The PDO is to strengthen the fiscal transparency, accountability and sustainability in participating Nigerian states. Strengthening fiscal transparency will help build trust in government, enhance the monitoring of fiscal risks and facilitate accountability in public resource management. Stronger accountability reduces the opportunities for corruption and misuse of public resources, thereby increasing the efficiency of public expenditures. Strengthening fiscal sustainability through increased efficiency in spending, strengthened revenue mobilization and debt sustainability, helps prevent further fiscal crises, and increase the fiscal space for productive spending to support growth and public service delivery.
To achieve the PDO, the Program is expected to significantly improve outcomes in the states participating in the Program under each of the four key result areas (KRAs). The Program supports a series of key interventions (at the input and output levels) which contribute to intermediate outcomes, and which in turn contribute to outcomes. The Program’s DLIs also directly incentivize the achievement of the intermediate outcomes under each of the four KRAs.
- KRA#1: Increase Fiscal Transparency and Accountability. Under this results area, the PforR will support states to: (1) increase the quality (compliance with international standards), timeliness and transparency of the annual budget, budget implementation reports, and audited financial statements; (2) increase citizens’ participation in the budget process; and (3) improve budget credibility by reducing deviation in total state expenditure outturn.
- KRA#2: Strengthen Domestic Revenue Mobilization. Under this results area, the PforR will support states to: (1) increase IGR collection while providing more transparency and certainty to taxpayers; and (2) reduce revenue leakages by implementing the TSA at the state-level.
- KRA#3: Increase Efficiency in Public Expenditure. Under this results area, the PforR will support states to: (1) to reduce payroll fraud through the use of biometric and bank verification number (BVN); and (2) improve the transparency and value for money of public procurement through the implementation of e-procurement systems in MDAs, including those delivering education and health public services, and open contracting standards.
- KRA#4: Strengthen Debt Sustainability. Under this results area, the PforR will support states to: (1) strengthen the legal framework for debt management and fiscal responsibility, improve state debt reporting and debt sustainability analyses; (2) reduce the stock of domestic expenditure arrears; and (3) strengthen debt sustainability ratios.