Public Disclosure Copy 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: 7 | ARCHIVED on 12-Jun-2018 | ISR32497 | 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 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 PHRPDODEL Components 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)  Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 6/12/2018 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Implementation Status and Key Decisions 1. The project remains on course to achieving its development objectives. During the last implementation support mission, the States reported progress in the implementation of the various project activities and some of the early results achieved by the participating states include: (a) In the area of audit performance, there has been an improvement in the timeliness, coverage and openness of audit reports, thus contributing to improving transparency and accountability in the States' financial management systems. In Yobe, Jigawa and Osun States, the Auditor General’s report is now submitted to the Legislature within six months of the end of a budget year, down from the baseline average of 12 months. Overall, the States now publish their audited financial statements and Jigawa, Osun and Yobe States also convened public audit forums, where Auditor General’s reports are presented to and discussed with the public and stakeholders, including civil society organizations. (b) The project has also supported the States to grow their taxpayer bases and establish electronic taxpayer database management systems. In Anambra, Cross River, Jigawa, Kano and Osun States, following the completion of taxpayer surveys/enumeration exercises, the taxpayer bases grew by 915,672, 97,000, 317,000, 176,000 and 450,768 new taxpayers, respectively. The States have also recorded appreciable increases (ranging between 20 to 200 percent) in internally generated revenues. (c) On helping improve transparency in budgeting and quality of financial reporting, Anambra, Jigawa, Kano, Osun and Yobe States have transitioned to the use of the new harmonized National Chart of Accounts which is Government Financial Statistics/Classifications of Functions of Government (GFS/COFOG) compliant. Significant capacity has also been built in the States for the gradual transitioning to the use of International Public Sector Accounting Standards (IPSAS) in financial reporting. (d) Four of the six implementing States (Cross River, Jigawa, Osun and Yobe) have adopted modern public procurement systems, with the Laws enacted and other procurement tools developed and gradually being used. The States have also increased the use of open competitive process for the award of public contracts with Cross River, Jigawa, Osun and Yobe States reporting between 75 percent to 94 percent compliance. This has in a significant way helped improve the quality of budget execution. 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 6/12/2018 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) Project Development Objective Indicators PHINDPDOTBL  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 7.75 7.25 6.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Result is based on the average of the four best performing States. Two States (Jigawa & Yobe) achieve this target in 5 months. One State (Osun) achieves the target in 6 months and the fourth State (Anambra) achieves same in 13 months. PHINDPDOTBL  Participating States producing annual financial statements using new SIFMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 0.00 1.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 PHINDPDOTBL  Actual collection of internally generated revenue in participating states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 111.00 114.80 40.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments (a) This indicator is fully met, with four States increasing IGR collection at over the targeted 40 percent rate. The result is based on the average for the four States. (b) The four best performing States are Kano (83 percent), Jigawa (232.5 percent), Anambra (93 percent) and Cross River (50.8 percent). 6/12/2018 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) PHINDPDOTBL  Public contracts above threshold awarded through open competition (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 82.60 82.25 80.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments The end target here is for four States to award 80 percent of public contracts above threshold competitively. Currently, three States (Jigawa - 94 percent, Osun - 80 percent and Yobe 80 percent) have met the end target. The fourth State (Cross River) is currently at 75 percent. Overall Comments Intermediate Results Indicators PHINDIRITBL  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 2.00 1.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Progress on this indicator is revised downwards because the Governor's assent has not been given to the Bill that was passed in one of the States. While the State previously reported the indicator as achieved, the team has opted to wait until the assent is given, when legislative action is rightly considered as completed. 6/12/2018 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) PHINDIRITBL  Participating States publishing Auditor General’s Report (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 4.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Anambra and Cross River States which previously met this indicator have slacked as at the end of the last mission. The mission team, however, received assurance that the outstanding year will be published, soon, in both States. PHINDIRITBL  Participating States’ revenues and expenditure covered in Auditor General’s annual report (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 75.00 97.25 100.00 90.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments 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 this end target as five States (Anambra, Jigawa, Kano, Osun and Yobe) have 100 percent coverage. PHINDIRITBL  Participating States convening Annual Audit Forums (with CSO participation) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 3.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Jigawa, Osun and Yobe States convene audit forums, while Anambra, Cross River and Kano States, which previously convened the forums, have not done so for the past two years. 6/12/2018 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) PHINDIRITBL  States that have implemented 3 key modules of SIFMIS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments This activity is slow across all States. However, based on current commitments across the States, the end target remain achievable before project closure. PHINDIRITBL  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 4.00 5.00 5.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments The end result for this activity is already achieved, as five out of the six participating States (Anambra, Jigawa, Kano, Osun and Yobe) are already using the National Chart of Accounts. PHINDIRITBL  Participating States that have developed medium- term (3 year rolling) sector strategies in at least 10 pilot MDAs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 5.00 5.00 5.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments The end result is also fully achieved, as five States (Cross River, Jigawa, Kano, Osun and Yobe) have sector strategies in at least three or more sectors. 6/12/2018 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) PHINDIRITBL  Taxpayer database established in participating states (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 1.00 4.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Kano State is the only one with a modern electronic taxpayer database system. Interrogations from the mission team revealed that databases previously reported in two other States did not meat the expected basic requirements, based on the TADAT framework. The process of establishing these databased are now in progress in Anambra, Cross River, Osun and Jigawa States. PHINDIRITBL  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 3.00 5.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments Anambra, Cross River and Osun States have the complete set of Legislations, Regulations and Standard bidding documents; while Jigawa and Yobe are slightly short of the requirements in that each of them have two out of the three instruments expected. PHINDIRITBL  Direct project beneficiaries, percentage of which are female (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 31.00 34.00 35.00 Date 27-Nov-2013 21-Apr-2017 11-May-2018 30-Sep-2019 Comments This result is based on the average for the six States, which individually stand at: Anambra 5 percent, Cross River 29 percent, Jigawa 37 percent, Kano 20 percent, Osun 46 percent and Yobe 19 percent. This indicator is almost fully achieved, as it is only 1 percent short of the expected end target of 35 percent. 6/12/2018 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report State and Local Governance Reform Project (P133045) PHINDIRITBL  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 1.00 0.00 3.00 Date 27-Nov-2013 18-Apr-2017 11-May-2018 30-Sep-2019 Comments No State has fully committed to the implementation of road map, though fully developed in all six States. Jigawa State which previously implemented a road map (Guduma Framework) has suspended implementation, while the framework is undergoing review. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P133045 TF-18335 Effective USD 64.41 64.41 0.00 26.89 36.54 42% 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 6/12/2018 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy 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. 6/12/2018 Page 9 of 9 Public Disclosure Copy