Draft of a short national financing strategy for an EMDE country to access additional sources of finance for its development. The country here is Nigeria and this is my final project for the EDX course, "Unlocking Investment and Finance in Emerging Markets and Developing Economies (EMDEs)

1. NATIONAL FINANCE AND INVESTMENT
STRATEGY FOR NIGERIA
By Precious Akinkuolie

2. Background
The 3 pronged strategy
1
2
3
Conclusion4
Identifying the Gap
Outlin
e

3. p
B Background
 Nigeria has a population of 191 million people, is the 30th largest economy in the
world in terms of nominal GDP and has the largest economy in Africa1
 It is Africa's most populated country, its biggest oil exporter and possesses the largest
natural gas reserves on the continent2
 However, about 112million Nigerians representing 67.1% of the Nigerian population,
currently live below the poverty line and 10.5 million children are out of school
 The 17 Sustainable Development Goals adopted in September 2015 which seeks to
generally end poverty, fight inequality and justice and tackle climate change by 20130
is a necessity for the development of this EMDE
 Achieving the SDGs by 2000 requires mobilizing an additional $2.5trillion per year
from diverse sources
 For the successful implementation of the SDG, a coalition is crucial and sufficient
financing need to be mobilized. The financing strategy is aimed at raising resources,
managing risks, and achieving sustainable development priorities
1. INTERNATIONAL MONETARY FUND. (2017) WORLD ECONOMIC OUTLOOK DATABASE
2. WORLD BANK GROUP. (2018). NIGERIA OVERVIEW. RETRIEVED FROM
HTTP://WWW.WORLDBANK.ORG/EN/COUNTRY/NIGERIA/OVERVIEW

4. p
I Identifying the Gap
 The largest source of international financing in Nigeria is Personal Remittances at
72%.
 Foreign Direct Investment (FDI) trails this at 11%, followed by Official Development
Assistance (ODA) at 11%.
 In 2017, the country received $3.4 billion in ODA and the International development
Association, United Kingdom and the United States are the largest donors of ODA.
 As the current world poverty capital, official development assistance is crucial to the
development of the country although the tax to GDP ratio is currently as low as 6.1%
in 2017 according to PWC.
 While Nigeria needs to attract greater flow of Foreign Direct Investment (FDI) with
Nigerians playing key role, domestic resource mobilization needs to be effective
 The goals of this strategy are wealth creation, employment generation, poverty
reduction and importantly, achieving the SDGs

5. Government Reform
Private Sector Mobilization
Implementation
THE THREE PRONGED STRATEGY TO MOBILIZE FINANCING FOR NATIONAL
DEVELOPMENT3

6. Government Reform
 Reduction of wastage in
governance
 Qualitative service delivery
 Efficiency in the use of public
fund & collection of revenues
Transparency &
Accountability
 Government should become
an enabler, providing the
appropriate environment for
private enterprise to thrive
 Eliminating laws that
prevent entry
Law Reform
 Lighten existing external debt burden
 Implementing appropriate debt
sustainability strategies
 Privatization of public enterprises
 Focus public investment on social sector
eg water, education, health care
Public Finance

7. Private Sector Mobilization
 Investor-friendly tax and
general incentives regime
 Conducive macroeconomic
environment & supportive
bureaucracy
 Flow of investible funds
Growing the
Private Sector
 Strengthen the domestic
financial market
 Combating Illicit financial flows
 Enhance integration with
external financial markets
Engineered
Growth
 Invest in domestic small and
medium sized enterprises
 Capital Markets mobilization
and institutional investors
Domestic Private
Finance

8. Implementation
 Public-Private Partnerships
 Reform of the Internal
revenue Generation (IGR)
system
 Enhanced targeted support
by development partners eg
USAID, UNDP, EU etc
Institutional
Framework
 Larger capacity for data
collection, storage,
retrieval and
 Proper mechanism for
collection of official
national statistics
Data
Availability
 Integrating SDGs into
national policy and
planning frameworks
Integration

9. p
C Conclusion
While there is no adequate data on the estimation or cost of financial investment
required to achieve the SDGs in Nigeria, there is no doubt that there is a huge
financing gap to implement the full SDGs.
To finance development in Nigeria, there is an apparent need to reduce pressure on
public finance and instead direct attention to private finance. While international private
finance is an important source of funding, domestic private resources needs to be
mobilized.
For Nigeria, the tax to GDP ratio is not promising and proves the need for effective tax
collection as well as investment in SMEs to promote innovation. Microfinance is also
important in providing finance for the poor and enabling financial inclusion.
There is a need for enhanced support and collaboration with the international
community to increase aid flow development while there is also an heavy responsibility
on the government to ensure that resources are mobilized through initiatives and the
implementation of the three pronged strategy.