The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) States Fiscal Transparency, Accountability and Sustainability PforR (P162009) AFRICA WEST | Nigeria | Governance Global Practice | Requesting Unit: AWCW2 | Responsible Unit: EAWG2 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Yue Man Lee, Saeeda Sabah Rashid, Samer Naji Matta Seq No: 5 | ARCHIVED on 23-Sep-2021 | ISR47980 | Created by: Yue Man Lee on 23-Aug-2021 | Modified by: Saeeda Sabah Rashid on 15-Sep- 2021 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program Development Objective (PDO) is to strengthen the fiscal transparency, accountability and sustainability in the participating states. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Implementation Status and Key Decisions The overall progress towards achievement of the Program Development Objective (PDO) is rated as Satisfactory. The PforR component has demonstrated strong results to date with the overall program targets for disbursements exceeded. SFTAS has become a national program with all 36 States having achieved results and received performance-based grants. A total disbursement of US$692.71 million has been made to date for the 2018 and 2019 disbursement-linked results (DLRs) of the original disbursement-linked indicators (DLIs) and for the 2020 DLRs of the new COVID-19 responsive DLIs added to the Program through the second Program Restructuring (October 2020). States have improved their performance during the Program, for example, the 24 eligible States achieved on average 5 results in the 2018 annual performance assessment (APA), while the 32 eligible States achieved on average 8 results each in the 2019 APA. For the 2020 APA, 36 States have achieved the 2020 Eligibility Criteria (EC) having published online IPSAS-compliant FY19 audited financial statement by 31 August 2020 and having domesticated the National Chart of Accounts for their FY21 annual budgets published online by 31 January 2021. We expect States to continue to perform well in 2021 - the last performance year - due to the continued high level of ownership and engagement from States. All 36 States published online FY20 AFS by 31 July 2021 as part of the 2021 EC. Implementation Progress is rated overall as Satisfactory based on the progress in the implementation of the TA component and the successful, rapid implementation of changes introduced through the major Program Restructuring in response to COVID-19, which enabled the successful preparation and approval of the Additional Financing. While there are several areas for strengthening, overall, the TA component is able to support the strong performance on the PforR component with timely technical assistance activities to States and verification of results. Implementation progress of the TA component has strengthened across the different implementing agencies and partners since the last ISR (July 2020):  The Program Coordination Unit (PCU) has established oversight and coordination structures and is now fully resourced. The PCU effectively interfaces with the States, providing updates, monitoring States’ progress towards DLI and EC deadlines to drive performance, and ensuring a smooth flow of grants from FMFBNP to States. PCU has made progress on the Program Action Plan including E&S actions and the piloting of climate change budget tagging. The backlog in the TA procurement plan has been reduced, but the procurement function still needs further strengthening so that procurement delays do not impacting Program implementation.  The OAuGF as the IVA has completed the 2019 APA and verification of the three 2020 DLRs of the new COVID-19 responsive DLIs and the 2020 Eligibility Criteria.  The NGF has continued to deliver a comprehensive program of toolkits, workshops, just-in-time advisory services and peer learning events and exchange visits to support States on the original and new DLIs using a mixture of virtual and physical platforms.  The DMO has been delivering TA activities to States since September 2020 on debt-related DLIs, including on State debt laws, the State debt sustainability analysis (S-DSA) and S-MTDS toolkits, developed in collaboration with the World Bank.  The OGP SFTAS team been delivering capacity building activities to States on DLI 2 to strengthen citizens engagement on budgets.  The PSIN is working with an external firm and a draft curriculum has been developed. 9/23/2021 Page 1 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162009 IDA-62960 Effective USD 750.00 750.00 0.00 706.83 32.43 96% Not P162009 IDA-68100 USD 750.00 750.00 0.00 0.00 752.44 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162009 IDA-62960 Effective 27-Jun-2018 12-Feb-2019 03-May-2019 30-Dec-2022 30-Dec-2022 Not P162009 IDA-68100 14-Dec-2020 10-Jul-2021 -- 30-Dec-2022 30-Dec-2022 Effective Program Action Plan Action Description Fiduciary staff of the implementing agencies are trained in Bank FM procedures and Disbursement Guidelines Source DLI# Responsibility Timing Timing Value Status DLI 6 All Implementing Fiduciary Systems Recurrent Semi-Annually In Progress Agencies Staff for FM engaged in each implementing agency, trained by Bank team and fulfilling requirements for financial Completion Measurement reports and maintenance of records. This is a recurrent action and is reviewed for compliance in each mission. All agencies currently fulfill the completion Comments measurement. Provision of templates and guidelines to States for DLI#7: • State quarterly debt report Action Description • Debt Sustainability Analysis • Medium-term debt management strategy Source DLI# Responsibility Timing Timing Value Status Technical DLI 7 DMO Due Date 09-Aug-2021 Completed Completion Measurement Templates and guidelines to States for DLI#7 prepared and disseminated with training (debt