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Kaduna State, Nigeria

Improve Ease of Doing Business (KAD0003)

Overview

At-a-Glance

Action Plan: Kaduna State Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: Kaduna Investment Promotion Agency (KADIPA) fKADCCI IA Umma Yusufj Felix Oloruntoba

Support Institution(s): KADIPA, Kaduna Internal Revenue Service (KADIRS) Ministry of Finance, Ministry of Commerce, Industry & Tourism, Office of Accountant General, Bu-eau of Statistics, Ministry for Local Governments, KASUPDA, KADGIS, Ministry of Works, Housing & Transport, Ministry of Water Resources and Kaduna Power Supply Company (KAPSCO), Kaduna State Committee on Ease of doing Business, Planning and Budget Commission, Ministry of Finance, Local government authority Government CS0s, Private sector, etc_ KADCCIMA, Nigeria Institute of Taxation. NASSI, MAN, ACOMORAN, NBA/SBL, INTERFAITH, MEDIATION, SPRAD KADUNA, UNION BAMA, IGO PEACE MEDIATOR FOUNDATION, FOLLOWTAXES, ACOMRAN, DCDF, ICWYI, FDHSP, REBOOT-PERL, MARKET WOMEN ASSO, YES, NARAYI COMMUNITY ORGANISATIONS, IYPM, CPAED, BREDPAC, ZDA

Policy Areas

E-Government, Fiscal Openness, Legislation & Regulation, Local Commitments, Private Sector, Tax

IRM Review

IRM Report: Kaduna State, Nigeria Design Report 2018-2020

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information

Potential Impact:

Implementation i

Completion: Pending IRM Review

Description

Commitment 3:
Start and end date:
Improve ease of doing business.
Lead IvIDA/CSO: Responsible persons:
September 2018 - August 2020
Kaduna Investment Promotion Agency (KADIPA) fKADCCI IA Umma Yusufj Felix Oloruntoba
Designation: Email and Phone:
Executive Secretary KADIPA (Co-Chair TWG)/ KADCCI MA (Co-Chair TWG)
Other Actors involve in implementation:
umrria.abaki@kdsg.gov.ng 08033033693 / tobafelix@gmail.com 08032506669 KADIPA, Kaduna Internal Revenue Service (KADIRS) Ministry of Finance, Ministry of Commerce, Industry & Tourism, Office of Accountant General, Bu-eau of Statistics, Ministry for Local Governments, KASUPDA, KADGIS, Ministry of Works, Housing & Transport, Ministry of Water Resources and Kaduna Power Supply Company (KAPSCO), Kaduna State Committee on Ease of doing Business, Planning and Budget Commission, Ministry of Finance, Local government authority
Government
CS0s, Private sector, etc_
KADCCIMA, Nigeria Institute of Taxation. NASSI, MAN, ACOMORAN, NBA/SBL, INTERFAITH, MEDIATION, SPRAD KADUNA, UNION BAMA, IGO PEACE MEDIATOR FOUNDATION, FOLLOWTAXES, ACOMRAN, DCDF, ICWYI, FDHSP, REBOOT-PERL, MARKET WOMEN ASSO, YES, NARAYI COMMUNITY ORGANISATIONS, IYPM, CPAED, BREDPAC, ZDA
General problem/challenge addressed by the commitment:
Main Objective:
Brief description of commitment:
The bureaucracy and excessive red-tapizm inherent in government institutions involved in business process constitutes a challenge and makes it difficult for potential and existing investors and entrepreneurs to set up micro, small and medium scale enterprises. Lack of basic and functional infrastructure is another critical challenge which investors face especially in the area of taxation, power and transportation. This also discourage foreign businesses that wish to invest in Kaduna.
To improve the ease of establishing and operating a business in Kaduna by improving the basic infrastructures required to enhance business performance and making government agencies involved in business processes that are more efficient and transparent, which lead to improved revenue generation and employment in the state.
This commitment seeks to initiate and implement reforms, which will make it easier for the private sector to engage with government agencies involved with business process-related services by streamlining the existing processes using innovative technology The commitment will encourage improvements in infrastructures that are critical to the success of businesses and promote timely and efficient service delive.'y in all business process-related services including business registration, licensing, taxation, land acquisition, access to credit, access to electricity, ease of entry and access of goods into the state, and between the LGAs.
Specific OP challenge addressed by commitment:
To review the baseline, based on the ease of doing business charter across all ranking indicators applicable to Kaduna State which will lead to Improvement in Private sector and Public Service delivery of critical development projects, It will facilitate access to business information by potential investors. It will also lead to improved transparency and Integrity in the government and the private.
Rationale for commitment: To improve enabling environment for the establishment and operators of businesses in Kaduna state and to streamline and harmonize the tax regime.
Expected Outcome/impact:
Performance Indicators:
Improved business environment will lead to more jobs being created, higher employment rates and ultimately to a more diversified and improved economy
i. Improved ease of doing business peer ranking of Kaduna in Africa by 2020 Citizens'13MOs and MDAs satisfaction in ease of doing business Government, BMOs and citizens to develop bi-annual action plan cycle for reporting to citizen on tax revenue iv. To achieve issue a circular or re-insertion of the tax for service into the Kaduna state Tax codification law v. Investors' satisfaction with ease of doing business in Kaduna
Specific Activities/Milestones Start Date End date
1 Review targets and service level agreements and standards in the ease of doing business charter
Sep 2018 Dec 2018
2 Sensitization, Enlightenment and Education of all stakeholders including MDAs, BMOs and citizens to meet target and SLA set out in the charter
Jan 2019 Aug 2019
3 Periodic ease for doing business reporting to all stakeholders through all available channels at least twice in a year. Sep 2018 Aug 2020
4 Campaign to promote tax for service at least twice in a year
5 Conduct a taxpayer perception and ease of doing business surveys at least once in two years
Jan 2019 June 2020
Sep 2018 July 2020
Source of Funding: Government funding, development partners, private sector and CS Os within the commitment area

