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STATE OF LOCAL ECONOMIC DEVELOPMENT [LED] NIGERIA

REPORT FEBRUARY, 2016

© United Cities and Local Governments of Africa 2016

This publication presents the state of art of Local Economic Development

programs and projects it’s a national report on current

Local Economic Development legislation and practices.

All rights reserved. No part of this publication may be reproduced,

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the prior permission of the publisher.

Published by United Cities and Local Governments of Africa

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DISCLAIMER

“The terms used concerning the legal status of any country, territory, city or area,

or of its authorities, or concerning delimitation of its frontiers or boundaries,

or regarding its economic system or degree of development do not necessarily

reflect the opinion of United Cities and Local Governments of Africa. The analysis,

conclusions and recommendations of this report do not necessary reflect

the views of the all members of United Cities and Local Governments of Africa.

Special acknowledgments for financial support

European Union

llustration and graphics : Hamza Bernoussi

All photo of this document is published under the Creative Commons License.

(https://creativecommons.org/licenses/). All right reserved.

CONTENTS

1. INTRODUCTION…………………………………………………………………………………….4

1.1 National Context………………………………………………………………………………………………4

1.2 Purpose and scope of study…………………………………………………………………….………4

1.3 Study Methodology……………………………………………………………………………………………4

1.4 Definitionofterms……………………………………………………………………………………………4

1.5 Structure of Report………………………………………………………………………………………… 5

2. NATIONAL ENABLING PERSPECTIVE ………………………………………………………5

2.1 NationalGovernmentperspectiveondecentralisation……………………………………5

2.2 The Concern for LED…………………………………………………………………………………………6

3 LOCAL ENABLING PERSPECTIVE ………………………………………………………7

3.1 LocalGovernmentpowers……………………………………………………………………7

3.2 LocalGovernmentfinance………………………………………………………………………………9

4 LED IN PRACTICE………………………………………………………………………………….10

4.1 ThematicfocusofLEDProjects………………………………………………………………………10

4.2 AnalysisofLEDProjectsonEconomicgovernance…………………………………………11

4.3 AnalysisofLEDProjectsonEnterprisedevelopment………………………………………11

4.4AnalysisofLEDProjectsonLivelihooddevelopment……………………………………… 12

4.5AnalysisofLEDProjectsonLocalityDevelopment……………………………………………12

4.6 AnalysisofLEDProjectsonWorkforcedevelopment………………………………………13

4.7 SpatialfocusofLEDprojects……………………………………………………………………………13

4.8 People’sfocusofLEDProjects…………………………………………………………………………13

4.9 TimeframeofLEDProjects………………………………………………………………………………14

4.10 Guiding principles ……………………………………………………………………………………………14

4.11 DonorsparticipatinginLEDProjects……………………………………………………………….15

4.12AnalysisoffundsdisbursedforLEDProjects……………………………………………………15

5. LED PRACTITIONERS AND SKILLS………………………………………………………….……………16

6. IDEAS FOR LED THEMATIC STUDIES……………………………………………………………………17

7. CONCLUSIONS AND RECOMMENDATIONS…………………………………………………………….20

References…………………………………………………………………………………………………………22

Appendix1:ListofLEDProjects……………………………………………………………………………………24

Appendix2:RapidUrbansectorProfilingforSustainability_LEDModule…………………25

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1 INTRODUCTION

1.1 National Context of Local Economic Development

Nigeria,oneofAfrica’smostpopulouscountries,haswitnessedanimpressiveeconomicgrowthduringthepasttwodecades.Currently,NigeriahasthelargesteconomyinAfricawithaGDPvaluedatUS$521billion.Thisremarkableeconomicgrowthhasbeenlinkedtoapotentiallytransformativeurbanisationprocess,coupledwithlarge-scaledemographicandsocialchange.Despitethisimpressiveeconomicgrowth,pover-tyisstillprevalentinthecountry.Thisiscoupledwithhighfiguresforunemploymentespeciallyamongtheyouthsandthefactthecurrenteconomicgrowthexperiencedinthecountryhasnotbeenmatchedwithequity.Thepromotionoflocaleconomicdevelopment(LED)isseenbymanyasawayofaddressingtheis-sueofpoverty,economicempowermentandasawayofpromotingeconomicgrowthfromthegrassrootstothenation.Specifically,theWorldBank(2001)urgeddevelopingcountriestodevelopandimplementLEDprojectstowardsacceleratingeconomicgrowth, improvingthedistributionof incomeandwealthandacceleratingsocialdevelopment in order to achieve sustainable poverty reduction.

InJanuary2016,theUCLGAinitiatedthestudyofthepracticeofLocalEconomicDevelopment(LED)insome20AfricancountriesincludingNigeria.ThisreportisonthestateofLEDpracticeinNigeria.

1.2 Purpose and scope of study

TheaimofthestudyistoidentifyallmajordonorfundedLEDprogrammesaswellasLEDprogrammesfunded locally and by NGOs and to prepare a LED atlas for the country.

1.3 Study Methodology

ThisstudymethodologywasclearlyguidedbytheGuidelinesissuedbytheUCLGA.TheGuidelinesprovid-eddefinitionsofLEDtobeusedinthestudy.TheGuidelinesalsosetsthescopeofthestudyandanalysis,providingthetemplatefordatacaptureandanalysisandformatforreporting.

AccordingtotheGuidelines,theconsultantwasrequiredtodocumentaminimumof20LEDprojectsforthecountry,whichshouldincludebothon-goingandpipelineprojects.However,inthecourseofcarryingouttheexercisetheconsultantwasabletoidentify28projectsthatfittedtheconceptofLED.Theproj-ectswereidentifiedthroughwebsearchanddeskstudiesofpublishedannual,terminal,mid-termreviewsofthevariousCountryprogrammesofDonoragenciessuchastheUNDP,UNICEF,UN-Habitat,DFIDandWorldBankandotherpublishedsources.

1.4 Definition of terms

According to the Guidelines for the study, there is a generalconsensusonthedefinitionofLEDasadevelopmentconcept,withanintendedproduct/goaltobeachievedforalocality.TheGuidelinesalsoemphasizethatLEDisstrategicandprocessdriven,beingdrivenbyanelaborateparticipa-toryprocessofinvolvingallstakeholdersandbuildingpartnershipsbetweenlocalgovernment,peopleandotherstakeholderstopromoteeconomicdevelopment,createjobs,andimprovequal-ity of life. LEDisaproduct,beingaimedatachievinglocalgoalsandvaluesoneconomicissuessuchaspovertyreduction,self-relianceandthesatisfactionofbasichumanneeds.Italsoentailstheintegrationwithsocialandenvironmentaldevelopmentobjectives.LEDisconcernedaboutpromotingdriversofeco-nomicgrowthsuchasjobcreation,jobgrowth,economicdriversandnatureandqualityofdevelopmentalsoembracesthefollowing:incomeandbusinessenterprises.LEDisabouttheroleofstructuralchangeandqualityofeconomicdevelopment.

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ThereisnoofficialdefinitionofLEDinNigeria.However,recentstudiesofLEDinNigeriaaffirmedtheuni-versaldefinitionsofLEDasadvancedbyseveralauthors.ManyofthesestudiesalludedtothedefinitionsofLEDas‘aprocessofmanagingtheeconomicresourcesofalocalityinvolvinglocalgovernments,thepeople,civilsocietyorganizations,organizedprivatesectorandallstakeholdersinthelocalityorterritorytowardsjobcreation,povertyreductionandachievingsustainabledevelopment(WorldBank2001;ZaaijerandSara1993;Blakely1994;WorldBank2001;Pieterse2006;DFID/UN-Habitat2001;ICLEI1996).