report, SDSA, SMTDS) The documents have been prepared with technical assistance from the Bank and workshops held for training and Comments dissemination. Action Description Provision of guidelines and workshops for the new DLIs added through the Program restructuring. Source DLI# Responsibility Timing Timing Value Status 9/23/2021 Page 2 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) NGF with inputs Technical Due Date 30-Jul-2021 Completed from other agencies Completion Measurement Guidance provided to all States for new results added to the Program through restructuring in 2020. Guidelines for the new DLIS were prepared and disseminated to the States by April 30, 2021, Series of workshops Comments held to cover each area and technical support remains ongoing. Action Description In compliance with PforR core principles, iclude environmental and social management rules in the operation. Source DLI# Responsibility Timing Timing Value Status Environmental and Social PCU Due Date 15-Oct-2021 In Progress Systems Completion Measurement GRM manual for the operation in place and training conducted for all States on implementation. GRM manual has been prepared and cleared by the Bank. Outreach and training workshops for all States regarding Comments implementation of the mechanism and awareness of social and environmental issues to be conducted during September 2021. Create awareness for the use of the States’ ombudsman to protect basic human rights of people potentially affected Action Description by the SFTAS Source DLI# Responsibility Timing Timing Value Status Environmental and Social States SFTAS focal Due Date 15-Oct-2021 In Progress Systems person Completion Measurement Outreach and training covering all States conducted. Comments This will be completed through the outreach and training to States on the GRM to be conducted in September 2021. Action Description Introduction of climate change budget tagging in the FY2021 and FY2022 Annual State Budgets Source DLI# Responsibility Timing Timing Value Status DLI 2 April 2021 for FY2021 PCU with support of Other Other and April 2022 for In Progress NGF FY2022 State budgets Climate change budget tagging and subsequent reporting and presentation in quarterly BERs and citizens' budgets Completion Measurement completed by - 6 States for FY2021; 18 States for FY2022. Seven States were provided intensive support as pilot for 2021; six were able to successfully include CCBT in Comments published Citizens' Budget 2021. An implementation plan has been prepared for engaging with all States and also awareness session with CSOs. Introduction of risk-based internal audit function outside the expenditure processing cycle n Pilot MDAs in selected Action Description states Source DLI# Responsibility Timing Timing Value Status 9/23/2021 Page 3 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) States Accountant Fiduciary Systems Due Date 30-Mar-2022 Revised Date General Completion Measurement Report by the PCU detailing the implementation of the action in selected States. A training session for nominees from each State was held with the Institute of Internal Auditors. The identification of Comments focus States is ongoing. The specific form of regulatory framework to fulfil the action will be agreed with each focus State. Conduct of an independent procurement audit on random sample of at least 5 percent of state government capital Action Description procurement transactions for States achieving DLI#6 Source DLI# Responsibility Timing Timing Value Status DLI 6 FMoF HFD/PCU will Technical Due Date 31-Dec-2021 Delayed hire the audit firm Report of an independent procurement audit on random sample covering at least 5% of state government capital Completion Measurement procurement transactions for States achieving DLI#6. This action is no longer applicable as the implementation of e-procurement systems under DLI#6 has been delayed Comments by 2 years. during upcoming restructuring, the action is to be reviewed for reformulation to pursue an alternative methodology or dropped. Action Description Reporting of complaints and allegations for fraud and corruption related to the Program by all States Source DLI# Responsibility Timing Timing Value Status PCU, State CoF & Fiduciary Systems Recurrent Semi-Annually In Progress Attorney-General PCU to include in semi-annual progress report the positive confirmation from all States regarding reporting of Completion Measurement complaints and allegations and actions taken as per agreed format. This is a recurrent action and is reviewed in each mission. Semi-annual reports are being requested and received Comments from all States and no report of filing of complaint or allegation has been made so far. States submit audited financial statements with the necessary information required for the SFTAS Program Audit no Action Description later than nine months after end of the fiscal year. Source DLI# Responsibility Timing Timing Value Status States Accountant Fiduciary Systems Recurrent Yearly In Progress General Completion Measurement Receipt and acceptance of Audited Financial Statements of participating States with disclosure of PEF expenditures. Compliance to be reviewed annually. To date the AFS for all participating States have been received and for 2018 Comments and 2019 the actual expenditures against the PEF were assured separately as these were not incorporated in the published State AFS. 9/23/2021 Page 4 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Designate Financial Management Specialist/Project Account, Project Internal Auditor and support accounting Action Description technicians in each implementing agency Source DLI# Responsibility Timing Timing Value Status All implementing Fiduciary Systems Due Date 31-Mar-2021 Completed agencies