The World Bank Fiscal Governance and Institutions Project (P163540) REPORT NO.: RES56275 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF FISCAL GOVERNANCE AND INSTITUTIONS PROJECT APPROVED ON JUNE 27, 2018 TO FEDERAL MINISTRY OF FINANCE, BUDGET AND NATIONAL PLANNING GOVERNANCE WESTERN AND CENTRAL AFRICA Regional Vice President: Ousmane Diagana Country Director: Shubham Chaudhuri Regional Director: Abebe Adugna Dadi Practice Manager/Manager: Tracey M. Lane Task Team Leader(s): Deborah Hannah Isser, Mayya Gusarova i The World Bank Fiscal Governance and Institutions Project (P163540) ABBREVIATIONS AND ACRONYMS Abbreviation Definition ASYCUDA Automated System for Customs Data BIMMS Budget Information Management and Monitoring Systems BOF Budget Office of the Federation BPP Bureau of Public Procurement CAC Corporate Affairs Commission DLI Disbursement Link Indicators DLR Disbursement Link Result DQAF Data Quality Assessment Frameworks EEE Eligible Expenditure EEP Eligible Expenditure Program eGP Electronic Government Procurement EHSGs Environmental Health and Safety Guidelines ESF Environmental and Social Framework ESS Environmental and Social Safeguards FAAC Federal Accounts Allocation Committee FCSSIP25 Federal Civil Service Strategy and Implementation Plan for 2021-2025 FGIP Fiscal Governance and Institutions Project FGN Federal Government of Nigeria FIRS Federal Inland Revenue Service FM Financial Management FMoF Federal Ministry of Finance FMOFNBP Federal Ministry of Finance, Budget, and National Planning FY Fiscal Year GIFMIS Government Integrated Financial Management Information System GIIP Good International Industrial Practice GM General Management GoEs Government-Owned Enterprises GP Global Practice GRM Grievance Redress Mechanism HR Human Resources ICT Information Communication Technology IDA International Development Association IERD International Economic Relations Department IFRs Interim Financial Reports IMF International Monetary Fund’s IP Implementation Progress IPF Investment Project Financing IPF-PBC Investment Project Financing-Performance-Based Condition ii The World Bank Fiscal Governance and Institutions Project (P163540) IPPIS Integrated Payroll and Personnel Information System IR Intermediate Results ISR Implementation Status and Results Report ITAS Integrated Tax Administration System IVA Independent Verification Agent LFS Labor Force Survey MBNP Ministry of Budget and National Planning MDA Ministries, Department and Agencies MS Moderately Satisfactory MTR Mid-Term-Review MU Moderately Unsatisfactory NBS National Bureau of Statistics NCS Nigeria Customs Service NICIS Nigeria Integrated Customs Information Systems NLSS Nigeria Living Standards Survey NSDS National Strategy on Development of Statistics OAGF Office of the Accountant General of the Federation OAuGF Office of the Auditor General of the Federation OGP Open Government Principles OHCSF Office of Head of Civil Service of the Federation OHS Occupational Health and Safety PBC Performance-Based Condition PCU Project Coordination Unit PDO Project Development Objectives PFM Public Financial Management PIM Public Investment Management PIU Project Implementation Unit POM Project Operations Manual PRM&RC Presidential Revenue Monitoring and Reconciliation Committee SDDS Special Data Dissemination Standards SOEs Statement of Expenditures SRGI Strategic Revenue Growth Initiative STEP Systematic Tracking and Exchanges in Procurement TA Technical Assistance TSD Technical Services Department WBG World Bank Group iii The World Bank Fiscal Governance and Institutions Project (P163540) Table of Contents I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................................1 A. PROJECT STATUS ...........................................................................................................................................................................1 B. RATIONALE FOR RESTRUCTURING................................................................................................................................................3 II. DESCRIPTION OF PROPOSED CHANGES....................................................................................................................................4 A. SUMMARY OF PROPOSED CHANGES ............................................................................................................................................4 B. DETAILED CHANGES ......................................................................................................................................................................5 C. CHANGES IN THE RESULTS FRAMEWORK ...................................................................................................................................17 D. CHANGES TO IMPLEMENTATION ARRANGEMENTS ...................................................................................................................17 E. CHANGES TO ELIGIBLE EXPENDITURE PROGRAM ......................................................................................................................17 F. APPRAISAL SUMMARY................................................................................................................................................................18 RESULTS FRAMEWORK ..................................................................................................................................................................23 iv The World Bank Fiscal Governance and Institutions Project (P163540) BASIC DATA Product Information Project ID Financing Instrument P163540 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 27-Jun-2018 30-Jun-2023 Organizations Borrower Responsible Agency Federal Ministry of Finance, Budget and National Planning Project Development Objective (PDO) Original PDO To improve the credibility of public finance and national statistics. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Effectivenes Commitmen Disburse Undisburse Ln/Cr/Tf Approval Signing Closing s t d d 07-May- IDA-62880 27-Jun-2018 12-Feb-2019 30-Jun-2023 125.00 39.67 77.38 2019 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No v The World Bank Fiscal Governance and Institutions Project (P163540) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. PROJECT STATUS 1. The development objective of the Fiscal Governance and Institutions Project (FGIP, the Project) is to improve the credibility of public finance and national statistics of the Federal Government of Nigeria (FGN). The FGIP project, which anchors the Bank’s PFM engagement at the federal level, supports the FGN in the fiscal and governance reform agenda by strengthening critical systems for public financial management, procurement, transparency, integrity, accountability and statistics at the federal level. The project is implemented through the Federal Ministry of Finance, Budget and National Planning (FMFBNP)1 under the directorate of the International Economic Relations Department (IERD) and in the following government agencies: the Budget Office of the Federation (BOF), Office of the Auditor General of the Federation (OAuGF), Bureau of Public Procurement (BPP), National Bureau of Statistics (NBS) and Corporate Affairs Commission (together ‘Implementing Agencies’). The Office of the Accountant General of the Federation (OAGF), Technical Services Department (TSD) of the Federal Ministry of Finance (FMF), and Office of Head of Civil Service of the Federation (OHCSF) are implementing agencies without fiduciary responsibilities, supported by the Project Coordination Unit (PCU), hosted by FMFBNP. 2. The Project, approved in 2018, is financed by an IDA Credit of US$125 million (CR. No. 62880) and is designed as an Investment Project Financing (IPF) with performance-based conditions (IPF-PBC)2. In the original project design the PBCs (DLIs) amounted to US$98.5 million or around 79 percent of the total project financing, while the Technical Assistance (TA) component was limited to US$26.5 million or about 21 percent of the project financing. However, following the last restructuring approved in May 2022, which included reallocation of funds, the PBC and TA were revised to US$75.5 million and US$49.5 million respectively. 3. The Project had a slow start achieving effectiveness in May 2019, nearly one year after approval. The first TA disbursement of US$6.0 million was made in December 2019 while the first PBCs disbursed only in 2022. By the mid- term review in 2021 the result-based component has not had any disbursement primarily due to the failure of the Project Coordination Unit (PCU) to procure an Independent Verification Agent (IVA). The World Bank therefore undertook direct verification of PBCs that had been achieved and disbursement increased to US$31.76 million by end 2022. The IVA was eventually procured in November 2022 and immediately embarked on verification of additional results. As of May 15, 2023, cumulative disbursement was US$39.67 million (33.8 percent), as per Table 1. TA disbursement continued to be lower than planned due to weaknesses in the capacity of FMFBNP – PCU procurement function, staff changes in PIUs, delays with approvals required in implementing agencies at every stage of procurement and inefficiencies related to managing Designated Accounts in USD and conversion into Naira by the Central Bank of Nigeria. 1 In the original design of the Project the Federal Ministry of Finance (FMOF) was the primary implementing entity. In 2019 it was merged with the Ministry of Budget and National Planning (MBNP) into the Federal Ministry of Finance, Budget and National Planning (FMFBNP). 2 Investment Project Financing that disburses against eligible expenditures upon the achievement of Performance-Based Conditions (IPF-PBC) as referred to in the latest Guidelines from January 29, 2020. At the stage of the Project preparation IPF-PBC was referred to as IPF-DLIs, therefore PBCs / IRs are referred as DLIs/DLRs in the PAD and Financing Agreement. The amendment to Financing Agreement maintains consistency and uses DLIs/DLRs terminology. 1 The World Bank Fiscal Governance and Institutions Project (P163540) Table 1. Allocation and Disbursement Summary (USD) Allocation of Credit Allocation US$ Disbursed US$ Proceeds Performance based 75,500,000 22,500,000 conditions (DLIs) Technical Assistance (TA) 38,650,000 17,106,689 Unallocated 10,850,000 N/A Total 125,000,000 39,606,689 Agencies Allocation PBC TA BPP 15,750,000 2,000,000 500,000 BOF 7,500,000 4,000,000 1,000,000 CAC 400,000 N/A 377,915 NBS 32,000,000 16,000,000 9,111,271 OAuGF 10,000,000 500,000 701,000 PCU 6,000,000 N/A 5,416,504 OAGF 23,000,000 Nil Under PCU OHCSF 5,000,000 Nil Under PCU TSD 4,500,000 Nil Under PCU 4. As per the latest Implementation Status and Results Report (ISR), dated May 18, 2023, the rating on progress towards the PDO is Moderately Satisfactory. PDO indicator 1 is overachieved. During the implementation support mission in April 2023 the definition of non-oil revenue was revised to align with the Presidential Revenue Monitoring and Reconciliation Committee (PRM&RC) which includes FGN Independent Revenue performance. The data source was also revised to Federation Account Allocations Committee (FAAC) and OAGF reports. This resulted in the revision of the baseline to 64.9 percent and revision of the actual for 2021 to 108.5 percent, exceeding the target of 85 percent. While the increased revenue in 2021 is a result of multiple factors such as high inflation and improvement in enforcement and compliance, the project has contributed to increased revenue through reduction of tax expenditures because of the tax expenditure analysis (PBC 2.1) and introduction of the Budget Information Management and Monitoring Systems (BIMMS) to automatically enforce the 50 percent cost to income ratio for Government-owned Enterprises (GOEs), (PBC 2.2). Revenue assurance audits which are expected to take place between May and June 2023 and cost-benefit analysis of customs tariffs incentives to be finalized in June 2023 are expected to contribute to the improved non-oil revenue out- turn, but this impact is likely to be seen only after completion of the project. 