ManystudiesofLEDprojectsinNigeriahavedweltontheirbenefitsandthefocus,thelinkagesoftheseprojectswith other sectors of development, the impact of LEDprogrammes on youth and the role ofcommunitybasedorganizationsinpromotingLED(Unilag2015;Emmanuel2006;Nwachukwu et al 2014;Bloch et al 2015).For instance,Unilag(2015)seesLEDasanemergentdevelopmentparadigminourcontemporaryeraofglobalizationanddecentralizationthatwillenablelocaldecision-makersandcitizenstogainanincreasingsayovereconomicandsocialdevelopmentinthelocalitiesinwhichtheylive.Amongtheadvantages,LEDallowscommunities,governmentandthebusinesssector,usuallyactinginpartner-shiptoengageinactivitiestoimprovelocalsocio-economicconditions.Thesamestudyalsoestablishesthelinkbetweenphysicalplanning,LEDandpovertyalleviation.Povertyalleviationandlocaleconomicdevelopment,whilebeinginterrelatedhaveimplicationsfortheenvironment.Somestudieshavealsoad-vocatedforastrongerlinkbetweenphysicalplanningandeconomicgrowth(Dewar2006;Emmanuel2006)alsoadvancedtheopinionthatpovertyalleviationwhennotproperlyexecutedimpactsnegativelyontheenvironment.

1.5 Structure of Report

Thisreportispresentedinsevensections.Section2,whichfollowsthisone,dealswithoverNationalen-abling perspective on LED. Section 3 is devoted to discussion of local perspectives on LED in the country.

Section4LEDinpractice,presentingtheanalysisofdatacollectedonthe28LEDProjectsidentifiedforthestudy.Section5providesanaccountofLEDpractitionersandskills.

Section6dealswithideasforimprovingonLEDpractice.Section7dealswithconclusions.

2. NATIONAL ENABLING PERSPECTIVE

2.1 National Government perspective on decentralisation

LEDrequireslocalactionstobetaken.ThenationalGovernmentisrequiredtoensurethatLocalgovern-mentareempoweredtopromoteLED.Usuallythisisdonethroughdecentralization.Decentralizationoftherolesofgovernmenttolowertiersisbasedonthesubsidiarityprinciplethatcertainrolesarebestperformedatlowertiersthanatthecentre.

Theterm–decentralization–connotesthedisassemblingofpoliticalpowertolocallevelinordertobringgovernmentclosertothepeopleandtobeabletorespondtopoverty,toenhancepopularparticipationnationalcohesion(FederalGovernmentofNigeria1976;Rebecca2012;2002;NBS,2012).Decentralizationisoneofthesevennormsofpromotinggoodgovernance.Theothernormsareeffectiveness, participation, equity, security and accountability(FederalGovernmentofNigeria2001;NBS,2012).

Decentralizationofteninvolvesthetransferofadministrative,fiscal,marketbased,politicalpower,ser-vicedeliveryoracombinationoftheserolestolocalgovernment.

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Nigeria,likemanyotherdevelopingnations,hasembracedtheprocessofdecentralizingsignificantfunc-tionstolocalgovernments.Theconcernfordecentralizationdatestotheearly1960sbutitreceivedaboostin1976,withtheadoptionofGuidelinesforLocalGovernmentReform.Thisalsoledtothecreationoflocalgovernmentsinthecountry.Thisresultedinthecreationoflocalgovernmentsasthethirdtiergovernmentpurposelytobringgovernmentnearertothepeople,withcriticalrolesdevolvedtothistierofgovernment.Between1976,tillnowthenumberoflocalgovernmentshadrisento774fromaninitial320 LGs.

TheFederalgovernmentfullyendorsedthe774Localgovernmentsbyenshriningintothe1999Constitu-tionoftheFederalGovernmentandsincethenithasnotbeenpossibletocreatenewlocalgovernments.StateshavebeentryingtogetaroundthehurdlesintheConstitutionbycreatingdevelopmentareas,whichtheFederalGovernmenthasrefusedtorecognizeasauthenticlocalgovernments’thatcanreceivestatu-toryallocationsfromtheFederalgovernment

Here,weunderstanddecentralizationtomeanthetransferofauthorityandresponsibilityfromthecentralgovernmenttosubordinateorquasi-independentgovernmentorganizationsortheprivatesector.

2.2 The concern for LED

Sincethetimeofindependencetilldate,successfulgovernmentinNigeriahasbeeninvolvedineconomicplanningdevelopment.However,amajorgaphasbeenthelackofconcernforpromotinglocaleconomicdevelopment.However,thisgapwasfilledin2003withtheadoptionofhomegrownpovertyreductionstrategytagged-NationalEconomicEmpowermentandDevelopmentStrategy(NEEDS)(2004-2007),whichisaimedatpromotingeconomicdevelopment.NEEDSisareform-basedplanforeconomicdevelopment.Itsstrategicdirectionfocusesmainlyonprivatisation,deregulationandliberalisationofkeysectors,theimprovementofinfrastructuralprovision,notablyinthepowerandroadssectors,andthecoordinationofnationalsectoraldevelopmentstrategiesforagricultureandindustry(NationalPlanningCommission,2004).NEEDSalsoprovidesthebasisfortheelaborationofStateandLocalEconomicEmpowermentandDevelopmentStrategies(SEEDSandLEEDS).SEEDShavebeenbasedonthestatedvisionsofgovernments,focusingthesetoachievemillenniumdevelopmentgoals(MDGs)ofpovertyreduction.BothNEEDSandSEEDSareintendedtobetimebound(mostlymediumterm)policyframeworksdesignedtopromotemac-roeconomicstability,improvetheperformanceoftheagricultural,manufacturing,solidmineralsandoilandgassectors,improvedeliveryofbasicservices,createanenablingenvironmentfortheprivatesectorandinvestinhumancapitaltowardsreducingthepovertyofthepeople.Thepromotionofeconomicde-velopmentstrategywasfirstdecentralisedtolocalgovernmentlevelin2007.

Subsequently,theconcernforlocaleconomicplanninganddevelopmentisinherentintheadoptedpoliciesandprogrammessuchastheNationalVision20:2020andtheTransformationAgenda(TA2011-2015).Forinstance,theVision20:2020focusesonthreemainpillars:(i)guaranteeingtheproductivityandwellbeingofthepeople(withafocusonhumancapital);(ii)optimisingthekeysourcesofeconomicgrowth(throughimprovedcompetitiveness,industrialdevelopment,anddomesticandforeigntrade,amongothers);and(iii)fosteringsustainableandinclusivesocio-economicdevelopment(FederalRepublicofNigeria,2010).Vision20:2020alsoidentifiesgrowthdriverswithintheeconomy:(i)agricultureandfoodprocessing;(ii)manufacturingandSMEs;(iii)oilandgas(downstreamandupstreamactivities);(iv)tradeandcommerce;and(v)cultureandtourism,which includethefilmandentertainment industry. Italsoemphasisestheneedforaclearregionaldevelopmentstrategy inordertoachieveamorebalancedspatialsocio-eco-nomicdevelopment.Specificcitieswithineachregion,astheVision20:2020stipulates,canbedevelopedintoregionalgrowthcentreswhichcanalsothenenhancethegrowthofsecondaryurbancentreswithinrespective regions or states.

TheGovernment’smedium-termstrategy forachievingthesegoals isarticulated in theTransformationAgenda(TA).TheTAplacesspecialemphasisoncreatingemployment,reducingpovertyandinequality,andimprovingandsustainingthewellbeingofallNigerians.

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Intheurbansector,therevised2012NationalUrbanDevelopmentPolicy(NUDP),withitswell-articulatedgoals,objectivesandstrategiesforachievingsustainableurbandevelopmentisveritabletoolforpromot-ing localplanningandeconomicdevelopment.Thepolicycoversmanycriticalandrelevant issuesandchallengesfacingurbaneconomicdevelopmentinNigeria(FederalMinistryofLandsandHousing,2012).NUDPemphasizescitiesas“enginesofgrowth”,thusrecognisingtheirroleforcreatingeconomicdevel-opmentandgrowth.LikeVision20:2020,NUDPalsocallsforabalancedurbanandregionaldevelopmentacross the country.

WhilebothNEEDSand theVision20:2020coverbroadcross-cutting issues relevant tourbaneconomicgrowth,however,nomentionismadeabouthowlocalandregionaleconomicdevelopmentwilltakeplace.NUPDontheotherhanddoesconsiderhowtobestpromoteurbaneconomicgrowthanddevelopmentbutdoesnotsetactualnewobjectivesforlocalandregionaleconomicdevelopment.Atthesametime,thereislackofleversfortheFederalgovernmenttodrivethisagenda,giventhatmuchofNUPD’spolicyimper-ativesconsistofStatemandates.

