The Nigerian Economic Summit Group (NESG) has urged state governments to adopt a more competitive approach to economic development by actively positioning their states as attractive destinations for private investment.
The group said states must move away from excessive reliance on federal allocations and instead build economic environments capable of attracting both domestic and international capital.
According to the NESG, improving the ease of doing business should be a priority for state governments. It called for the reduction of bureaucratic bottlenecks, simpler regulatory procedures, and policies that make it easier and faster for businesses to establish and operate.
The group also highlighted the need for stronger institutions, saying investors are more likely to commit capital where there is transparency, accountability, effective contract enforcement and respect for the rule of law.
It further identified infrastructure and security as critical to attracting and retaining investment.
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Reliable transportation networks, electricity, internet connectivity and other essential infrastructure, combined with a safe and predictable business environment, would enable companies to expand and create jobs.
The NESG said healthy competition among states could stimulate economic growth as governments seek to outperform one another in attracting businesses and investment.
States that succeed in drawing private capital could benefit from increased employment, improved infrastructure and stronger internally generated revenue through an expanded tax base.
Such competition, the group noted, could also encourage governments to develop innovative policies and improve public services as they seek to make their states more attractive to investors and residents.
The call comes amid growing pressure on states to strengthen their internally generated revenue and reduce dependence on allocations from the Federal Government.
The NESG therefore urged state governments to prioritise the development of productive, investment-driven economies that can generate sustainable revenue, create employment and support long-term development.
