The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) WESTERN AND CENTRAL AFRICA | Nigeria | Finance, Competitiveness and Innovation Global Practice | Requesting Unit: AWCW2 (6548) | Responsible Unit: EAWF2 (9779) IBRD/IDA | Program-for-Results Financing | FY 2023 | Team Leader(s): Ruchita Manghnani, Bertine Kamphuis Seq No: 5 | Archived on 04-Sep-2024 | ISR01504 | Created by: Ruchita Manghnani on 13-Aug-2024 | Modified by: Mistre Hailemariam Mekuria on 03-Sep-2024 1. PROJECT DEVELOPMENT OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 28-Sep-2022) The Program Development Objective (PDO) is to improve (1) the efficiency of land administration, (2) the regulatory framework for private investment in fiber optic infrastructure, (3) services provided by investment promotion agencies and public-private partnership units, and (4) the efficiency and transparency of government-to-business services in participating states. 2. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 3. KEY ISSUES & STATUS 3.1 Implementation Status and Key Decisions External Borrowing Plan (EBP): The EBP was amended in December 2023 to include SABER. Disbursement Against Prior Results (PR): The verification of PR by the Independent Verification Agency (IVA) consultants has been completed. Twenty-eight states met the Eligibility Criteria (EC), twenty-two states achieved the PR under DLI1, twenty-two states achieved the PR under DLI4, ten states achieved the PR under DLI5, and twenty-one states achieved the PR under DLI6. In total, twenty-three states are qualified to receive program funds for the PR achievement (total of SDR 52,136,400.00), subject to the signing of the SLAs between the Federal Government of Nigeria and the states. Deadlines for Year 1 (2023) DLIs and EC have passed. Sixteen states leveraged Technical Assistance (TA) for DLI1.1; seven states for DLI1.2; twelve states for DLI2; nine states for DLI3; fifteen states for DLI4; thirteen states for DLI5; fifteen states for DLI6; ten states for DLI7.1; and twenty-six states for DLI8. Sep 04, 2024 Page 1 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Progress on Year 2 (2024) ECs and DLIs: Deadlines for four of the five Year 2 EC have passed. Thirty-two states have published the 2023 Progress Report by July 31, 2024; thirty-six states published the Annual FY23 audited financial statement by July 31, 2024; thirty-five states published the Annual FY24 state budget by January 31, 2024; and 36 states (and FCT) published the annual State Debt Sustainability Analysis and Debt Management Strategy Report (SDSA-DMSR) by December 31, 2023. The deadline for the preparation, approval and publication of State Business Enabling Reforms Action Plan (BERAP) 2025 is December 31, 2024. TA for DLIs 1.2, 2 and 7 is ongoing and TA for other DLIs is being initiated by the TA providers. 4. DATA ON FINANCIAL PERFORMANCE 4.1 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-72090 Effective 750.00 750.00 0.00 1.98 743.01 0.26% 4.2 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-72090 Effective 29-Sep-2022 06-Jan-2023 14-Jun-2023 31-May-2026 31-May-2026 4.3 Program Action Plan Hire qualified Environmental and Social Officers at the PCU and provide capacity Action Description building/system strengthening program to strengthen their skills. Source DLI# Responsibility Timing Timing Value Status Environmental and NA PCU Due Date 28-Jun-2024 Delayed Social Systems Inclusion of the listed specialist in the team and maintained throughout the Program Completion implementation; and Training Module and Implementation Support Supervision Report of Measurement World Bank Task team. The Environment Specialist has been seconded from the Environmental Assessment (EA) Comments Department. The hiring of the Social Specialist is ongoing. Action Description Inclusion of E&S considerations in PPP framework for participating states in DLI3. Sep 04, 2024 Page 2 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Source DLI# Responsibility Timing Timing Value Status Environmental and 4 PCU Due Date 31-Dec-2024 Not Yet Due Social Systems Completion Published on state’s official website: the PPP legal and institutional framework, including Measurement E&S considerations. Comments Not yet due Include in the Program Operational Manual, E&S guidelines for participating states to Action Description explore core social inclusion activities such as gender, SEP, SEA/H, and protection of the vulnerable groups including OHS, etc. Source DLI# Responsibility Timing Timing Value Status Environmental and 3 PCU Due Date 13-Dec-2023 Delayed Social Systems Completion Completed guidelines disseminated to stakeholders, training provided, and the guidelines Measurement operationalized Delays in onboarding of E&S specialists. To be completed as soon as specialists are Comments onboarded. Action Description Develop e-waste management strategy for managing e-waste result from the program. Source DLI# Responsibility Timing Timing Value Status Environmental and NA PCU Due Date 13-Dec-2023 Delayed Social Systems Completion E-waste management strategy document. Measurement Comments To be updated. Protocol adopted and implemented for reporting, management and investigation of fraud Action Description and corruption allegations operationalized in MDAs implementing SABER Program. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NA PCU Due Date 13-Jul-2023 In Progress Completion Protocol adopted by PCU one month after effectiveness Measurement The timing value is 1 month after effectiveness, which is currently estimated at mid-July, Comments 2023 Sep 04, 2024 Page 3 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Reporting, management and investigation of fraud and corruption allegations Action Description operationalized in MDAs implementing SABER Program. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NA PCU Recurrent Semi-Annually Not Yet Due Completion Report on fraud and corruption allegations submitted twice a year as part of Program Measurement implementation progress report. Comments Not due. Action Description Assignment of Project Accountants and internal auditor to PCU Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NA OAGF/ FPFMD Due Date 13-Sep-2023 Completed Completion Accountants and Internal Auditor assigned Measurement Comments completed Compile data on recurrent expenditures of the relevant MDAs for the participating states, Action Description certified by the OAuGF and an opinion provided. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NA PCU Recurrent Yearly Not Yet Due Completion PCU submitted compiled data on recurrent expenditures certified by OAuGF with an opinion Measurement expressed, within 9 months of the end of fiscal year. Comments Not due Timely transfer of Program funds from the federal to the participating states towards Action Description achievement of DLIs Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NA PCU Recurrent Continuous Not Yet Due Service standard of 14 days to be established in the PIM; Completion States’ share of funds received in the Special Fund Account (part of TSA) at the federal level Measurement are transferred to the States’ accounts within 14 days. Comments Not yet due Sep 04, 2024 Page 4 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) 5. KEY DATES Key Events Planned Actual Approval 29-Sep-2022 29-Sep-2022 Effectiveness 30-Jun-2023 14-Jun-2023 Mid-Term Review No. 01 13-Jun-2025 Operation Closing/Cancellation 31-May-2026 6. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 04 - 09 May Proposed Rating 29 Sep 2022 2024 Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High High High Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Low Low Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Sep 04, 2024 Page 5 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) 7. RESULTS 7.1 PDO Indicators by PDO Outcomes Improved land administration and land-based investment process Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States with at least 50% of 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 10.00 Dec/2025 Certificates of Occupancy (CofOs) issued and duly registered since 01 January 2012 digitized and indexed in accordance with international good standards. (Number) DLI Improved regulatory framework for private investment in fiber optic infrastructure Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States adopting aggregate 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 20.00 Dec/2025 fees for broadband deployment on a per linear basis at a maximum of NGN 145 per meter (Number) DLI Improved services provided by investment promotion agencies and public-private partnership units Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States that establish an IPA 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 15.00 Dec/2025 performing the key functions Sep 04, 2024 Page 6 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) of Marketing, Information, Assistance and Advocacy. (Number) States that establish a PPP 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 12.00 Dec/2025 coordinating unit mandated to facilitate PPPs and that has publicly disclosed their PPP pipeline projects on a portal. (Number) Improved efficiency and transparency of government-to-business services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States in which all state-level 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 20.00 Dec/2025 and local government taxes, levies, and fees from businesses can be paid electronically (Number) DLI States in which fees, 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 10.00 Dec/2025 procedures, and service delivery timelines of five key business-enabling environment State-level MDAs are published on a website. (Number) DLI 7.2 Intermediate Results Indicators by Results Areas Improved land administration and land-based investment process Sep 04, 2024 Page 7 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States with at least 90% of 0.00 Dec/2021 0.00 29-Dec-2022 0.00 29-Dec-2022 10.00 Dec/2025 new CofOs registered during 2025, digitized and indexed, with 15% increase in share of female-owned or co-owned (Number) States adopting a Framework 0.00 Dec/2021 0.00 29-Dec-2022 0.00 29-Dec-2022 7.00 Dec/2024 for Responsible Investment in Land-Intensive Agriculture (FRILIA), or equivalent, through a State Executive Order. (Number) Improved regulatory framework for private investment in fiber optic infrastructure Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States with approved Right of 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 20.00 Dec/2024 Way (ROW)-related requests published on state official website. (Number) Improved services provided by investment promotion agencies and public-private partnership units Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States that adopted (a) a PPP 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 12.00 Dec/2024 legal and institutional framework and (b) a PPP Fiscal Commitment and Sep 04, 2024 Page 8 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Contingent Liability (FCCL) framework. (Number) Improved efficiency and transparency of government-to-business services Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year States that publish schedule 0.00 May/2022 21 05-Jan-2023 21 05-Jan-2023 17.00 Dec/2023 of trade related fees and levies on inter-state movement of goods on a state website (Number) States in which inventory of 0.00 May/2022 22 05-Jan-2023 22 05-Jan-2023 15.00 Dec/2023 all investment incentives (Federal and State) available in the State are published on a state website (Number) States with at least a 10% 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 12.00 Dec/2024 increase in the number of firms in the state that obtained export certificates from NEPC (Number) DLI States that adopted 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 16.00 