5. PDO indicator 2 is likely to be partially achieved. Similarly, during the implementation support mission in April 2023 the data source for the indicator was revised to the General-Purpose Financial Statement (unaudited) or OAGF budget (fiscal) report when the general-purpose financial statement for a specific year is under preparation. The baseline was revised to 40.6 percent and actual for 2021 to 48.3 percent with an end target of 65 percent. The project supported institutional measures which are expected to have a positive impact on capital expenditure execution for FY 2023: PBC 4.1 (adoption by the Budget Office of the Federation of a guideline for Public Investment Management); PBCs 3.1, 3.2, 3.5 (implementation of bottom-up cash management policy); PBC 4.4a (deployment of GIFMIS capital/project module in 10 MDAs); and PBC 4.4b (BOF implementation of capital project tracking system for 10 MDAs). The Federal Government extended the implementation of 2022 budget up to March 30, 2023, consequently the data for 2022 capital budget execution will be reported after June 30, 2023. 2 The World Bank Fiscal Governance and Institutions Project (P163540) 6. PDO indicator 3 is partially achieved but on track to be fully achieved by the end of June 2023. NBS has published 4 datasets out of 6 set as the target. With publication of the Business Sample Census and 1st round of Labor Force Survey, the PDO indicator is expected to be achieved by the end of June 2023. Progress on PDO indicators is summarized in Table 2 below. Table 2. FGIP Project - Progress on PDO Indicators PDO Indicator Baseline Actual End Target Status 1. Non-oil revenue outturn 64.9% 108.5% 85% Overachieved 2. Capital expenditure execution Partially 40.6% 48.3% 65% rate achieved 3. Publication of reconciled fiscal Partially 0 4 6 and economic datasets achieved Source: FGIP ISR, May 2023 7. The overall Implementation Progress (IP) rating was upgraded in May 2023 to Moderately Satisfactory. This reflects progress with achievement of results under the result-based component by all implementing agencies and progress with implementation of TA, which translated into an increased disbursement from 8.56 percent at mid-term review to 33.8 percent in May 2023. Additional IRs (DLRs) valued at US$28.5 million were on track for verification by July 2023. As of end of April 2023 but for a few cases related to missing requests for payments, there was no outstanding payment older than 30 days at the PCU. The project Steering Committee had four meetings since the mid-term review, monitoring implementation progress and making decisions that have positive impact on the project performance. Though progress has been made in the area of Monitoring and Evaluation with bringing an experienced IVA on board, no implementation progress report has been submitted by the PCU since project effectiveness; but FMFBNP PCU has been working on the project report as of April 2023. 8. The overall FM performance is Moderately Satisfactory. There are no outstanding IFRs and since September 2022 there is no outstanding external audit report. However, PCU has yet to appoint an external auditor for FY22 external audit of the project and the audit reports are to be submitted by June 30, 2023. Progress was made by all PIUs in managing Naira conversion through the preparation of three-month cash forecasts. 9. The progress towards procurement activities has been upgraded in February 2023 to Moderately Satisfactory. PCU has completed most of the procurements and the WB task team urged PCU to focus on robust contract management during the implementation stage. The mission in April 2023 noted that with the departure of the previous procurement specialist, the PCU has one officer who has not been approved as qualified by the World Bank. The World Bank urged PCU to ensure that a qualified procurement officer is on board as soon as possible. B. RATIONALE FOR RESTRUCTURING 10. The Federal Government has requested restructuring of the Project to extend the closing date to enable completion of most the results. The proposed restructuring is in response to the request from the FGN, dated February 15, 2023. The Bank agreed to an extension conditional on the achievement of a set of concrete milestones by the end of April. The Steering Committee meeting held on April 27, 2023, assessed progress against those milestones and concluded that they were substantially met. This included increased disbursement on both the results-based component and TA, and upgraded ratings on PDO, IP, FM and procurement. The meeting further endorsed proposed changes to PBCs to be 3 The World Bank Fiscal Governance and Institutions Project (P163540) made through restructuring. The project restructuring is proposed to sustain accelerated project performance and allow the project to achieve most of the original and post-restructuring results planned. 11. The project remains very relevant to support the World Bank Country Partnership Framework for the period FY21 – FY25 Core Objective 1, strengthen fiscal management—increase domestic revenues, improve quality of public expenditures and enhance debt management. The FGIP Project is very critical to the achievement of these key objectives of the World Bank. II. DESCRIPTION OF PROPOSED CHANGES 12. The PDO is not proposed for change. The existing PDO, “To improve the credibility of public finance and national statistics” remains relevant. PDO indicators and their targets remain relevant too after changes were introduced in the definition of PDO Indicator 1 Non-oil revenue outturn and data sources for PDO Indicator 1 and PDO Indicator 2 Capital expenditure execution rate during the implementation support mission in April 2023 and reflected in ISR of May 2023. A. SUMMARY OF PROPOSED CHANGES 13. The following changes are proposed under the restructuring: (a) Extension of the closing date of the Project by six months (through December 31, 2023). (b) Changes to the PBCs and TA activities (i) to ensure clear alignment with priorities of implementing agencies and achievability within the remaining life of the Project and (ii) to add new IRs under PBC 3, Component 2, Sub-component 2.1, and PBC 7, Component 3, with corresponding reallocation of financing between components (but within the current result-based and TA disbursement categories allocations). (c) Merger of Sub-components 3.1 and 3.2 into a single Component 3 and Sub-components 4.1 and 4.2 - into a single Component 4. (d) Change in cost of Components 2 and 3, due to reallocation of result-based financing from Component 2 to result-based financing Component 3. (e) Changes in the eligible expenditures framework to reflect the six-month Project extension. Eligible expenditures include personnel costs and overheads. Eligible expenditures do not include any capital expenditures. 14. The proposed reallocation of result-based financing between components does not have an impact on the total allocation of result-based financing and TA financing, which remains as US$75.5 million of result-based financing and US$49.5 million of TA financing. The proposed reallocation leaves US$9.9 million result-based financing and US$21.6 million of TA or US$31.5 million of the original US$125 million financing envelop unallocated. It is proposed that these amounts be retained as “unallocated funds” under the operation, in anticipation of any new priority to be identified by the incoming government that supports the project development objective. However, the World Bank will assess progress in October 2023 in the context of the quarterly Project Steering Committee meeting to inform a decision to cancel the unallocated funds or to reallocate them to government priorities with a possible additional extension of the project closing date. 4 The World Bank Fiscal Governance and Institutions Project (P163540) B. DETAILED CHANGES 15. This section sets out the proposed changes in PBCs (DLIs), TA and allocation of financing by sub-component. Table 3 provides a summary of the changes in allocation. Table 3. Proposed Changes in Allocation for Project Restructuring 5 The World Bank Fiscal Governance and Institutions Project (P163540) Component 1: Strengthening Revenue Management Table 4. Current and Revised Financing of Component 1 Total (in USD Component 1 PBCs TA Unallocated millions) Current allocation 28.5 14.5 7.5 6.5 (TA) 0.5 (PBC) Revised allocation 28.5 14.0 3.0 11 (TA) 16. This component will continue supporting the enhanced oversight of revenues accruing to the Federation account and strengthening revenue analysis and forecasting to help retrieve unremitted revenues and improve revenue outturn. The current allocation of US$28.5 million will remain the same but unallocated financing will increase and comprise US$11.5 million (US$0.5 million PBC financing and US$11 million of TA financing). Unallocated TA under the component may be used to support the incoming government priorities on strengthening revenue policy and management. Changes in PBC (DLI) and TA parts under sub-components 1.1 and 2.2 are described below. Sub-component 1.1: Strengthening the Oversight of Federation Revenue Current allocation: PBC - US$ 7 million, TA- US$ 3 million Revised allocation: PBC - US$ 6.5 million, TA- US$ 1 million 17. This sub-component will remain focused on strengthening OAuGF capacity in carrying out revenue assurance and IT audits of systems installed in the Federal Inland Revenue Service (FIRS) integrated Tax Administration System (ITAS) and the Nigeria Customs Service (NCS) Nigeria Integrated Customs Information Systems II (NICIS II), that replaced Automated System for Customs Data (ASYCUDA) in 2019. OAuGF submitted IR (DLR 1.1) for verification, and the World Bank confirmed that it was partially (50 percent) achieved. The amount of IR (DLR 1.1) is adjusted to the actual amount disbursed. Revenue assurance audits for 2018-2021 were delayed due to staff changes but in October 2022 OAuGF confirmed commitment to conduct the outstanding audit and plan to commence by May 2023. Therefore, IRs (DLRs) 1.2-1.7 remain unchanged. As a result of partial achievement of IR (DLR) 1.1, the total value of the result-based component under Sub-component 1.1 reduced to US$6.5 million. The revised PBC and IRs to support results under this sub-component are presented in Table 5. 