10 Government Policies in Nigeria

The political, social, and economic environment of a country is greatly influenced by its government policies. Nigeria, the biggest economy in Africa, has put in place a number of policies to deal with issues related to governance, economic growth, and development. Ten important Nigerian government policies are listed below:

1. National Economic Empowerment and Development Strategy (NEEDS)

The National Economic Empowerment and Development Strategy (NEEDS) was introduced in 2004 to promote economic growth, reduce poverty, and create employment opportunities. NEEDS aimed to improve the private sector’s role in economic development and enhance governance, transparency, and accountability in public administration. It focused on human capital development, infrastructure improvement, and the promotion of small and medium-sized enterprises (SMEs).

2. Vision 20:2020

Vision 20:2020 was launched in 2009 with the goal of positioning Nigeria among the top 20 economies in the world by 2020. The policy targeted economic transformation by fostering industrialization, infrastructure development, and human capital improvement. Although Nigeria did not achieve this vision, the policy contributed to economic reforms, particularly in agriculture, power, and financial sectors.

3. Economic Recovery and Growth Plan (ERGP)

Introduced in 2017 by the administration of President Muhammadu Buhari, the Economic Recovery and Growth Plan (ERGP) was designed to revive Nigeria’s economy following the 2016 recession. The ERGP focused on restoring growth, building a competitive economy, and investing in people through social programs. The policy emphasized diversification, particularly in agriculture and manufacturing, and aimed to enhance ease of doing business in Nigeria.

4. Monetary Policy by the Central Bank of Nigeria (CBN)

The Central Bank of Nigeria (CBN) regularly implements monetary policies to control inflation, stabilize the currency, and manage interest rates. Policies such as cash reserve requirements, foreign exchange controls, and the regulation of financial institutions have been used to manage liquidity in the economy. The CBN’s intervention in the foreign exchange market has played a crucial role in stabilizing the Naira against other currencies.

5. National Health Insurance Scheme (NHIS)

The National Health Insurance Scheme (NHIS) was established in 1999 to provide affordable and accessible healthcare services to Nigerians. The policy ensures that employees in the public and private sectors have health insurance coverage, reducing the financial burden of medical expenses. Although implementation has been slow, efforts are ongoing to expand coverage to the informal sector and rural communities.

6. Pension Reform Act (PRA) 2014

The Pension Reform Act (PRA) of 2014 replaced the earlier pension system with a contributory pension scheme. The policy mandates employees and employers to contribute a percentage of salaries to a retirement savings account. The reform ensures financial security for retirees and strengthens Nigeria’s pension industry by making it more sustainable and transparent.

7. Agricultural Transformation Agenda (ATA)

To boost food production and reduce dependence on food imports, the Agricultural Transformation Agenda (ATA) was introduced in 2011. The policy aimed to support farmers, improve agricultural value chains, and provide incentives for local production. It led to initiatives such as the Growth Enhancement Support (GES) Scheme, which provided farmers with subsidized fertilizers and improved seeds.

8. Petroleum Industry Act (PIA) 2021

The Petroleum Industry Act (PIA) was enacted in 2021 to reform Nigeria’s oil and gas sector. The policy seeks to attract investment, promote transparency, and ensure better revenue management. It also established regulatory bodies like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The PIA aims to improve host community development and environmental sustainability in oil-producing regions.

9. Power Sector Reform Act (PSRA) 2005

The Power Sector Reform Act of 2005 was implemented to address Nigeria’s electricity challenges. The policy led to the unbundling of the Power Holding Company of Nigeria (PHCN) into private sector-led generation, transmission, and distribution companies. Despite challenges, the reform aimed to improve efficiency, increase electricity generation capacity, and enhance service delivery.

10. National Digital Economy Policy and Strategy (NDEPS)

The National Digital Economy Policy and Strategy (NDEPS) was launched in 2019 to promote digital transformation and improve Nigeria’s economy through technology. The policy focuses on broadband penetration, cybersecurity, digital skills development, and innovation. It aims to position Nigeria as a leader in Africa’s digital economy and enhance job creation through technology-driven initiatives.

Government policies in Nigeria play a critical role in shaping the country’s economic, social, and political landscape. While some policies have yielded positive results, others require better implementation and transparency. Continuous evaluation and adaptation of policies are essential to ensure Nigeria’s sustainable growth and development.

