The World Bank Implementation Status & Results Report Development Finance Project (P146319) Development Finance Project (P146319) AFRICA | Nigeria | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 11 | ARCHIVED on 21-Aug-2019 | ISR38243 | Implementing Agencies: Federal Republic of Nigeria, FEDERAL MINISTRY OF FINANCE, Development Bank of Nigeria Key Dates Key Project Dates Bank Approval Date: 25-Sep-2014 Effectiveness Date: 08-May-2015 Planned Mid Term Review Date: 21-Jun-2019 Actual Mid-Term Review Date: 21-Jun-2019 Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to increase the availability and access to finance for micro, small, and medium enterprises through eligible financial intermediaries with the support of a new wholesale development finance institution. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Technical Assistance and Capacity Building:(Cost $12.00 M) Component 2: Line of Credit Facility:(Cost $445.00 M) Component 3: Credit Guarantee Facility:(Cost $35.00 M) Component 4: Project Management:(Cost $6.75 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project Mid-Term Review took place from June 12- 21, 2019 and the following outlines the implementation progress: i) DBN is institutionally operational and fully compliant with prevailing regulations, with strong functioning corporate governance framework, highly qualified and committed directors, a competitively selected executive management which is performing to high professional standards. The high quality of corporate governance standards is exceptional and needs to be preserved. ii) In the short period since it became operational in late 2017 the DBN has established a strong track-record of effectiveness and professionalism as evidenced by feedback provided by participating financial institutions (PFIs). The DBN credit line to PFIs for on-lending to MSMEs has disbursed US$243.7 million equivalent reaching nearly 50,000 end-borrowers, of which 70 percent were women, through 7 banks 8/21/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) and 10 MFBs. Thus, the DBN has already demonstrated its ability to engage effectively with PFIs and has made a significant initial impact on MSME financing in Nigeria. ii) DBN has made progress with the establishment of the Credit Guarantee Facility (CGF) with a view of fully operationalizing the facility in early 2020. iii) DBN is preparing to launch the technical assistance support to select commercial banks by early 2020 in support of expansion of their services to micro, small and medium enterprises. Going forward, the key priorities will include preserving the corporate governance model and ensuring full operational and financial sustainability of its operations. 8/21/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) 8/21/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- High High Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes Increase in access and availability of finance to eligible enterprises/MSMEs IN00734433 ►PFIs' Eligible Sub-loan Portfolio Quality (Non-Performing Loans) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 30-Sep-2020 This indicator measures portfolio quality of the PFIs’ sub-loans funded by the Line of Credit Facility and Comments: CGF. IN00734434 ►Volume of PFIs' Eligible Sub-Loans facilitated by CGF (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 651,000,000.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 This indicator measures total amount of loans extended by eligible PFIs to eligible sub-projects, generated Comments: as a result of the guarantees issues by the CGF. IN00734435 ►Volume of PFIs' Eligible Sub-Loans facilitated by Line of Credit Facility (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target 8/21/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) Value 0.00 193,114,754.00 243,700,000.00 445,000,000.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 This indicator measures total amount of loans extended by eligible PFIs to eligible sub-projects, generated Comments: as a result of the support from DFI’s Line of Credit Facility. Intermediate Results Indicators by Components Component 2: Line of Credit Facility IN00734536 ►DFI Wholesale Portfolio Quality (Non-Performing Loans) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 This indicator will measure non-performing loans (NPLs). Comments: IN00734538 ►DFI ROA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.10 7.00 5.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 Comments: DFI return on assets IN00734540 ►Volume of DFI’s Wholesale Loans (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 193,114,754.00 243,700,000.00 445,000,000.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 Comments: This indicator measures the total amount of loans extended to PFIs Component 3: Credit Guarantee Facility IN00734537 ►Number of PFIs reporting on lending to women sub-borrowers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 17.00 6.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 Comments: This indicator measures the number of PFIs that monitor and report on lending to women sub-borrowers IN00734539 8/21/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) ►Volume of Guarantees Issued (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 325,000,000.00 Date 25-Sep-2014 31-Mar-2019 31-May-2019 31-Dec-2021 Comments: This indicator measures the total amount of guarantees issued from DFI to PFIs Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P146319 IBRD-84410 Effective USD 500.00 500.00 0.00 409.68 90.32 82% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146319 IBRD-84410 Effective 25-Sep-2014 25-Feb-2015 08-May-2015 31-Dec-2021 31-Dec-2021 Cumulative Disbursements 8/21/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Development Finance Project (P146319) Restructuring History Level 2 Approved on 21-Aug-2018 ,Level 2 Approved on 29-Mar-2019 Related Project(s) There are no related projects. 8/21/2019 Page 7 of 7