EASE OF DOING BUSINESS IN OGUN STATE
……Our Story so far
OTUNBA BIMBOLA ASHIRU
HON. COMMISSIONER FOR COMMERCE & INDUSTRY
FEBRUARY 2017
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
O u r S t o r y s o f a r
S t a t e .
2
INTRODUCTION
▪ Created on the 3rd 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
O u r S t o r y s o f a r
S t a t e .
3
…..The industrial hub of Nigeria
KEY MOTIVATION FOR REFORM
As at May 29, 20111. Ogun State was ranked 35th 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
O u r S t o r y s o f a r
S t a t e .
5
STARTING A
BUSINESS
REFORM
Affordable Qualitative
Education
Efficient Health Care
Delivery
Agricultural
Production/
Industrialisation
Affordable
Housing & Urban
Renewal
Rural & Infrastructural
Development/
DEALING WITH
CONSTRUCTION
PERMITS
TO IMPROVE THE
EASE OF DOING
BUSINESS
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
ENFORCING
CONTRACTS
Employment
Generation
Linked to the 5 Cardinal Programs
of the Administration
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
O u r S t o r y s o f a r
S t a t e .
6
OBJECTIVES OF REFORM

Ensure ease of doing business in the state for investors;

To improve our ranking from 35th;

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
O u r S t o r y s o f a r
S t a t e .
7
O V E R V I E W 2 0 1 1 – T O D AT E
STAKEHOLDERS
1. Ministry of
KEY ACTIVITIES
Housing/OPIC & Ogun
1. Regular
State Housing
meetings/Workshops/
Corporation;
RESULTS
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
Seminar;
2. Publicity & Media
Coverage;
3. Feedback &
Monitoring for prompt
action;
4. Regular appraisal of
key stakeholders
performance indicators
E a s e
o f
1. Ratings moved from
36th to 5th;
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.
d o i n g B u s i n e s s i n O g u n
O u r S t o r y s o f a r
CHALLENGES
1.Lack of/Inadequate
information;
2. Poor process flow
S t a t e .
8
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
Ease of doing Business in Ogun State
| Our Story so far
9
S TA R T I N G A B U S I N E S S
STAKEHOLDERS
KEY ACTIVITIES
1. Corporate Affairs
Commission;
1.Computerisation of
RESULTS
2. Federal Inland
business registration
Revenue Service;
3. Ministry of Commerce
– Dept. of Commerce;
4. Organised Private
Sector.
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.
E a s e
o f
CHALLENGES
1. Ratings moved from
36th to 5th;
2.Time taken to register a Lack of public awareness
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;
D o i n g B u s i n e s s i n O g u n
O u r S t o r y s o f a r
S t a t e .
10
DEALING WITH CONSTRUCTION PERMITS
STAKEHOLDERS
1. Ministry of Urban &
KEY ACTIVITIES
Physical Planning;
1. Decentralisation of
2. High Court Justice;
RESULTS
approval system &
3. Ministry of Agriculture;
4. Bureau of Lands &
Survey;
5. Ministry of
Environment.
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.
E a s e
o f
1. Ranking improved from
37th to 16th;
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 2014.
D o i n g B u s i n e s s i n O g u n
O u r S t o r y s o f a r
CHALLENGES
1. Lack of modern
equipment & adequate
security;
2. Lack of intelligence
sheet for charting of
survey plan of building
plan applications
S t a t e .
11
ENFORCING CONTRACTS
STAKEHOLDERS
1. High Court of Justice; KEY ACTIVITIES
2. Ministry of Justice;
RESULTS
1. Changing of the Civil
3. Lawyers
Procedures rules to allow
for “Front Loading
System” to be carried out
simultaneously;
2. Introduction of “PreTrail Conference” as part
of the changes in the
Civil Procedure Rules.
E a s e
o f
1. Ranking moved from
18th to 17th;
2. Litigation time
reduced drastically;
D o i n g B u s i n e s s i n O g u n
O u r S t o r y s o f a r
CHALLENGES
Coordination and gaining
support of key
stakeholders
S t a t e .
12
REGISTERING PROPERTY
STAKEHOLDERS
KEY ACTIVITIES
1. Bureau of Lands &
Survey;
1. Introduction of
RESULTS
2. Board of Internal
administrative charge of
Revenue.
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.
E a s e
o f
1. Ranking moved from 35th
to 28th;
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.
D o i n g B u s i n e s s i n O g u n
O u r S t o r y s o f a r
CHALLENGES
1. Lack of regular
maintenance of the State’s
GIS;
2. Lack of modern
equipment;
3. Lack of skilled
personnel;
S t a t e .
13
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
O u r S t o r y s o f a r
S t a t e .
14
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
O u r S t o r y s o f a r
S t a t e .
15
COMMISSIONING OF AMIDE CLAY
12/07/2016
VISIT TO OGC FOODS – LASENA WATER
25/08/2016
VISIT TO DAHUA PAPER MILL
10/11/2016
8TH NATIONAL COUNCIL MEETING ON
TRADE INDUSTRIES & INVESTMENT
24/10/2016
COMMISSIONING OF SIKA LTD
22/01/2016
VISIT TO CELPLAS
09/11/2016
Ease of doing Business in Ogun State
| Our Story so far
16
NEXT STEPS
▪ Overall rating from 5th to 1st 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
O u r S t o r y s o f a r
S t a t e .
17
THANK YOU
GOD BLESS