EASE OF DOING BUSINESS IN OGUN STATE Our Story so far OTUNBA BIMBOLA ASHIRU HON. COMMISSIONER FOR COMMERCE & INDUSTRY FEBRUARY 2017

Transcription

1 EASE OF DOING BUSINESS IN OGUN STATE Our Story so far OTUNBA BIMBOLA ASHIRU HON. COMMISSIONER FOR COMMERCE & INDUSTRY FEBRUARY 2017

2 OUTLINE 1. Introduction 2. Key motivation for reform; 3. Reforms & Linkage; 4. Objective of the reform; 5. Overview of State Reform & Results 6. Reform Implementation: Starting a Business; Dealing with Construction Permits; Enforcing Contract; Registering Property 7. Recent Reforms 8. Next Steps E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 2

3 INTRODUCTION Created on the 3 rd of February 1976; State capital Abeokuta; Estimated population of 7.1million as at 2014; Land area of 16,432sq.km; 3 Senatorial districts and 9 Federal Constituencies 20 Local Government and 37 LCDAs; Natural resources: Large expanse of arable land suitable for cultivation of food and cash crops; Industrial Mineral resources Limestone, Phosphate, Granite Stone, Gypsum, Bitumen, Glass sand, gemstones and much more E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 3

4 ..The industrial hub of Nigeria

5 KEY MOTIVATION FOR REFORM As at May 29, Ogun State was ranked 35 th position in the country by the World Bank in terms of Ease of doing business; 2. Low investment profile of the State; 3. Infrastructural decay; 4. Low level of Internally Generated Revenue; 5. Lack of engagement with the private sector; 6. Lack of support & funding for MSMEs. E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 5

6 REFORM Affordable Qualitative Education Agricultural Production/ Industrialisation Efficient Health Care Delivery Affordable Housing & Urban Renewal TO IMPROVE THE EASE OF DOING BUSINESS STARTING A BUSINESS DEALING WITH CONSTRUCTION PERMITS REGISTERING PROPERTY The World Bank Study focuses on Federal and State regulations that affect 4 stages in the life of a Small to Mediumsize domestic firm Rural & Infrastructural Development/ Employment Generation ENFORCING CONTRACTS L i n k e d t o t h e 5 C a r d i n a l P r o g r a m s o f t h e A d m i n i s t r a t i o n E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 6

7 OBJECTIVES OF REFORM Ensure ease of doing business in the state for investors; To improve our ranking from 35 th ; Improve the economic base of the state; Attract and retain investment into the State; Job and wealth creation; Improve Internally Generated Revenue; Improve the investment profile of the State; E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 7

8 O V E R V I E W T O D AT E STAKEHOLDERS 1. Ministry of Housing/OPIC & Ogun State Housing Corporation; 2. Ministry of Agriculture; 3. Ministry of Works & Infrastructure; 4. Bureau of Lands & Survey; 5. Ministry of Urban & Physical Planning; 6. Ogun State Internal Revenue Service; 7. Ministry of Justice; 8. Federal MDAs KEY ACTIVITIES 1. Regular meetings/workshops/ RESULTS Seminar; 2. Publicity & Media Coverage; 3. Feedback & Monitoring for prompt action; 4. Regular appraisal of key stakeholders performance indicators 1. Ratings moved from 36 th to 5 th ; 2. Investment into the state in 2016; 3. Over 100 new companies opened up in the state; 4. IGR of the state increased by 1000%; 5. Introduction of new policies & programs aimed at empowering MSMEs in the state. CHALLENGES 1.Lack of/inadequate information; 2. Poor process flow E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e. 8

9 COMMISSIONING OF UNILEVER LIQUID PLANT 09/11/2014 COMMISSIONING OF COLEMAN WIRES & CABLES 02/12/2014 VISIT TO STANDARD METTALURGICAL CO. MARCH 2016 VISIT TO TECH MAHINDRA IN MARCH 2016 COMMISSIONING OF APPLE & PEARS 01/12/2014 VISIT TO SONIA FOODS MARCH 2016 E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e 9

10 S TA R T I N G A B U S I N E S S STAKEHOLDERS 1. Corporate Affairs Commission; 2. Federal Inland Revenue Service; 3. Ministry of Commerce Dept. of Commerce; 4. Organised Private Sector. KEY ACTIVITIES 1.Computerisation of business registration process; 2. Hiring new & training of all staffs; 3. Introduction of Utility bill as an acceptable proof of address & evidence of payment of business premises fees replaced inspection; 4. Opening of additional Stamp duty/tax registration offices by FIRS to eliminate travel. RESULTS 1. Ratings moved from 36 th to 5 th ; 2.Time taken to register a new business with CAC dropped by at least 2wks; 3. Bureaucracy in business registration was reduced drastically from 3wks to 24hrs; 4. Increase in level of voluntary tax compliance; CHALLENGES Lack of public awareness E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 10

