Implementation Status & Results Nigeria Nigeria Edo State First Development Policy Operation (P123353)
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1 Public Disclosure Authorized Public Disclosure Authorized Project Name: Implementation Status & Results Nigeria Nigeria Edo State First Development Policy Operation (P123353) Nigeria Edo State First Development Policy Operation Program Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive : 30-Jun-2014 (P123353) Country: Nigeria Approval FY: 2012 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Development Policy Lending Implementing Agency(ies): Ministry of Finance Edo State Key s Board Approval 29-Mar-2012 Original Closing 30-Jun-2013 Planned Mid Term Review 22-Jul-2013 Last Archived ISR 05-Mar-2014 Effectiveness 28-Jun-2013 Revised Closing 30-Jun-2014 Actual Mid Term Review Program Development Objectives Program Development Objective (from Program Document) To support Edo state's critical reforms for improving the management of public resources and creating a better environment for growth and employment creation in a socially-accountable way. Has the Program Development Objective been changed since Board Approval of the Program? Yes No losure Authorized Public Disclosure Authorized Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The Edo state authorities continue to demonstrate a strong commitment to deepening the reforms supported by the DPO program. They continue to implement PFM reforms in the quest to strengthen overall economic governance. In this regard, the state has continued to make progress in implementing key modules of the budget management system, aimed at enhancing transparency, comprehensiveness, and accountability in the management of public finances in the State. The State is a clear leader among Nigerian states in ensuring that expenditure management systems, including the implementation of a commitment control system, are progressively robust; and all budget expenditures are transacted through an Oracle-based financial management system, with the required in-built controls. Edo state also continues to improve on the timeliness of preparation of the State government's annual accounts as well as the external auditing of these accounts. The 2013 audited financial statements of the state have been widely published as of May Furthermore, the state has now established its public procurement regulatory agency as well as its Governing Council in March 2014 in order to strengthen the governance of public procurement in the state. The erstwhile Fiscal Governance and Procurement Monitoring Office is in the process of handing over its operations to the new statutory Public Procurement Regulatory Agency. Edo state also continues to show commitment to investment climate and quality of education reforms as essential to growth and job creation. In particular, streamlined procedures for registering landed property have been adopted which has reduced the time it takes to obtain land Certificates of Occupancy. The operational framework for managing technical and vocational training institutions in the state is being enhanced through the establishment School-Based Management Committees. In terms of improving the quality of education in Edo Page 1 of 6
2 state, especially in TVET, School Based Management Committees have been established for the TVET institutions to improve governance at the institutional levels and school improvement plans for each of the TVET institutions have now been developed. The Ministry of Education has begun to utilize part of its budgetary allocations to implement the school improvement plans for TVET institutions and this will be supplemented by funding from the Bank's SEEFOR project. It is also working closely with the National Board for Technical Education (NBTE) towards restoring accreditation status to the TVET programs of these institutions. During the last mission, the Bank advised the state to begin to think of modalities for collaborations between the TVET institutions and relevant professional associations as well as private sector industry players to improve the job market relevance of their programs. The last mission in April 2013 offered the Bank team a good opportunity to continue the dialogue with the state government authorities at the highest levels to strengthen and build on each of these reform areas and the state government finds it useful that the Bank's SEEFOR and SEPIP engagements provide complementary technical and financial support for many of the DPO reform areas. Results Results Indicators Page 2 of 6
3 Indicator Name Core Unit of Measure Baseline Current End Target Real growth rate in IGR Percentage Value Dec-2010 Following the successful efforts made by the Edo state government between 2009 and 2011 to improve tax compliance and consequently,igr through back tax audits and intensive tax collection drive, IGR has stabilized at current levels (lower than projected) due tovarious reasons: (i) The enactment of the amended Personal Income Tax Act (PITA) by the Federal Government in 2011 (and came into effect in 2012) which led to much reduced PAYE tax collections; (ii) Difficulty in introducing new tax streams earlier envisaged (e.g. property tax) due to public resistance; and (iii) delay in hiring required technical expertise to support the state's effort to expand tax coverage to all taxable entities for existing tax instruments). Share of wage bill to recurrent expenditure Percentage Value Dec-2010 The ratio of the wage bill to recurrent expenditure during the program period has been successfully contained below 60 percent. Percentage of public contracts above threshold Percentage Value awarded through competitive process 31-Dec-2010 All contracts above the N100 million threshold follow a Page 3 of 6
4 Percentage deviation of aggregate expenditure out-turn compared to the original approved budget number of months between end of fiscal year and state auditor-general submitting the audit report to the SHA Percentage of audit queries that have been resolved Total number of days to register a property in Edo state competitive bidding process superintended by the State Tenders Board. Contract award decision making is not fully decentralized. Percentage Value Dec-2008 The actual expenditure outturn in 2013 was 27% below the approved budgeted expenditure due largely to lower than expected revenuesfrom the federallyshared revenues which are mostly derived from oil sales. The high levels of oil output losses and theft in 2013 led to lower oil revenues accruable to all tiers of government. Also, lower than expected internally-generated tax revenues in Edo state contributed to the lower expenditure levels. The tax revenue shortfall was mainly due to the impact of the new Personal Income Tax Law which grants huge tax relief to majority of taxpayers. Months Value Percentage Value Days Value Dec-2010 This does not include the number of days it may take to obtain the governor's signature. Page 4 of 6
5 Percentage share of certified female science teachers in total number of teachers located in rural areas Percentage drop-out rate of female pupils at basic education level in rural areas Number of accredited courses in technical and vocational education institutions Percentage Value An incentive package to motivate more female Science teachers to locate to rural areas is to be launched in Percentage Value Number Value As of 2013, the erstwhile accreditation status for TVET programs in the state had lapsed. Support to the state's TVET institutions through the SEEFOR project is on-going and the state is currently working towards the restoration of accreditation for some of its TVET programs from the National Board for Technical Education (NBTE). The state has invited the NBTE for an assessment of the six technical colleges and their programs in June 2014 and it is expected that this assessment will lead to reaccreditation. Data on Financial Performance (as of 05-Aug-2013) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA Effective 29-Mar Apr Jun Jun Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR Page 5 of 6
6 Tranches Tranche 1 Amount (USD) Expected Release Actual Release Status 0 Pending Released Key Decisions Regarding Implementation None. Restructuring History Level two Approved on 16-Apr-2013 Related Operations There are no related projects. Page 6 of 6
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