FOR OFFICIAL USE ONLY Report No: RES49116 INTERNATIONAL DEVELOPMENT ASSOCIATION RESTRUCTURING PAPER ON A PROPOSED PROGRAM RESTRUCTURING OF THE STATES FISCAL TRANSPARENCY, ACCOUNTABILITY AND SUSTAINABILITY PFORR APPROVED ON JUNE 27, 2018 TO THE FEDERAL REPUBLIC OF NIGERIA November 26, 2021 Governance Global Practice Western and Central Africa Region Regional Vice President: Ousmane Diagana Country Director: Shubham Chaudhuri Regional Director: Abebe Adugna Practice Manager: Manuel Antonio Vargas Madrigal Task Team Leaders: Yue Man Lee, Deborah Hannah Isser, Samer Matta The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) ABBREVIATIONS AND ACRONYMS AF Additional Financing IERD International Economic Relation Department AFS Audited Financial Statements IGR Internally Generated Revenue AuGF Auditor-General of the Federation IPF Investment Project Financing BVN Bank Verification Number IPSAS International Public Sector Accounting Standard COVID-19 Action, Response and Economic CARES ISR Implementation Status and Results Report Stimulus CBN Central Bank of Nigeria IVA Independent Verification Agent COVID- Coronavirus Disease KRA Key Result Area 19 CPF Country Partnership Framework M&E Monitoring and Evaluation CY Calendar Year MDA Ministries, Departments and Agencies United Kingdom Department for International DfID MTDS Medium-term Debt Strategy Development DLI Disbursement-linked Indicator NAP National Action Plan DLR Disbursement-linked Result NEC National Economic Council DMO Debt Management Office NGF Nigeria Governors Forum DPF Development Policy Financing OAuGF Office of the Auditor-General for the Federation DSA Debt Sustainability Analysis OBI Open Budget Index ERGP Economic Recovery and Growth Plan 2017-2020 OGP Open Government Partnership ESP Economic Sustainability Plan PAP Program Action Plan ESSA Environmental and Social Assessment PCU Program Coordination Unit EU European Union PDO Program Development Objective FAAC Federation Account Allocation Committee PEF Program Expenditure Framework FCT Federal Capital Territory PFM Public Financial Management FGN Federal Government of Nigeria PforR Program for Results Federal Ministry of Finance, Budget and National FMFBNP PIT Personal Income Tax Planning FRL Fiscal Responsibility Laws POM Program Operations Manual FSP Fiscal Sustainability Plan PPA Public Procurement Authority FX Foreign Exchange PSIN Public Service Institute of Nigeria FY Fiscal Year SBIR State Boards of Internal Revenue States Fiscal Transparency, Accountability and GDP Gross Domestic Product SFTAS Sustainability GFS Government Finance Statistics TA Technical Assistance HFD Home Finance Department (at FMFBNP) TSA Treasury Single Account International Bank for Reconstruction and IBRD VAT Value-added Tax Development IDA International Development Association WBG World Bank Group The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DATA SHEET (States Fiscal Transparency, Accountability and Sustainability PforR - P162009) BASIC DATA Project ID Financing Instrument IPF Component P162009 Program-for-Results Financing Yes Original Environmental Assessment Category (IPF Current Environmental Assessment Category (IPF Component) Component) Not Required (C) Not Required (C) Approval Date Current Closing Date 27-Jun-2018 30-Dec-2022 Organizations Borrower Responsible Agency Federal Republic of Nigeria Federal Ministry of Finance Program Development Objective(s) The Program Development Objective (PDO) is to strengthen the fiscal transparency, accountability and sustainability in the participating states. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Approval Effectiveness Closing Ln/Cr/TF Signing Date Commitment Disbursed Undisbursed Date Date Date IDA-68100 14-Dec-2020 10-Jul-2021 01-Oct-2021 30-Dec-2022 750.00 0 749.63 IDA-62960 27-Jun-2018 12-Feb-2019 03-May-2019 30-Dec-2022 750.00 706.83 32.43 Policy Waiver(s) Does the Program require any waivers of Bank policies applicable to Program-for-Results operations? No Page 1 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) I. PROGRAM STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The SFTAS Program was approved by the Board on June 27, 2018 and became effective on May 3, 2019. Additional Financing of US$750 million for the PforR component was approved by the Board on December 14, 2020 and became effective on October 4, 2021. To date, a total disbursement of US$ 692.7 million has been made from the original US$700 million PforR component (the total DLI allocation in SDR has been fully disbursed). The overall Program targets for the results verified and disbursed so far have been exceeded. The next set of verified results will require financing from the Additional Financing. A total of US$14.12 million has been drawn from the US$50 million TA component by the four implementing agencies with designated accounts: the Program Coordination Unit (PCU) at the Federal Ministry of Finance, Budget and National Planning (FMFBNP), the Open Government Partnership Secretariat (OGP) under the Federal Ministry of Justice (FMJ), the Public Service Institute of Nigeria (PSIN) and the Debt Management Office (DMO). The PCU funds the activities of two implementing partners: the Nigeria Governors Forum (NGF) and the Office of the Auditor-General for the Federation (OAuGF) as the independent verification agent (IVA). Despite delays, the TA has for the most part been very well used to support the achievement of DLIs. Disbursement of the TA component is slower than expected due to implementation delays of some agencies’ workplans and cost savings realized from the use of virtual platforms for capacity building to the States in CY2020 and CY2021 because of COVID-19 related restrictions. 2. Per the latest Implementation Status and Results Report (ISR), dated September 16, 2021, the overall progress towards achievement of the Program Development Objective (DO) is rated as Satisfactory. The PforR component has demonstrated strong results to date with the overall program targets for disbursements exceeded. States have improved their performance during the Program. For example, the 24 eligible States achieved on average 5 results in the 2018 Annual Performance Assessment (APA), while the 32 eligible States achieved on average 8 results each in the 2019 APA. For the 2020 APA, 36 States have achieved the 2020 Eligibility Criteria (EC) having published online IPSAS-compliant FY19 Audited Financial Statements (AFS) by August 31, 2020 and having domesticated the National Chart of Accounts for their FY21 annual budgets published online by January 31, 2021. We expect States to continue to perform well in 2021 - the last performance year – driven by the continued high level of ownership and engagement from States. All 36 States published online FY20 AFS by July 31, 2021 as part of the 2021 EC. 3. Implementation progress is rated as Satisfactory based on the status of progress in the Technical Assistance (TA) component and the rapid and successful implementation of changes introduced through the major Program Restructuring in response to COVID-19. While there are several areas for strengthening, overall, the TA component supported the strong performance on the PforR component with timely technical assistance activities to States and verification of results. Implementation progress of the TA component has strengthened across the different implementing agencies and partners as follows: i. The Program Coordination Unit (PCU) is fully functional, and its performance has strengthened particularly in program coordination, supervision of verification, and communication. It has accelerated progress on the Program Action Plan (PAP) including environmental and social actions (Grievance Redress Mechanism (GRM) manual and training rollout) and the piloting of climate change budget tagging. Most PAP actions are now complete. All major procurements have been completed and there are no large procurements in the pipeline/envisaged to the end of the Program (Dec 2022). ii. The OAuGF as the IVA has completed the 2019 APA (with support from an external firm) and verification of the three 2020 DLRs of the new COVID-19 responsive DLIs and the 2020 Eligibility Criteria. The IVA is currently The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) completing the verification of the Dec 2020 – June 2021 COVID 19 DLIs which is expected to be completed in December 2021. iii. The NGF has continued to deliver a comprehensive program of toolkits, workshops, just-in-time advisory services and peer learning events and exchange visits to support States on the original and new DLIs using a mixture of virtual and physical platforms. iv. The DMO has been delivering TA activities to States since September 2020 on debt-related DLIs, including on State debt laws, the State Debt Sustainability Analysis (S-DSA) and State Medium Term Debt Strategy (S-MTDS) toolkits, developed in collaboration with the World Bank. v. The OGP SFTAS team