Completion Measurement Staffing for FM in place for each implementing agency. Reviewed during each mission. Each agency has provided names and contact details for Project Accountant, Project Comments Internal Auditor and any additional staff / consultants to the Bank team. FM staff in each agency is complete. Develop state SFTAS annual action plans achievement of the Eligibility Criteria and DLRs, including capacity building Action Description activities Source DLI# Responsibility Timing Timing Value Status States’ Ministries of Technical Recurrent Yearly Completed Finance Completion Measurement Action plans prepared by all participating states to ensure focus on achievement of DLIs and EC. Recurrent action reviewed in each mission. NGF reviewed States action plans and institutional arrangements and Comments organized a peer learning review in April 2021. CY2021 is the last performance year of the Program. Provision of templates and guidelines to States for DLI#2 to increase citizens’ engagement in the budget process: Action Description • Citizens Budget • Citizens Accountability Report Source DLI# Responsibility Timing Timing Value Status DLI 2 Nigeria OGP Technical Secretariat; FMOF Due Date 30-Jul-2021 Completed as HFD/PCU Completion Measurement Templates developed and training provided to States for adoption and use. Templates have been developed and disseminated for both Citizens' budget and Citizens' Accountability Report. Comments Training workshops were arranged by the SFTAS-OGP team and technical support is ongoing. Ensure PCU is adequately staffed throughout the program duration with a program manager, FM specialist, Action Description Procurement specialist, Capacity Building specialist, Communications and Outreach specialist, and M&E specialist Source DLI# Responsibility Timing Timing Value Status Other FMoF HFD /PCU Recurrent Yearly Completed Completion Measurement All key positions filled and selected consultants performing as per TORs. The capacity building specialist was initially engaged and the position has now been abolished given that all agencies Comments are now implementing their capacity building activities with overall coordination by PCU. 9/23/2021 Page 5 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic High High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial RiskComments Comments The risk assessment for the Institutional Capacity for implementation and Sustainability will be reviewed for lowering to Moderate after the current round of verification is completed. Capacity of the States to implement and sustain results has greatly improved as can be seen in the results of 2019 APA as compared to 2018 and also the performance on new COVID -19 response results. The pace and effectiveness of the implementation of the TA component has also shown marked progress since last year with the PCU now fully staffed and the NPC playing an active role in managing and addressing issues. The quality of contributions made in the discussion on sustainability during the last mission clearly demonstrate the enhanced capacity and understanding of the implementation and sustainability nuances. However due to continuing concerns on the ability of the PCU and IVA to ensure adherence to timelines for the current round of verification, the risk assessment is maintained. Results PDO Indicators by Objectives / Outcomes Increased Fiscal Transparency and Accountability IN01031731 ►State Budget Transparency Survey score between 2018 and 2021 – improvement in aggregated score for States participating in the PforR (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Median aggregate score Improvement in for all : 28/100 average 2021 score Not measured yet. compared to 2018: Not measured yet. Average for Tier 1: 43/100 To be measured in Tier 1 States by 20% To be measured in 2021 Value 2021 through State and Tier 2 States by through State Budget Average for Tier 2: Budget Transparency 50% of their Transparency Survey. 13/100 Survey. aggregated score. 9/23/2021 Page 6 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Date 27-Jun-2018 14-Aug-2020 14-Aug-2020 30-Dec-2021 Comments Strengthened Domestic Revenue Mobilization IN01031732 ►States that increased internally generated revenue collection by more than 20 percent annually (in nominal terms) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 7.00 17.00 22.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 The average number of states with 20% annual nominal IGR increase over the program duration (average Comments over 4 years of the Program) as described in Program Operations Manual. Strengthened Efficiency in Public Expenditure IN01031733 ►Average citizens access to procurement information in States publishing contract award data online in OCDS format (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target To be measured for 2020 More than 15 percent Value Not measured yet. Not measured yet. in procurement survey increase Date 30-Jun-2020 14-Aug-2020 15-Sep-2021 30-Dec-2022 The indicator was designed to measure results related to the roll-out of e-procurement systems in States. The implementation of e-procurement has been delayed by more than two years leaving a very short time to observe meaningful results. The conduct of the survey was impacted by the COVID-19 related lockdown Comments and movement restrictions enforced in March 2020. As a result this PDO indicator will require revision and an appropriate substitute will be included in the upcoming restructuring of the Program. Strengthened Debt Sustainability IN01031705 ►States with total debt stock as a share of total revenue for the preceding 12 months being less than 100 percent (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 18.00 19.00 16.