3. LOCAL ENABLING PERSPECTIVE

3.1 Local Government powers

ThepowersoflocalGovernmentinNigeriaarecontainedintheFederalConstitutionandthevariousadopt-edlegislations,policiesandstrategiesadoptedinthecountry.Oftheselegalinstruments,theprovisionsoftheConstitutionarethemostsacrosanct.

(i) Constitutional roles of Local government

ThefirstattempttodefinetheroleofLocalgovernmentsinthecountrywasin1976,whentheGuidelinesforLocalGovernmentReformwereadoptedbytheFederalGovernment(federalGovernmentofNigeria,1976).Thispivotaldocumentspeltouttheobjectives,philosophy,thecriteriaforestablishinglocalgov-ernments,theorganizationalstructureandrolesoftheLGsanditsrelationshipwithStateGovernments.Specifically, theGuidelines for LocalGovernmentsReform in the countryhas stated that ‘LGsare thecreationsoftheStateGovernments’andthatthe‘purposeofsettingupLGis‘toprovideessentialser-vicesandtoempowercommunitiesforgrassrootsdevelopmentthroughparticipationandtoprovidealinkbetweencommunityandgovernment’.Thesamedocumentlistedseveralrolesfor localgovernments.Unfortunately,manyofthemhavebeenjettisonedandremovedinthe1999Constitution(NBS,2012).

According to the 1999Constitution ofNigeria, the FederalGovernment has autonomous constitutionalresponsibilityforfunctionalsubjectsunderthe‘exclusivelegislativelist’whileboththefederalandstategovernmentshavecontroloverthe‘concurrentlegislativelist’offunctionalsubjectsasperpartII,Sec-tion4oftheSecondScheduleofthe1999Constitution(FederalGovernmentofNigeria1999).However,thefunctionsthatshouldbeperformedsolelybytheLocalGovernmentCouncilorinconjunctionwiththeStateGovernmentsarelistedinsection7oftheFourthScheduleofthe1999Constitution.The Constitu-tionalrolesofLocalgovernmentsincludethefollowing:

(i) Economicplanning.

(ii) Collection of rates.

(iii) Establishmentandmaintenanceofcemeteries,burialgroundsandhomesforthedestitute orinfirm.

(iv) Licensingofbicycles,trucks(otherthanmechanicallypropelledtrucks),canoes,wheelbar rowsandcarts.

(v) Establishment,maintenanceandregulationofslaughterhouses,slaughterslabs,markets, motorparksandpublicconveniences.

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(vi) Constructionandmaintenanceofroads,streets,streetlightings,drainsandotherpublic highways,parks,gardens,openspacesetc.

(vii) Namingofroadsandstreetsandnumberingofhouses.

(viii) Provisionandmaintenanceofpublicconveniences,sewageandrefusedisposal

(ix) Registrationofallbirths,deathsandmarriages.

(x) Assessmentofprivatelyownedhousesortenementsforthepurposeoflevyingsuchrates asmaybeprescribedbytheHouseofAssemblyofaState.

(xi) Controlandregulationofout-dooradvertisingandhoarding,movementandkeeping ofpetsofalldescriptions,shops,kiosks,restaurants,bakeries,laundriesandlicensing, regulation and control of sale of liquor.

(xii) Provisionandmaintenanceofprimary,adultandvocationaleducation

(xiii) Developmentofagricultureandnaturalresourcesotherthantheexploitationofmaterials.

(xiv) Provisionandmaintenanceofhealthservices.

ItisimportanttonotethevariousrolesallocatedtotheLocalGovernmentsinthe1999Constitutionarevariedandthatitincludeseconomicplanning.However,fordecadesafterindependence,theinvolvementoflocalgovernmentineconomicplanninghasbeenminimal.Economicplanninghasbeendonemoreatnationalstatelevelsthanatlocalgovernmentlevels(Gboyega,1981;NBS,2012).

FollowingthesuccessfullaunchofNEEDSandSEEDSbytheFederalandStateGovernmentsrespectively,thisgaveimpetustoevolvepovertyreductionstrategiesforLGsinthecountry.AtLGlevelthepovertyreductionstrategyisknownasLocalEconomicEmpowermentandDevelopmentStrategy(LEEDS).Theirultimategoalsarepovertyreduction,employmentgenerationandwealthcreation.

ThedecentralizationofNEEDStoStateandlocalgovernmentswasimplementedbythenationalPlanningCommissionwithassistanceprovidedbytheUNDP,DFIDandtheWorldBank.Withhindsight,theconcernforadoptingSEEDSandLEEDShasresultedinthecreationofpovertyreductionagenciesinmanystatesinNigeria.Itincreasingledtorisingconcernforpromotingeconomicplanningatthelocallevelthananyperiod,althoughitcanbearguedthatmorestillneedtobedoneinthisrespect(AnambraState,2007;FederalCapitalTerritory,2005;OndoState,2006).

However,thefederalgovernmentstillremainsadominantforceinthedecisionmakingprocessforthebudgetary institutionalandoperationalarrangementforthestateandlocalgovernment.Thus,projectplanningandimplementationdecisionsaremadeatthefederallevelwithoutsignificantimputesfromthegrassrootsgovernmentwhichwouldbetterreflectthecommunityneeds.Deducedfromtheabovescenarioisthecasewhereauthoritiesandresponsibilitiesoverlap,localgovernmentexerciseminimalauthority.Typically,thiscouldcreateconflict,duplicateeffortsandwasteresourcesmakingpovertyalleviationinef-ficiency.TheGoodUrbanGovernanceassessmentofthecountryundertakenin2102notedthatthatmany StateGovernmentshavetakenoverseveralLGs’constitutionalrolesincludingtenementrating,solidwastemanagement,namingofstreets,provisionofbusservices,watersupply,fireserviceetc. (NBS,2012).

Furthermore,itisessentialtonotethatthestructureofthefunctionsoutlinedherefortherespectivelevelsofgovernmenthaveremainedthesamethroughouttheconstitutionalchangessince1979constitu-tion.Itisalsovitaltonotethatthecomponentsoffunctionsincludedinthespecificlegislativelists,andinthefourthschedule(forlocalgovernment)includebothexpenditurefunctions(functionswhichinvolveincurringexpenses)andrevenuefunctions(functionswhichinvolvetheraisingofrevenue).

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Theallocationoftax-raisingpowersordeterminingfiscaljurisdictionisessentiallyalegislativefunction.Indeed,evenduringtheyearsofmilitaryruleinNigeria,theallocationoftax-raisingpowerswasissuedthroughtheinstrumentofadecree.Animportantpointtonoteabouttheallocationoftax-raisingpowersinNigeriaistherelativelong-termstabilityofthesystemastherehasbeennomajorchangeinthisstruc-ture over the last three decades.

(ii) Powers of Local Governments under enabling Legislation and Policies In addition to the provisionsoftheConstitution,thepowersoflocalgovernmentarealsoguaranteedin manyplanninglegislationsandpolicies.Thesepowersincludethefollowing:

(i) Land administration:PivotalamongtheexistingenablinglegislationsistheLandUseAct 1978,whichallocatesrolestoLocalgovernmentstoallocatelandfordevelopmentin ruralareastocomplementtherolesofGovernorstoadministerlandadministrationinurbanareas.

(ii) Urban Planning and development control: Both the 1992 Urban and Regional Planning ActandtheNationalUrbanDevelopmentPolicy2012recognizedtherolesofLocal governmentstoadoptlanduseplansfortheirareaandensureorderlydevelopment (FederalMinistryofLands,HousingandUrbanDevelopment2012a).

(iii) Housing;TheNationalHousingPolicy2012alsorecognizestherolesoflocalgovernments toprepareandadoptlanduseplansfortheirareaaswellascontributetohousing developmentFederalMinistryofLands,HousingandUrbanDevelopment2012b).

TheneedforfederalandstategovernmentstostrengthenthecapacitiesofLocalgovernmenttoeffective-lyfunctionintheseregardsremainedamajornationalchallengetoredress.