has delivered capacity building activities to States on DLI #2 to strengthen citizens engagement on budgets. Implementation has been hindered by broader institutional challenges for the OGP initiative in Nigeria. vi. The PSIN is working with an external firm and a draft curriculum has been developed. B. Issues and Challenges 4. The PCU procurement function1 has been a major source of Program implementation delays. The backlog of activities in the overall Procurement Plan has been reduced with enhanced implementation support from the Bank and the establishment of bi-weekly SFTAS procurement meetings. However, the performance of the PCU procurement function remains weak and unpredictable with procurements across the board routinely delayed. The delay has particularly affected the procurement of (1) an external Firm to work with IVA, and (2) a spatial data firm to support States to achieve the new DLI on updating urban property records (DLI 11.3). While these delays have been resolved, they impacted and delayed the original program implementation plan (table 1). There are no further large procurements anticipated under the project. The PCU will need to put in place a contract management sub-team for supervising large complex contracts. The Bank team will continue to provide intensive implementation support to the PCU. 5. Lack of an institutional anchor for the OGP. Following an administration change,2 the new OGP National Coordinator who is to serve as the Project Coordinator for OGP-SFTAS is based in the FMFBNP, whereas the SFTAS team and the related designated account is domiciled in the Federal Ministry of Justice (FMoJ). While the changes led to some disruption in the implementation of activities, the immediate impact on SFTAS is limited as DLI#2 2021 result is done. However, institutional challenges may impact the sustainability strategy regarding citizen and CSO engagement. The Coordinator was also encouraged to take on a more active role. As and when a structure is put in place, the OGP-SFTAS team will be impacted as it would have legal, administrative, and financial implications. 6. Capacity and readiness of the OAuGF. The changes in the OAuGF IVA team in Q1 CY2021 led to an initial slow- down in the pace of work and a drop in the technical quality of the assessment work which necessitated longer review and revision processes. The OAuGF IVA team needs to strengthen internal quality assurance processes to avoid lengthy review and revisions of assessment reports. To this end, they should utilize all the learning and experience of the OAuGF staff that worked on the 2019 APA and are part of the current IVA team and SFTAS IVA Secretariat. The Bank and the PCU will provide enhanced support to the process by reviewing draft test programmes and reporting templates from the IVA to ensure consistency with the verification protocols and that risks are adequately addressed before the IVA commences 1 The PCU carries out procurement activities on behalf of all the other implementing agencies and partners. The lack of prior experience with World Bank procurement has led to significant delays in the implementation of the SFTAS procurement plan (PP). 2 The current co-chair of the National Steering Committee is the Minister of State for Budget and National Planning. Previously this was the Attorney General which led to the OGP-SFTAS team being based in the FMoJ. The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) assessments. Going forward, the newly contracted external firm to work with the IVA on the 2020 and 2021 APAs will work with the IVA and provide technical expertise and quality assurance to the verification process. 7. Irregular payment by PSIN for curriculum development firm. Following a recent Bank review of documentation, concerns were raised on a direct payment made to the curriculum development firm supporting PSIN which was made in the wrong currency (USD instead of NGN in the contract) and in advance of deliverables received (contract does not provide for advance payment). The Bank team has asked PSIN to refund the direct payment, conducted a special fiduciary review of PSIN in July 2021, and is pursuing all options for ensuring that the transaction is rectified for compliance with the contract. C. Rationale for Changes 8. The Program will require a Level 2 restructuring for the following reasons: i. Adjust SDR allocations across DLIs in the PforR component for both the original and additional financing to reflect actual results to date and updated estimates for results still to be verified and disbursed, including 5 new COVID-19 DLRs under verification and targeted to be disbursed before end of December 2021:  Original Financing – DLI reallocations to reflect actual results and to recover the DLI advance. To be COVID- 19 responsive and fully disburse the 2019 APA results from the original financing before end of CY2020, a DLI advance had to be done to accommodate the disbursements for results which exceeded their SDR allocation. This advance will be fully recovered from DLIs that still have SDR allocation left. Once the DLI advance is recovered, the total DLI(s) disbursement in SDR for results achieved, verified and disbursed to date (2018 APA, 2019 APA, DLIs 11.1, 12.1 and 13.1) exceed slightly the current total DLI allocation in SDR in the original financing. A small reallocation of just under SDR 2 million from the TA/IPF component to the PforR component is needed to match the total DLIs disbursement. This will not impact the implementation of the TA component as it is anticipated that a significant (at least SDR 12 million) is likely to be unspent from the current TA/IPF allocation.  Additional Financing – DLI reallocations to reflect updated estimates of results. Given that the Program does not assume that all States will achieve every result, the Additional Financing DLI allocation was based on the Bank’s estimates of the number of States achieving each result/DLR multiplied by the value for each result/DLR per State as of December 2020. Accordingly, the SDR allocations for DLIs need to be adjusted with updated performance data as of November 2021 (from monitoring and verification) on the number of states that have achieved/are likely to achieve results that are still to be verified and disbursed, within the total SDR financing envelope. ii. Modify some DLR requirements and timelines to reflect implementation delays that are beyond the States’ control and in recognition of the effort to date States have made in achieving the DLRs:  Extension of timeline to achieve DLI 6.2 (e-Procurement): The procurement of a firm to support States in designing and deploying of e-Procurement was delayed to March 2021. This was exacerbated by security issues which affected the firm’s ability to provide adequate TA as earlier planned, and by the complexity of change management involved. Consequently, the deadline for States to achieve this DLI is proposed to be extended from 31 December 2021 to 30 June 2022. However, the verification protocols have been updated to define achievement as having at least 6 months of procurement transactions go through the e-Procurement system meaning that States will have to have made significant progress by going live with their e-Procurement system by 31 December 2021 to be able to achieve this DLI by the The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) extended deadline. All other requirements remain the same. While the timeline is extended beyond CY2021, the DLI will still be verified and disbursed in CY2022, within the Program timeframe.3  Extension of timeline to achieve DLI 10.3 (State Audit Law): A nationwide strike of the legislative and judiciary branches for all States in the first half of 2021 has adversely affected the timely passage of the State Audit Laws. Still, 33 States passed State Audit Laws by 31 July 2021. However, most laws did not fully meet all the requirements for a strong fit for purpose Audit Law that is consistent with international best practice. This is partly due to the fact that there was little time for review of the laws by NGF as the TA agency given the disruptions caused by the strike. Given that the delay was beyond the control of States, and given the tremendous effort shown by nearly all States to pass State Audit Laws, the deadline for achievement of this DLI is proposed to be extended from 30 June 2021 to 31 December 2021. This accommodates the delay from the strike and also provide an opportunity for giving feedback and amendment to laws that was available for other law DLIs. All other requirements remain the same.  