Institutional and Implementation Arrangements

States will be responsible for achieving the program results and thus will be leading the implementation of the PforR component. To support the implementation of the Program in each state, a state steering committee will be established in each of the participating states. The membership of the committee shall include representation from the key MDAs responsible for achieving the DLIs: ministries of finance, budget and planning, state debt departments, state boards of internal revenue, state accountant generals, and state auditor generals. The state ministries of finance or budget and planning will be the state program coordination anchors, and the commissioners will chair the state steering committees. The commissioners will assign focal persons to coordinate the implementation of the Program across the KRAs and the coordination of the TA activities at the state level. Key responsibilities of each of the state steering committees are to approve the annual state SFTAS action plan for achieving the Eligibility Criteria and the DLRs, which should include the annual capacity building activities for the state, to monitor progress of the annual state SFTAS action plan, to review the state’s result in the APA by the IVA, and to take remedial action if the state is unable to achieve the Eligibility Criteria and the DLRs.

The FMoF’s HFD, being the program manager on behalf of the FMoF, will house the PCU, with the Director of HFD as the National Program Coordinator. The HFD is the department within FMoF mandated to support financing to the states. It manages the FAAC allocation process and the BSF, disbursing the monthly amount from the BSF to states since 2016:

  • The PCU’s key functions are to: 1) coordinate state capacity building activities across the different implementing entities; 2) lead program communications and outreach activities from the government side; 3) lead monitoring and evaluation activities for the overall program (not the individual state performance assessments carried out by the IVA) analyzing overall program performance, gaps and identifying how the TA can help address these gaps; 4) disburse annual PforR financing to the states on the basis of the APA results from the IVA; 5) provide accounting and reporting for the Program; 6) act as the interface with the Bank’s supervision and implementation support team; and 7) act as the secretariat for the Central Steering Committee. Specialists working alongside Ministry staff to carry out these key functions will be provided for under the TA component. The PCU’s work will be guided by the Program’s operations manual.
  • Central Steering Committee: The Committee brings together the large number of players involved in the implementation of the FSP and OGP and strengthens their cooperation. This Committee shall be established with the following composition: FMoF HFD; FMoF International Economic Relations Department (IERD); Debt Management Office; Office of the Attorney-General of the Federation in the Federal Ministry of Justice (OGP Secretariat); PSIN; six State Commissioners of Finance (representing the six geopolitical zones); JTB; and the Statistics department at the Central Bank of Nigeria. The Committee, to be chaired by the Director of HFD, will meet at least quarterly to discuss the progress in the implementation of the Program across states, the PforR disbursements to states, the publication of the results of the APA, the delivery of the capacity building program to states. The specific roles and responsibilities of the Committee will be defined in the Program’s operations manual.