3.2 Local Government finance

TherearetwomainsourcesoffinanceforLocalgovernmentinNigeria,withbothneedingimprovement.Thefirstisthestatutoryallocationdisbursedbythefederalgovernmentandthesecondistheinternallygenerated revenues. The 1999 constitution of the Federal Republic of Nigeria has set out the procedure for statutoryresourceallocationanddisbursementamongthetiergovernment.Thecentralgovernmentallo-cates24%and20%asgrossrevenuerespectivelytostatesandlocalgovernments.Thedisbursingoffundsisthroughthe‘DistributablePoolAccounttothethreelevelsofgovernmentaspersection162,subsection1and2.Suchoutlinedprocedureistheoreticallyexpectedtoprovideadequatefinancialresourcesforthedifferenttiersofgovernmenttomeettheirconstitutionallyassignedfunctionsandresponsibilities.

ThemostcommonandperhapsreliablesourceofrevenuetoLGisthestatutorytransfersandinternallygeneratedrevenues(IGR).ThesourcesofIGRinclude:

(i) Landusecharges;

(ii) Parkingpermit;

(iii) Liquorlicenses;

(iv) Eating/Bakeryhouseslicenses;

(v) Marriageregistrationfees;

(vi) Namingofstreets;

(vii) RadioandTVlicenses;

(viii) Chargesonpublictoilets;

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(ix) Pestcontrolanddisinfectants;

(x) Lockupstores;

(xi) Burialvaultfees;

(xii) Laboratorytestfees;

(xiii) Chargesfromenvironmentalsanitationservices;

(xiv) VaccineYellowCards/HealthCertificate;

(xv) Generalcontractorregistration;and

(xvi) Trade licenses fees.

WhileIGRisadependablesourceofrevenue,LGscurrentlylackedtherequiredcapacitytoeffectivelyuseitandmanagetheprocess,withfewexceptions(Olowu,1992;NBS,2012).ThecapacityofLGsforresourcemobilizationusingIGRisratherlow.

Studieshaveincreasinglyrevealedthat localgovernmentfinancefacesmanyproblems.Thefirst isthedwindlingallocationofresourcestolocalgovernmentsinrecentyears(NBS2012).Thesecondareprob-lemareaisthatthedynamicsoffederalismhaveunconsciouslyorconsciouslybredadependencytheorybetweenthelocalgovernmentsandthecentrewithoutmuchroomforaccountabilityfromthecentralgovernment.Thisproblemhasarisenfromthefiscalimbalanceoccasionedbythedivergence/incongru-encebetweenconstitutionalfunctionsandresponsibilitiesandfiscalresources.Thisnon-correspondenceoffundsallocationwithrolesusuallyleadstotheinabilityofsomelevelsofgovernmenttoeffectivelyfulfiltheirfunctionsandresponsibilities.Thethirdisthatlocalgovernmentexpenditurehasconstantlysurpassedthepotentialforrevenuesourcesowingtothegreatgulfbetweentheirneedsandtheirfiscalcapacity.Asaresulttheyarelaggingbehindinfundingmanyservicestheyarerequiredtoprovidesuchaseducation,constructionoflocalroads,provisionofprimaryhealthandmanyothers.Thefourthisthatlocalgovernmentscannotgodirectlytothemoneymarkettoborrowmoneyastheyareproscribedbylaw.

4 LED IN PRACTICE

This section provides a descriptive account of the various results of the analyses of the data collected on 28projects(seeAppendix1forfulllistoftheproject).

4.1 Thematic focus of LED Projects

Theanalysisshowsthatthesampledprojectsarehighlycorrelatedwitheconomicgovernance(96.4%),enterprisedevelopment(93%),whileitisleastcorrelatedwithWorkforcedevelopment(25%)andLiveli-hooddevelopment(21.4%).Only57%ofthetotalprojectssampledfocusonlocaldevelopment(SeeTable1andFig1).

Table1:DistributionofProjectsbyThematicgroupings

Themes Count % of TotalEconomic governance 27 96.43 Enterprise development 26 92.86 Livelihood development 6 21.43 Local development 16 57.14 Workforce development 7 25.00 Total number of projects 28 **

Source: Survey by the Author 2016**N.B:Thetotalisnot100becausesomeoftheprojectsfallintomorethanonethematicgroup.

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Fig.1:DistributionofLEDProjectsbyThematicGroupings

4.2 Analysis of LED Projects on Economic governance

ThemostcommontypeofLEDprojectunderEconomicGovernancethemeisStrategydevelopment,plan-ning,researchandlearning,whichattracted57%.ThisisfollowedbyLEDprojectsonpolicyandimple-mentation,whichscored25%.LEDProjectsonEmpowermentandinclusionandPublic-privateandnationallocalpartnershipswerenotrepresentedinthesample(seeTable2).

Table2:DistributionofLEDProjectsonEconomicGovernancebyTypes

Types of Projects Count Percent of Total1. Capacity Building and Organizing for LED 4 14.292. Local Government Improvement 1 3.573. Empowerment and Inclusion 0 -

4. Public-Private and National/Local Part-nerships

0 -

5. Strategy Development, Planning, Re-search and Learning

15 57.14

6. LED Policy and Implementation 7 25.00 Total 27 100.00

Source: Survey by the Author 2016.

4.3 Analysis of LED Projects on Enterprise development

Withregardtothetheme–Enterprisedevelopment–theLEDprojectsonEnterpriseandentrepreneurshipdevelopmentrecordedthehighestfigurewith59.09%,followedbyProductinnovationandnewtechnolo-gieswithascoreof27.3%;withprojectsonBusinessenablingenvironmentimprovementsandthatonClus-ters,sectorandbusinessdevelopmentscoring4.5%each.LEDprojectsonbusinessretentionandattractionwerenotrepresentedinthesample(seeTable3).

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Table3:DistributionofLEDProjectsonEnterpriseDevelopmentbyTypes

Types of Projects Count Percent of Total1. Business Enabling Environ-ment Improvements

1 4.55

2. Business Retention and At-traction

0 -

3. Clusters, Sector and Business Development

1 4.55

3. Enterprise and Entrepreneur-ship Development

13 59.09

4. Product Innovation and new Technologies

6 27.27

5. Micro Business Development Programmes

1 4.55

TOTAL 22 100.00Source: Survey by the Author 2016.

4.4 Analysis of LED Projects on Livelihood development

Fiveoutofatotalofsix(83%)ofLEDprojectsonLivelihooddevelopmentareonprovidingbasicservicestoenableeconomicactivity;whiletheremainingoneprojectwaslistedunderReductionofeconomicandsocialdiscrimination.Noprojectwasrecordedundercommunityeconomicdevelopmentprogramme(seeTable4).

Table4:DistributionofLEDProjectsonLivelihooddevelopmentbyTypes

Types of Projects Count Percent of Total1. Basic Services to enable economic activity 5 83.332. Community Economic Development Pro-grammes

0 -

3. Reduction of Economic and Social Discrimina-tion

1 16.67

Total 6 100.00Source: Survey by the Author 2016

4.5 Analysis of LED Projects on Locality Development

75percentoftheLEDprojectslistedunderthetheme–Localitydevelopment–isintheareaofregenerationandqualityofplaceimprovement;whiletheremaining25percentisintheareaofeconomicinfrastruc-tureforbusiness.Noprojectwasrecordedintheareaofnaturalresourcemanagement(seeTable5).

Table5:DistributionofLEDProjectsonLocalityDevelopmentbyTypes

Types of Projects Count Percent of Total1. Economic Infrastructure for Businesses 4 25.002. Natural Resource Management 0 -3. Regeneration and Quality of Place Im-provements

12 75.00

Total 16 100.00Source: Survey by the Author 2016.

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4.6 Analysis of LED Projects on Workforce Development

71.4%oftheprojectunderthethemeworkforcedevelopmentisintheareaofyouthdevelopmentandin-clusionprogramme,whiletheremaining28.57%isintheareaofvocationaltrainingandskilldevelopment,Noprojectisrecordedintheareaofjobseekersupportandjobmatchingprogramme(seeTable6).