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031734 ►States with published approved credible COVID-19 responsive amended 2020 budgets which have realistic revenue projections and identified financing sources to fully finance the budget deficit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.00 36.00 30.00 Date 01-Jul-2020 14-Aug-2020 14-Aug-2020 30-Sep-2020 Detailed description is contained in the SFTAS Verification Protocols latest version for which was issued in Comments July 2020. Intermediate Results Indicators by Results Areas 9/23/2021 Page 7 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Increased Fiscal Transparency and Accountability IN01031735 ►States preparing annual state budgets using the national Chart of Accounts (GFS compliant) and publishing online by end January of that FY (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 35.00 36.00 30.00 Date 27-Jun-2018 14-Aug-2020 30-Jun-2021 30-Dec-2022 Comments IN01031739 ►States preparing annual audited financial statements in accordance with IPSAS (cash or accrual) and publishing online by July of the following FY (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 31.00 36.00 30.00 Date 27-Jun-2018 14-Aug-2020 30-Oct-2020 30-Dec-2022 Comments IN01031742 ►States publishing in-year quarterly budget implementation reports online within four weeks from quarter-end (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 12.00 25.00 Date 25-Feb-2019 08-Apr-2020 11-Dec-2020 30-Dec-2022 The States have action plans in place for ensuring timely efforts to achieve the DLI. Actual results for 2020 Comments are yet to be verified but are expected to improve further from 2019. IN01031745 ►States with expenditure outturn deviation (from original approved budget) less than 15 percent (PEFA threshold) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 10.00 12.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031748 ►Female participation in the budget consultation process (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 40.00 Date 27-Jun-2018 14-Aug-2020 01-Sep-2021 30-Dec-2022 Specific actions were not been taken in previous years for increasing female participation as it was not Comments considered a major barrier. Largely the focus was on ensuring that States follow through on commitments to carry out budget consultations in a truly inclusive manner. During the current year as more States have 9/23/2021 Page 8 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) made systematic efforts to conduct wider consultation, the OGP team has also emphasized the aspect of encouraging and measuring female participation. IN01031750 ►States with citizens’ budget, based on the States’ approved annual budget, published online by April of that FY and with functional online feedback mechanisms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 20.00 Date 27-Jun-2018 14-Aug-2020 14-Aug-2020 30-Dec-2022 The States have action plans in place for ensuring timely efforts to achieve the DLI. Actual results for 2020 Comments are yet to be verified but are expected to improve further from 2019. IN01031752 ►States that have published audited financial statements of all local governments in their state for FY18 and for FY19,FY20 including state- local government joint account allocation committee transfers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-Sep-2020 14-Aug-2020 14-Aug-2020 31-Dec-2020 Active engagement has been underway with the State and Local Government Auditors General to ensure that appropriate and focused advocacy efforts are in place with the support of NGF. Verification is yet to be Comments conducted but it is anticipated, based on initial review of websites, that more than half of the states have achieved this target. IN01031753 ►States that have implemented operational and financial autonomy for the Offices of Auditors-General at the State and Local Government Levels in the State (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 30.00 Date 31-Jul-2020 14-Aug-2020 14-Aug-2020 30-Jun-2021 Active engagement has been underway with the State and Local Government Auditors General to ensure that appropriate and focused advocacy efforts are in place with the support of NGF. A series of workshops is being carried out on implementation during September 2021. Verification is yet to be conducted but it is Comments anticipated, based on the direct technical assistance and reports from the Auditors General, that up to 30 states have been able to achieve this target. IN01031754 ►States that have published COVID-19 response and recovery expenditures and audit reports (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 01-Sep-2020 14-Aug-2020 14-Aug-2020 30-Jun-2021 Outreach was made to all State Accountants General using their forum headed by the Accountant-General of the Federation. The NGF has been facilitating interaction with the GIFMIS team and the Bank has Comments presented multiple times to this forum. While verification is yet to be conducted, it is anticipated, based on a review of the websites, that up to half the states published the reports regularly for the period required. IN01031755 ►Number of States using climate change budget tagging in State budgets (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/23/2021 Page 9 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Value 0.00 0.00 0.00 18.00 Date 09-Nov-2020 09-Nov-2020 09-Nov-2020 28-Feb-2023 Introduction of climate change budget tagging in State budgets to then also be reflected in Citizens' Budget and reported upon in quarterly Budget Execution Reports. For 2021, six (6) States published a CCBT annex Comments as part of their Citizens' Budget and an implementation plan is in place to extend TA to all States during Sep-Oct 2021 for the 2022 budget so as to increase uptake. Strengthened Domestic Revenue Mobilization IN01031736 ►States with functional Treasury Single Account (TSA) system based on a formally approved cash management strategy, and covering a minimum of 80 percent of state government finances (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 2.00 7.00 25.