6 The World Bank Fiscal Governance and Institutions Project (P163540) Table 5. Sub-component 1.1: Strengthening the Oversight of Federation Revenue – Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 1: Regular external audit reports for revenue oversight completed Amount (USD million) 1.1 Revenue assurance audit of Main Income Generating Agencies (including Partially achieved FIRS and NCS) for 2017 completed US$0.5m disbursed 1.2 Revenue assurance audit of Main Income Generating Agencies (including FIRS 1 and NCS) for 2018 completed 1.3 Revenue assurance audit of Main Income Generating Agencies (including FIRS 1 and NCS) for 2019 completed 1.4 IT audit of ITAS and ASYCUDA or NICIS for FY 2019 1 1.5 Revenue assurance audit of Main Income Generating Agencies (including FIRS 1 and NCS) for 2020 completed 1.6 Revenue assurance audit of Main Income Generating Agencies (including FIRS 1 and NCS) for 2021 completed 1.7 IT audit of ITAS and ASYCUDA or NICIS for FY 2021 completed 1 Total 6.5 18. The TA activities for sub-component 1.1 to support OAuGF were streamlined to focus on critical TA for the delivery of PBC (DLI) 1. The volume of TA is proposed to be reduced to US$1 million to reflect activities which are in implementation and feasible to complete by December 31, 2023. Sub-component 1.2: Strengthening Revenue Analysis and Forecasting Current allocation: PBC - US$ 7.5 million, TA - US$ 4.5 million Revised allocation: PBC - US$ 7.5 million, TA - US$ 2.0 million 19. This sub-component will remain focused on support to both the Tax Policy Division of TSD and the BOF for revenue analysis and forecasting. In addition, the sub-component will finance TA to support selected revenue generating priority initiatives under the Strategic Revenue Growth Initiative (SRGI), launched in 2019. 20. PBC (DLI 2) Revenue analyses institutionalized at the FMFBNP remains unchanged. Progress under the sub- component includes completion of the Tax Expenditure Analysis under IR (DLR) 2.1 and completion of a system for SOEs and parastatals budget monitoring and financial performance management under IR (DLR) 2.2. IRs (DLRs) 2.3 and 2.5 are in implementation and expected to be ready for verification in June 2023. IR (DLR) 2.4 is being implemented with a delay due to extended procurement of the TA package, supporting the achievement of the IR (DLR), but it is expected to be completed and verified before the end of December 2023. 21. The PBC (DLI) and IRs (DLRs) to support results under this Sub-component are presented in Table 6 below: 7 The World Bank Fiscal Governance and Institutions Project (P163540) Table 6. Sub-component 1.2: Strengthening Revenue Analysis and Forecasting – Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 2: Revenue analyses institutionalized at the FMFBNP Amount (USD million) 2.1 Analysis of tax expenditure completed Achieved, disbursed 1 2.2 A system for SOEs and parastatals budget monitoring and financial Achieved, performance management is completed and functioning disbursed 1 2.3 Cost-benefit analysis of tariff incentives on import and export duties 1.5 completed 2.4 FMOFNBP formally sends the draft Tax Codification and Simplification Bill 2 document (through a Memo) to the Federal Ministry of Justice to prepare a Draft Tax Codification and Simplification Bill. 2.5 Review of customs tariffs from the perspective of regional trade integration: 2 impact analysis of the harmonization of exemptions; impact analysis of the Continental Free Trade Agreement completed Total 7.5 22. The TA activities for sub-component 1.2 to support the BOF and the TSD on revenue analysis and selected FMOFBNP priority initiatives for generating additional revenues remain unchanged substantively but the budget reduced to US$2 million to reflect activities which are in implementation and feasible to complete by December 31, 2023. Component 2: Strengthening Controls, Transparency, and Accountability Table 7. Current and Revised Financing of Component 2 Total (in USD Component 2 PBCs TA Unallocated millions) Current allocation 58.5 38 16.15 4.35 Revised allocation 56.4 26.5 9.9 10.6 (TA) 9.4 (PBCs) 23. This component will continue focusing on selected areas of public expenditure management to improve the transparency, efficiency and monitoring of budget execution. The original allocation of US$ 58.5 million will reduce to US$56.4 due to reallocation of US$2.1 million to Component 3 to finance additional PBCs. Within the component the result-based allocated financing will reduce to US$26.5 million due to a dropped unachieved IR (DLR) 3.3. and dropped IRs (DLRs) 5.2-5.4, which are not feasible to achieve before December 31, 2023. US$1.5 million of financing from the dropped IRs (DLRs) will be used to finance new PBCs on transparency of budget reporting by OAGF, US$2.1 million will be reallocated to Component 3 and US$9.4 million of result-based financing will remain unallocated. Financing TA funds will reduce to US$9.9 million to reflect value of activities feasible to implement by December 31, 2023 and 8 The World Bank Fiscal Governance and Institutions Project (P163540) US$10.6 million of TA financing will be designated as unallocated funds and used to support incoming government new initiatives on strengthening controls, transparency and accountability of public finance. Sub-component 2.1: Information Technologies for Budget Management and Reporting Current allocation: PBC- US$ 18.0 million, TA - US$ 5.0 million Revised allocation: PBC- US$ 14.5 million, TA - US$ 1.0 million 24. This sub-component, implemented by OAGF, will remain focused on enhancing the utilization of GIFMIS through the roll-out of further modules, specifically for cash management, commitment control and payroll controls. The bottom- up cash planning policy was approved in August 2022 - IR (DLR) 3.2, cash management module rollout commenced in the middle of February 2023 and IRs (DLRs) 3.1 and 3.5 are expected to be ready for verification by the end of May June 2023. IR (DLR) 3.4. Migration of legacy assets and inventory items in the GIFMIS application was completed in 2022 and currently under verification by IVA. These IRs (DLRs) remain unchanged. 25. PBC 3.3 - Submission of final FY2021 general purpose financial statements of the federation for audit no later than June 30, 2022 – has not been met and is proposed to be dropped. A set of new IRs (DLRs) 3.5-3.7 on implementation of FGN Financial Transparency Policy and Implementation Guidelines (2019) is proposed with a total value of US$1.5 million to incentivize timely compliance with the approved Policy and address budget data gaps. The revised IRs (DLRs) to support results under this sub-component are presented in Table 8. Table 8. Sub-component 2.1: Information Technologies for Budget Management and Reporting – Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 3: Enhanced utilization of the Financial Management Information System Amount (USD million) 3.1 Pilot implementation of bottom-up cash planning policy in MDAs covering 30 5 percent of MDAs 3.2 Approval of policy for bottom-up cash planning for roll-out across FGN Under verification 1 3.3 Submission of final FY2021 general purpose financial statements of the Not achieved, federation for audit no later than June 30, 2022 dropped 5 3.4 Migration of legacy assets and inventory items in the GIFMIS application for Under 3.3* 85% coverage of assets and inventory verification 2 3.5 Implementation of commitment controls and cash management GIFMIS 5 3.4* module covering 50 % of MDAs 3.5 OAGF publishes no later than July 30, 2023, and maintains on the Open New Treasury Portal for FY2023 Q1 and Q2: 0.5 9 The World Bank Fiscal Governance and Institutions Project (P163540) PBC (DLI) 3: Enhanced utilization of the Financial Management Information System Amount (USD million) a. Daily Payment Reports covering payments of at least NGN10 million outlining the MDA responsible, the beneficiary, purpose and amount of each payment. b. Monthly Budget Performance Reports generated by GIFMIS by MDAs, functions and economic activities performed, by all Federal Government Agencies c. Monthly Fiscal Accounts. d. Unaudited consolidated quarterly financial statements. 3.6 OAGF publishes and maintains on the Open Treasury Portal for FY2023 Q3: New 0.5 a. Monthly Treasury Statements within 14 days of the end of the month. b. Daily Payment Reports covering payments of at least NGN10 million outlining the MDA responsible, the beneficiary, purpose and amount of each payment. c. Monthly Budget Performance Reports generated by GIFMIS, within 7 days of the end of the month by MDAs, functions and economic activities performed, by all Federal Government Agencies d. Monthly Fiscal Accounts within 14 days of the end of the month. e. Unaudited consolidated quarterly financial statements, within 30 days of the end of the quarter. 3.7 OAGF publishes and maintains on the Open Treasury Portal for FY2023 Q4: New 0.5 a. Monthly Treasury Statements within 7 days of the end of the month. b. Automated Daily Payment Reports covering payments of at least NGN10 Million outlining the MDA responsible, the beneficiary, purpose and amount of each payment. 10 The World Bank Fiscal Governance and Institutions Project (P163540) PBC (DLI) 3: Enhanced utilization of the Financial Management Information System Amount (USD million) c. Monthly Budget Performance Reports generated by GIFMIS, within 7 days of the end of the month by MDAs, functions and economic activities performed, by all Federal Government Agencies d. Monthly Fiscal Accounts, generated fully by GIFMIS within 14 days of the end of the month. e. Unaudited quarterly financial statements by MDA and unaudited consolidated quarterly financial statements, within 30 days of the end of the quarter. AND Accountant General of the Federation issues a Treasury/Finance Circular requiring Government-owned Enterprises to publish and maintain Audited Financial Statements on their websites within the statutory timeline. Total 14.5 * - revised number after the restructuring. 26. The proposed TA allocation after restructuring will continue enhancing support to the OAGF on operationalization of the GIFMIS, including technical assistance to GIFMIS security enhancement and integrations with other government ICT systems, and selected FMFBNP priority initiatives, however the volume will be reduced to US$ 1 million to cover only priority consulting, goods and training activities, which are feasible to complete by December 31, 2023. Sub-component 2.2: Strengthening Public Investment Management (PIM) Current allocation: PBC - US$ 7 million, TA - US$ 3 million Revised allocation: PBC - US$ 7 million, TA - US$ 1.5 million 27. This sub-component, implemented by BOF, will continue to support efforts to improve discipline and rigor in the appraisal and selection of capital projects for budget allocation and regular monitoring and evaluation of the projects. All IRs (DLRs) under PBC (DLI) 4 will remain unchanged. Progress has been made in the preparation of PIM guidelines to harmonize and enhance preparation of capital expenditure plans. A guideline for PIM was adopted by the BOF and issued as an annex to its 2022 Budget Circular and the IR (DLR) 4.1 was confirmed partially achieved in March 2022. Screening/prioritization methodology has been developed and issued in 2022 (to accompany the 2023 Budget Call Circular) and under verification, which if achieved would allow disbursement of the remaining amount allocated to the IR (DLR). IRs (DLRs) 4.2, 4.3 and 4.4 (a, b) are in progress but implemented with a delay and expected to be achieved by December 31, 2023. The PBC (DLI) and IRs (DLRs) to support results under this sub-component are presented in Table 9. Table 9. Sub-component 2.2: Strengthening Public Investment Management (PIM) – 11 The World Bank Fiscal Governance and Institutions Project (P163540) Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 4: Strengthened monitoring and evaluation of public investment projects Amount (USD million) 4. 