Table6:DistributionofLEDProjectsonWorkforceDevelopmentbyTypes

Types of Projects Count Percent of Total

1. Job Seeker Support and Job Matching Pro-grammes

0 -

2. Vocational Training and Skills Development 2 28.573. Youth Development and Inclusion Programmes 5 71.43

Total 7 100.00Source: Survey by the Author 2016

4.7 Spatial focus of LED

TheanalysisofLEDProjectsbyspatialfocusisshowninFig10.Ahighproportionoftheprojectsarefo-cusedoncities.Intermsofspatialfocus,57percentofthetotalprojectsarefocusedoncities;whiletheremaining42percentisfocusedonsmallurbanandintermediatecities(seeFig2).

Fig2:SpatialfocusofLEDProjects

Source: Survey by the Author 2016

4.8 People’s Focus of LED Projects

Theanalysisofthesampledprojectshowsthat96percentoftheprojectsarefocusedonpopulationofabove500,000whileonly4percentoftheprojectsarefocusedonpopulationbelow50,000(seeFig3).

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Fig3:FocusofLEDProjectsonPeople

Source: Survey by the Author 2016.

4.9 Time frame of LED Projects

TheresultoftheanalysisofprojectsbytimeframeisshowninFig12.Projectsimplementedforlessthan3yearsattracted42.86%;whileprojectsimplementedbetween3-5yearsrecordtheattracted21.43percent.ItisnecessarytostatethatthetargetpopulationforLEDprojectsexceeded500,000peopleinsomecases,whichwassetasthetoplimitinthissurvey.

Fig4:AnalysisofLEDProjectsbyTimeframe

Source: Survey by the Author 2016

4.10 Guiding principles

AnalysisofthedatacollectedshowsthatthevariousLEDprojectshavebeenformulatedusingseveralguidingprinciplesasshowninFig5.Themoreprominentandcrosscuttingprincipalsareterritorialap-proach,designingandimplementingprojectsthroughpartnership,engagingstrategicplanningapproachandensuringgovernanceoftheprojectbyallactors.

Fig5:AnalysisofGuidingprinciplesforLEDProjects

Source: Survey by the Author 2016

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4.11 Donors participating in LED Projects

TheroleofinternationaldevelopmentpartnersinsupportingNigeriatopromoteLEDcannotbeover-em-phasized.Fordecades,theprogrammesandprojectsofmanyinternationaldevelopmentpartnersinNi-geria have been focused on how to eradicate poverty, empower people economically, improve healthcare,provideeducationalopportunitiesandsustainlocalcommunitiesaroundtheworld.Many donors are involvedininitiatingLEDProjects.

Table7showstheanalysisofsampleLEDprojectsbydonors.Nigeria’sthreemainmultilateralandbilateraldevelopmentpartnersincludetheWorldBank,theAfricanDevelopmentBank(AFDB)andtheUKDepart-mentforInternationalDevelopment(DFID).However,theirfinancialcontributionsandsectoralfocusonLEDprojectsvariedsignificantlyovertimebutdevelopmentassistanceappearstohaveincreasedinrecentyears.TheUN-AgenciesnotablyUNDP,UNICEF,UNIDO,ILOandUN-HabitatandmanyhavefocusedontheirmandatetocontributetoLED,withtheircontributionsandinvolvementbeingfeltmorebypeopleatthelocal levels.

IntermsofthenumbersofLEDprojectsimplemented,theUNDPhasthehighestfigureof14projectsoutofatotalof28projectssampled(50%),followedbytheUN-Habitatwhichsupported4projects(14.3%).

LEDProjectsimplementedandfundedbytheOsunStateGovernmentwhichamountedtothreeprojectsoutofthe28sampledarenoteworthy.Twooutofthethreeprojectshavebeenimplementedindependent-ly,withtheremainingoneimplementedinpartnershipwithanInternationalNGOcalled–Childdevelop-mentofUK.

Table7:AnalysisofLEDProjectssupportedbyDonors

Donors No of projectsWorld Bank 2UN-Habitat 4UNDP 13UNOPS 1GEF-SGP 1FAO 1UNIDO 1Oslo Governance Centre 1DFID 2Government of Norway 1

UNICEF 1Child Development UK 1GTZ/New Nigeria Foundation 1Citizens International 2New Nigerian Foundation 3Osun State Government 2

Source: Survey by the Author 2016

4.12 Analysis of Funds disbursed for LED projects

Fig6showstheresultoftheanalysisofbudgetallocatedtoLEDprojectseithersingularlyorinpartnershipwithotherdonors.Intermsoffunding,thebigtimedonorsareUNDP,DFID,WorldBank,UNFPandUNICEF.

ItisalsoofnotetostatethattheBankofIndustryandtheNewNigeriaFoundationandOsunStatefundedsomeoftheLEDprojects.

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Table8:FundsdisbursedforLEDProjectsinUSD(m)byDonors

Donors Project Budget USD (m)WORLD BANK 335DFID 446.59UNDP 200UNDP/GOVERNMENT OF NORWAY 248GEF/UNDP/UNOPS 167OGC/UNDP/UN-HABITAT 0.8UNDP/BANK OF INDUSTRY 449UNICEF 92STATE OF OSUN 60STATE OF OSUN/CHILDREN DEVELOPMENT UK 10GTZ/CITIZEN INTERNATIONAL/NEW NIGERIA FOUNDATION

1.54

Source: Survey by the Author 2016

5 LED PRACTITIONERS’ AND SKILLS

ThevariousanalysesoftheLEDprojectsshowedthatthepractitionersaregovernments,donoragencies,NGOsandprivatesectororganizations.Neverthelessthedegreesoftheinvolvementoftheseactorsvariedsignificantly.

Thestrengthsofthecurrentpracticecanbeinferredfromthethematicfocus,spatialfocusandtheguid-ingprinciplesemployed.Thedatapresentedaboveshowsthefollowing:

(i) Lowinvolvement/participationofNGOsprivatesectororganizationsinfundingLEDprojects.

(ii) MostLEDprojectsaretopdriven.41percentoftheprojectanalysedfocusedonnation whileonly52percentfocusedonsub-nationallevel.Ifpopularparticipationisnot built-intothisprogramme,itwouldhavebeentootopdowntoreallyachievetheirpurpose.

(iii) Withregardtothematicfocusoftheproject,theanalyseddatashowedaveragesupport forlocaldevelopmentandverylowscoresforLEDprojectsonworkforcedevelopment andlivelihooddevelopment.Thereistheneedtoaddresstheseissues,whilethe remainingthemesnotably,economicgovernance,localitydevelopmentandenterprise developmentreceivedhighscores(Fig1above).

(iv) Withrespecttouseofguidingprinciplestheanalysisofthedatashowedlowscoresfor thefollowingprinciples:

• Focusonlocalbusinessenablingenvironment;

• Calibrationusinghard,softandinstitutionalstructure;

• Long-termvision

• Integratedandcoordinatedintervention/multi0sector.

• Integratedandunapologeticgovernmentaction.

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Table 9: Scores on Adherence to LED Guiding Principles

Guiding principles % Score

Territorial approach 85.71

Locally owned, designed and delivered 82.14Designed and implemented through partnership 92.86

Strategically planned process 75.00Integrated and unapologetic government action 21.43Focused on local business enabling environment 39.29Integrated &coordinated interventions/ multi-sector 21.43Calibrated by hard, soft & institutional infrastructure 0.0 Prioritized on local business retention and people 3.57Governance by all actors (public, private and NGOs) 71.43Long term vision 28.57

6 IDEAS FOR LED THEMATIC STUDIES

In the course of this study, it is discovered that adopting a participatory approach to LED study and the formulationandimplementationofLEDprojectsarecriticaltoachievingsuccess.Unfortunately,thedatapresentedonLEDpracticeshowthetop-downnationalapproachtopromotingLED.DonorsareveryactiveinpromotingLEDprojects.Buttheprocessofformulatingthecountryprogrammeofdonorisstillverytopdriven,excludingthelocalgovernmentsmostoften,despitethefactthattheseprogrammesareimple-mentedatlocallevels.ThewayoutistocreateawindowofopportunityforpromotingLEDinthecountryprogrammeinwhichagrassrootsapproachwouldbeadoptedtoarticulatethespecificLEDproject.Twobest practices of adopting participatory approaches to LED are discovered in the course of this study.

