Skip to Main Navigation

Nigeria - National Economic Empowerment and Development Strategy and joint IDA-IMF staff advisory note (English)

The 2004 National Economic Empowerment and Development Strategy (NEEDS) focuses on Nigeria's commitment to sustainable growth, and poverty reduction. NEEDS is based on three pillars: 1) empowering people and improving social service delivery; 2) fostering economic growth, in particular in the non-oil private sector; and, 3) enhancing the effectiveness and efficiency of government, while improving governance. This Joint Staff Advisory Note (JSAN) was prepared in response to two recent events: the e-classification of Nigeria as an IDA-only country, and the authorities' request for the International Monetary Fund (IMF) to support their reform program under a proposed non-borrowing instrument. The JSAN presents an assessment of the strategy itself, progress in its implementation to date, and the staffs' advice on key priorities for strengthening NEEDS and its implementation. Poverty diagnosis in NEEDS is constrained by weak statistics on poverty, particularly on income poverty. The National Bureau of Statistics (NBS) estimates that in 2004, 54 percent of Nigerians lived below the relative poverty line of 2/3 of per capita household expenditures, while 22 percent lived below the extreme relative poverty line of 1/3 of average per capita household expenditures. To move towards an effective poverty monitoring system, it is recommended the government strengthen its framework for generating, regularly updating, and disseminating income and non-income poverty data. Nonetheless, the staffs support the thrust of the macroeconomic policies proposed in the NEEDS document. The medium-term macroeconomic framework presented in the NEEDS document is broadly in line with staff projections under a policy reform/high growth scenario. NEEDS provides for a considerable increase in public investments, which primarily reflects the government's desire to address the country's vast development requirements. The staffs recommend that the federal government accelerate the preparation of the first annual progress report and revise and update NEEDS based on the recent implementation experience. In sum, Nigeria's poverty reduction strategy is a major first step forward in defining a credible agenda and framework for economic growth and poverty reduction. At the same time, the staffs point to considerable risks for successful implementation of the NEEDS, and fundamental risks associated with a possible negative oil price shock. The report highlights the need to: maintain sound macroeconomic policies; strengthen the basis for private sector growth; improve transparency and accountability of the public sector; and, secure adequate resource allocations for the health and education sectors.


  • Document Date


  • Document Type

    Poverty Reduction Strategy Paper (PRSP)

  • Report Number


  • Volume No


  • Total Volume(s)


  • Country


  • Region


  • Disclosure Date


  • Disclosure Status


  • Doc Name

    Nigeria - National Economic Empowerment and Development Strategy and joint IDA-IMF staff advisory note

  • Keywords

    Land and Water Resources;real per capita income;transmission and distribution network;civil service reform program;instrument of development;Oil and Gas Sector;legal and regulatory framework;relative poverty line;Oil &Gas;Public Expenditure Management;public-private partnership;Poverty &Inequality;medium-term macroeconomic outlook;sustainable poverty reduction;Merger and Acquisitions;Labour Market Regulation;corruption and graft;law and regulation;competitive private sector;primary health care;poverty reduction objective;public sector spending;health service utilization;health sector strategy;national health system;international oil price;civil society consultation;tight monetary policy;prudent fiscal policy;capacity for poverty;poverty monitoring system;higher level skill;sustainable road maintenance;public investment program;Rule of Law;Private Sector Growth;foreign exchange transaction;public debt burden;foreign trade regime;high growth rate;civil service roster;annual government budgets;financial management process;petroleum product price;grounds of gender;amount of fund;financial sector reform;domestic natural gas;networks of friend;public private partnership;education and health;federal government;rural area;expenditure tracking;household expenditure;Macroeconomic Policy;sectoral strategy;federal agency;fiscal position;petroleum sector;tariff band;agricultural growth;federal budget;financial discipline;fiscal rule;donor coordination;income poverty;Macroeconomic Stability;wealth creation;oil sector;cost-benefit analysis;matching grant;state governors;distribution business;rural transportation infrastructure;government support;live birth;Agriculture;government's vision;production input;natural disaster;administrative structure;Labor Market;budgetary process;telephone line;household survey;life expectancy;Infant Mortality;Maternal Mortality;legal power;import restriction;budgetary plan;poverty fund;capital spending;rural economy;moral courage;poverty head;crop variety;crop varieties;global economy;Physical securities;contributory scheme;ill health;pension help;national income;healthcare delivery;natural wealth;downward spiral;core values;traditional organization;capital budget;project plan;debt service;democratic country;solid mineral;essential services;financing development;private enterprise;fiscal framework;fiscal deficit;crowding out;Natural Resources;private investment;Fiscal Federalism;transparency requirement;budgetary practice;clean water;health problem;Macroeconomic Management;tariff policy;nontariff barrier;tariff system;oil industry;import ban;parallel market;economic empowerment;market opportunity;failing bank;regulatory barrier;enhancing access;formal capital;formal economy;capitalization program;bank consolidation;private resources;sectoral reform;public policy;systemic corruption;governance practice;reform effort;procurement reform;anticorruption agency;anticorruption drive;legal basis;Banking Supervision;financial system;financial service;energy resource;generation capacity;competitive market;open access;active engagement;Power Generation;oil refinery;gas market;reform legislation;federal system;organizational structure;federal level;Early childhood;nomadic education;health outcome;government responsibility;reform policy;budget decision;oil revenue;fiscal restraint;broad money;commercial bank;reserve requirement;primary deficit;international reserve;sustainable level;Poverty Measurement;economic sector;fiscal projection;future need;improving governance;active partner;economic reform;geographic location;reform strategy;vulnerable group;oil companies;oil company;budget transparency;energy service;basic infrastructure;household level;annual subsidy;financial loss;adequate mitigation;loss reduction;energy accounting;privatization strategy;infrastructure service;transport service;railway reform;port terminal;private operator;public company;federal structure;political support;reporting system;reference price



Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.


Nigeria - National Economic Empowerment and Development Strategy and joint IDA-IMF staff advisory note (English). Washington, D.C. : World Bank Group.