4.1 Adoption by the Budget Office of the Federation of a guideline for PIM, as Partially achieved an annex to its 2022 Budget Circular 2m out of 3m disbursed, 1m – under verification 4.2 Compliance rate with PIM guidelines in at least two MDAs with largescale 1.5 capital budgets 4.3 Deployment of a National Budget Portal to publish Government of Nigeria’s 1 (FGN and at least 20 States) approved capital projects (including supplementary budgets, if any) 4.4(a) Deploy GIFMIS capital/project module in 10 MDAs Under verification 1 4.4(b) (b) BOF implements capital project tracking system for 10 MDAs 0.5 Total 7 28. The proposed TA allocation after restructuring will continue to support the BOF in strengthening PIM but the allocation will be reduced to US$1.5 million, which is more feasible to be utilized before December 31, 2023. Sub-component 2.3: Improve Transparency and Efficiency in Procurement and the Quality of Budget Information Revised allocation: PBC - US$ 10.0 million, TA - US$ 5.75 million Revised allocation: PBC - US$ 2.0 million, TA – US$ 5.50 million 29. This sub-component implemented by BPP will continue focusing on improved efficiency in procurement through the introduction of e-Procurement. The contract for development of the Government Procurement system (e-GP) was signed but implemented with delays and the deployment of the system is not possible to achieve and verify before December 31, 2023; therefore, PBCs 5.2-5.4 of US$ 8 million value are proposed to be dropped. 30. The PBC and IRs under this sub-component are presented in Table 10. Table 10. Sub-component 2.3: Improve Transparency and Efficiency in Procurement and the Quality of Budget Information - Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 5: MDAs in compliance with improved procurement standards Amount (USD million) 5.1 Signing of e-GP contract awarded through Open Competition to develop and Achieved, deploy Registration module, Procurement Plan & Advert Module, Tendering disbursed Module, Evaluation & Award Module, e-GP Admin Module, Reporting Module, E- 2 Learning Module, Contract Management Module, Catalogue Module, e- Framework Agreement, Procurement Management Information System Module, 12 The World Bank Fiscal Governance and Institutions Project (P163540) PBC (DLI) 5: MDAs in compliance with improved procurement standards Amount (USD million) in 10 pilot MDAs. The e-GP system to be integrated with Open contracting standards, Beneficial Ownership and GIFMIS 5.2 e-GP modules rolled out to 10 pilot MDAs: i) Registration, ii) Procurement Plan & Will not be Advert, iii) Catalogue, iv) e-Framework Agreement, v) e-GP Admin, vi) Reporting achieved by Dec 31, 2023, dropped 3 5.3 e-GP modules rolled out to pilot MDAs: i) Registration, ii) Procurement Plan & Will not be Advert, iii) Catalogue, iv) e-Framework Agreement, v) e-GP Admin, vi) Reporting, achieved by vii) E-Learning, viii) Contract Management, ix) Tendering, x) Evaluation & Award, Dec 31, 2023, xi) Procurement Management Information System dropped 3.5 5.4 Will not be achieved by Dec 31, 2023, dropped Stretch targets: (a) All modules rolled out in the pilot MDA and integrated with GIFMIS 0.5 (b) All modules rolled out in the pilot MDA and integrated with Open Contracting Standards 0.5 (c) All modules rolled out in the pilot MDA and integrated with Beneficial Ownership 0.5 Total 2 31. The proposed TA allocation after restructuring will continue supporting BPP in implementation of e-GP system with the vast majority of resources allocated to e-GP development contract under implementation. BOF has not confirmed the need to include allocation for enhancing budget transparency and the TA envelope will be reduced to US$5.50 million. Sub-component 2.4: Improving controls and efficiency in payroll expenditures Current allocation: PBC – US$ 3.0 million, TA - US$ 2.0 million Revised allocation: PBC – US$ 3.0 million, TA - US$ 1.5 million 32. This sub-component will continue to be executed by the OHCSF to improve controls and efficiency of payroll management through adoption of the Human Resources (HR) Management module in the Integrated Payroll and Personnel Information System (IPPIS). It allows staff profiles and employment records to be finalized in the system and remain unchangeable to avoid tampering with personnel records. The HR records are expected to be verified before entering in the system to addresses existing discrepancy between HR records and payroll records. 13 The World Bank Fiscal Governance and Institutions Project (P163540) 33. A PBC (DLI) under the sub-component incentivizes completion of roll out of the HR Module of the IPPIS including populating the database of staff in the system with validation of data accuracy in 34 core federal MDAs. OHCSF has launched the process of HR records verification and roll out of HR Module in 23 pilot MDAs and is expected to launch in the remaining 11 MDAs in May 2023. The PBC (DLI) and IRs (DLRs) under this sub-component remains unchanged and are presented in Table 11. Table 11. Sub-component 2.4: Improving controls and efficiency in payroll expenditures – Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 6: Improving controls and efficiency in the civil service payroll Amount (USD million) 6.1 HR module rolled out in 12 core MDAs covering all staff grades 12 and above Under verification 1 6.2 HR module rolled out in additional 11 core MDAs covering all staff grades 12 1 and above 6.3 HR module rolled out in further additional 11 core MDAs covering all staff 1 grades 12 and above Total 3 34. The TA allocation will continue supporting activities for improved productivity, efficiency and controls in the federal civil service under the recently approved Federal Civil Service Strategy and Implementation Plan for 2021-2025 (FCSSIP25). The TA will be reduced from US$ 2 million to US$ 1.5 million to cover only a volume of activities approved in the workplan and limited new activities which are feasible to complete before December 31, 2023. Sub-component 2.5: Disclosure of Beneficial Ownership Current allocation: TA - US$ 0.4 million Revised allocation: TA - US$ 0.4 million 35. The sub-component will continue supporting CAC in the development of the new Register for Beneficial Ownership Disclosure, consistent with OGP requirements. The implementation is progressing well, and the new Register is expected to go live in May 2023. The extension will support a pilot period of the system use before operational acceptance. 36. The sub-component includes only TA for the new Register for Beneficial Ownership development and associated activities and the allocation of US$ 0.4 million will remain unchanged. Component 3 – Strengthening Economic and Fiscal Statistics Table 12. Current and Revised Financing of Component 3 Total (in USD Component 3 PBCs TA Unallocated millions) Current allocation 32 23 9 -- 14 The World Bank Fiscal Governance and Institutions Project (P163540) Revised allocation 34.1 25.1 9 -- 37. This component will continue financing support to generating and validating economic statistics and reconciling statistical datasets with fiscal data. The National Bureau of Statistics (NBS) is the implementing entity for activities under this component. The current allocation of US$ 32 million will be increased to US$ 34.1 million and financed using reallocated financing from Component 2. The sub-components 3.1. Improvement of Economic Statistics and sub- component 3.2 Reconciliation, Validation, Archiving and Dissemination of Official Statistics have a lot of synergy and are implemented in practice as a single component. Therefore, they will be merged into a single Component 3. 38. This component will continue supporting the implementation of specific surveys that contribute to improved economic statistical information. Additional IRs (DLRs) are proposed to reflect changes in the methodology for the implementation of the Labor Force Survey (LFS) to collect data quarterly. IR (DLR) 7.2 on the completion of the 1st round of LFS has been verified and disbursed. IR (DLR) 7.5 on the 2nd round of LFS has been submitted for verification in March 2023. Two additional IRs (DLRs) 7.8 and 7.9 are proposed to cover 3rd and 4th rounds of LFS planned to be completed before the end of December 2023. After 4 rounds of LFS data collection – the equivalent of four quarters – the new LFS methodology will allow for the production of key labor market statistics at the state level in addition to the quarterly national results. The suggested amounts for IRs (DLRs) 7.8 and 7.9 reflect the higher labor intensity of the new higher-quality methodology, which was adopted after DLRs 7.2 and 7.5 were designed and financing allocated to these IRs (DLRs) are slightly higher than for IRs (DLRs) corresponding to the two first rounds of the LFS. 39. The IR (DLR) 7.6 Field work for the Nigeria Living Standards Survey (NLSS) completed covering for the whole 12 months of NLSS data collection is proposed to be split into two IRs (DLRs): 7.6 and 7.7. This will contribute to improved liquidity of NBS to cover cost for the survey operation. DLI 7.6 includes the sizable upfront costs in the first half of the data collection activities, such as preparations as well as training of field teams, dispatch, and households listing. 40. A new IR (DLR) 7.10 National Strategy on Development of Statistics (NSDS) for 2024-2028 approved by NBS board (US$ 0.7 million) is proposed. Nigeria’s most recent NSDS covered 2017 to 2021 and, thus, is expired. The new NSDS will propose activities and guide investments to improve the national statistical system of Nigeria. The new NSDS will include assessments to analyze the current state of statistics in Nigeria and propose strategic activities towards an improved and modernized system. This will include (i) the International Monetary Fund’s (IMF) Special Data Dissemination Standards (SDDS) and (ii) the IMF Data Quality Assessment Frameworks (DQAF). These assessments and the development of the NSDS will involve federal and state level consultation with key stakeholders. 41. The revised PBC (DLI) and IRs (DLRs) to support results under this Component are presented in Table 13. Table 13. Component 3: Improving Economic Statistics – Revised PBC (DLI) and IRs (DLRs) PBC (DLI) 7: Generated and validated statistical datasets Amount (USD million) 7.1 1 Business Sample Census completed Achieved, disbursed 10 7.2 1st round of Labor Force Survey completed Under verification, 0.5 15 The World Bank Fiscal Governance and Institutions Project (P163540) PBC (DLI) 7: Generated and validated statistical datasets Amount (USD million) 7.3 Field work for the agriculture census listing completed Achieved, Disbursed 6 7.4 Agriculture sample census completed 2 7.5 2nd round of Labor Force Survey completed 0.5 7.6 First half of the field work for the Nigeria Living Standards Survey New completed 2.7 7.7 Second half of the field work for the Nigeria Living Standards Survey New completed 1.3 7.8 3rd round of Labor Force Survey completed New 0.7 7.9 4th round of Labor Force Survey completed New 0.7 7.10 National Strategy on Development of Statistics (NSDS) for 2024-2028 New approved by NBS board 0.7 Total 25.1 42. The consolidated TA allocation for the component will remain US$ 9 million to support the implementation of the surveys and the validation of statistics generated by MDAs, computations for the National Accounts and data dissemination and archiving. Component 4 – Policy Coordination and Project Management Table 14. Current and Revised Financing of Component 4 Component 3 Total (in USD PBCs TA Unallocated millions) TA Current allocation 6 -- 6 -- Revised allocation 6 -- 6 -- 43. This component provides support to the Project Coordination Unit (PCU) anchored within the Federal Ministry of Finance at the International Economic Relations Department (IERD) and the PIUs in the other implementation agencies. The division of the component into two Sub-components introduced during the previous restructuring has not been justified in practice and was captured in Implementing Agencies workplans and IFRs without break-down by Sub- components. Therefore, Sub-component 4.1. Strengthening coordination, monitoring, and oversight for policy implementation by FMFBNP and Sub-component 4.2 Operating Costs for Implementation will be merged into a single Component 4. 