Dec/2025 presumptive turnover tax regime for small businesses, and subsumed business- related local government charges into a consolidated demand notice. (Number) States that established at 0.00 May/2022 0.00 29-Dec-2022 0.00 29-Dec-2022 20.00 Dec/2024 least two small claims courts Sep 04, 2024 Page 9 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) having tried at least one case each. (Number) DLI 7.3 Disbursement Linked Indicators (DLI) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date 1.1.4 Published on state official website: (i) the process for obtaining CofO including all relevant MDAs, time frames and costs; (ii) the 1:Improved process for obtaining efficiency in Construction Permits property including all relevant registration and Value 0 0 29-Dec-2022 0 29-Dec-2022 MDAs, time frames sustainability of the and costs; AND1.1.4 land-based New CofOs registered investment process during 2025 (1 (Text) January 2025 to 31 December 2025) digitized and indexed on an ongoing basis in accordance with international good standards as Sep 04, 2024 Page 10 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) established in the TOR meets target: Target: At least 90% of new CofOs registered; AND15% increase from 2021 to 2025 in the share of CofOs registered per year that are female owned or joint/co- owned.1.2.2 FRILIA, or equivalent, under satisfactory implementation with at least 1 pilot investment materialized under FRILIA and as confirmed by a social audit. Allocated 0.00 0.00 30.00 Amount DLI allocation 104.00 2.3 State maintained 2:Improved aggregate per linear regulatory meter fees for framework for Value 0 0 29-Dec-2022 0 29-Dec-2022 broadband private investment deployment, online in fiber optic publication of ROW processes and fees, Sep 04, 2024 Page 11 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) infrastructure and online (Text) publication of approved ROW- related requests;ANDIncrease in total deployed non- Gigabit Passive Optical Network (GPON) fiber optic cable kilometers against 2022 baseline meets target:Basic target: 20-99%Stretch target: >100% Allocated 0.00 0.00 48.00 Amount DLI allocation 108.00 3.3 State-level technical PPP coordination unit/agency maintained;AND 3:Development of State Project an effective PPP Value 0 0 29-Dec-2022 0 29-Dec-2022 Facilitation Fund is framework (Text) established with a minimum funding of 3% of the total pipeline estimated capital investment. Sep 04, 2024 Page 12 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) Allocated 0.00 0.00 20.00 Amount DLI allocation 62.00 4.4 Published on state official website: Inventory of all investment incentives (Federal and State) available in the State and the number of entities receiving State investment incentives; ANDAn aftercare and 4:Improved Value 0 0 0 retention program is Investment adopted as per the 29-Dec-2022 29-Dec-2022 Promotion verification Environment (Text) protocols;ANDThe number of announced investments proactively supported by IPA meets target: Basic target: 1 to 4Stretch target: At least 5 Allocated 0.00 0.00 40.00 Amount DLI allocation 105.00 Sep 04, 2024 Page 13 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) 5.4 Published on state official website(s): fees, procedures, and service delivery timelines of five key BEE State MDAs. ANDGRMs at two key BEE State MDAs are operational and a 5:Increased minimum of 75% of Value 0 0 0 transparency of grievances received 29-Dec-2022 29-Dec-2022 are addressed within official fees and procedures (Text) the specified SLAs. ANDPublish at least on a monthly basis on state official website(s): compliance with SLAs of five key BEE State MDAs. Allocated 0.00 0.00 20.00 Amount DLI allocation 60.00 6.1.4 Published on 6:Increased state official website: transparency of schedule of trade fees and levies for Value 0 0 29-Dec-2022 0 29-Dec-2022 related fees and inter-state trade levies on inter-state and increased movement of goods; Sep 04, 2024 Page 14 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) exporter AND report on certification (Text) complaints from traders and redress actions;AND A minimum of 75 percent of grievances received in the GRM are addressed within the specified service level agreements; ANDEliminated haulage fees and charges. 6.2.3 At least 20% increase in firms in the state that obtained export certificates from NEPC from the baseline year (2021). Allocated 0.00 0.00 30.00 Amount DLI allocation 89.00 7.1 State amended existing legislation or passed new 7:Simplified state legislation to adopt and local business Value 0 0 29-Dec-2022 0 29-Dec-2022 presumptive turnover tax regimes (Text) tax regime for small businesses; AND, (b) State subsumed Sep 04, 2024 Page 15 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) business-related local government charges/fees/taxes into a consolidated demand notice (one- time payment for year in which DLR is first achieved, up to Year 3) 7.2.2 All State- level and local government taxes, levies, and fees from businesses can be paid electronically; and there is an adoption rate of: Basic target: At least 33% of State collection of taxes, levies, and fees from businesses Stretch target: At least 66% of State collection of taxes, levies, and fees from businesses. Allocated 0.00 0.00 40.00 Amount DLI allocation 122.00 8:Quick 8.3 Monthly Value 0 0 29-Dec-2022 0 29-Dec-2022 determination of performance reports Sep 04, 2024 Page 16 of 17 The World Bank Implementation Status & Results Report Nigeria: State Action on Business Enabling Reforms (SABER) Program (P177442) commercial for small claims court disputes (Text) for 2024 (Jan to Dec 2024) to be made available to the public on state Judiciary’s website by 31 March 2025;AND75% of cases disposed within 60 days as recorded by the time to disposition report; AND75% of judgments executed within 30 days as recorded by the execution reports. Allocated 0.00 0.00 20.00 Amount DLI allocation 80.00 Sep 04, 2024 Page 17 of 17