IRM Midterm Status Summary

Commitment 3: Improve Ease of Doing Business

Language of the commitment as it appears in the action plan [34]

“The bureaucracy and excessive red-tapizm inherent in government institutions involved in business process constitutes a challenge and makes it difficult for potential and existing investors and entrepreneurs to set up micro, small and medium scale enterprises. Lack of basic and functional infrastructure is another critical challenge which investors face especially in the area of taxation, power and transportation. This also discourage foreign businesses that wish to invest in Kaduna.”

Milestones:

  1. Review targets and service level agreements and standards in the ease of doing business charter
  2. Sensitisation, Enlightenment and Education of all stakeholders including MDAs, BMOs and citizens to meet target and SLA set out in the charter
  3. Periodic ease for doing business reporting to all stakeholders through all available channels at least twice in a year.
  4. Campaign to promote tax for service at least twice in a year
  5. Conduct a taxpayer perception and ease of doing business surveys at least once in two years

Lead institutions: Kaduna Investment Promotion Agency, KADCCIMA

Start Date: Sep 2018

End Date: Aug 2020

Context and Objectives

Commitment 3 seeks to initiate and implement reforms that will make it easier for the private sector to engage with government agencies that provide business-related services. In 2018, A World Bank report deemed Kaduna as the most improved state for doing business in Nigeria. It based this decision on actions under four benchmarks: starting a business, dealing with construction permits, registering property, and enforcing contracts. [35]

Despite Kaduna State’s good performance, there are still bureaucratic bottlenecks that make it difficult for potential and existing investors to set up businesses in the state. [36] There is limited public disclosure of business information. Kaduna also lacks a mechanism to process citizen complaints regarding the ease of doing business. Commitment 3 seeks to establish an enabling environment for opening and operating a business in Kaduna State and to streamline and harmonise the tax regime.

As written, this commitment lacks specificity, and only some commitments are readily verifiable. While Milestones 2 and 3 promote access to information, more information is needed on the intended audience and outcome of public outreach efforts. Specifically, how will sensitisation efforts on the Ease of Doing Business Charter and tax campaign facilitate increased public engagement in government reforms? Similarly, how will the survey called for in Milestone 5 inform policy making around ease of doing business? In general, this commitment is an initial step toward a change in government practices, but specific milestones lack ambition. For example, Milestones 1 and 2 do not extend beyond acknowledging and publicising existing requirements of the Ease of Doing Business Charter.

If fully implemented, this commitment is expected to result in minor changes in open government practices. Several activities, such as those under Milestone 1, do not directly align with OGP values, as they lack a public-facing element. Milestones 2, 3, and 4 relate to the OGP value of access to information, as they call for providing information on the ease of doing business to the public. Milestone 5 promises to moderately increase public input in government policymaking through a survey. Therefore, these activities offer the opportunity to increase government-citizen engagement around ease of doing business in Kaduna State. [37]

Next Steps

If this commitment is continued in the next action plan, the IRM researcher recommends placing access to information and civic participation at the centre of ease of doing business reforms. One such approach could include an ease-of-doing-business portal. This could be a public-private web platform that collates information on starting and operating a business in the state. The portal could provide information on the business registration process and fees, the process to renew a business permit, tax exemptions, and other tax-related information. The portal could also include a form for citizens to submit questions, complaints, and feedback regarding business processes.

[34] The direct quotes from the commitment text reproduced here and all subsequent commitments cover the general description of the commitment and its milestones but, due to space constraints, do not include other sections. The unabridged English version of the first national action plan is available at https://www.opengovpartnership.org/documents/kaduna-state-national-action-plan-2018-2020/
[36] Felix Oloruntoba (Kaduna Chamber of Commerce, Industries, Mines and Agriculture), interview by IRM researcher, 5 April 2019.
[37] Felix Oloruntoba (Kaduna Chamber of Commerce, Industries, Mines and Agriculture), interview by IRM researcher, 8 October 2019.

Open Government Partnership