How Laws are Passed in Nigeria

Nigeria has a democratic political system with a well-defined legislative process. The National Assembly, which is made up of the Senate and the House of Representatives, is primarily responsible for carrying out the legislative process. In Nigeria, a bill must go through multiple steps in order to become law: introduction, reading, committee assessment, and presidential assent. The Nigerian legislative process is explained in full here.

1. The Legislative Arm of Government

The National Assembly of Nigeria is responsible for making laws. It comprises:

• The Senate: Made up of 109 members, with three senators from each of the 36 states and one from the Federal Capital Territory (FCT).
• The House of Representatives: Comprising 360 members, elected based on the population of constituencies.

These two chambers work together to ensure that laws are enacted for the governance of the country.

2. Types of Bills

A bill is a proposed law presented to the legislature for enactment. There are different types of bills in Nigeria:

• Executive Bills: Proposed by the executive arm of government, usually by ministries or government agencies.
• Private Member Bills: Proposed by individual lawmakers or groups within the National Assembly.
• Money Bills: These deal with government revenue, taxation, and expenditure, and can only be introduced by the executive.
• Constitutional Amendment Bills: These seek to amend provisions of the Nigerian Constitution and require a two-thirds majority in both chambers of the National Assembly.

3. Stages of Passing a Bill

The passage of a bill in Nigeria follows a rigorous process consisting of several stages:

a. First Reading

The first reading is the formal introduction of the bill. The bill is read on the floor of the chamber (Senate or House of Representatives), and its title is presented. There is no debate at this stage.

b. Second Reading

During the second reading, lawmakers debate the principles and objectives of the bill. Members are allowed to express their opinions on the bill’s importance and relevance. If a majority of members vote in favor of the bill, it proceeds to the next stage. If rejected, the bill is dropped.

c. Committee Stage

At this stage, the bill is referred to a committee for thorough examination. The committee may:

• Hold public hearings to receive inputs from stakeholders.
• Make amendments to strengthen the bill.
• Recommend approval or rejection of the bill.

d. Third Reading

The bill is returned to the full chamber for final consideration. If passed by a simple majority, it proceeds to the other legislative chamber (House of Representatives or Senate) for consideration.

e. Consideration by the Other Chamber

The second chamber goes through the same process of first reading, second reading, committee stage, and third reading. If the bill is approved without changes, it moves to the next stage. If amended, both chambers must agree on a final version through a joint committee known as the Conference Committee.

4. Presidential Assent

Once both chambers of the National Assembly pass a bill, it is sent to the President for assent. The President has the following options:

• Sign the bill into law: The bill becomes an official law of the country.
• Withhold assent (veto the bill): The bill is returned to the National Assembly with reasons for the rejection.
• Take no action: If the President neither signs nor vetoes the bill within 30 days, the National Assembly may override the veto with a two-thirds majority vote in both chambers, and the bill becomes law.

5. Publication in the Official Gazette

After the President signs a bill into law, it is published in the Official Gazette of Nigeria. This publication serves as an official record of the new law and makes it enforceable.

6. Judicial Review

In some cases, laws passed by the National Assembly may be challenged in court. The judiciary, particularly the Supreme Court, has the power to review laws and determine whether they are consistent with the Constitution. If a law is found to be unconstitutional, it may be struck down.

7. Role of State Legislatures

Nigeria operates a federal system, meaning states also have legislative powers. Each of Nigeria’s 36 states has a State House of Assembly responsible for making laws applicable within the state. The process of passing laws at the state level is similar to the National Assembly’s process but applies only within the jurisdiction of the state.

8. Challenges in the Law-Making Process

Despite the structured process, Nigeria’s law-making system faces challenges such as:

• Political Interference: Sometimes, political influences affect the passage of bills.
• Slow Legislative Process: Some bills take years to pass due to bureaucratic delays.
• Lack of Public Awareness: Many citizens are unaware of the laws being passed and their implications.
• Executive-Legislative Conflicts: Disagreements between the President and National Assembly may stall the legislative process.

Conclusion

The process of passing laws in Nigeria is a well-structured but sometimes challenging procedure. From bill initiation to presidential assent, each stage is crucial in ensuring that only well-considered laws are enacted. Understanding this process enables citizens to engage more actively in governance and legislative affairs. With continuous reforms and public participation, Nigeria’s law-making process can become more efficient and transparent.