44. The component will continue financing TA for: 16 The World Bank Fiscal Governance and Institutions Project (P163540) (a) The strengthening of capacity in public financial management and coordination, monitoring, and oversight for policy implementation by FMFBNP; (b) The strengthening of coordination capacity of the PCU; (c) Other priority initiatives to enhance Project implementation by FMFBNP; (d) The operational expenses, essential office equipment and training of staff for the PCU and PIUs in BOF, NBS, OAuGF, BPP, OAGF, CAC and implementation team in OHCSF, OAGF and TSD, in relation to the performance of project management and fiduciary functions. C. CHANGES IN THE RESULTS FRAMEWORK 45. The PDO and PDO Indicators are still relevant and will remain unchanged. The restructuring will reflect changes in data sources, agreed during implementation support mission in April 2023, and recalculated baseline and actual for PDO Indicator 2 - Capital expenditure execution rate. 46. DLIs/PBCs. The PBCs (DLIs) 1, 3, 4, 5, 6 and 7 of the Project will be revised as described in detail in Section B. 47. Intermediate Indicators. Changes in IRs (DLRs) of PBCs (DLIs) 3, 4, 5, 6 and 7 are reflected in relevant milestones of intermediate indicators. As change to PBC (DLI) 1 included reduction in the financing linked to the IR (DLR) 1.1, and substantively the PBC (DLI) remained the same, no changes are made to the relevant intermediate indicator. 48. The date of the end target for all indicators will be adjusted to the new closing date, December 31, 2023. D. CHANGES TO IMPLEMENTATION ARRANGEMENTS 49. No changes to implementation arrangement are proposed under the restructuring. E. CHANGES TO ELIGIBLE EXPENDITURE PROGRAM 50. The Eligible Expenditure Program (EEP) will be amended to reflect the six-month Project extension. Eligible expenditures will be the same as in the original design of the operation and will include personnel costs and overheads. Eligible expenditures will not include any capital expenditures. The revised EEP is presented in Table 15 and will be included in the revised POM. Table 15. Revised FGIP Eligible Expenditure Program (US$, million) FY2023 Result Area and PBC FY2018 FY2019 FY2020 FY2021 FY2022 (approved Total Budget Line (DLI) (actual) (actual) (actual) (actual) (actual) budget) OAuGF (budget 1 10.99 9.53 8.61 10.41 9.25 10.96 59.75 line 014000100100) 17 The World Bank Fiscal Governance and Institutions Project (P163540) FY2023 Result Area and PBC FY2018 FY2019 FY2020 FY2021 FY2022 (approved Total Budget Line (DLI) (actual) (actual) (actual) (actual) (actual) budget) FMoF 2, 4 8.12 7.74 8.75 10.66 10.20 11.03 56.50 Headquarters (budget line 0220001001) / FMFBNP Headquarters (budget line 0220001001) MBNP 3.31 3.69 - - - - 7.00 Headquarters (budget line 0238001001)/ BOF (budget line 3.41 3.33 2.89 3.31 3.36 3.54 19.84 0238005001) OAGF (budget 3 3.54 12.69 10.24 10.56 9.76 22.06 68.85 line 0220007001) BPP (budget line 5 2.51 3.05 2.68 2.69 2.93 3.66 17.52 011101000100) OHCSF (budget 6 - - - - 10.64 13.97 24.61 line 0125001001) NBS (budget line 7 12.45 13.40 2.68 2.69 12.20 13.31 56.73 0238004001) Total 310.80 Total PBC 75.50 Allocation Total PBC 24.29% Amount as a Percentage of the Overall EEP F. APPRAISAL SUMMARY Technical 51. The proposed changes in the Project are based on the Government request for the Project closing date extension and assessment of the progress on the milestones for each sub-component during the World Bank implementation support mission in April 2023. The Permanent Secretary, (FMF) submitted a letter to the World Bank 18 The World Bank Fiscal Governance and Institutions Project (P163540) requesting a one-year extension of FGIP on February 15, 2023. World Bank responded in a letter dated February 25, 2023, that a six-month extension could be considered, contingent on the project implementation progress rating being upgraded from Moderately Unsatisfactory to Moderately Satisfactory. The letter further set out the specific milestones that would be considered in the decision to upgrade the rating. As a result of the progress assessment under the implementation support mission in April 2023 the project DO and IP ratings were upgraded to Moderately Satisfactory. The IVA and the major TA packages, critical for the achievement of PBCs (DLIs) have been completed and verification of results by IVA is in progress with the draft verification report 1 submitted to the World Bank during the mission. The restructuring and extension of the project closing date will sustain implementation progress with expectations that the vast majority of results will be achieved and realistic TA workplans implemented by December 31, 2023. Merger of Sub-components 3.1. and 3.2. into Component 3 and Sub-components 4.1. and 4.2. into Component 4 will allow more flexibility of allocated financing within the components and is neutral from substantive or implementation point of view. 52. There are no major changes to the scope of the sub-components. The few proposed changes will include reducing result-based financing under Sub-components 1.1 and 2.1 to reflect partial achievement of OR (DLR) 1.1, dropping the IR (DLR) 3.3 that was not achieved under Sub-component 2.1 and IRs (DLRs) 5.2-5.4 on eGP deployment which are not feasible to achieve by December 31, 2023 under Sub-component 2.3. A set of new IRs (DLRs) 3.5-3.7 on implementation of FGN Financial Transparency Policy and Implementation Guidelines (2019) by OAGF is proposed to be added under Sub- component 2.1. While the Policy was adopted, it has been not consistently implemented. The new IRs (DLRs) 3.5-3.7 will incentivize timely publication of an important set of budget documents. Critical results will be added with increased allocation of result-based financing under Component 3. TA packages for sub-components 1.1, 1.2, 2.1, 2.2, 2.3 and 2.4 will be reduced to the volume of activities, feasible to implement before December 31, 2023. 53. While BPP reconfirmed commitment for implementation the new e-GP system in April 2023, there has been no clear plan agreed with the vendor and presented to the Bank for the deployment of the system by the end of December 2023. Implementation of e-GP suffered from delays caused by differences in interpretation of contract conditions by BPP and their vendor European Dynamics. At the Steering Committee meeting on April 27, 2023 BPP stated the commitment to move ahead with the first payment under the contract which would unlock the implementation bottleneck and to agree with the vendor on the revised timeline in writing to reach go-live and ensure effective utilization of e-GP by the 10 pilot MDAs. However, after the Steering Committee meeting the disagreements continued and have been escalated into a proposed termination of the contract. Since there is no clear path to achieving IR (DLRs) 5.2-5.4 by the end of December 2023, these will be dropped and financing will be moved to unallocated category for the potential financing of new government PFM reform priorities. Fiduciary 54. No changes are proposed to financial management, disbursement and procurement arrangements under the restructuring. Both Financial Management and Procurement ratings are Moderately Satisfactory, and Fiduciary risk remains Substantial. Environmental and Social 55. No new E&S safeguards policy has been triggered and no changes are proposed to environmental and social risk rating, which remains Low. 19 The World Bank Fiscal Governance and Institutions Project (P163540) I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ PBCs ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Technical Analysis ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ APA Reliance ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ 20 The World Bank Fiscal Governance and Institutions Project (P163540) Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Strengthening Revenue Strengthening Revenue 28.50 No Change 28.50 Management Management Strengthening Controls, Strengthening Controls, 58.50 Revised Transparency, and 56.40 Transparency, and Accountability Accountability Strengthening Economic and Strengthening Economic and 32.00 Revised 34.10 Fiscal Statistics Fiscal Statistics Policy Coordination and Project Policy Coordination and Project 6.00 No Change 6.00 Management Management TOTAL 125.00 125.00 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-62880 Effective 31-Dec-2022 30-Jun-2023 31-Dec-2023 30-Apr-2024 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2018 0.00 0.00 2019 0.00 0.00 21 The World Bank Fiscal Governance and Institutions Project (P163540) 2020 8,000,000.00 8,000,000.00 2021 2,450,000.00 2,450,000.00 2022 67,700,000.00 10,313,849.00 2023 46,850,000.00 24,500,000.00 2024 0.00 79,736,151.00 . 22 The World Bank Fiscal Governance and Institutions Project (P163540) . Results framework COUNTRY: Nigeria Fiscal Governance and Institutions Project Project Development Objectives(s) To improve the credibility of public finance and national statistics. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Strengthened oversight of the revenue of the Federation Non-oil revenue outturn 64.90 70.00 75.00 80.00 85.00 85.00 (Percentage) Rationale: The primary data source for the indicator was revised from OAuGF to OAGF given the significant delay in publishing audited financial state of the FG and the Action: This indicator has been current backlog in the system. The OAGF will also have the primary responsibility of collecting the data. Revised The timing of end target has been aligned with the new closing date of the project (December 31, 2023). Improved execution of the federal expenditure Capital expenditure execution 40.60 50.00 55.00 60.00 65.00 65.00 rate (Percentage) Rationale: Given the delay in the publication of audited financial statement of the FG, the primary source of the data was revised from OAuGF to OAGF. The general Action: This indicator has been Purpose Financial Statement/or OAGF fiscal report will replace the audited financial statement. Revised The timing of end target has been aligned with the new closing date of the project (December 31, 2023). 23 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Enhanced quality of fiscal and economic statistics Publication of reconcilied fiscal and economic datasets 0.00 0.00 2.00 2.00 4.00 6.00 (Number) Rationale: Action: This indicator has been The timing of end target has been aligned with the new closing date of the project (December 31, 2023). Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Strengthening Domestic Revenue Management Revenue assurance audit Revenue assurance audit Revenue assurance audit of Main Income of Main Income of Main Income Generating Agencies Generating Agencies Regular internal and external No external revenue Generating Agencies (including FIRS and NCS) (including FIRS and NCS) audit reports completed (PBC audits; occasional (including FIRS and NCS) for 2019 completed; IT for 2020 and 2021 /DLI 1) (Text) internal audits for 2017 and 2018 audit of ITAS and completed; IT audit of completed ASYCUDA / NICIS for FY ITAS and ASYCUDA / NICIS 2019 for FY 2021 completed Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised 24 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 FMFBNP formally sends the draft Tax Codification and Simplification Bill document (through a Memo) to the Federal Analysis of tax Ministry of Justice to expenditures prepare a Draft Tax completed; A system for Occasional and Cost-benefit analysis of Codification and Revenue analyses SOEs and parastatals inadequate revenue tariff incentives on Simplification Bill; Review institutionalized at FMFBNP budget monitoring and analysis; weak revenue import and export duties of customs tariffs from (PBC /DLI 2 ) (Text) financial performance models completed the perspective of management is regional trade integration: completed and impact analysis of the functioning harmonization of exemptions; impact analysis of the Continental Free Trade Agreement completed Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised Strengthening Controls, Transparency and Accountability in the Use of Public Funds Approval of policy for Enhanced functionality of the GIFMIS payment Pilot implementation of bottom-up cash planning financial management controls and cash bottom-up cash planning for roll-out across FGN; information systems (PBC /DLI management modules policy in MDAs covering Migration of legacy assets 3) (Text) not operational 30 percent of MDAs. and inventory items in the GIFMIS application for 25 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 85% coverage of assets and inventory; Implementation of commitment controls and cash management GIFMIS module covering 50 % of MDAs; publication of key budget reports and documents for Q1-Q4 of FY23 in compliance with FGN Financial Transparency Policy and Implementation Guidelines (2019). Rationale: The timing of the end target was aligned with the new closing date of the project December 31, 2023. Action: This indicator has been New milestones related to new IRs 3.5-3.7 on the implementation of FGN Financial Transparency Policy and Implementation Guidelines (2019) have been Revised added. Milestone related to the dropped IR 3.3 on the submission of final FY2021 general purpose financial statements of the federation for audit has been dropped. Enhanced public participation 13.00 15.00 20.00 20.00 in the budget cycle (Number) Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised 26 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Compliance rate with PIM guidelines in at least two MDAs with largescale capital budgets; deployment of a National Budget Portal to publish Adoption by the Budget Government of Nigeria’s Strengthened monitoring and PIM guideline as an Office of the Federation (FGN and at least 20 evaluation of public annex to the budget of a guideline for PIM, as States) approved capital investment projects (PBC /DLI circular is not in place an annex to its 2022 projects (including 4) (Text) Budget Circular supplementary budgets, if any); deployment of GIFMIS capital/project module in 10 MDAs; BOF implements capital project tracking system for 10 MDAs Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised Signing of e-GP contract e-GP modules rolled out e-GP modules rolled out awarded through Open to 10 pilot MDAs: i) to pilot MDAs: i) Competition to develop registration, ii) registration, ii) MDAs in compliance with e-GP modules are not and deploy Registration procurement plan & procurement plan & improved procurement developed and used by module, Procurement advert, iii) catalogue, iv) advert, iii) catalogue, iv) e- standards (PBC /DLI 5) (Text) MDAs. Plan & Advert Module, e-framework agreement framework agreement iii) Tendering Module, tendering, iv) evaluation tendering, iv) evaluation Evaluation & Award & award, v) e-GP admin, & award, v) e-GP admin, 27 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Module, e-GP Admin vi) reporting vi) reporting; vii) e- Module, Reporting learning, viii) contract Module, E-Learning management, ix) Module, Contract tendering, x) evaluation & Management Module, award, ix) catalogue, x) e- Catalogue Module, e- framework agreement, xi) Framework Agreement, procurement Procurement management information Management system Information System All modules rolled out in Module, in 10 pilot the pilot MDA and MDAs integrated with GIFMIS, Open Contracting Standards and Beneficial Ownership. Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised Open Budget Survey score on comprehensiveness of 11.00 15.00 20.00 20.00 information in appropriation bill (Number) Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised 28 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 An electronic Register for Beneficial Ownership Disclosure consistent with OGP No No No No No Yes requirements is established and functional (Yes/No) Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised Human Resources (HR) Management module in HR module rolled out in Improving controls and HR module rolled out in the Integrated Payroll 12 core MDAs covering efficiency in the civil service 34 core MDAs covering all and Personnel all staff grades 12 and payroll (PBC 6) (Text) staff grades 12 and above Information System above (IPPIS) is not activated. Rationale: Action: This indicator has been The timing of the end target was aligned with the new closing date of the project December 31, 2023. Revised Improving Economic and Fiscal Statistics Sample censuses on agriculture and business completed and published; Generated and updated Field work for the No agriculture and Business Sample Census 1st, 2nd, 3rd and 4th statistical datasets (PBC /DLI 7) Agriculture census listing business census completed quarterly rounds of labor (Text) completed force survey for completed; field work for the Nigeria Living 29 The World Bank Fiscal Governance and Institutions Project (P163540) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Standards Survey completed. National Strategy on Development of Statistics (NSDS) for 2024-2028 is approved by NBS board. Rationale: The timing of the end target was aligned with the new closing date of the project December 31, 2023. Action: This indicator has been New milestones has been added to reflect new IRs 7.8 and 7.9 on the 3rd and 4th rounds of Labor Force Survey and IR 7.10 on the development and approval Revised of the National Strategy on Development of Statistics (NSDS) for 2024-2028. Gender-disaggregated data on land and business ownership No No No Yes Yes Yes collected and published (Yes/No) Rationale: Action: This indicator has been The timing of the end target has been aligned with the new project closing date of December 31, 2023. Revised IO Table SPACE 30 The World Bank Fiscal Governance and Institutions Project (P163540) Performance-Based Conditions Matrix DLI IN01298428 ACTION PBC 1 Regular internal and external audit reports completed Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 7,000,000.00 0.00 Period Value Allocated Amount (USD) Formula No external revenue audits; occasional internal Baseline audits June 30, 2019 0.00 June 30, 2020 0.00 1.1. Revenue assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2017 completed (US$1 mln.); 1.2. Revenue June 30, 2021 2,000,000.00 Pass/Fail assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2018 completed (US$1 mln.). 1.3. Revenue assurance audit of Main Income Generating Agencies (including FIRS and NCS) for June 30, 2022 2,000,000.00 Pass/Fail 2019 completed (US$1 mln.); 1.4. IT audit of ITAS and ASYCUDA or NICIS for FY 2019 (US$1 mln.). 1.5. Revenue assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2020 completed (US$1 mln.); 1.6. Revenue December 31, 2022 3,000,000.00 Pass/Fail assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2021 completed (US$1 mln.); 1.7. IT audit of ITAS and 31 The World Bank Fiscal Governance and Institutions Project (P163540) ASYCUDA or NICIS for FY 2021 completed (US$1 mln.). July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 Action: This PBC has been Revised. See below. DLI IN01301122 ACTION PBC 1 Regular internal and external audit reports completed Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 6,500,000.00 0.00 Period Value Allocated Amount (USD) Formula No external revenue audits; occasional internal Baseline audits June 30, 2019 0.00 June 30, 2020 0.00 1.1. Revenue assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2017 completed (US$1 mln.); 1.2. Revenue June 30, 2021 1,500,000.00 Pass/Fail assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2018 completed (US$1 mln.). 1.3. Revenue assurance audit of Main Income June 30, 2022 2,000,000.00 Pass/Fail Generating Agencies (including FIRS and NCS) for 32 The World Bank Fiscal Governance and Institutions Project (P163540) 2019 completed (US$1 mln.); 1.4. IT audit of ITAS and ASYCUDA or NICIS for FY 2019 (US$1 mln.). 1.5. Revenue assurance audit of Main Income Generating Agencies (including FIRS and NCS) for 2020 completed (US$1 mln.); 1.6. Revenue assurance audit of Main Income Generating December 31, 2022 3,000,000.00 Pass/Fail Agencies (including FIRS and NCS) for 2021 completed (US$1 mln.); 1.7. IT audit of ITAS and ASYCUDA or NICIS for FY 2021 completed (US$1 mln.). July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 Rationale: The PBC 1.1 was verified and confirmed only partially achieved, hence a portion of the total allocation was authorized for disbursement. DLI IN01298433 ACTION PBC 2 Revenue analyses institutionalized at FMFBNP Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 7,500,000.00 0.00 Period Value Allocated Amount (USD) Formula Occasional and inadequate revenue analysis; Baseline weak revenue models June 30, 2019 0.00 33 The World Bank Fiscal Governance and Institutions Project (P163540) June 30, 2020 0.00 2.1 Tax expenditure analysis completed (US$1 mln.); 2.2 A system for SOEs and parastatals June 30, 2021 budget monitoring and financial performance 2,000,000.00 Pass/Fail management is completed and functioning (US$1 mln.). June 30, 2022 0.00 2.3 Cost-benefit analysis of tariff incentives on import and export duties completed (US$1.5 mln.); 2.4 FMFBNP (TSD) formally sends the draft Tax Codification and Simplification Bill document (through a Memo) to the Federal Ministry of Justice to prepare a Draft Tax Codification and December 31, 2022 5,500,000.00 Pass/Fail Simplification Bill (US$2 mln.); 2.5 Review of customs tariffs from the perspective of regional trade integration: impact analysis of the harmonization of exemptions; impact analysis of the Continental Free Trade Agreement completed (US$2 mln.). July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 34 The World Bank Fiscal Governance and Institutions Project (P163540) DLI IN01298436 ACTION PBC 3 Enhanced functionality of the financial management information systems Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 18,000,000.00 0.00 Period Value Allocated Amount (USD) Formula GIFMIS payment controls and cash management Baseline modules not operational June 30, 2019 0.00 June 30, 2020 0.00 June 30, 2021 0.00 3.1 Pilot implementation of bottom-up cash planning policy in MDAs covering 30 percent of MDAs (US$5 mln.); 3.3 Submission of final FY2021 June 30, 2022 10,000,000.00 Pass/Fail general purpose financial statements of the federation for audit no later than June 30, 2022 (US$5 mln.). 