ThefirstgoodpracticewasrecordedduringtheUNDPFourthCountryforNigeria(1992-1996),duringwhichtheUNDPwasabletopromoteover300communityprojects,targetingpovertyeradication,withthecon-ductofvillagesmeetingtoarticulatetheprojectandsetupsteeringandimplementationcommitteebyinvolvingthecommunity.ThisapproachyieldedmanysuccessfulandimpactfulLEDprojectsinthecountry.INallstatesofthecountry,thisnovelapproachledtotheestablishmentofpovertyreductionagenciesinthe 36 states plus FCT in Nigeria.

ThesecondsuccessstoryisthatrecordedbytheUN-HabitatwhichishingedontheconductofRapidUrbanSectorProfilingforsustainability(RUSPS)employedurbanplanninginmanycitieshasproventobeaveri-tableapproachtostudyofLEDandcomingupwithrelatedrobuststrategiesandplans.

Asamatteroffact,TheUN-HabitatsupportedtheconductofRUSPSundertheglobalPSUPinNigeriatorealizetheprofilesforKaru,OnitshaandIfako-Ijaiye,eachpublishedasaseparatereportin2012.How-ever,thefirstuseofRUSPSinNigeriawasin2008.ThiswasinconnectionofthepreparationofstructureplansforthecitiesofAwka,NnewiandOnitsha.Sincethismajorbreak=throughthismethodhasbeenusedforthepreparationofstructureplansforseveralcitiesincludingKaru,Lafia,Doma,Karu,Osgbo,Ede,Ikire,Ile-Ife,Ilesa,Ikiriun,Ila-Orangun,EjigboandIwo,Lokoja,Dekina,KabbaandOkenne(UN-Habitat,

2008abc;2013abcd,UN-Habitat,2015a-i).

Therapidurbansectorprofilingforsustainabilityisanacceleratedandaction-orientedurbanassessmentofneedsandcapacity-buildinggapsatthecitylevel.TheprogrammeissupportedbyfundsfromtheEuro-peanCommission’sEuropeanDevelopmentFundanditiscurrentlybeingimplementedinover30African,PacificandCaribbeancountries.PSUPusesastructuredapproachwherepriorityinterventionsareagreeduponthroughconsultativeprocesses.ThismethodisveryusefulinthatithasthecapacitytoanalyseLEDasasubsetofmanydevelopmentissuesandithelpstoshowitsinterconnectednesswithotherdevelop-mentissues.

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Theobjectivesofcarryingouturbanprofilingstudiesareto:

• Providecity-wideassessmentoftheimprovementsneededinthedifferentthematicareas;and

• Developanunderstandingofthestrengths,weaknesses,opportunitiesandthreats(SWOT)ofthecityalongthethematicissues;

• Identify capacity building needs and opportunities for developing enabling local policies, regulations andmoreeffectiveinstitutionalandfinancing;and

• Identify priority projects areas for intervention including capacity building and capital investmentprojectswiththeaimofachievingsustainabledevelopmentandmanagementofhumansettlements.

The PSUP methodology consists of three phases. The first phase is a rapid participato-ry urban profiling at national and local levels leading to proposed interventions. Local econom-ic development is one of the several modules for capturing data for analysis and for making de-velopment proposals. The other modules of PSUP data capturing framework include the following:

i. ShelterandSlums;

ii. Transportation;

iii. UrbanSafety/Security;

iv. BasicUrbanServices;

v. Environment;

vi. Gender;

vii. Governance;and

viii. Heritage/HistoricAreas.

ix. DisasterandRiskReduction;and

x. LandAdministration.

ItismakesiteasytoseetherelationshipbetweentheLEDandotherdevelopmentissues.ITprovidesanopportunitytodoathoroughSWOTanalysisoftheLEDsector.

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Table9:SWOTAnalysisofLEDinNigeriaandPrioritiesasdocumentedinmanystudies

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS PRIORITIES

Existence of high in-formal activities and expanding commercial activities in and around towns and cities that are waiting to be planned in towns and cities.

Existence of enabling laws and policies to promote local economic development

Availability of pool of youth population that could be engaged in LED

Existence of business groups and trade unions to support employers and employees.

Existence of NGOs (and arguably government bodies) who actively want to reduce poverty.

Presence of donor agen-cies wailing to assist the country in LED.

Official recognition of contribution of urban economy to promot-ing national economic growth.

Existence of several poverty alleviation and employment generation programmes.

Low priority and commit-ment to promoting LED.

Absence of urban plan-ning and management of towns and cities.

Top down and non-inclu-sive approach to promot-ing LED

Poor planning and lack of access to local markets.

Highly informal set-up makes regulation and tax collection difficult.

Lack of industrial estates in many towns.

Lack of access to finance for LG to promote LED.

Absence of comprehen-sive plan for future local economic development.

High unemployment or underemployment level. Socio-economic exclusion of those living in poverty.

Gender imbalances.

Opportunities exist for de-centralizing economic plan-ning and urban planning to local and city levels

Existence of trade groups for effective participation in local economic develop-ment.

Developing agro based industries and sustainable solid mineral extraction facilities.

Making the process easier for businesses to be formal rather than informal.

Introducing microfinance schemes to encourage entrepreneurship.

Increasing the capacity of business groups and trade unions to encourage en-trepreneurship and protect employees.

Adopting a policy which encourages both public and private sectors to work on poverty reduction.

Supporting NGOs to help those in poverty.

Drive for adoption of urban plans will be increase and opportunities must be tak-en to integrate LED into it.

Availability of proven meth-ods for promoting LED that can be used in the country

Environmental pollution

High rate of employ-ment leading to civil unrest

Growing poverty due to non-functioning local economy.

Difficulty of attracting investments in economy due to unfavourable business environment

High level of unemploy-ment and poverty.

Lack of social security nets could leave the unemployed in dire straits.

Price instability impacts poor households the hardest.

Locating and devel-oping new industrial and commercial sites,

Improvement of basic urban services to support busi-ness and industry. Improve existing markets and acces-sibility

Promote agro pro-cessing industries.

Introduce micro-finance schemes and entrepreneurial training.

Using SEED, LEEDS, and Vision docu-ments to attract development part-ners and

multilateral agen-cies to the state

Increase the ca-pacity of the public sector and private sector to start employment pro-grammes.

Promote youth employment by improving educa-tion and apprentice-ships.

Build the capacities of LGS and NGOs and the public sec-tor to monitor and eliminate poverty

Source:CompiledbytheauthorfromcomparativestudiesofmanyprofilestudiesofNigeriacities2016.

ThereisnodoubtthatthecurrentconcerntopromoteLEDinthecountryiscommendable.TheaboveanalysesshowsthatitcanstillbenefitfromlotsofimprovementsinensuringthatLEDprojectsarebasedon the enduring principles discussed above and that it focused on local areas and involve local people. ThevariousprojectsimplementedbytheUN=HabitatshowsthewaythatLEDpracticecanbeintegratedtourbanplanningtopromoteeconomicgrowth.AsNigeriadecidestotackleurbanizationthispresentsaveritablewaytointegrateeconomicplanningwithpromotingsustainableurbanization.

20

Thesecondphaseisfocusedonprovidingdetailedpriorityproposals.Thethirdphaseisprojectimplemen-tation.ManyLEDprojectshavebeensufferingfromlackofimplementation.

ToforgeaheadwithLEDpractice,itisnecessarytoconsidertherobustnessoftheRUSPSandtheLEDmod-uleinassistingtounravelmanyissuesonthesubjectmatterandbetterplantoredressshortcomings.Itisalsonecessarytoaddressingtheissueoflackoffundsforimplementingproject.IfLEDprojectsaretiedtodonors’funding,thiswillgoalongwaytoaddressingthefundinggap.

