Questions/Answers

After being ranked as the third most difficult state in Nigeria to do business by the World Bank in 2010 and little progress by 2014, Anambra State established the Anambra State Investment Promotion and Protection Agency (ANSIPPA) with a goal to reverse this negative status, and further attract, promote, manage and protect investments in the state. In pursuing its objectives, the ANSIPPA initiative identified the key areas of interest for investment and partnership with both local and foreign investors. Interestingly, I was ANSIPPA’s first Executive Director and my tenure saw over N150 billion ($400m) in additional investments attracted to the state. Some of these investments include Coscharis farms - $100m, Lynden Poultry Farms - $40m and Anambra Delfarms Ltd - $60m. Today, ANSIPPA employs over 50 people, has created about 5000 direct jobs and attracted investments to the State in the tune of US$50billion. It now serves as an investment driver and a special purpose vehicle for realizing Anambra State Strategic Economic Blueprint and pillars of economic development: agriculture, industrialization, trade and commerce, oil and gas, logistics, and creative economy. The initiative has become the catalyst of the State’s growing reputation as a destination for investment in Nigeria.

Anambra State Investment Promotion and Protection Agency (ANSIPPA) is often viewed as a reform initiative to provide guidance and assurance to both local and foreign investors by ensuring that the process of initiating and doing business in the state is streamlined and efficient. Specifically, its One Stop Service Centre makes investment registration quicker, simpler, and more efficient and transparent, and gives better coordination and service delivery between investors and the various government Ministries, Departments and Agencies (MDAs) in sync with the United Nations Public Service Awards commitment to developing transparent and accountable public institutions.

Effectively, the One Stop Service Centre (OSSC) which acts an investment facilitation mechanism that brings relevant government agencies to one location with coordinated and streamlined processes to provide efficient and transparent services to investors brought ‘under one roof’ the officers from key federal and state agencies involved in processing and issuing business-related documents (certificates, approvals, licences and permits). Prior to ANSIPPA, a prospective investor would need to fulfill a variety of processes in the Ministry of Lands for land acquisition matters and, thereafter or simultaneously, approach other public authorities for other permits or licenses. As these bodies work independently and in different locations, investments could be delayed extensively. Through the OSSC, the ANSIPPA initiative helped ensure that any investment approved by its board and team of experts got the appropriate attention and endorsement of the required MDAs within a much shorter timeframe which invariably supports Goal 16’s mission of building effective, accountable and inclusive institutions at all levels, including its targets of developing effective, accountable and transparent institutions at all levels as well as strengthening relevant national institutions.

The constant support from the Governor, Chief Willie Obiano, who initiated the establishment of the ANSIPPA initiative, in line with his campaign promise of turning around the fortunes of the state economically; and remains actively involved in promoting the success and sustainability of the initiative. Given his business background, the Governor believes that infrastructural development and security are important for economic viability and competitiveness of the State. Therefore, as an incentive to investors, the Government of Anambra State not only provides land, but also guarantees security for persons, assets and investments while also working to ensure good community relations.

Prior to 2014, Anambra State’s investment and business climate was poorly ranked by independent periodic reports, being placed in the bottom fifth percentile of Nigeria’s 36 states. In light of this poor performance and the deteriorating fiscal position, the Government of Anambra State saw the need to improve its business environment and to cultivate an attractive investment climate. This culminated in the establishment of the Anambra State Investment Promotion and Protection Agency (ANSIPPA). Its establishment signalled government’s commitment to reforming the business and investment regulatory environment in the state, and enhanced the effectiveness of coordination and cooperation among MDAs as relevant MDAs now work in concerted fashion to attract investments and not in silos as was previously the case. It also provided a reform platform to develop and implement government-wide tools and systems to shape how the state government improves service delivery and reduces regulatory and administrative burdens (in terms of cost, time, and quality). Now, four years down the line, Anambra State clinched an award as one of the top 5 most improved state in Nigeria on the World Bank Ease of Doing Business Index released in October 2018 on the back of reforms by ANSIPPA.

Market failures make it difficult for women in Nigeria to start and be successful in entrepreneurship. One of the greatest challenges cited by most women entrepreneurs is the lack of entrepreneurship skills. They have less experience in self-employment and as a result, have less developed management skills and smaller business networks. Based on this premise, the State Government supports the acquisition of entrepreneurship skills for women and youth. And through the ANSIPPA initiative, it recently signed a trust fund agreement with UNIDO to develop entrepreneurship and business skills of women and youth under the UNIDO-HP Learning Initiative for Entrepreneurs (LIFE).

