements xxiii
Overview 1
Nigeria’s Growth Performance 2
Evolution of the Labor Market 3
The Need for a New Growth Strategy 3
How to Implement the Growth Strategy—
Sectoral Interventions and Geographic Focus 4
Addressing the Five Binding Constraints to Growth 6
Note 8
Chapter 1 Employment and Growth in Nigeria 9
Volker Treichel
Overview 9
Nigeria’s Growth Performance 12
Development of the Labor Market 18
vvi Contents
Nigeria’s Growth Strategy Going Forward 26
Skills Development in the Technical and
Vocational Education System 47
Reforming Trade: Import Bans and an
Economic Partnership Agreement 51
Annex 1A: Growth-Inhibiting
Cross-Cutting Constraints, Interventions, and
Expected Outcomes 54
Annex 1B: Quality-Inhibiting Cross-Cutting
Constraints, Interventions, and Expected Outcomes 56
Notes 58
Chapter 2 Employment, Unemployment, Joblessness,
and Incomes in Nigeria, 1999–2006 61
Luke Haywood and Francis Teal
Overview 61
Definitions in the Nigeria Living Standards
Survey and the General Household Survey 62
Nonparticipation in the Nigerian Labor Market 86
Notes 92
Chapter 3 Growth, Employment, and Industry in Nigeria 95
Markus Eberhardt and Francis Teal
Overview 95
Job Creation, Wages, and Firm Size 96
Nigeria’s Production and Exports in a
Comparative Context 98
The Job-Creating Sectors 118
Note 121
Chapter 4 Building the Enterprise Sector for Employment
and Growth: Some Policy Options 123
Peter Mousley
Overview 123
The Current Enterprise Policy and Program
Environment 124Contents vii
Review of Investment Climate Assessment
Data on Economic Zones and
Industrial Policy 138olicy—Current Challenges
and Successes 143
Enterprise and Industry Diagnostics and
Policy Selection 150
Conclusions 163
Notes 164
Chapter 5 Labor Market Trends and Skills Development 167
Jorgen Billetoft
Overview 167
Methodology 168
The Nigerian Skills Development and Training
Landscape 170
Skills Acquisition in the Informal Sector 182
Concluding Remarks and Ways Forward 195
Notes 201
Chapter 6 Nigeria’s Trade Policy Facilitates Unofficial Trade
but Not Manufacturing 203
Gaël Raballand and Edmond Mjekiqi
Overview 203
Nigeria’s Current Trade Policy 206
Impact of Trade Policy on Nigerian Manufacturing:
Limited Results 207
Impact on Trade Flows: A High Likelihood of
Unofficial Trade 210
Channels of Unofficial Trade to Nigeria 215
The Impact of Restrictive Trade Policy on
Customs Efficiency 217
The Spillover Effect of Import Prohibitions on
Lagos Port 219
Impact of Import Bans on Customs Efficiency
and Revenue Collection 221
Concluding Remarks and Next Steps 225
Notes 226viii Contents
Appendix A Methodology for Selecting and Scoring
Value Chains 229
Selecting the Value Chains 229
Scoring the V 231
Appendix B Regression Analysis of Non-Participation Data 233
Appendix C Main Constraints in Selected Agricultural
Value Chain 235
Appendix D Marginal Effective Tax Rates 237
Appendix E Bank of Industry—Assessment of Service and
Performance, 2001–07 241
Appendix F Nigeria’s Import Prohibition List as of
October 2008 243
Appendix G List of Lines/Products Removed from
Import Prohibition List in October 2008 247
Appendix H Benin’s Mirror Imports from China 249
Appendix I Possible Impact of Tariff Policy Changes on
Textiles, Vegetable Oils, and Rice 251
Bibliography 253
Index 263
Boxes
1.1 Financial Sector Reforms 17
1.2 Nigeria’s Entertainment Industry 28
1.3 Improving Agricultural Productivity in Nigeria 35
1.4 The Use of Clusters to Improve Bureaucratic
Procedures 41
1.5 Nigeria’s Investment Climate 46
4.1 Export Expansion Grant Implementing Arrangements 126
4.2 Administrative Process for Entering an Export
Processing Zone 132