Extension of timelline to achieve DLI 11.3 (Updating of urban property records): The procurement of a firm to provide spatial data to assist States to update their urban property records has been severely delayed. With the procurement and contracting of the spatial data firm finalized in November 2021 and their deliverables to be provided to the States only by January 2022 (nearly 9 months compared to the original plan), the deadline for States to achieve this DLI is proposed to be extended from 30 September 2021 to 30 June 2022. All other requirements remain the same. While the timeline is extended beyond CY2021, the DLI will still be verified and disbursed in CY2022, within the Program timeframe.  Reformulation of the DLI 12.2 (SME Procurement): Although all 36 States made a serious attempt to achieve DLI 12.1 (to establish an SME procurement regulation and do two sets of training), only 28 States met all the requirements to achieve the result. The eight remaining States did put in place regulation for SME procurement, but did not meet the DLI requirement because the regulation was not fully aligned with the verification protocol or the State did one instead of two trainings to SMEs. Accordingly, to allow all states to have the chance to achieve DLI 12.2, even if they did not fully achieve DLI 12.1, it is proposed to remove the achievement of DLI 12.1 as a condition for the achievement of DLI 12.2. All other requirements remain the same. iii. Change PDO indicator #3 related to measuring the efficiency of public expenditure. The PDO indicator — average citizens access to procurement information in States publishing contract award data online in OCDS format — was premised on PCU procuring a firm to conduct a survey which did not materialize due to the long delays in the implementation of procurement activities which resulted in the prioritization of the PCU’s efforts and the Bank’s supervision support on key procurements related to verification and delivery of technical assistance to States. Given the remaining implementation time of the program, it will not be feasible to procure a firm to conduct the survey to collect and analyze data to be able to measure that indicator. Instead, the team proposes to measure the efficiency of public spending by “the number of states that have completed biometrics or a Bank Verification Number (BVN) data to capture at least 90 percent of current civil servants and pensioners and used the biometrics or BVN data to identify and remove ghost workers off the payroll or address payroll fraud”. States were supported under DLI 5.1 and 5.2 to increase the efficiency of spending by identifying and removing ghost workers off the payroll and reduce payroll fraud to reduce wasteful recurrent personnel spending. 3 This extension does not apply to the benchmark target for DLI 6.2 in 2020. The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) II. DESCRIPTION OF PROPOSED CHANGES  Adjust SDR allocation across DLIs in the PforR component of the Original Financing and in the Additional Financing to reflect actual results to date and projections for future results.  Extend the timeline for achievement of DLIs 6.2, 10.3 and 11.3.  Modify DLI 12.2 to make it not conditional on achieving 12.1.  Modify the Results Framework – Change the PDO indicator #3 III. SUMMARY OF CHANGES Changed Not Changed Change in Program's Development Objectives ✔ Change in Results Framework ✔ Reallocation between and/or Change in DLI ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Program Scope ✔ Change in Loan Closing Date(s) ✔ Change in Cancellations Proposed ✔ Change in IPF Component ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Systematic Operations Risk-Rating Tool ✔ (SORT) Change in Safeguard Policies Triggered ✔ Change in EA category (IPF Component) ✔ The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Technical Method ✔ Change in Fiduciary ✔ Change in Environmental and Social Aspects ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_PDO_TABLE PROGRAM DEVELOPMENT OBJECTIVE Current PDO: The Program Development Objective (PDO) is to strengthen the fiscal transparency, accountability and sustainability in the participating states. Proposed New PDO: Strengthen the fiscal transparency, accountability and sustainability in the participating states, including in the context of the COVID-19 response. OPS_DETAILEDCHANGES_COMPONENTS_TABLE . The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) ANNEX 1: RESULTS FRAMEWORK . . Results framework Program Development Objectives(s) The Program Development Objective (PDO) is to strengthen the fiscal transparency, accountability and sustainability in the participating states. Program Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Increased Fiscal Transparency and Accountability Median aggregate score for all : 28/100 Improvement in average 2021 score compared to 2018: Average for Tier 1: 43/100 State Budget Transparency Survey score between 2018 and 2021 Tier 1 States by 20% and Tier 2 States by 50% of their – improvement in aggregated score for States participating in the aggregated score. Average for Tier 2: PforR (Text) 13/100 Strengthened Domestic Revenue Mobilization States that increased internally generated revenue collection by 15.00 22.00 more than 20 percent annually (in nominal terms) (Number) Page 9 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline End Target Strengthened Efficiency in Public Expenditure Average citizens access to procurement information in States To be measured for 2020 in procurement survey More than 15 percent increase publishing contract award data online in OCDS format (Text) Action: This indicator has been Marked for Deletion States that have completed biometrics or a Bank Verification Number (BVN) data to capture at least 90 percent of current civil 0.00 20.00 servants and pensioners and used the biometrics or BVN data (Number) Action: This indicator is New Strengthened Debt Sustainability States with total debt stock as a share of total revenue for the 5.00 16.00 preceding 12 months being less than 100 percent (Number) States with published approved credible COVID-19 responsive amended 2020 budgets which have realistic revenue projections 0.00 30.00 and identified financing sources to fully finance the budget deficit (Number) PDO Table SPACE Intermediate Results Indicators by Result Areas RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Increased Fiscal Transparency and Accountability Page 10 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target States preparing annual state budgets using the national Chart of Accounts (GFS compliant) and publishing online by end January 13.00 30.00 of that FY (Number) States preparing annual audited financial statements in accordance with IPSAS (cash or accrual) and publishing online by 9.00 30.00 July of the following FY (Number) States publishing in-year quarterly budget implementation 0.00 25.00 reports online within four weeks from quarter-end (Number) States with expenditure outturn deviation (from original approved budget) less than 15 percent (PEFA threshold) 4.00 12.00 (Number) Female participation in the budget consultation process 20.00 40.00 (Percentage) States with citizens’ budget, based on the States’ approved annual budget, published online by April of that FY and with 5.00 20.00 functional online feedback mechanisms (Number) States that have published audited financial statements of all local governments in their state for FY18 and for FY19,FY20 0.00 30.00 including state-local government joint account allocation committee transfers (Number) States that have implemented operational and financial autonomy for the Offices of Auditors-General at the State and 10.00 30.00 Local Government Levels in the State (Number) States that have published COVID-19 response and recovery 0.00 30.00 expenditures and audit reports (Number) Page 11 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Number of States using climate change budget tagging in State 0.00 18.00 budgets (Number) Strengthened Domestic Revenue Mobilization States with functional Treasury Single Account (TSA) system based on a formally approved cash management strategy, and 6.00 25.00 covering a minimum of 80 percent of state government finances (Number) States with approved and published consolidated and updated 0.00 12.00 revenue code covering all local and state IGR sources (Number) States with announced and implemented tax compliance relief program for individual taxpayers and businesses to mitigate 0.00 30.00 impact of COVID-19 (Number) States that have strengthened the foundation for state property taxation by updating property records of at least 50% of all 2.00 24.00 properties in urban areas (Number) Strengthened Efficiency in Public Expenditure States that have completed biometric capture of at least 90 percent of current civil servants and pensioners and used the 10.00 20.00 biometrics data to identify and remove ghost workers off the payroll (Number) States with approved and adequate Public Procurement Law and 0.00 12.00 established regulatory agency (Number) States that have implemented e-procurement in at least four 0.00 15.00 MDAs, including health, education and public works (Number) Page 12 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline End Target Strengthened procurement function for COVID-19 and other emergency situations and facilitated participation of SMEs in 0.00 30.00 public procurement (Number) Strengthened Debt Sustainability States with approved state-level public debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) 6.00 15.00 responsibilities for recording/reporting state debt; and 3) fiscal and de (Number) States with quarterly debt reports accepted by the Debt Management Office (DMO) on average two months after the end 10.00 25.00 of the quarter (Number) States with domestic arrears reported in a publicly available 0.00 15.00 database with verification process in place (Number) IO Table SPACE Disbursement Linked Indicators Matrix DLI IN01065746 ACTION DLI 1 Improved financial reporting and budget reliability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 75,300,000.00 0.00 Period Value Allocated Amount (USD) Formula In-year quarterly budget reports not published Baseline online, or published > 4 weeks after quarter end in Page 13 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) many States. Deviation for total expenditure is 30- 55% across States 1.1 FY2018 quarterly budget implementation reports published on average within 6 weeks of Prior Results quarter-end to enable timely budget management 13,200,000.00 Achieved / Not Achieved 1.2 FY2018 deviation for total budget expenditure is < 30% 1.1 FY2019 quarterly budget implementation reports published on average within 6 weeks of December 31, 2019 quarter end to enable timely budget management 13,600,000.00 Achieved / Not Achieved 1.2 FY2019 deviation for total budget expenditure is < 25% 1.1 FY2020 quarterly budget implementation reports published with Q2, Q3 and Q4 reports published on average within 4 weeks of quarter end December 31, 2020 20,500,000.00 Achieved / Not Achieved to enable timely budget management 1.2 FY2020 deviation for total Amended Budget expenditure is < 15% 1.1 FY2021 quarterly budget implementation reports published on average within 4 weeks of June 30, 2022 quarter end to enable timely budget management 28,000,000.00 Achieved / Not Achieved 1.2 FY2021 deviation for total budget expenditure is < 15% Action: This DLI has been Revised. See below. DLI IN01066936 ACTION DLI 1 Improved financial reporting and budget reliability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 66,123,083.00 19.96 Period Value Allocated Amount (USD) Formula Page 14 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) In-year quarterly budget reports not published online, or published > 4 weeks after quarter end in Baseline many States. Deviation for total expenditure is 30- 55% across States 1.1 FY2018 quarterly budget implementation reports published on average within 6 weeks of quarter-end Prior Results 13,804,703.00 Achieved / Not Achieved to enable timely budget management 1.2 FY2018 deviation for total budget expenditure is < 30% 1.1 FY2019 quarterly budget implementation reports published on average within 6 weeks of quarter end December 31, 2019 13,629,498.00 Achieved / Not Achieved to enable timely budget management 1.2 FY2019 deviation for total budget expenditure is < 25% 1.1 FY2020 quarterly budget implementation reports published with Q2, Q3 and Q4 reports published on December 31, 2020 average within 4 weeks of quarter end to enable 17,951,641.00 Achieved / Not Achieved timely budget management 1.2 FY2020 deviation for total Amended Budget expenditure is < 15% 1.1 FY2021 quarterly budget implementation reports published on average within 4 weeks of quarter end June 30, 2022 20,737,241.00 Achieved / Not Achieved to enable timely budget management 1.2 FY2021 deviation for total budget expenditure is < 15% DLI IN01065747 ACTION DLI 2 Increased openness and citizens’ engagement in the budget process Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 58,800,000.00 0.00 Period Value Allocated Amount (USD) Formula While some States are consulting with citizens Baseline during the budget process, it is not a formal; systematic process and feedback to citizens is not Page 15 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) assured. Less than 5 State publish citizens’ budget or citizens accountability reports 2.1 Citizens’ inputs from formal public consultations Prior Results are published online, along with the proposed 900,000.00 Achieved / Not Achieved FY2019 budget. 2.1 Citizens’ inputs from formal public consultations are published online, along with the proposed December 31, 2019 FY2020 budget; 2.2 Citizens’ budget based on 13,300,000.00 Achieved / Not Achieved approved FY2019 state budget published online by end April 2019 2.1 Citizens’ inputs from formal public consultations are published online, along with the proposed FY2021 budget; 2.2 Evidence of dissemination event to explain amendments to FY2020 State budget December 31, 2020 20,600,000.00 Achieved / Not Achieved published online along with the Citizens’ budget based on amended FY2020 state budget by end September 2020 with functional online feedback mechanisms. 2.1 Citizens’ inputs from formal public consultations are published online, along with the proposed FY2022 budget AND Citizens’ budget based on approved FY2021 state budget published online by June 30, 2022 24,000,000.00 Achieved / Not Achieved end April 2021 with functional online feedback mechanisms. 2.2 Citizens accountability report based on audited financial statements/reports published online for FY2020 no later than Sept 2021. Action: This DLI has been Revised. See below. Page 16 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01066987 ACTION DLI 2 Increased openness and citizens’ engagement in the budget process Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 60,542,619.00 1.49 Period Value Allocated Amount (USD) Formula While some States are consulting with citizens during the budget process, it is not a formal; Baseline systematic process and feedback to citizens is not assured. Less than 5 State publish citizens’ budget or citizens accountability reports 2.1 Citizens’ inputs from formal public consultations Prior Results are published online, along with the proposed 940,260.00 Achieved / Not Achieved FY2019 budget. 2.1 Citizens’ inputs from formal public consultations are published online, along with the proposed December 31, 2019 FY2020 budget; 2.2 Citizens’ budget based on 15,032,767.00 Achieved / Not Achieved approved FY2019 state budget published online by end April 2019 2.1 Citizens’ inputs from formal public consultations are published online, along with the proposed FY2021 budget; 2.2 Evidence of dissemination event to explain amendments to FY2020 State budget December 31, 2020 22,284,796.00 Achieved / Not Achieved published online along with the Citizens’ budget based on amended FY2020 state budget by end September 2020 with functional online feedback mechanisms. 2.1 Citizens’ inputs from formal public consultations June 30, 2022 are published online, along with the proposed 22,284,796.00 Achieved / Not Achieved FY2022 budget AND Citizens’ budget based on Page 17 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) approved FY2021 state budget published online by end April 2021 with functional online feedback mechanisms. 2.2 Citizens accountability report based on audited financial statements/reports published online for FY2020 no later than Sept 2021. DLI IN01065748 ACTION DLI 3 Improved cash management and reduced revenue leakages through implementation of State TSA Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 54,000,000.00 0.00 Period Value Allocated Amount (USD) Formula More than 50 percent of States report having Baseline implemented TSA but most TSA not anchored on a formal cash mgmt. strategy TSA, based on a formally approved cash management strategy, established and functional, Prior Results 6,000,000.00 Achieved / Not Achieved and covering a minimum of 50 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, December 31, 2019 10,500,000.00 Achieved / Not Achieved and covering a minimum of 60 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, December 31, 2020 17,000,000.00 Achieved / Not Achieved and covering a minimum of 70 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, June 30, 2022 20,500,000.00 Achieved / Not Achieved and covering a minimum of 80 percent of state government finances Page 18 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Action: This DLI has been Revised. See below. DLI IN01066962 ACTION DLI 3 Improved cash management and reduced revenue leakages through implementation of State TSA Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 53,932,097.00 11.13 Period Value Allocated Amount (USD) Formula More than 50 percent of States report having Baseline implemented TSA but most TSA not anchored on a formal cash mgmt. strategy TSA, based on a formally approved cash management strategy, established and functional, Prior Results 6,268,402.00 Achieved / Not Achieved and covering a minimum of 50 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, December 31, 2019 10,522,367.00 Achieved / Not Achieved and covering a minimum of 60 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, December 31, 2020 18,570,664.00 Achieved / Not Achieved and covering a minimum of 70 percent of state government finances TSA, based on a formally approved cash management strategy, established and functional, June 30, 2022 18,570,664.00 Achieved / Not Achieved and covering a minimum of 80 percent of state government finances Page 19 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01065749 ACTION DLI 4 States that increased internally generated revenue collection by more than 20 percent annually (in nominal terms) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 114,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Approx. 