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Focused technical assistance has been provided by NGF to enable a larger number of states to achieve this result. Due to specific aspects of the criteria not being fully met, a number of states were not able to Comments demonstrate achievement. It is anticipated that actual results will improve greatly in the next round of verification. IN01031740 ►States with approved and published consolidated and updated revenue code covering all local and state IGR sources (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 19.00 12.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031743 ►States with announced and implemented tax compliance relief program for individual taxpayers and businesses to mitigate impact of COVID-19 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 35.00 30.00 Date 31-Jul-2020 31-Jul-2020 11-Dec-2020 30-Sep-2020 Comments As per SFTAS Verification protocols issued July 2020. IN01031749 ►States that have strengthened the foundation for state property taxation by updating property records of at least 50% of all properties in urban areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 24.00 Date 01-Sep-2020 14-Aug-2020 14-Aug-2020 30-Sep-2021 The target date is proposed to be extended to December 2021 considering that the TA which was to be Comments provided through engagement of a firm to make spatial data available to States has been delayed substantially. The procurement process is now near completion with the final step of contract signing 9/23/2021 Page 10 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) awaited. Data is now being gathered on the progress achieved by States in the interim so that focused TA can be extended to enable maximum States to be equipped to meet the DLI. Strengthened Efficiency in Public Expenditure IN01031737 ►States that have completed biometric capture of at least 90 percent of current civil servants and pensioners and used the biometrics data to identify and remove ghost workers off the payroll (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 11.00 24.00 20.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031744 ►States with approved and adequate Public Procurement Law and established regulatory agency (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 21.00 12.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031746 ►States that have implemented e-procurement in at least four MDAs, including health, education and public works (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 27-Jun-2018 08-Apr-2020 08-Apr-2020 30-Dec-2022 After continuous efforts, the signing of a framework agreement for procurement of e-Procurement system by Kaduna State in June 2020 is the culmination of years of engagement through ASA, projects and collaboration with DPs. Each State has the option to take advantage of this framework agreement to enter into its own contract thereby reducing transactional cost and turnaround time if the States must process Comments standalone procurement process and enter separate contracts. Up to 16 States have now signed contracts and implementation has started but is slow. At the outset, it was anticipated that the framework agreement would be executed within 2019. IN01031751 ►Strengthened procurement function for COVID-19 and other emergency situations and facilitated participation of SMEs in public procurement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 28.00 30.00 Date 01-Sep-2020 14-Aug-2020 11-Dec-2020 30-Sep-2021 Comments As per SFTAS Verification Protocols issued July 2020. Strengthened Debt Sustainability IN01031738 ►States with approved state-level public debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and de (Number, Custom) 9/23/2021 Page 11 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 10.00 23.00 15.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031741 ►States with quarterly debt reports accepted by the Debt Management Office (DMO) on average two months after the end of the quarter (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 19.00 31.00 25.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Comments IN01031747 ►States with domestic arrears reported in a publicly available database with verification process in place (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 7.00 15.00 Date 27-Jun-2018 08-Apr-2020 11-Dec-2020 30-Dec-2022 Progress on this action has been slow as it depends greatly on the capacity of the relevant staff in State AG offices and the quality and completeness of data routinely captured. In several instances, this data was Comments simply not captured historically and it has taken time and effort to establish the necessary framework. NGF is providing TA and States are moving forward in putting in place a data base. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Improved financial reporting and budget reliability (Intermediate Outcome, 75,300,000.00, 18%) Baseline Actual (Previous) Actual (Current) December 31, 2021 1.1 FY2021 quarterly budget implementation In-year quarterly budget reports published on reports not published Four (4) States published In CY2019, twelve (12) average within 4 online, or published > 4 online > 6 weeks after States published online < weeks of quarter Value weeks after quarter end in quarter end and twelve 6 weeks after quarter end end to enable timely many States. Deviation for (12) reported budget and ten (10) reported budget management total expenditure is 30-55% deviation < 30% budget deviation < 25% 1.2 FY2021 across States deviation for total budget expenditure is < 15% Date -- 08-Apr-2020 11-Dec-2020 -- Actual (Current) is based on the verification report for CY2019 (the 2019 APA) submitted by the Borrower in Comments December, 2020. ►DLI 2 Increased openness and citizens’ engagement in the budget process (Intermediate Outcome, 58,800,000.00, 2%) 9/23/2021 Page 12 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Baseline Actual (Previous) Actual (Current) December 31, 2021 2.1 Citizens’ inputs from formal public consultations are published online, In CY2019: along with the proposed FY2022 Citizens’ inputs from budget AND While some States are formal public consultations Citizens’ budget consulting with citizens are published online, based on approved during the budget process, Three (3) states along with the proposed FY2021 state it is not a formal; systematic published online the FY20 budget - twenty six budget published Value process and feedback to minutes of public (26) states online by end April citizens is not assured. consultation for 2019 2021 with functional Less than 5 State publish budget Citizens’ budget based on online feedback citizens’ budget or citizens approved FY19 state mechanisms. 2.2 accountability reports budget published online Citizens by end April 2019 - twenty accountability report four (24) states based on audited financial statements/reports published online for FY2020 no later than Sept 2021. Date -- 08-Apr-2020 11-Dec-2020 -- Actual (Current) is based on the verification report for CY2019 (the 2019 APA) submitted by the Borrower in Comments December, 2020. ►DLI 3 Improved cash management and reduced revenue leakages through implementation of State TSA (Outcome, 54,000,000.00, 11%) Baseline Actual (Previous) Actual (Current) December 31, 2021 TSA, based on a formally approved More than 50 percent of cash management States report having In CY2019, seven (7) strategy, established Four States achieved Value implemented TSA but most states have TSA in place and functional, and coverage of > 60% TSA not anchored on a covering at least 60%. covering a minimum formal cash mgmt. strategy of 80 percent of state government finances Date -- 08-Apr-2020 11-Dec-2020 -- Allocation updated to incorporate Additional Financing. Based on verification for 2019, seven (7) states have TSA in place covering at least 60%. Actual (Current) is Comments based on the verification report submitted by the Borrower in December, 2020. ►DLI 4 States that increased internally generated revenue collection by more than 20 percent annually (in nominal terms) (Outcome, 114,000,000.00, 11%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Value Approx. 8 States have Based on verification of In CY2019, a total of 4.1 State updated and consolidated 2018 results, a total of seventeen (17) states implementing a IGR sources in a law. seven (7) states achieved increase > 20% consolidated state 2017/2016 IGR growth: 15 during 2019. revenue code 9/23/2021 Page 13 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) States achieved > 20% achieved increase > 20% covering all state growth, of which 10 States during 2018. IGR sources and achieved >40% growth stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved by the state legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021); 4.2 2021- 2020 annual nominal IGR growth rate meets target: - Basic target: 20%- 39% -Stretch target: 40% or more Date -- 08-Apr-2020 11-Dec-2020 -- Based on verification for CY2019. Actual (Current) is based on the verification report submitted by the Comments Borrower in December 2020. ►DLI 5 Biometric registration and bank verification number (BVN) used to reduce payroll fraud (Outcome, 121,000,000.00, 13%) Baseline Actual (Previous) Actual (Current) December 31, 2021 5.1 Biometric capture of at least 95 percent of current In CY2019: twenty-four civil servants and seventeen (17) states (24) states have pensioners have completed completed biometric completed and An estimated 10-5 States biometric capture for at capture for at least 60% of linked to payroll, and have done biometric least 60% of civil civil servants and identified ghost Value capture and linked to servants and pensioners pensioners and twenty- workers taken off payroll to address payroll and fifteen (15) states seven (27) states have the payroll 5.2 Link fraud have linked BVN for at linked BVN for at least BVN data to at least least 60% of civil 60% of civil servants and 95 percent of current servants and pensioners pensioners. civil servants and pensioners on the payroll and payroll fraud addressed Date -- 08-Apr-2020 11-Dec-2020 -- For CY2019: twenty-four (24) states have completed biometric capture for at least 60% of civil servants and pensioners and twenty-seven (27) states have linked BVN for at least 60% of civil servants and Comments pensioners. Actual (Current) is based on the verification report submitted by the Borrower in December, 2020. ►DLI 6 Improved procurement practices for increased transparency and value for money (Outcome, 87,000,000.00, 20%) Baseline Actual (Previous) Actual (Current) December 31, 2021 9/23/2021 Page 14 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e-Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all MDAs receiving funds from the state budget. (one-time payment for year in 26 States have legal Twenty-one (21) states which DLR is first framework but 15 7 States have robust have acceptable achieved); 6.2 frameworks require legal framework and 6 procurement legislation in Implement e- Value strengthening. Procurement States are regularly place and sixteen (16) procurement in at systems are performing publishing information. states are publishing least 4 MDAs (incl. sub-optimally, lacking information in CY2019. Education, Health efficiency and transparency and