3.2 Approval of policy for bottom-up cash planning for roll-out across FGN (US$1 mln.); 3.4 Migration of legacy assets and inventory items in the GIFMIS application for 85% coverage of assets December 31, 2022 8,000,000.00 Pass/Fail and inventory (US$2 mln.); 3.5 Implementation of commitment controls and cash management GIFMIS module covering 50 % of MDAs (US$5 mln.). July 31, 2023 0.00 35 The World Bank Fiscal Governance and Institutions Project (P163540) October 30, 2023 0.00 December 31, 2023 0.00 Action: This PBC has been Revised. See below. DLI IN01298893 ACTION PBC 3 Enhanced functionality of the financial management information systems Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 14,500,000.00 0.00 Period Value Allocated Amount (USD) Formula GIFMIS payment controls and cash management Baseline modules not operational June 30, 2019 0.00 June 30, 2020 0.00 3.3. Submission of final FY2021 general purpose June 30, 2021 financial statements of the federation for audit no 0.00 dropped later than June 30, 2022. 3.1 Pilot implementation of bottom-up cash June 30, 2022 planning policy in MDAs covering 30 percent of 5,000,000.00 Pass/Fail MDAs (US$5 mln.) 3.2 Approval of policy for bottom-up cash planning for roll-out across FGN (US$1 mln.); 3.3 Migration of legacy assets and inventory items in December 31, 2022 8,000,000.00 Pass/Fail the GIFMIS application for 85% coverage of assets and inventory (US$2 mln.); 3.4 Implementation of commitment controls and cash management 36 The World Bank Fiscal Governance and Institutions Project (P163540) GIFMIS module covering 50 % of MDAs (US$5 mln.). 3.5 OAGF publishes no later than July 30, 2023, and maintains on the Open Treasury Portal for FY2023 Q1 and Q2. a. Daily Payment Reports covering payments of at least NGN10 million outlining the MDA responsible, the beneficiary, July 31, 2023 purpose and amount of each payment. b. Monthly 500,000.00 Pass/fail Budget Performance Reports generated by GIFMIS by MDAs, functions and economic activities performed, by all Federal Government Agencies c. Monthly Fiscal Accounts. d. Unaudited consolidated quarterly financial statements. 3.6 OAGF publishes and maintains on the Open Treasury Portal for FY2023 Q3. a. Monthly Treasury Statements within 14 days of the end of the month. b. Daily Payment Reports covering payments of at least NGN10 million outlining the MDA responsible, the beneficiary, purpose and amount of each payment. c. Monthly Budget October 30, 2023 Performance Reports generated by GIFMIS, within 500,000.00 Pass/Fail 7 days of the end of the month by MDAs, functions and economic activities performed, by all Federal Government Agencies d. Monthly Fiscal Accounts within 14 days of the end of the month. e. Unaudited consolidated quarterly financial statements, within 30 days of the end of the quarter. 3.7 OAGF publishes and maintains on the Open Treasury Portal for FY2023 Q4. a. Monthly December 31, 2023 500,000.00 Pass/Fail Treasury Statements within 7 days of the end of the month. b. Automated Daily Payment Reports 37 The World Bank Fiscal Governance and Institutions Project (P163540) covering payments of at least NGN10 Million outlining the MDA responsible, the beneficiary, purpose and amount of each payment. c. Monthly Budget Performance Reports generated by GIFMIS, within 7 days of the end of the month by MDAs, functions and economic activities performed, by all Federal Government Agencies d. Monthly Fiscal Accounts, generated fully by GIFMIS within 14 days of the end of the month. e. Unaudited quarterly financial statements by MDA and unaudited consolidated quarterly financial statements, within 30 days of the end of the quarter. AND Accountant General of the Federation issues a Treasury/Finance Circular requiring Government-owned Enterprises to publish and maintain Audited Financial Statements on their websites within the statutory timeline. Rationale: The PBC 3.3 was dropped because the PBC was not achieved by the target date. The OAGF proposed new 3 PBCs which were valued at US$ 500,000 each. The new PBCs will support policy on fiscal transparency and timely reporting. DLI IN01298439 ACTION PBC 4 Strengthened monitoring and evaluation of public investment projects Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 7,000,000.00 0.00 Period Value Allocated Amount (USD) Formula PIM guideline as an annex to the budget circular Baseline is not in place 38 The World Bank Fiscal Governance and Institutions Project (P163540) June 30, 2019 0.00 June 30, 2020 0.00 4.1 Adoption by the Budget Office of the June 30, 2021 Federation of a guideline for PIM, as an annex to 3,000,000.00 Pass/Fail its 2022 Budget Circular (US$3 mln.) June 30, 2022 0.00 4.2. Compliance rate with PIM guidelines in at least two MDAs with largescale capital budgets (US$1.5 mln.); 4.3. Deployment of a National Budget Portal to publish Government of Nigeria’s (FGN and at least 20 States) approved capital December 31, 2022 4,000,000.00 Pass/Fail projects (including supplementary budgets, if any) (US$1 mln.); 4.4. (a) Deploy GIFMIS capital/project module in 10 MDAs (US$1 mln.) (b) BOF implements capital project tracking system for 10 MDAs (US$0.5 mln.) July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 DLI IN01298440 ACTION PBC 5 MDAs in compliance with improved procurement standards Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 10,000,000.00 0.00 Period Value Allocated Amount (USD) Formula 39 The World Bank Fiscal Governance and Institutions Project (P163540) e-GP modules are not developed and used by Baseline MDAs. June 30, 2019 0.00 June 30, 2020 0.00 5.1. Signing of e-GP contract awarded through open competition to develop and deploy registration module, procurement plan & advert module, tendering module, evaluation & award June 30, 2021 module, e-GP admin module, reporting module, 2,000,000.00 Pass/Fail e-learning module, contract management module, catalogue module, e-framework agreement, procurement management information system module, in 10 pilot MDAs. 5.2. e-GP modules rolled out to 10 pilot MDAs: i) registration, ii) procurement plan & advert, iii) June 30, 2022 catalogue, iv) e-framework agreement tendering, 3,000,000.00 Pass/Fail iv) evaluation & award, v) e-GP admin, vi) reporting 5.3. e-GP modules rolled out to pilot MDAs: i) registration, ii) procurement plan & advert, iii) catalogue, iv) e-framework agreement iii) tendering, iv) evaluation & award, v) e-GP admin, vi) reporting; vii) e-learning, viii) contract management, ix) tendering, x) evaluation & December 31, 2022 5,000,000.00 Pass/Fail award, ix) catalogue, x) e-framework agreement, xi) procurement management information system.IR 5.4. Stretch targets – (a) All modules rolled out in the pilot MDA and integrated with GIFMIS (US$0.5 mln.) (b) All modules rolled out in the pilot MDAs and integrated with Open 40 The World Bank Fiscal Governance and Institutions Project (P163540) Contracting Standards (US$0.5 mln.) (c) All modules rolled out in the pilot MDAs and integrated with Beneficial Ownership (US$0.5 mln.) July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 Action: This PBC has been Revised. See below. DLI IN01299017 ACTION PBC 5 MDAs in compliance with improved procurement standards Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 2,000,000.00 100.00 Period Value Allocated Amount (USD) Formula e-GP modules are not developed and used by Baseline MDAs. June 30, 2019 0.00 June 30, 2020 0.00 5.1. Signing of e-GP contract awarded through open competition to develop and deploy registration module, procurement plan & advert June 30, 2021 module, tendering module, evaluation & award 2,000,000.00 Pass/Fail module, e-GP admin module, reporting module, e- learning module, contract management module, catalogue module, e-framework agreement, 41 The World Bank Fiscal Governance and Institutions Project (P163540) procurement management information system module, in 10 pilot MDAs. 5.2. e-GP modules rolled out to 10 pilot MDAs: i) registration, ii) procurement plan & advert, iii) June 30, 2022 catalogue, iv) e-framework agreement tendering, 0.00 Dropped iv) evaluation & award, v) e-GP admin, vi) reporting. 5.3. e-GP modules rolled out to pilot MDAs: i) registration, ii) procurement plan & advert, iii) catalogue, iv) e-framework agreement iii) tendering, iv) evaluation & award, v) e-GP admin, vi) reporting; vii) e-learning, viii) contract management, ix) tendering, x) evaluation & award, ix) catalogue, x) e-framework agreement, xi) procurement management information December 31, 2022 0.00 Dropped system.IR 5.4. Stretch targets – (a) All modules rolled out in the pilot MDA and integrated with GIFMIS (US$0.5 mln.) (b) All modules rolled out in the pilot MDAs and integrated with Open Contracting Standards (US$0.5 mln.) (c) All modules rolled out in the pilot MDAs and integrated with Beneficial Ownership (US$0.5 mln.) July 31, 2023 0.00 October 30, 2023 0.00 December 31, 2023 0.00 Rationale: 42 The World Bank Fiscal Governance and Institutions Project (P163540) PBC 5.1 has been achieved and disbursed against, however, the PBC 5.2 and 5.3 cannot be achieved during the project extension period and these have been marked to be dropped. The team may reconsider including these results in the project during the next restructuring if all outstanding contract management issues have been resolved. The allocation against these results will be reflowed back to the unallocated envelope. DLI IN01298441 ACTION PBC 6 Improving controls and efficiency in the civil service payroll Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome Yes Text 3,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Human Resources (HR) Management module in Baseline the Integrated Payroll and Personnel Information System (IPPIS) is not activated. June 30, 2019 0.00 June 30, 2020 0.00 June 30, 2021 0.00 6.1. HR module rolled out in 12 core MDAs June 30, 2022 1,000,000.00 Pass/Fail covering all staff grades 12 and above (US$1 mln.) 6.2. HR module rolled out in additional 11 core MDAs covering all staff grades 12 and above December 31, 2022 (US$1 mln.); 6.3. HR module rolled out in 2,000,000.00 Pass/Fail additional 11 core MDAs covering all staff grades 12 and above (US$1 mln.). July 31, 2023 0.00 October 30, 2023 0.00 43 The World Bank Fiscal Governance and Institutions Project (P163540) December 31, 2023 0.00 DLI IN01298442 ACTION PBC 7 Generated and validated statistical datasets Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 23,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Baseline No agriculture and business census June 30, 2019 0.00 June 30, 2020 0.00 7.1. Business Sample Census completed (US$10 June 30, 2021 10,000,000.00 Pass/Fail mln.) 7.2. 1st round Labor Force Survey completed June 30, 2022 (US$0.5 mln.); 7.3 Field work for the Agriculture 6,500,000.00 Pass/Fail census listing completed (US$6 mln.) 7.4. Agriculture sample census completed (US$2 December 31, 2022 2,000,000.00 Pass/Fail mln.) 7.5. 2nd round of labor force survey for completed (US$0.5 mln.); 7.6. Field work for the July 31, 2023 4,500,000.00 Pass/Fail Nigeria Living Standards Survey completed (US$4 mln.) October 30, 2023 0.00 December 31, 2023 0.00 Action: This PBC has been Revised. See below. 44 The World Bank Fiscal Governance and Institutions Project (P163540) DLI IN01301185 ACTION PBC 7 Generated and validated statistical datasets Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 25,100,000.00 63.75 Period Value Allocated Amount (USD) Formula Baseline No agriculture and business census June 30, 2019 0.00 June 30, 2020 0.00 7.1. Business Sample Census completed (US$10 June 30, 2021 10,000,000.00 Pass/Fail mln.) 7.2. 