8 States have updated and consolidated IGR sources in a law. 2017/2016 IGR growth: 15 States Baseline achieved > 20% growth, of which 10 States achieved >40% growth 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved Prior Results 13,000,000.00 Achieved / Not Achieved by the state legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2018-2017 annual nominal IGR growth rate meets target: Basic target: 20%-39% Stretch target: 40% or more 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved December 31, 2019 50,000,000.00 Achieved / Not Achieved by the state legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2019-2018 annual nominal IGR growth rate meets target: -Basic target: 20%-39% - Stretch target: 40% or more Page 20 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved December 31, 2020 16,000,000.00 Achieved / Not Achieved by the state legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2020 nominal IGR collection is equal to or higher than the 2019 nominal IGR collection 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved June 30, 2022 35,000,000.00 Achieved / Not Achieved by the state legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021); 4.2 2021-2020 annual nominal IGR growth rate meets target: -Basic target: 20%-39% - Stretch target: 40% or more Action: This DLI has been Revised. See below. DLI IN01066963 ACTION DLI 4 States that increased internally generated revenue collection by more than 20 percent annually (in nominal terms) Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 141,755,589.00 9.17 Period Value Allocated Amount (USD) Formula Approx. 8 States have updated and consolidated IGR Baseline sources in a law. 2017/2016 IGR growth: 15 States Page 21 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) achieved > 20% growth, of which 10 States achieved >40% growth 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved by the state Prior Results 13,591,034.00 Achieved / Not Achieved legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2018-2017 annual nominal IGR growth rate meets target: Basic target: 20%-39% Stretch target: 40% or more 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved by the state December 31, 2019 62,135,529.00 Achieved / Not Achieved legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2019-2018 annual nominal IGR growth rate meets target: -Basic target: 20%-39% -Stretch target: 40% or more 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and December 31, 2020 accounting. Code must be approved by the state 43,331,548.00 Achieved / Not Achieved legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021) 4.2 2020 nominal IGR collection is equal to or higher than the 2019 nominal IGR collection Page 22 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 4.1 State implementing a consolidated state revenue code covering all state IGR sources and stipulating that the state bureau of internal revenue is the sole agency responsible for state revenue collection and accounting. Code must be approved by the state June 30, 2022 22,697,478.00 Achieved / Not Achieved legislature and published. (one-time payment for year in which DLR is first achieved, up to end of 2021); 4.2 2021-2020 annual nominal IGR growth rate meets target: -Basic target: 20%-39% -Stretch target: 40% or more DLI IN01065750 ACTION DLI 5 Biometric registration and bank verification number (BVN) used to reduce payroll fraud Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 121,000,000.00 0.00 Period Value Allocated Amount (USD) Formula An estimated 10-5 States have done biometric Baseline capture and linked to payroll to address payroll fraud 5.1 Biometric capture of at least 60 percent of current civil servants completed and linked to payroll, and identified ghost workers taken off the Prior Results 16,000,000.00 Achieved / Not Achieved payroll 5.2 Link BVN data to at least 60 percent of current civil servants on the payroll and payroll fraud addressed 5.1 Biometric capture of at least 75 percent of current civil servants and pensioners completed and linked to payroll, and identified ghost workers taken December 31, 2019 24,000,000.00 Achieved / Not Achieved off the payroll 5.2 Link BVN data to at least 75 percent of current civil servants and pensioners on the payroll and payroll fraud addressed Page 23 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 5.1 Biometric capture of at least 90 percent of current civil servants and pensioners completed and linked to payroll, and identified ghost workers taken December 31, 2020 36,000,000.00 Achieved / Not Achieved off the payroll 5.2 Link BVN data to at least 90 percent of current civil servants and pensioners on the payroll and payroll fraud addressed 5.1 Biometric capture of at least 95 percent of current civil servants and pensioners completed and linked to payroll, and identified ghost workers taken June 30, 2022 45,000,000.00 Achieved / Not Achieved off the payroll 5.2 Link BVN data to at least 95 percent of current civil servants and pensioners on the payroll and payroll fraud addressed Action: This DLI has been Revised. See below. DLI IN01066988 ACTION DLI 5 Biometric registration and bank verification number (BVN) used to reduce payroll fraud Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 125,862,599.00 12.71 Period Value Allocated Amount (USD) Formula An estimated 10-5 States have done biometric Baseline capture and linked to payroll to address payroll fraud 5.1 Biometric capture of at least 60 percent of current civil servants completed and linked to payroll, and identified ghost workers taken off the Prior Results 16,739,481.00 Achieved / Not Achieved payroll 5.2 Link BVN data to at least 60 percent of current civil servants on the payroll and payroll fraud addressed 5.1 Biometric capture of at least 75 percent of December 31, 2019 25,555,132.00 Achieved / Not Achieved current civil servants and pensioners completed and Page 24 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) linked to payroll, and identified ghost workers taken off the payroll 5.2 Link BVN data to at least 75 percent of current civil servants and pensioners on the payroll and payroll fraud addressed 5.1 Biometric capture of at least 90 percent of current civil servants and pensioners completed and linked to payroll, and identified ghost workers taken December 31, 2020 41,783,993.00 Achieved / Not Achieved off the payroll 5.2 Link BVN data to at least 90 percent of current civil servants and pensioners on the payroll and payroll fraud addressed 5.1 Biometric capture of at least 95 percent of current civil servants and pensioners completed and linked to payroll, and identified ghost workers taken June 30, 2022 41,783,993.00 Achieved / Not Achieved off the payroll 5.2 Link BVN data to at least 95 percent of current civil servants and pensioners on the payroll and payroll fraud addressed DLI IN01065751 ACTION DLI 6 Improved procurement practices for increased transparency and value for money Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 87,000,000.00 0.00 Period Value Allocated Amount (USD) Formula 26 States have legal framework but 15 frameworks require strengthening. Procurement systems are Baseline performing sub-optimally, lacking efficiency and transparency 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Prior Results 17,000,000.00 Achieved / Not Achieved Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Page 25 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 Publish contract award information above a threshold set out in the Operations Manual for 2018 on a monthly basis in OCDS format on the state website. 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all December 31, 2019 35,000,000.00 Achieved / Not Achieved MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 Publish contract award information above a threshold set out in the Operations Manual for 2019 on a monthly basis in OCDS format on the state website or online portal if available. 