Public Works) and publish all contract award information in OCDS format on the online portal for the 4 MDAs AND For those MDAs without e-procurement: Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format on the state website or online portal if available. Date -- 08-Apr-2020 11-Dec-2020 -- Based on verification for 2018 and 2019, twenty-one (21) states have an acceptable Procurement legislation in place and sixteen (16) states are publishing information in CY2019. Actual (Current) is based on the Comments verification report submitted by the Borrower in December, 2020. ►DLI 7 Strengthened public debt management and fiscal responsibility framework (Output, 94,500,000.00, 31%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Value 22 States have FRL or a 10 States have the legal Twenty-three (23) states 7.1 State PDML, but some laws do framework while 19 have the required legal implementing state- not contain key provisions. States submitted framework in place while level debt All States submitting quarterly debt reports. thirty-one (31) states legislation, which quarterly debt reports but submitted timely, stipulates: 1) 9/23/2021 Page 15 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) many submit late. No state acceptable debt reports in responsibilities for conducts DSA or develop CY2019. contracting state MTDS debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one- time payment for year in which DLR is first achieved); 7.2 Quarterly state debt reports accepted by the DMO on average two months or less after the end of the quarter in 2021 AND Annual state debt sustainability analysis and medium-term debt management strategy published by end of December 2021. Date -- 08-Apr-2020 11-Dec-2020 -- Based on verification for 2018 and 2019, twenty-three (23) states have the required legal framework in place while thirty-one (31) states submitted timely, acceptable debt reports in CY2019. Actual (Current) is based on Comments the verification report submitted by the Borrower in December, 2020. ►DLI 8 Improved clearance/reduction of stock of domestic expenditure arrears (Outcome, 47,000,000.00, 2%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Domestic arrears as of end 2020 and end 2021 reported in an online publicly- accessible database, with verification process in place. AND Percentage decline In 2017, 14 States reduced In CY2019: seven (7) in the verified stock their stock of arrears or states established an of domestic arrears maintained arrears of less Arrears Clearance at end of 2021 One (1) state established Value than 5 billion naira. No Framework and published compared to end a framework state reports domestic information online and 2020 meets target arrears in a publicly- cleared domestic and is consistent accessible database. expenditure arrears. with the State’s arrears clearance framework. a) Basic target: At least a 5 percent decline or maintain stock below 5 billion Naira; b) Stretch target: More than 20 percent decline. 9/23/2021 Page 16 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Date -- 08-Apr-2020 11-Dec-2020 -- CY2019: seven (7) states established an Arrears Clearance Framework and published information online and cleared domestic expenditure arrears. Actual (Current) is based on the verification report submitted by the Comments Borrower in December, 2020. ►DLI 9 Improved debt sustainability (Outcome, 87,000,000.00, 28%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Average monthly debt service deduction is < 40% All but 3-4 States are of gross FAAC complying with the monthly allocation for debt service threshold per In CY2019: nineteen (19) FY2021 AND Total 18 States met the target FSP. Total debt-to-revenue states met at least the debt stock at end Value including 12 that met the ratio for the median state Basic target for the debt- Dec 2021 as a share Stretch target was 172% end 2017. 15 to-revenue ratio. of total revenue for States < 150%, 11 States < FY 2021 meets 125% and 5 States < 100% target: a) Basic target: < 120% ; b) Stretch target: < 95% Date -- 08-Apr-2020 11-Dec-2020 -- CY2019: nineteen (19) states met at least the Basic target for the debt-to-revenue ratio. Actual (Current) is Comments based on the verification report submitted by the Borrower in December, 2020. ►DLI 10 Enhanced transparency and accountability of funds in the COVID-19 response and resilient recovery phases (Intermediate Outcome, 161,400,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Value 1) LG AFS not published Same as for Baseline. Same as for Baseline. 10.1 No later than and information on September 30, SLGJAAC transfers not 2021, the audited readily available. financial statements 2) At least 5 States have an of all local Audit Law in place and an governments (LGs) estimated 11 have draft in the Participating Audit Bills at various stages State for FY 2020, of approval. However not including all all provide for full allocations and operational and financial actual receipts of autonomy of the State and state-local LG Auditor General. government joint 3) No identification and account allocation reporting of COVID-19 committee response and recovery (SLJAAC) transfers expenditures planned or for each LG in the being incurred by state Participating State, governments. have been published on a State official website. 10.2 The Participating State has published: 9/23/2021 Page 17 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) (a) on a monthly basis within one month after the end of each month, for five consecutive months starting August 2020, budget execution reports on budget allocations and actual expenditures incurred for COVID- 19 response and recovery programs using the National Chart of Accounts (NCOA) on the Open Treasury Portal; and (b) on a quarterly basis within two months of the end of each quarter, for three consecutive quarters starting with the third quarter of FY 2020, dedicated financial and compliance audit reports covering their COVID-19 response and recovery program expenditures. 