7. CONCLUSIONS AND RECOMMENDATIONS

The above analyses and discussions provide a concise of picture LED practice in Nigeria. The discussions undernationalandlocalperspectivesshowthatlegalandpolicyinstrumentsaswellasprogrammesexistinthecountryforpromotingLEDatthelocallevel.ButthepracticeofLEDatlocalhasbeenabysmallytoolittleandunsustainable.Thissituationhasnotonlyrobbedthelocalgovernmentsanenormousopportunitytopromoteeconomicdevelopmentintheareabutitalsobetrayedthesincerityandcommitmentofthecountrytodecentralizationofconstitutionalrolestolocalgovernments.

ThereisnodoubtthatthepromotionofLEDfacesmanychallenges.AsamatteroffacttheadoptionofRUSPStocarryoutLEDassessmentforcitiesinNigeriahasthrown-upmanychallengesfacingLEDpracticeinthecountry.Someofthesechallengesincludethefollowing:

(i) LowpriorityandcommitmenttopromotingLED.

(ii) Absenceofurbanplanningandmanagementoftownsandcities.

(iii) Topdownandnon-inclusiveapproachtopromotingLED

(iv) Poorplanningandlackofaccesstolocalmarkets.

(v) Highlyinformalset-upmakesregulationandtaxcollectiondifficult.

(vi) Lackofindustrialestatesinmanytowns;

(vii) LackofaccesstofinanceforLGtopromoteLED;

(viii) Absenceofcomprehensiveplanforfuturelocaleconomicdevelopment.

(ix) Highunemploymentorunderemploymentlevel.Socio-economicexclusionofthoselivinginpoverty;and

(x) Genderimbalances.

SomeoftheprioritiesforpromotingLEDmustembracethefollowing:

• Locatinganddevelopingnewindustrialandcommercialsites,

• Improvingbasicurbanservicestosupportbusinessandindustry.Improveexistingmarketsandaccessibility

• Promoteagroprocessingindustries.

• Promotingmicrofinanceschemesandentrepreneurialtraining.

• UsingSEED,LEEDS,andVisiondocumentstoattractdevelopmentpartnersand

• multilateralagenciestothestate

• Strengtheningthecapacitiesofthepublicandprivatesectororganizationstostartemploy-mentprogrammes.

• Promotingyouthemploymentbyimprovingeducationandapprenticeships.

• BuildingthecapacitiesofLGSandNGOsandthepublicsectortomonitorandeliminatepov-erty

• LEDPracticemustbemadeparticipatoryandfocusedonpromotingpartnershipacrossboard.

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Therearerisingconcernsthateconomicgrowthinthecountryhasnotpositivelyimpactedthelifeoflocalpeoplewithrespecttoemploymentcreation,livelihoodprovisionandpovertyreduction.Severalreasonshave been adduced. First, is the failure to address the inadequate contribution of infrastructural invest-mentsandimprovementstolocaleconomicdevelopment.Secondly,thereisalimitedunderstanding,atoverallorsectorallevel,ofthecountry’scurrenteconomicgeography(andspecificallyindustriallocation),andofsector-levelorganizationandperformance(formalorinformal,whethermanufacturingorservice)inNigeria’surban/metropolitanregions,citiesortowns(Robinet al.,2015).

Third,thepursuitoftheeconomicgrowthbasedonoilalonehashadmanydisastrouseffectsandthereisthe need for diversifying to other sectors, especially to explore the contribution of urban areas to rapid economicgrowth.AccordingtotheWorldBank(2016),‘Now,asthedecliningoilpricesrevealtheeconom-icweaknessesofthecountry,pressureforaneweconomicmodelisgrowing.Urbanization,whichtodatehasfollowedwealthcreationcaninstead,ifreformed,helpdriveeconomicgrowthandpovertyreduction’.ThisrecommendationisalsoconfirmingotherrecommendationsmadebytheWorldBank(2001)thatdeveloping countries should implement LED towards accelerating economic growth, improvingthedistributionofincomeandwealthandacceleratingsocialdevelopment in order to achieve sustainable poverty reduction.

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APPENDIX1:ListofLEDProjectsurveyedinNigeria

Table1:ListofLEDProjectscollectedassampleforanalysis

S/N PROJECTS1 Primary Schools, Community and Social Capital in Nigeria2 Rivers State Investment Plan3 Local Economic Development (LED) in Nasarawa and Niger States4 Structure Plans for Three Urban Areas in Anambra State5 Structure Plans for Four Urban Areas in Nasarawa State6 Structure Plan for Nine Cities in the State of Osun, Nigeria7 WAC II Project for Jos8 Early recovery programme for the North East of Nigeria9 Global Environment Facility–Small Grants Programme (GEF-SGP)10 Support to Federal Ministry of Agriculture for the Implementation of Agri-

culture Transformation Agenda11 Access to renewable energy12 Territorial Approach to Climate Change (TACC) Programme13 Niger Delta Youth Empowerment Project.14 States and Local Governments Project15 Osun Youth Empowerment Scheme (OYES)16 Osun Elementary School Feeding And Health Programme (O-Meals)17 Urban Renewal (O Renewal), Project, Osun State Nigeria18 Lagos BRT Project19 Good Urban Governance Assessment of Nigeria20 Urban Informal Sector Support Programme21 Small and Medium Enterprises Programme22 Women in development23 Governance Programme24 Equitable and sustainable economic growth programme25 Programme support to human security and risk management 26 Quality Basic education27 Governance and security28 Wealth creation

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APPENDIX 2:URBAN SECTOR PROFILING QUESTIONNAIRE – LED MODULE

LOCAL ECONOMIC DEVELOPMENT

No. Section and Question Sources of informationBACKGROUND (including general indicators)

The indicators available from international publications will be compiled by UN-HABITAT and sent to HPMs and national consultants.

Most relevant MDG Goal, targets and indicators, which could be used as reference points in preparing the background material:

Goal 1:

· Target 1 : Halve, between 1990 and 2015, the proportion of peo-ple whose income is less than $1 per day

· Indicators : Proportion of population below $1 per day

· Poverty gap ratio

· Share of peoples quintile in national consumption

· Target 2 : Halve, between 1990 and 2015, the proportion of peo-ple who suffer from hunger

· Indicators : Prevalence of underweight children (under 5 years of age)

· Proportion of population below minimum level of dietary energy consumption

National consultants to

extract other relevant indi-

cators from local published

sources (urban household

surveys et)

Wherever possible, national consultants to procure hard copy or electronic copies of all relevant documents and forward them to

UN-HABITAT

KEY ISSUES/AREAS OF ENQUIRY

LOCAL ECONOMIC DYNAMICS

LE1 Is there a current LED strategy promoting access to jobs for the people? Who is the responsible entity?

· Local govt authority NGOs, IDA, NIDP, Youth Devt, NDE, NAPEP

· Chamber of Com-merce

LE2 Describe the Local govt authority’s role in local economic development in the city (incentives to businesses to locate there e.g. provision of land, urban services, licensing etc).

· Local govt authority

· Chamber of Com-merce

· NGOs, Min of Wom-en Aff

· Local govt authority

LE3 Do authorities promote equal rights for both men and women while cre-ating job opportunities? How does the municipality achieve this?

· Local govt authority

· NGOs

· Chamber of Com-merce

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No. Section and Question Sources of informationLE4 Describe the constraints that the people face in securing a job (e.g. ad-

ministrative, legal, transportation, education).

· How do these constraints impact on women (i.e. are there any additional constraints on women such as traditions, religion/culture cus-toms etc.)?

· Local govt authority/State

· NGOs, Individuals

· Chamber of Com-merce

· Social Fund

LE5 What are the current economic problems in the city (e.g. job opportuni-ties, loans, transportation)?

· Explain how these economic problems are addressed.

· Local govt authority

· NGOs

· Chamber of Com-merce

· Local govt .

LE6 Which economic sectors are growing and which ones are declining? Why? · Social Fund

· Local govt authority

· NGOs, Min of Econ Plan.

LE7 What are currently the big (capital) projects? Are they locally owned? ·Social Fund,MoWA

·Local govt authority

·NGOs

·Chamber of Commerce

LE8 What are local features making the city competitive? What economic link-ages are there with other regions or areas?

·Local govt authority

·NGOs, NIPDC

·Local Government

·Chamber of Commerce

LED ISSUES/CONCERNS

LE9 What are the main economic challenges facing the city (poverty, unem-ployment, export, etc)?

