The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) State and Local Governance Reform Project (P133045) AFRICA | Nigeria | Governance Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 17-Jun-2019 | ISR37406 | Implementing Agencies: International Donor Support, Ministry of Finance & Economic Planning, Ministry of Finance, Ministry of Budget & Economic Planning, Ministry of Budget & Planning, Ministry of Budget & Planning, Federal Ministry of Budget and National Planning, FEDERAL REPUBLIC OF NIGERIA Key Dates Key Project Dates Bank Approval Date: 17-Oct-2014 Effectiveness Date: 21-Jan-2015 Planned Mid Term Review Date: 12-Dec-2017 Actual Mid-Term Review Date: 12-Dec-2017 Original Closing Date: 31-Mar-2017 Revised Closing Date: 30-Sep-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve transparency, accountability and quality in public financial management in the participating states. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Public Financial Management Reforms.:(Cost $43.00 M) Component B: Support to Local Governance.:(Cost $5.50 M) Component C: Project Coordination.:(Cost $14.50 M) Performance Challenge Fund and Contingency:(Cost $10.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Some highlights of project performance since the last ISR include: (a) Improvements previously achieved in the areas of accountability and transparency have been sustained across the participating States. While all arrears of audited financial statements (AFS) have been cleared, the States have sustained previous years’ audit coverage of 100 percent of public expenditure. Jigawa, Osun and Yobe States have also maintained the practice of submitting their AFS to the legislature within six months of the end of a financial year. Finally, Anambra, Cross River, Jigawa, Osun and Yobe States have continued to convene public audit forums, where Auditor General’s reports are presented to and discussed with the public and stakeholders, including civil society organizations. Based on the improvement 6/17/2019 Page 1 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) in timeliness and transparency of AFS and annual budgets, Kano, Osun, Yobe and Jigawa states have been found to be eligible to participate in the now effective States Fiscal Transparency, Accountability and Sustainability program (SFTAS) for 2018. With continued support from the project, all six states are well-placed to meet the targets for results under SFTAS in several areas. (b) Regarding support to the States to improve internally generated revenues (IGR), the States have made further progress since the last ISR. In addition to improving the taxpayer bases across the states, modern electronic taxpayer database management systems have been established in Anambra, Cross River and Kano States, while the procurement of similar systems are currently ongoing in Jigawa and Yobe States. IGR performance has also been growing from year to year with all the states recording improvements in their revenue collection performances in 2018 in comparison with 2017. (c) The implementation of State Integrated Financial Management Information Systems (SIFMIS) in Kano and Jigawa States have advanced significantly. Both States are now scheduled to “go-live” in July and August 2019, respectively. Implementation has also commenced in Yobe and Cross River States with the signing of contracts in February and April 2019, respectively. As earlier advised by the Bank, implementation across the four States are based on a phased approach, with priority being given to the critical core modules like budget, financials (general ledger with reporting tools) and human resource management (including payroll). Bid evaluations are now at advanced stages in Anambra and Osun States and contract award and implementation should start soon. (d) Across the participating States, Bills have been prepared for Organic Public Finance, Audit and Revenue Administration Legislations to ensure that the various reforms being implemented across the different fields of public financial management have appropriate legal foundations. The Audit Bills have been passed in Jigawa and Osun States and are awaiting the Governors’ Assent to become Law, while other Bills are currently at various stages of legislation across the other States. (e) On the flip side, the progress on Component B - Support to Local Governance, remains slow. While all States reported that they have developed acceptable Roadmaps for devolution of function to local governments, the project continues to provide support for the formal adoption of these Roadmaps by the States, to enable accelerated capacity enhancement on M&E for the selected local government units before the project closing date. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- High High Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes 6/17/2019 Page 2 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Improved transparency in the public financial management in participating states IN00710599 ►State Government audited accounts are submitted to the legislature within 6 months from end of financial year in any state. (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 6.00 7.80 6.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 Result is based on the average time for the six States (Anambra, 9 months; Cross River, 12 months; Jigawa, 5 months; Kano, 12 months; Osun, 4 months; & Yobe, 5 months) for the 2017 financial year, Comments: since the time-line for the 2018 financial year is not yet due. Improved accountability in the public financial management in participating states IN00710598 ►Participating States producing annual financial statements using new SIFMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 2.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 Imroved quality in the public financial management in participating states IN00710600 ►Actual collection of internally generated revenue in participating states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 117.00 156.00 40.