1st round Labor Force Survey completed June 30, 2022 (US$0.5 mln.); 7.3 Field work for the Agriculture 6,500,000.00 Pass/Fail census listing completed (US$6 mln.) 7.4. Agriculture sample census completed (US$2 December 31, 2022 2,000,000.00 Pass/Fail mln.) 7.5. 2nd round of labor force survey for completed July 31, 2023 500,000.00 Pass/Fail (US$0.5 mln.) 7.6 Second half of the field work for the Nigeria Living Standards Survey completed (US$2.7) October 30, 2023 4,000,000.00 Pass/Fail 7.7Second half of the field work for the Nigeria Living Standards Survey completed (US$1.3) 7.8 3rd round of Labor Force Survey completed (US$0.7) 7.9 4th round of Labor Force Survey December 31, 2023 completed (US$0.7) 7.10 National Strategy on 2,100,000.00 Pass/Fail Development of Statistics (NSDS) for 2024-2028 approved by NBS board (US$0.7) 45 The World Bank Fiscal Governance and Institutions Project (P163540) Verification Protocol Table: Performance-Based Conditions DLI_TBL_VERIFICATION PBC 1 Regular internal and external audit reports completed Five regular audits completed annually include revenue assurance audit of FIRS and NCS. Two regular audits completed Description annually include IT audit of ITAS & ASYCUDA/ NICIS. OAuGF audit reports Data source/ Agency World Bank, IVA Verification Entity For audit reports 2017 and 2018 OAuGF submits completed reports to the World Bank. World Bank verifies report completion and availability according to verification protocol in POM. Procedure For audit reports 2019-2021 OAuGF submits completed reports to the World Bank and IVA. IVA verifies report completion and availability according to verification protocol in POM. World Bank reviews IVA report and validates achievements. DLI_TBL_VERIFICATION PBC 1 Regular internal and external audit reports completed Five regular audits completed annually include revenue assurance audit of FIRS and NCS. Two regular audits completed Description annually include IT audit of ITAS & ASYCUDA/ NICIS. OAuGF audit reports Data source/ Agency World Bank, IVA Verification Entity For audit reports 2017 and 2018 OAuGF submits completed reports to the World Bank. World Bank verifies report completion and availability according to verification protocol in POM. Procedure For audit reports 2019-2021 OAuGF submits completed reports to the World Bank and IVA. IVA verifies report completion and availability according to verification protocol in POM. World Bank reviews IVA report and validates achievements. 46 The World Bank Fiscal Governance and Institutions Project (P163540) DLI_TBL_VERIFICATION PBC 2 Revenue analyses institutionalized at FMFBNP Revenue analyses institutionalized at FMFBNP through completion of the following: 2.1. Tax expenditure analysis for 2019 and 2020; 2.2. A system for SOEs and parastatals budget monitoring and financial performance management is completed and functioning; 2.3. Cost-benefit analysis of tariff incentives on import and export duties; 2.4. drafting of the Tax Description Codification and Simplification Bill; and IR 2.5. Review of customs tariffs from the perspective of regional trade integration: impact analysis of the harmonization of exemptions; impact analysis of the Continental Free Trade Agreement. FMFBNP (TSD) and BOF reports Data source/ Agency World Bank, IVA Verification Entity TSD and BOF submit reports with completed analysis on result 2.1 to the World Bank. World Bank verifies completion of the analysis based on verification protocol in POM. Procedure TSD and BOF submit reports to the World Bank and IVA. IVA verifies completion of analysis on results 2.2-2.5 based on verification protocol in POM. World Bank reviews IVA report and validates achievements. DLI_TBL_VERIFICATION PBC 3 Enhanced functionality of the financial management information systems Implementation of commitment controls and cash management GIFMIS module covering 50 % of MDAs. Description OAGF annual report, GIFMIS in MDAs Data source/ Agency World Bank, IVA Verification Entity 3.1., 3.4. and 3.4. OAGF notifies the World Bank and IVA about the achievements under IRs. IVA verifies GIFMIS functionalities based on verification protocol in POM. World Bank reviews IVA report and validates achievements. 3.2. OAGF submits the approved policy for bottom-up cash planning for roll-out across FGN to the World Bank. World Bank Procedure verifies the availability of the approved policy. 3.3. OAGF submits to the World Bank evidence on the submission no later than June 30, 2022 of final FY2021 general purpose financial statements of the federation for audit. World Bank verifies the evidence of submission. 47 The World Bank Fiscal Governance and Institutions Project (P163540) DLI_TBL_VERIFICATION PBC 3 Enhanced functionality of the financial management information systems Implementation of commitment controls and cash management GIFMIS module covering 50 % of MDAs. The new PBCs will Description support policy on fiscal transparency and timely reporting. OAGF annual reports, GIFMIS in MDAs Data source/ Agency World Bank, IVA Verification Entity 3.1. - 3.7 OAGF notifies the World Bank and IVA about the achievements under IRs. IVA verifies GIFMIS functionalities based on verification protocol in POM. World Bank reviews IVA report and validates achievements. Procedure DLI_TBL_VERIFICATION PBC 4 Strengthened monitoring and evaluation of public investment projects Strengthened monitoring and evaluation of public investment projects through: 4.1 Adoption by the Budget Office of the Federation of a guideline for PIM, as an annex to its 2022 Budget Circular; 4.2. Compliance rate with PIM guidelines in at least two MDAs with largescale capital budgets; 4.3. Deployment of a National Budget Portal to publish Government of Description Nigeria’s (FGN and at least 20 States) approved capital projects (including supplementary budgets, if any); 4.4. (a) Deployment of GIFMIS capital/project module in 10 MDAs; (b) BOF implements capital project tracking system for 10 MDAs. BOF reports and regulation Data source/ Agency World Bank, IVA Verification Entity 4.1. BOF submits adopted by the BOF a guideline for PIM, as an annex to its 2022 Budget Circular to World Bank for verification. World Bank verifies the achievement of IR based on verification protocol in POM. Procedure 4.2-4.4. BOF submits evidence of the achievement to the World Bank and IVA. IVA verifies the achievement of IRs based on verification protocol in POM. World Bank reviews IVA report and validates achievements. 48 The World Bank Fiscal Governance and Institutions Project (P163540) DLI_TBL_VERIFICATION PBC 5 MDAs in compliance with improved procurement standards The following e-GP modules rolled out to 10 pilot MDAs: i) Registration, ii) Procurement Plan & Advert, iii) Tendering, iv) Evaluation & Award, v) e-GP Admin, vi) Reporting; vii) E-Learning, viii) Contract Management, ix) Catalogue, x) e-Framework Description Agreement, xi) Procurement Management Information System. Stretch targets: All modules in the pilot MDA are integrated with GIFMIS, Open Contracting Standards and a module for Disclosure of Beneficial Ownership. BPP annual report, eGP in pilot MDAs Data source/ Agency Verification Entity IVA For 5.1 BPP notifies and submits evidence of IR achievement to the World Bank. World Bank verifies the achievement of IR based on verification protocol in POM. For 5.2 - 5.4 BPP notifies the World Bank and IVA about the achievement of IRs. IVA verifies eGP functionalities based on Procedure verification protocol in POM in 10 pilot MDAs. World Bank reviews IVA report and validates achievements. DLI_TBL_VERIFICATION PBC 5 MDAs in compliance with improved procurement standards The following e-GP modules rolled out to 10 pilot MDAs: i) Registration, ii) Procurement Plan & Advert, iii) Tendering, iv) Evaluation & Award, v) e-GP Admin, vi) Reporting; vii) E-Learning, viii) Contract Management, ix) Catalogue, x) e-Framework Description Agreement, xi) Procurement Management Information System. Stretch targets: All modules in the pilot MDA are integrated with GIFMIS, Open Contracting Standards and a module for Disclosure of Beneficial Ownership. BPP annual report, eGP in pilot MDAs Data source/ Agency Verification Entity IVA For 5.1 BPP notifies and submits evidence of IR achievement to the World Bank. World Bank verifies the achievement of IR based on verification protocol in POM. Procedure 49 The World Bank Fiscal Governance and Institutions Project (P163540) DLI_TBL_VERIFICATION PBC 6 Improving controls and efficiency in the civil service payroll Improved controls and efficiency in the civil service payroll through a roll out of IPPIS HR module in 34 core MDAs. HR module "roll out" means that HR records for all staff grades 12 and above have been verified; discrepancy between payroll records and HR records have been confirmed; reviewed and approved staff records have been uploaded onto the EBS Description Platform [Oracle IPPIS]. MDA Users implement the following processes through IPPIS: (i) Preparation of Variation Advice; (ii) Employee employment status update approval (cadre, rank, Pension Fund Administrator- PFA); (iii) Employee Self Service profile approval and (iv) Generate Leave plan/roster and report. OHCSF reports, IPPIS HR Module in MDAs Data source/ Agency IVA Verification Entity OHCSF notifies the World Bank and IVA about the achievement of IRs. IVA verifies HR Module functionalities in selected Procedure MDAs based on verification protocol in POM. World Bank reviews IVA report and validates achievements. DLI_TBL_VERIFICATION PBC 7 Generated and validated statistical datasets The indicator will measure completion of the following statistical datasets, census and surveys: Business Sample Census; 1st and 2nd rounds Labor Force Survey 2022; Agriculture sample census completed; field work for the Nigeria Living Standards Description Survey. Data source/ Agency NBS reports World Bank, IVA Verification Entity 7.1., 7.5. and 7.6. NBS submits reports on surveys to World Bank for verification. World Bank reviews the reports and verifies the achievement of IRs based on verification protocols in POM. Procedure IRs 7.2 – 7.4. NBS submits reports on surveys to World Bank and IVA for verification. IVA reviews the reports and verifies the achievement of IRs based on verification protocols in POM. World Bank reviews IVA report and validates achievements. 50 The World Bank Fiscal Governance and Institutions Project (P163540) DLI_TBL_VERIFICATION PBC 7 Generated and validated statistical datasets The indicator will measure completion of the following statistical datasets, census and surveys: Business Sample Census; 1st, 2nd, 3rd and 4th quarterly rounds Labor Force Survey 2022-2023; Agriculture sample census completed; field work for the Nigeria Living Standards Survey. Description In addition, it will measure the development and approval by NBS board of the National Strategy on Development of Statistics (NSDS) for 2024-2028. Data source/ Agency NBS reports World Bank, IVA Verification Entity IRs 7.1 and 7.3. NBS submits reports on surveys to World Bank for verification. World Bank reviews the reports and verifies the achievement of IRs based on verification protocols in POM. Procedure IRs 7.2, 7.4. – 7.10. NBS submits reports to World Bank and IVA for verification. IVA reviews the reports and verifies the achievement of IRs based on verification protocols in POM. World Bank reviews IVA report and validates achievements. 51 The World Bank Fiscal Governance and Institutions Project (P163540)