10.3 No later than June 30, 2021, the implementation of operational and financial autonomy (per criteria set out in the Verification Protocol) for the Offices of State and Local Governments Auditors-General in the Participating State, pursuant to a strengthened legal framework (the “State Audit Law”); AND provision of resources for implementation of financial autonomy by inclusion of provisions in the FY 2021 budget for funding of the Offices of State and Local Governments Auditors-General; AND Instructions for 9/23/2021 Page 18 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) implementing the operational autonomy provisions of the new or existing State Audit Law have been issued by the Head of Service or the Secretary to State Government of the Participating State. Date -- 14-Aug-2020 14-Aug-2020 -- Comments ►DLI 11 Provided structured tax relief in response to COVID-19 and strengthened tax administration (personal income tax and property taxation) to enhance non-oil tax collection in the resilient recovery phase (Intermediate Outcome, 188,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 31, 2021 Value Several States have Same as for baseline. In CY2020: 35 States 11.2 No later than variously announced tax implemented structured June 30, 2021, the compliance relief programs tax compliance relief Participating State which are to be reviewed programs by end has issued a and verified to determine if September 2020. regulation these fully meet the prohibiting, on a verification protocols. prospective basis, the contracting of Several states have private consultants contracted out the service for the assessment of assessing personal and collection of income tax to private sector personal income tax, agents leading to which is the sole inefficiency. responsibility of the state revenue Very few states have agency; AND no systematically updated such contracts have urban property records and been entered into or the potential for property renewed during the tax is hugely under utilized. period starting on September 1, 2020 through the date of issuance of such regulation. 11.3 No later than September 30, 2021, the property records for at least 50% of properties that have electricity connections in Urban Areas in the Participating State have been completed or updated per criteria set out in the Verification Protocol, stored in an electronic database, with said records to 9/23/2021 Page 19 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) be valid as on September 1, 2020 or later; AND the Participating State has established institutional arrangements per criteria set out in the Verification Protocol to use the property records to improve or start the collection of property tax. Date -- 14-Aug-2020 11-Dec-2020 -- CY2020: 35 States implemented structured tax compliance relief programs by end September 2020. Actual Comments (current) based on verification report submitted by the Borrower in December, 2020. ►DLI 12 Strengthened procurement function for COVID-19 or emergency situation and facilitated participation of SMEs in public procurement in the resilient recovery phase (Intermediate Outcome, 132,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) December 31, 2021 12.2. DLR 12.1 has been achieved; and No later than June 30, 2021, the PPA has published on its official website, a list of all contracts executed to support the Participating State’s COVID-19 response in the fourth quarter of FY In CY2020: 28 States Most states do not have Most states do not have 2020 and the first issued emergency specific emergency specific emergency quarter of FY 2021; Value procurement guidelines guidelines. Participation of guidelines. Participation AND and SME guidelines by SMEs generally low. of SMEs generally low. No later than end September 2020. September 30, 2021, the Participating State has awarded at least 20 more contracts to SMEs in the period after September 30, 2020, as compared to the period January 1, 2020 to 30 September, 2020. Date -- 14-Aug-2020 11-Dec-2020 -- CY2020: 28 States issued emergency procurement guidelines and SME guidelines by end September 2020. Comments Actual (current) based on verification report submitted by the Borrower in December, 2020. ►DLI 13 Established a fiscally sustainable response to COVID-19 through COVID-19 responsive budgets (Intermediate Outcome, 230,000,000.00, 0%) 9/23/2021 Page 20 of 21 The World Bank Implementation Status & Results Report States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Baseline Actual (Previous) Actual (Current) December 31, 2021 13.3 The Participating State Approved FY2020 State All States published has executed at Budgets cannot be Amended Budget for In CY2020: 36 States least 90 percent of implemented as prepared 2020 but this will require published amended the tagged COVID- Value due to substantive change detailed verification to COVID-19 responsive 19 response in circumstances arising determine if the criteria 2020 budgets by end July expenditures in their from COVID-19 health and as per verification 2020. 2021 State Budget, economic crisis. protocols is fully met. per criteria set out in the Verification Protocol. Date -- 14-Aug-2020 30-Oct-2020 -- Allocation updated to incorporate Additional Financing. Two new results added for level of implementation of the COVID-19 response tagged budget lines in FY2020 and FY2021 budgets. Comments CY2020: All 36 States published amended COVID-19 responsive 2020 budgets by end July 2020. Actual (current) based on verification report submitted by the Borrower in October 2020. 9/23/2021 Page 21 of 21