11 D E A L I N G W I T H C O N S T R U C T I O N P E R M I T S STAKEHOLDERS 1. Ministry of Urban & Physical Planning; 2. High Court Justice; 3. Ministry of Agriculture; 4. Bureau of Lands & Survey; 5. Ministry of Environment. KEY ACTIVITIES 1. Decentralisation of approval system & payment for construction permits; 2. Inaugurated a committee to monitor delays in approval; 3. SLA Registered Town planners was introduced to reduce the time taken to obtain EIA report; 3. On the spot issuance of Certificate of Completion. RESULTS 1. Ranking improved from 37 th to 16 th ; 2. Processing of construction permits is now 23days faster; 3. Building permits can be obtained in 7days; 4. Backlog of building permit application was reduced; 4; Time taken to obtain EIA report was reduced from 14days in 2010 to 5days in CHALLENGES 1. Lack of modern equipment & adequate security; 2. Lack of intelligence sheet for charting of survey plan of building plan applications E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 11

12 E N F O R C I N G C O N T R A C T S STAKEHOLDERS KEY ACTIVITIES 1. High Court of Justice; 2. Ministry of Justice; 3. Lawyers 1. Changing of the Civil Procedures rules to allow for Front Loading System to be carried out simultaneously; 2. Introduction of Pre- Trail Conference as part of the changes in the Civil Procedure Rules. RESULTS 1. Ranking moved from 18 th to 17 th; 2. Litigation time reduced drastically; CHALLENGES Coordination and gaining support of key stakeholders E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 12

13 STAKEHOLDERS KEY ACTIVITIES 1. Bureau of Lands & Survey; 2. Board of Internal Revenue. R E G I S T E R I N G PROPERTY 1. Introduction of administrative charge of 5% on property value in lieu of Capital Gain Tax on stamp duty documents; 2. State s Geographical Information System was improved; 3. New acquisition of lands in strategic locations of the state; 4. Engagement of new professionals land officers & surveyors; 5. Introduction of Automation process for title documents. RESULTS 1. Ranking moved from 35 th to 28 th ; 2. 5% admin charge helped to ease the burden of paying capital gains tax along with stamp duty on landed property; 3. Reduction in incidence of loss of files as data were kept & transferred online; 4. Time frame for property registration was drastically reduced from 1yr to 3mths; 5. New acquisitions created more available land for investors; 6. Faster approval of land acquisition for developmental use; 7. Introduction of electronic Cof O. E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. CHALLENGES 1. Lack of regular maintenance of the State s GIS; 2. Lack of modern equipment; 3. Lack of skilled personnel; 13

14 RECENT REFORMS 1. Establishment of One Stop Shop Investment Center (OSSIC) providing integrated business registration services; 2. Introduction of on-line self service Tax payers registration and filing of returns; 3. Introduction of Informal sector/commercial Road Transport Workers Tax Scheme; 4. Introduction of informal Sector/self-employed tax payers enumeration through collection of bio-data, pictures with the use of handheld terminal; 5. Embark on campaign to promote benefits of formal registration to small & medium sized enterprises; 6. Regular exchange of reform experiences with peers; E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 14

15 RECENT REFORMS 7. Establishment of a special Court/Tribunal on town planning issues; 8. Intensive public sensitisation and enlightenment; 9. Introduction of Alternative Dispute Resolution Ogun State Multi door Court House; 10. Introduction of Customer Care Unit in the Bureau of Lands & Survey; 11. Introduction of Home Owners Charter which allowed for land owners to obtain C of O for residential properties with ease. E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 15

16 COMMISSIONING OF AMIDE CLAY 12/07/2016 VISIT TO OGC FOODS LASENA WATER 25/08/2016 VISIT TO DAHUA PAPER MILL 10/11/ TH NATIONAL COUNCIL MEETING ON TRADE INDUSTRIES & INVESTMENT 24/10/2016 COMMISSIONING OF SIKA LTD 22/01/2016 VISIT TO CELPLAS 09/11/2016 E a s e o f d o i n g B u s i n e s s i n O g u n S t a t e 16

17 NEXT STEPS Overall rating from 5 th to 1 st in terms of Ease of Doing Business by 2018; To gain the commitment of more MDAs to introduce reforms that will facilitate ease of doing business in the State; Work towards a National minimum construction requirement & Uniform State safety standard; Construction of Commercial Courts; To establish bi-lateral relationships with neighbouring South West States. E a s e o f D o i n g B u s i n e s s i n O g u n S t a t e. 17

18 THANK YOU GOD BLESS