Overall, the target group is investors. They can attest that ANSIPPA/OSSC reforms have succeeded in simplifying procedures and reducing costs and time for them – thereby making investment entry easy and providing more job opportunities in the State. They now see Anambra as the best state for investment in Nigeria due to the substantial reduction in time and cost of registering a business since the introduction of OSSC, and among the three easiest states to start an investment in the country. Another is the growth (number and amount) in investments attracted to the State since its creation. As at date, ANSIPPA had already made the investment climate in Anambra State simple, transparent, efficient, and free of the usual bureaucratic bottlenecks. The efforts of ANSIPPA and its OSSC have made Anambra Nigeria’s number 1 investment destination, attracting over US$50 billion within 5 years of its establishment. There is also the profile of the attracted investors, comprising Anambra indigenes, Nigerians and foreigners alike which is an indication that the agency is achieving its vision of becoming an investment destination in the country when compared to other states in the Southeast Region and other regions of the country.

ANSIPPA was formally established in May 2014, following its inauguration by the Governor of Anambra State, Chief Willie Obiano. He assented to the bill establishing the ANSIPPA just about one month after assuming office. ANSIPPA was the first reform embarked on by the Obiano administration because of the government’s belief in the Agency as a strategic and key component of the State’s economic development. ANSIPPA was set up in 2014 through an Act of the State House of Assembly titled “Anambra State Investment Promotion and Protection Law No. 0381-1899”. It uses a partnership and investment facilitation model. It also applies a well-structured monitoring and evaluation scheme that goes beyond monitoring the efficiency of the OSSC to that of investment implementation through which they gain more lessons and use them to fine-tune future investment deals. ANSIPPA monitors the progress of project implementation periodically to enable it to identify challenges and work with investors to address them (if they are challenges that the state government can handle). Cases have been cited where community agitations stalled implementation and government had to intervene to resolve it. ANSIPPA/OSSC continues to adapt with respect to how it works in order to improve its effectiveness. In other words, the ANSIPPA/OSSC experience in monitoring its processes and investors, guides its commitment to refine and retool its processes for maximum investment impact in Anambra State.

Housing and agriculture have larger shares of the investments. There is a high demand for land, which is highly limited in Anambra. This points to a delicate balancing act between land management and use. Another constraining challenge is the inability of ANSIPPA/OSSC to implement an e-governance system. Until recently, the Agency was not applying ICT for delivering its services and government-to-customer (G2C) or government-to-business (G2B) transactions. It has since moved to eliminate costs to investors associated with logistics by implementing an e-governance system, and organizing ICT capacity training for technical staff while improving the efficiency of the current paper-based system.

Following the economic and/or revenue challenges facing most states in Nigeria, the State Government undertook an assessment of the economic and commercial potentials of her jurisdiction and came to the conclusion that it was performing below its potential. So, it set up a think tank – Anambra Economic Think Tank (ANETT) – to address this challenge. Consequently, the ANSIPPA and the OSSC is a response to the need to find innovative ways of generating funds and planning its own development agenda. ANSIPPA and its management thought it could engender development through PPP models and the enabling foreign exchange through an investment channel.

Learning and evidence played a role in the creation and ongoing functioning of ANSIPPA and OSSC. Prior to the formation of ANSIPPA, the Governor and his team looked for where a similar programme existed. They identified the Nigerian Investment Promotion Commission (NIPC) in Abuja. After accessing basic information about the NIPC from secondary sources, including the NIPC’s website, Anambra State liaised with its management and sent a team of experts to the NIPC office for some weeks to receive training. During their trip, team members were educated on the processes and modalities for establishing and managing an investment promotion programme.

ANSIPPA adopted a business mind-set built on integrity, effective strategies/procedures, functions, people (especially with private sector background), processes, operations and controls that seek to prevent, detect and address serious government bureaucracies prevalent in many MDAs. This laid a solid foundation and structure for doing business in an effective and sustainable fashion in the state. Prior to the establishment of ANSIPPA and OSSC, many potential investors either withdrew or considered withdrawing from Anambra State as an investment destination. Many of ANSIPPA clients complained about cumbersome and complicated procedures and delays in dealing with relevant government ministries, departments and agencies. ANSIPPA (through its OSSC) has established a partnership and service-oriented system in accordance with the best international standards which has made it possible for any investor to come to Anambra State and start up a business within the shortest time. This has not only rebuilt the trust of investors and private businesses, but also has created an environment of trust, transparency and accountability necessary for obtaining long-term investments, financial stability and sustainable growth in Anambra State.

According to a report on the Vanguard of April 14, 2016, “The Anambra’s ANSIPPA should serve as a model for state governments keen on diversifying revenue sources in an era of dwindling resources from oil revenue.’’ In the light of the economic and/or revenue challenges facing most states in Nigeria, other states should undertake an assessment of the economic and commercial potentials of their jurisdictions, understudy the ANSIPPA model in coming up with programmes and models that will make optimum use of all the valuable opportunities available to them.