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 (a) This indicator is fully met. While four States are expected to increase IGR collection by 40 percent over the baseline, all six states have surpassed the 40 percent target. (b) The actual result is based on the average for the best four States, i.e. 156 percent. Comments: The individual performances are - Anambra (114 percent), Cross River (46 percent), Jigawa (362 percent), Anambra (102 percent) and IN00710801 ►Public contracts above threshold awarded through open competition (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 82.50 85.50 80.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 1. The end target here is for four States to award 80 percent of public contracts above threshold competitively. Currently, three States (Jigawa - 97 percent, Osun - 85 percent, Yobe 85 percent) have surpassed the target. Comments: 2. The actual result reported is based on the average for the top four states (including Cross River at 75 percent), i.e. 85.5 percent. 6/17/2019 Page 3 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Intermediate Results Indicators by Components Component A: Public Financial Management Reforms. IN00710802 ►Participating States with modern* Finance Legislation (* Legislation not more than 5 years old. Most states currently rely on Federal Finance Control and Management Act of 1958) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 The Law is available in Cross River, while in the other five States, Bills have been developed and are Comments: currently at different stages of legislative process. IN00710804 ►Participating States publishing Auditor General’s Report (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 6.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 All 6 participating states published 2017 Auditor General Report. The cut-off date for 2018 Report is still Comments: not due. IN00710805 ►Participating States’ revenues and expenditure covered in Auditor General’s annual report (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.00 100.00 100.00 90.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 The end result expected is for four States to have 90 percent coverage of revenues and expenditures in Auditor General's reports. The project has surpassed the end target as all the six participating states Comments: covers 100% of the State's revenues and expenditure. IN00710806 ►Participating States convening Annual Audit Forums (with CSO participation) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 5.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 The end target expected is for four States to be convening annual audit forums. This target is surpassed Comments: as five States (Anambra, Cross River, Jigawa, Osun and Yobe) convene annual audit forums. IN00710807 ►States that have implemented 3 key modules of SIFMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/17/2019 Page 4 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Value 1.00 1.00 1.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 Currently, only Cross River has implemented 3 key modules. Jigawa and Kano would meet the target in Comments: the next two months. IN00710808 ►Participating States that have used the National Chart of Accounts for the production of Budgets (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 6.00 5.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 The end result for this activity is already achieved, all the participating States are using the National Chart Comments: of Account in production of annual budget. IN00710809 ►Participating States that have developed medium- term (3 year rolling) sector strategies in at least 3 pilot MDAs (Health, Education and 1 other) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 5.00 6.00 5.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 The end result expected is for five States to achieve this. Currently, all six States have fully achieved the Comments: result. IN00710810 ►Taxpayer database established in participating states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 Anambra, Cross River and Kano States have modern electronic taxpayer database system. Procurement and deployment of systems are currently ongoing in Yobe and Jigawa state. The Project is on course to Comments: meet and exceed the target. IN00710811 ►States with Procurement Regulatory Framework (Legislation, Regulation and Standard Bidding Documents) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 5.00 5.00 5.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 This target, requiring the Regulatory Frameworks in five States, is fully met as they exist in Anambra, Comments: Cross River, Jigawa, Osun and Yobe States. IN00710812 ►Direct project beneficiaries, percentage of which are female (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/17/2019 Page 5 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Value 10.00 35.00 37.00 35.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 This target is achieved. The result is based on the average for the six States, which individually stand at: Anambra 58 percent, Cross River 32 per cent, Jigawa 40 Percent, Kano 25 percent, Osun 46 percent, Comments: Yobe 19 percent. Component B: Support to Local Governance. IN00710803 ►Road map for devolution of authority and function to LGs by States’ Governments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 27-Nov-2013 04-Dec-2018 30-May-2019 30-Sep-2019 Road maps have been fully developed in all six States. The project is now pushing for the formal adoption Comments: and implementation of the road maps. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P133045 TF-18335 Effective USD 61.78 61.78 0.00 36.04 26.00 58% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P133045 TF-18335 Effective 01-Dec-2014 01-Dec-2014 21-Jan-2015 31-Mar-2017 30-Sep-2019 Cumulative Disbursements 6/17/2019 Page 6 of 7 The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Restructuring History Level 2 Approved on 28-Mar-2017 Related Project(s) There are no related projects. 6/17/2019 Page 7 of 7