· Local govt authority

· NGOs, NIDPC

· Local govt govt.

LE10 How do Local govt authority and private sector terminate employment? Is there legislation that protects employees against unjustified termina-tion of employment?

Local govt authority, NGOs

Labor Union, Local govt,

Organised Private Sector

LE11 Give an estimated number of employees and jobs being terminated by Local govt authority and private businesses within the last year (Give the source of your estimate). What are the main reasons for terminating jobs?

·Local govt authority

·NGOs, Establishment

·Labor Union

27

LE12 Where do these previous employees find work (informal sector, private services)?

·Local govt authority

·NGOs, Individuals

·Chamber of Commerce

·Labor Union

LE13 What kind of assistance is available to the unemployed or bankrupt busi-nesses (allocation of alternative employment, financial compensation)?

·Local govt authority

·NGOs, NAPEP, NDE

·Labor Union

LE14 Describe the main administrative and legal steps that must be followed to acquire credit?

·Local govt authority

·NGOs

·Chamber of Commerce

LE15 Describe the major economic sectors and establishments that are found within the city? What are the basic resources that they depend on?

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE16 Describe the informal economic sectors that are found within the city?

How is the right of the informal economy workers guaranteed?

·Local govt authority

·NGOs, NLC

·Chamber of Commerce

·Social Fund

LE17 Describe how your organisation contributes to create job opportunities for the disabled and vulnerable people in the city?

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE18 Has there been a recent economic survey?

If so:

· Give an estimate of the proportion of urban residents who are employed.

· Give an estimate of unemployed for both males and females in the city.

· Give an estimate of the proportion of people who work in the informal sector in the city.

·Local govt authority

·NGOs, Bureau of Stat

·Min of Economic Planing

·Chamber of Commerce

·Social Fund

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LE19 Have there been recent surveys of access to jobs?

If so:

· Has the access to jobs improved or declined over the last five years?

· How has this - change in access to jobs - affect men and wom-en?

·Local govt authority

·NGOs/CBOs

·Labour Unions, NDE

·Academic Research Insti-tution

·Population Commissions

·Chamber of Commerce

·Social Fund

LE20 Has the Local govt authority assessed LED priorities (e.g. credit and in-come generating activities etc.)?

· What process was used to determine such priorities (e.g. partici-patory methods)?

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE21 Give examples of past, ongoing or planned LED activities within the slums that have been supported by your organisation?

·Local govt authority

·NGOs/CBOs

·Labour Unions

·Chamber of Commerce

·Social Fund

EXISTING PROGRAMMES

LE22 From what sources does your organisation mobilise resources for LED? ·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE23 Does your organisation give assistance (financial and technical) to wom-en-headed households and other vulnerable groups to acquire jobs?

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE24 Describe the constraints that the people face in accessing credit (e.g. lack of collateral)?

·Micro-credit institutions

·NGOs, Individuals

·Chamber of Commerce

·Social Fund

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LE25 Describe how Local govt regulations promote or hinder income-generat-ing activities?

؟

·Local govt authority

·NGOs/CBOs

·Chamber of Commerce

·Social Fund

LE26 Do local credit institutions promote equal access to credit for both wom-en and men in slums and, if not, what are the reasons?

· What is the credit used for (construction, home improvement, access to services, economic activities)?

· Credit NGOs

· Chamber of Com-merce

· Social Fund

· Individuals

LE27 Are there gender-disaggregated statistics on access to credit? · Credit NGOs

· Government statis-tics

Office

·Chamber of Commerce

·Social Fund

INSTITUTIONAL SET UP

LE28 Describe your organisation’s role in LED? ·Local govt authority

·NGOs, NDE, MAN, NADP, Min of Econ Plan

·Chamber of Commerce

·Social Fund

LE29 Describe how your organisation collaborates with other partners/stake-holders in LED (e.g. central government agencies, NGOs, CBO’s, donor

agencies, private sector, media organisations)

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE30

Describe with examples any public /private/community partnerships which promote LED?

·Local govt authority

·NGOs

·Chamber of Commerce

30

LE31 How is local information on economic issues collected and disseminated with a view to informing and bringing about policy change?

·Local govt authority

·NGOs, Min of Econ plan

·Information

·Chamber of Commerce

·Social Fund

LE32 Describe how LED activities are co-ordinated? ·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

SIMPLE MARKET ANALYSIS

LE33 Do local residents leave the local area to purchase? Why? ·NGOs, Individuals

·Chamber of Commerce

·Local govt.

LE34 Are there opportunities to provide local area residents with a chance to spend more of their money locally? What needs to be done to do this?

·NGOs, Individuals

·Chamber of Commerce

·Local govt.

LE35 What do local businesses import from outside the local area? Why are these purchases not made in local area (lack of capital: natural resourc-es, skills, financing, others)?

·NGOs, MoWA, Coop, NADP, Min of Econ Plan

·Chamber of Commerce

LE36 Are there opportunities to develop businesses from within the local area to provide local businesses with goods and services they now have to import? What needs to be done to do this?

·NGOs

·Chamber of Commerce

LE37 Can the local area attract businesses to the local area if they cannot de-velop them within? How?

·NGOs

·Chamber of Commerce

LE38 Are there opportunities to set up a local bank or credit union that will reinvest locally?

·NGOs

·Chamber of Commerce

LE39 Can you think of any other way to keep local income circulating in the local area?

·NGOs

·Chamber of Commerce

LE40 What opportunities exist to expand the existing markets?

Where are these other markets located?

·NGOs, LG

·Chamber of Commerce

LE41 How can they be accessed? ·NGOs, LG

·Chamber of Commerce

LE42 What linkages (e.g. transportation, communication infrastructure) need to be made more efficient to effectively serve existing and potential mar-kets?

·NGOs, LG,

·Chamber of Commerce

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CAPACITY BUILDING AND TRAINING

LE43 Describe the capacity building support received from bilateral and multi-lateral agencies in LED?

· How is this support coordinated?

· Does this support meet your priority needs?

· If it does not meet your needs explain?

·Local govt authority

·Min of Econ Plann, MDG

·Chamber of Commerce

·Social Fund

LE44 Identify the main capacity gaps within the municipality with a focus on the adequacy or otherwise of:

· Ability to formulate and implement local economic development; training, and supporting equipment?

· For training needs please indicate needs by specific target groups – trying to answer who needs to learn what? (e.g. policy makers, professionals, technicians)

· Local govt authority

· Ex –councilors

· Senior managers

· Middle level

Professionals, Establish

· partner NGO/CBO

· Chamber of Commerce

· Social Fund

LE45 If there are three things that your organisation could do to improve the local economy, what would they be?

·Local govt authority

·NGOs

·Chamber of Commerce

·Social Fund

LE46 Elaborate upon priority capacity building projects aimed at improving Lo-cal govt performance in improving local economy (not more than 3) with

the potential for scaling-up. Use the project profile in Annex 1

· Project examples: regulation, institutional development and sup-port, reinforcements mechanisms etc.

· City mini-consulta-tion;

· Local govt authority

· NGOs, Min of Justice

· Chamber of Com-merce

· Social Fund

CAPITAL PROJECTS

LE47 Elaborate upon LED projects (not more than 3). Use the project profile in Annex 1

· City mini-consulta-tion

· Local govt authority

· NGOs

· Chamber of Com-merce

· Social Fund

· MOF,

32

Annex 1 to LED Questionnaire

Local Economic Development

“Best Practice” Case Study

«The case study should be restricted to no more than 5 pages. It should:

1.Providebackgroundinformationonthetypeofenvironmentalintervention

2.Describehowinformationwascollected

3.Describehowprioritieswereset

4.Outlinehowstakeholderswereinvolved

5.Describehowactionswereplannedandimplemented

6.Outlinethemainoutcomesandthefindingsofanyevaluationoftheseoutcomes

Annex 2 to LED Framework

Project Profile (not to exceed 2 pages)

Project Title

Location (if Capital project give physical location, if capacity build-ing give institution)

Estimated duration in months

Targeted beneficiaries

Implementing partners

Estimated cost in US$

Background

Objectives

Main project outputs

Main project activities

Describe how the project will be implemented.

Equipment to be procured

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