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all December 31, 2020 MDAs receiving funds from the state budget. (one- 10,000,000.00 Achieved / Not Achieved time payment for year in which DLR is first achieved); 6.2 Basic Target: Framework contract for e-Procurement signed by 31 December 2020 AND Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format Page 26 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) on the state website or online portal if available. Stretch Target: Implement e-Procurement in at least 3 MDAs (incl. Education, Health and Public Works) and publish all contract award information in OCDS format on the online portal for the 3 MDAs AND For those MDAs without e-procurement: Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format on the state website or online portal if available. 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first June 30, 2022 achieved); 6.2 Implement e-procurement in at least 25,000,000.00 Achieved / Not Achieved 4 MDAs (incl. Education, Health and Public Works) and publish all contract award information in OCDS format on the online portal for the 4 MDAs AND For those MDAs without e-procurement: Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format on the state website or online portal if available. Action: This DLI has been Revised. See below. Page 27 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01067066 ACTION DLI 6 Improved procurement practices for increased transparency and value for money Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 112,665,493.00 15.09 Period Value Allocated Amount (USD) Formula 26 States have legal framework but 15 frameworks require strengthening. Procurement systems are Baseline performing sub-optimally, lacking efficiency and transparency 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all Prior Results 17,779,466.00 Achieved / Not Achieved MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 Publish contract award information above a threshold set out in the Operations Manual for 2018 on a monthly basis in OCDS format on the state website. 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- December 31, 2019 Procurement; 2) establishment of an independent 36,078,925.00 Achieved / Not Achieved procurement regulatory agency and 3) cover all MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 Publish contract award information Page 28 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) above a threshold set out in the Operations Manual for 2019 on a monthly basis in OCDS format on the state website or online portal if available. 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 No later than June 30, 2022, December 31, 2020 34,046,217.00 Achieved / Not Achieved implement e-procurement in at least 4 MDAs (incl. Education, Health and Public Works) publish all contract award information in OCDS format on the online portal for the 4 MDAs, AND For those MDAs without e-procurement: Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format on the state website or online portal if available 6.1 Existence of a public procurement legal framework and procurement regulatory agency. Said legal framework should conform with the UNCITRAL Model Law and provide for: 1) e- Procurement; 2) establishment of an independent procurement regulatory agency and 3) cover all June 30, 2022 24,760,885.00 Achieved / Not Achieved MDAs receiving funds from the state budget. (one- time payment for year in which DLR is first achieved); 6.2 No later than June 30, 2022, implement e-procurement in at least 4 MDAs (incl. Education, Health and Public Works) publish all contract award information in OCDS format on the Page 29 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) online portal for the 4 MDAs. AND For those MDAs without e-procurement: Publish contract award information above a threshold set out in the State’s procurement law/regulation on a monthly basis in OCDS format on the state website or online portal if available DLI IN01065752 ACTION DLI 7 Strengthened public debt management and fiscal responsibility framework Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 94,500,000.00 0.00 Period Value Allocated Amount (USD) Formula 22 States have FRL or a PDML, but some laws do not contain key provisions. All States submitting Baseline quarterly debt reports but many submit late. No state conducts DSA or develop MTDS 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and Prior Results 29,500,000.00 Achieved / Not Achieved debt rules/limits. (one-time payment for year in which DLR is first achieved); 7.2 Quarterly state debt reports accepted by the DMO on average two months or less after the end of the quarter in 2018 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for December 31, 2019 38,500,000.00 Achieved / Not Achieved recording/reporting state debt; and 3) fiscal and debt rules/limits. (one-time payment for year in which DLR is first achieved); 7.2 Quarterly state debt Page 30 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) reports accepted by the DMO on average two months or less after the end of the quarter in 2019 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one-time payment for year in December 31, 2020 which DLR is first achieved); 7.2 Quarterly state debt 10,500,000.00 Achieved / Not Achieved reports for Q2, Q3 and Q4 2020 accepted by the DMO on average two months or less after the end of the quarter in 2020 AND Annual state debt sustainability analysis published by end December 2020. 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one-time payment for year in June 30, 2022 which DLR is first achieved); 7.2 Quarterly state debt 16,000,000.00 Achieved / Not Achieved reports accepted by the DMO on average two months or less after the end of the quarter in 2021 AND Annual state debt sustainability analysis and medium-term debt management strategy published by end of December 2021. Action: This DLI has been Revised. See below. Page 31 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01067067 ACTION DLI 7 Strengthened public debt management and fiscal responsibility framework Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Output No Text 114,748,319.00 25.71 Period Value Allocated Amount (USD) Formula 22 States have FRL or a PDML, but some laws do not contain key provisions. All States submitting Baseline quarterly debt reports but many submit late. No state conducts DSA or develop MTDS 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one- Prior Results 30,857,631.00 Achieved / Not Achieved time payment for year in which DLR is first achieved); 7.2 Quarterly state debt reports accepted by the DMO on average two months or less after the end of the quarter in 2018 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one- December 31, 2019 41,590,843.00 Achieved / Not Achieved time payment for year in which DLR is first achieved); 7.2 Quarterly state debt reports accepted by the DMO on average two months or less after the end of the quarter in 2019 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting December 31, 2020 state debt; 2) responsibilities for recording/reporting 28,371,847.00 Achieved / Not Achieved state debt; and 3) fiscal and debt rules/limits. (one- time payment for year in which DLR is first Page 32 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) achieved); 7.2 Quarterly state debt reports for Q2, Q3 and Q4 2020 accepted by the DMO on average two months or less after the end of the quarter in 2020 AND Annual state debt sustainability analysis published by end December 2020. 7.1 State implementing state-level debt legislation, which stipulates: 1) responsibilities for contracting state debt; 2) responsibilities for recording/reporting state debt; and 3) fiscal and debt rules/limits. (one- time payment for year in which DLR is first June 30, 2022 achieved); 7.2 Quarterly state debt reports accepted 13,927,998.00 Achieved / Not Achieved by the DMO on average two months or less after the end of the quarter in 2021 AND Annual state debt sustainability analysis and medium-term debt management strategy published by end of December 2021. DLI IN01065753 ACTION DLI 8 Improved clearance/reduction of stock of domestic expenditure arrears Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 47,000,000.00 0.00 Period Value Allocated Amount (USD) Formula In 2017, 14 States reduced their stock of arrears or maintained arrears of less than 5 billion naira. No Baseline state reports domestic arrears in a publicly- accessible database. Domestic arrears as of end 2018 reported in an online publicly-accessible database, with a Prior Results 1,000,000.00 Achieved / Not Achieved verification process in place and an arrears clearance framework established. Page 33 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Domestic arrears as of end 2018 and end 2019 reported in an online publicly-accessible database, with verification process in place. AND Percentage decline in the verified stock of domestic arrears at December 31, 2019 end 2019 compared to end 2018 meets target and is 7,000,000.00 Achieved / Not Achieved consistent with the state’s arrears clearance framework. a) Basic target: At least a 5 percent decline or maintain stock below 5 billion Naira; b) Stretch target: More than 20 percent decline. Basic target: Domestic arrears as of end 2019 and end 2020 reported in an online publicly-accessible database, with verification process in place. Stretch target: Domestic arrears as of end 2019 and end 2020 reported in an online publicly-accessible December 31, 2020 19,000,000.00 Achieved / Not Achieved database, with verification process in place AND at least a 5 percent decline in the verified stock of domestic arrears at end 2020 compared to end 2019 consistent with the State’s arrears clearance framework or maintain stock below 5 billion Naira. Domestic arrears as of end 2020 and end 2021 reported in an online publicly-accessible database, with verification process in place. AND Percentage decline in the verified stock of domestic arrears at June 30, 2022 end of 2021 compared to end 2020 meets target 20,000,000.00 Achieved / Not Achieved and is consistent with the State’s arrears clearance framework. a) Basic target: At least a 5 percent decline or maintain stock below 5 billion Naira; b) Stretch target: More than 20 percent decline. Action: This DLI has been Revised. See below. Page 34 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01067068 ACTION DLI 8 Improved clearance/reduction of stock of domestic expenditure arrears Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome Yes Text 37,886,506.00 2.64 Period Value Allocated Amount (USD) Formula In 2017, 14 States reduced their stock of arrears or maintained arrears of less than 5 billion naira. No Baseline state reports domestic arrears in a publicly- accessible database. Domestic arrears as of end 2018 reported in an online publicly-accessible database, with a Prior Results 1,039,895.00 Achieved / Not Achieved verification process in place and an arrears clearance framework established. Domestic arrears as of end 2018 and end 2019 reported in an online publicly-accessible database, with verification process in place. AND Percentage decline in the verified stock of domestic arrears at December 31, 2019 end 2019 compared to end 2018 meets target and is 10,022,319.00 Achieved / Not Achieved consistent with the state’s arrears clearance framework. a) Basic target: At least a 5 percent decline or maintain stock below 5 billion Naira; b) Stretch target: More than 20 percent decline. Basic target: Domestic arrears as of end 2019 and end 2020 reported in an online publicly-accessible database, with verification process in place. Stretch target: Domestic arrears as of end 2019 and end December 31, 2020 13,412,146.00 Achieved / Not Achieved 2020 reported in an online publicly-accessible database, with verification process in place AND at least a 5 percent decline in the verified stock of domestic arrears at end 2020 compared to end 2019 Page 35 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) consistent with the State’s arrears clearance framework or maintain stock below 5 billion Naira. Domestic arrears as of end 2020 and end 2021 reported in an online publicly-accessible database, with verification process in place. AND Percentage decline in the verified stock of domestic arrears at June 30, 2022 end of 2021 compared to end 2020 meets target 13,412,146.00 Achieved / Not Achieved and is consistent with the State’s arrears clearance framework. a) Basic target: At least a 5 percent decline or maintain stock below 5 billion Naira; b) Stretch target: More than 20 percent decline. DLI IN01065754 ACTION DLI 9 Improved debt sustainability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 87,000,000.00 0.00 Period Value Allocated Amount (USD) Formula All but 3-4 States are complying with the monthly debt service threshold per FSP. Total debt-to- Baseline revenue ratio for the median state was 172% end 2017. 15 States < 150%, 11 States < 125% and 5 States < 100% Average monthly debt service deduction is < 40% of gross FAAC allocation for FY2018 AND Total debt Prior Results stock at end Dec 2018 as a share of total revenue 24,000,000.00 Achieved / Not Achieved for FY2018 meets target: a) Basic target: < 150%; b) Stretch target: < 125% Average monthly debt service deduction is < 40% of December 31, 2019 gross FAAC allocation for FY2019 AND Total debt 26,500,000.00 Achieved / Not Achieved stock at end Dec 2019 as a share of total revenue Page 36 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) for FY2019 meets target: a) Basic target: < 140%; b) Stretch target: < 115% Total debt stock at end Dec 2020 as a share of total December 31, 2020 revenue for FY2020 meets target: a) Basic target: < 17,000,000.00 Achieved / Not Achieved 150% ; b) Stretch target: < 125% Average monthly debt service deduction is < 40% of gross FAAC allocation for FY2021 AND Total debt June 30, 2022 stock at end Dec 2021 as a share of total revenue 19,500,000.00 Achieved / Not Achieved for FY 2021 meets target: a) Basic target: < 120% ; b) Stretch target: < 95% Action: This DLI has been Revised. See below. DLI IN01067069 ACTION DLI 9 Improved debt sustainability Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Outcome No Text 80,576,634.00 29.79 Period Value Allocated Amount (USD) Formula All but 3-4 States are complying with the monthly debt service threshold per FSP. Total debt-to- Baseline revenue ratio for the median state was 172% end 2017. 15 States < 150%, 11 States < 125% and 5 States < 100% Average monthly debt service deduction is < 40% of gross FAAC allocation for FY2018 AND Total debt Prior Results stock at end Dec 2018 as a share of total revenue for 25,102,099.00 Achieved / Not Achieved FY2018 meets target: a) Basic target: < 150%; b) Stretch target: < 125% Average monthly debt service deduction is < 40% of December 31, 2019 25,555,133.00 Achieved / Not Achieved gross FAAC allocation for FY2019 AND Total debt Page 37 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) stock at end Dec 2019 as a share of total revenue for FY2019 meets target: a) Basic target: < 140%; b) Stretch target: < 115% Total debt stock at end Dec 2020 as a share of total December 31, 2020 revenue for FY2020 meets target: a) Basic target: < 14,959,701.00 Achieved / Not Achieved 150% ; b) Stretch target: < 125% Average monthly debt service deduction is < 40% of gross FAAC allocation for FY2021 AND Total debt June 30, 2022 stock at end Dec 2021 as a share of total revenue for 14,959,701.00 Achieved / Not Achieved FY 2021 meets target: a) Basic target: < 120% ; b) Stretch target: < 95% DLI IN01065755 ACTION DLI 10 Enhanced transparency and accountability of funds in the COVID-19 response and resilient recovery phases Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 161,400,000.00 0.00 Period Value Allocated Amount (USD) Formula 1) LG AFS not published and information on SLGJAAC transfers not readily available. 2) At least 5 States have an Audit Law in place and an estimated 11 have draft Audit Bills at various stages of approval. However not all provide for full Baseline operational and financial autonomy of the State and LG Auditor General. 3) No identification and reporting of COVID-19 response and recovery expenditures planned or being incurred by state governments. Prior Results 0.00 December 31, 2019 0.00 Page 38 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 10.1 No later than December 31, 2020, the audited financial statements of all local governments (LGs) in the Participating State for FY 2018 and the audited financial statements of all LGs in the Participating State for FY 2019, including all December 31, 2020 28,000,000.00 Achieved / Not Achieved allocations and actual receipts of state-local government joint account allocation committee (SLJAAC) transfers for each LG in the Participating State, have been published on a State official website. 10.1 No later than September 30, 2021, the audited financial statements of all local governments (LGs) in the Participating State for FY 2020, including all allocations and actual receipts of state-local government joint account allocation committee (SLJAAC) transfers for each LG in the Participating State, have been published on a State official website. 10.2 The Participating State has published: (a) on a monthly basis within one month after the end of each month, for five consecutive months starting August 2020, budget execution reports on June 30, 2022 budget allocations and actual expenditures incurred 133,400,000.00 Achieved / Not Achieved for COVID-19 response and recovery programs using the National Chart of Accounts (NCOA) on the Open Treasury Portal; and (b) on a quarterly basis within two months of the end of each quarter, for three consecutive quarters starting with the third quarter of FY 2020, dedicated financial and compliance audit reports covering their COVID-19 response and recovery program expenditures. 