A clear-cut partnership and project implementation process which includes a 12-step approach, starting from proposal submission by an investor and ending with full investment project implementation. In addition, the initiative adopted arrangements which contributed to its efficiency and effectiveness, including; • Leveraging on the State’s pre-existing institutions and seconding civil service staff from key ministries; • Governed by an overarching board, comprised of select ministry heads & private sector stakeholders, which reports directly to the Governor; • Agreeing to a series of Memoranda of Understanding with federal and sub-regional entities involved in releasing permits and licenses; • Focusing mainly on the key sectors in the State’s development plan.

ANSIPPA is backed with an Act of the State Assembly. This assures investment continuity and provides confidence (as partnership agreements and approvals/licenses are not subject to government fiat) to investors, especially in terms of the sustainability of their investments. The law, with official Gazette No. 11, Vol. 24 of 18th December 2014, provides a harmonised legal framework instead of the former situation where civil service regulations or administrative procedures were in ‘silos’, unarticulated, and often different as one moved from one MDA to another.

Yes

ANSIPPA is governed by an 11-person board, including five key commissioners relevant to the ease of doing business in the state – lands, finance, trade and industry, economic planning and budget, and the Attorney General of the State. This structure ensures that all relevant MDAs participate in decision making on all investment requests. In addition, The Act, in Section 8, mandates the Agency to initiate, encourage, promote, and coordinate investments in the state while maintaining liaison between investors and Nigeria Investment Promotion Council (NIPC), Federal and State Ministries, government departments and agencies, institutional lenders and other authorities concerned with investments.

ANSIPPA’s distinctive approach is demonstrated by an array of tools. Of key importance is its flagship One-stop Service model, which coordinates investment-related activities across federal and state actors. Another tool used as a key driver is its Special Purpose Vehicles (SPVs). SPVs are usually incorporated to protect both parties’ interests in government-private partnership projects. In ANSIPPA’s case, SPVs were used as the organising framework for providing information, support, and guidance to partners (investors), aftercare strategy, and equity contributions. Depending on the location, the State Government takes between 5-10% equity for the land and infrastructure that it provides for such investments.

The need for strong monitoring process and alertness to implementation realities: Once all the necessary agreements are signed with investors, ANSIPPA and OSSC monitor regularly to ensure that all the milestones agreed upon with investors are met despite the numerous challenges (natural, economic or human) that may arise. So, it is still a learning curve for the initiative. As such, ANSIPPA/OSSC continues to adapt with respect to how it works in order to improve its effectiveness. In other words, the ANSIPPA/OSSC experience in monitoring its processes and investors, guides its commitment to refine and retool its processes for maximum investment impact in Anambra State.

Speed is essential in both government and private sector businesses. The initiative adopted a business mind-set built on integrity, effective strategies/procedures, functions, people (especially with private sector background), processes, operations and controls that seek to prevent, detect and address serious government bureaucracies prevalent in many MDAs. This has laid a solid foundation and structure for doing business in an effective and sustainable fashion in the state. The initiative’s effectiveness is also influenced by its collaboration with regional and federal agencies, such as NAFDAC, FIRS, CAC and NIPC – which houses the federal government’s own onestop shop for investment promotion activities. This included clear agreements on how Anambra’s portfolio of applicants would be managed to ensure the its target timelines are met.

The Act, in Section 8, mandates the Agency to initiate, encourage, promote, and coordinate investments in the state while, among other things, maintaining liaison between investors and Nigeria Investment Promotion Council (NIPC), Federal and State Ministries, government departments and agencies, institutional lenders and other authorities concerned with investments. NIPC, in particular, was a facilitator in the setting up of OSSC as ANSIPPA physically spent some time understudying NIPC’s One Stop Investment Centre (OSIC). The ANSIPPA team also understudied foreign OSSCs and came up with a model suitable for achieving the economic and development aspirations of Anambra State. It is also important to note that ANSIPPA IS governed by an 11-person Board, including five key commissioners relevant to the ease of doing business in the state – lands, finance, trade and industry, economic planning and budget, and the Attorney General of the State. This structure ensures collaboration and inclusion among all relevant MDAs.

One of the key lessons include the need for strong political commitment and support at the highest level. When the success or failure of development policies or initiatives is discussed, political commitment or lack of it has often affected the outcome. The determination of the State Governor, who has extensive authority in the State, and the government and the legislative arm were key factors. On plan(s) to improve the initiative, the state will continually internalise the profit motive since it is clear that investors are not driven primarily by patriotism or altruism. We will continually strive to make the initiative transparent in ensuring that at a glance, investors can see what they stand to gain by investing in the state.