10.3 No later than June 30, 2021, the implementation of operational and financial autonomy (per criteria set out in the Verification Protocol) for the Offices of State and Page 39 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) Local Governments Auditors-General in the Participating State, pursuant to a strengthened legal framework (the “State Audit Law”); AND provision of resources for implementation of financial autonomy by inclusion of provisions in the FY 2021 budget for funding of the Offices of State and Local Governments Auditors-General; AND Instructions for implementing the operational autonomy provisions of the new or existing State Audit Law have been issued by the Head of Service or the Secretary to State Government of the Participating State. Action: This DLI has been Revised. See below. DLI IN01067070 ACTION DLI 10 Enhanced transparency and accountability of funds in the COVID-19 response and resilient recovery phases Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 169,829,379.00 0.00 Period Value Allocated Amount (USD) Formula 1) LG AFS not published and information on SLGJAAC transfers not readily available. 2) At least 5 States have an Audit Law in place and an estimated 11 have draft Audit Bills at various stages of approval. Baseline However not all provide for full operational and financial autonomy of the State and LG Auditor General. 3) No identification and reporting of COVID-19 response and recovery expenditures planned or being incurred by state governments. Prior Results 0.00 Page 40 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) December 31, 2019 0.00 10.1 No later than December 31, 2020, the audited financial statements of all local governments (LGs) in the Participating State for FY 2018 and the audited financial statements of all LGs in the Participating State for FY 2019, including all December 31, 2020 33,014,513.00 Achieved / Not Achieved allocations and actual receipts of state-local government joint account allocation committee (SLJAAC) transfers for each LG in the Participating State, have been published on a State official website. 10.1 No later than September 30, 2021, the audited financial statements of all local governments (LGs) in the Participating State for FY 2020, including all allocations and actual receipts of state-local government joint account allocation committee (SLJAAC) transfers for each LG in the Participating State, have been published on a State official website. 10.2 The Participating State has published: (a) on a monthly basis within one month after the end of each month, for five consecutive months June 30, 2022 starting August 2020, budget execution reports on 136,814,866.00 Achieved / Not Achieved budget allocations and actual expenditures incurred for COVID-19 response and recovery programs using the National Chart of Accounts (NCOA) on the Open Treasury Portal; and (b) on a quarterly basis within two months of the end of each quarter, for three consecutive quarters starting with the third quarter of FY 2020, dedicated financial and compliance audit reports covering their COVID-19 response and recovery program expenditures. 10.3 No later than June 30, 2021, the implementation of operational Page 41 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) and financial autonomy (per criteria set out in the Verification Protocol) for the Offices of State and Local Governments Auditors-General in the Participating State, pursuant to a strengthened legal framework (the “State Audit Law”); AND provision of resources for implementation of financial autonomy by inclusion of provisions in the FY 2021 budget for funding of the Offices of State and Local Governments Auditors-General; AND Instructions for implementing the operational autonomy provisions of the new or existing State Audit Law have been issued by the Head of Service or the Secretary to State Government of the Participating State. DLI IN01065756 ACTION Provided structured tax relief in response to COVID-19 and strengthened tax administration (personal income tax and DLI 11 property taxation) to enhance non-oil tax collection in the resilient recovery phase Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 188,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Several States have variously announced tax compliance relief programs which are to be reviewed and verified to determine if these fully meet the verification protocols. Several states have Baseline contracted out the service of assessing personal income tax to private sector agents leading to inefficiency. Very few states have systematically updated urban property records and the potential for property tax is hugely under utilized. Prior Results 0.00 Page 42 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) December 31, 2019 0.00 11.1 No later than July 31, 2020, a timebound tax compliance relief program for individual taxpayers and businesses, which meets the criteria set out in the Verification Protocol, been approved by the Chair of the State Board of Internal Revenue or the State Commissioner of Finance of the Participating State, and published on a State official website and December 31, 2020 80,000,000.00 Achieved / Not Achieved through a press release; AND No later than September 30, 2020, government guidelines for the implementation of the announced tax compliance relief program has been issued by the Board of Internal Revenue or the Ministry of Finance of the Participating State to tax administration officials and agents. 11.2 No later than June 30, 2021, the Participating State has issued a regulation prohibiting, on a prospective basis, the contracting of private consultants for the assessment and collection of personal income tax, which is the sole responsibility of the state revenue agency; AND no such contracts have been entered into or renewed during the period starting on September 1, 2020 through the June 30, 2022 date of issuance of such regulation. 11.3 No later 108,000,000.00 Achieved / Not Achieved than September 30, 2021, the property records for at least 50% of properties that have electricity connections in Urban Areas in the Participating State have been completed or updated per criteria set out in the Verification Protocol, stored in an electronic database, with said records to be valid as on September 1, 2020 or later; AND the Participating State has established institutional Page 43 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) arrangements per criteria set out in the Verification Protocol to use the property records to improve or start the collection of property tax. Action: This DLI has been Revised. See below. DLI IN01067071 ACTION Provided structured tax relief in response to COVID-19 and strengthened tax administration (personal income tax and DLI 11 property taxation) to enhance non-oil tax collection in the resilient recovery phase Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 192,384,353.00 0.00 Period Value Allocated Amount (USD) Formula Several States have variously announced tax compliance relief programs which are to be reviewed and verified to determine if these fully meet the verification protocols. Several states have Baseline contracted out the service of assessing personal income tax to private sector agents leading to inefficiency. Very few states have systematically updated urban property records and the potential for property tax is hugely under utilized. Prior Results 0.00 December 31, 2019 0.00 11.1 No later than July 31, 2020, a timebound tax compliance relief program for individual taxpayers and businesses, which meets the criteria set out in December 31, 2020 87,666,444.00 Achieved / Not Achieved the Verification Protocol, been approved by the Chair of the State Board of Internal Revenue or the State Commissioner of Finance of the Participating Page 44 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) State, and published on a State official website and through a press release; AND No later than September 30, 2020, government guidelines for the implementation of the announced tax compliance relief program has been issued by the Board of Internal Revenue or the Ministry of Finance of the Participating State to tax administration officials and agents. 11.2 No later than June 30, 2021, the Participating State has issued a regulation prohibiting, on a prospective basis, the contracting of private consultants for the assessment and collection of personal income tax, which is the sole responsibility of the state revenue agency; AND no such contracts have been entered into or renewed during the period starting on September 1, 2020 through the date of issuance of such regulation. 11.3 No later than June 30, 2022, the property records for at least June 30, 2022 104,717,909.00 Achieved / Not Achieved 50% of properties that have electricity connections in Urban Areas in the Participating State have been completed or updated per criteria set out in the Verification Protocol, stored in an electronic database, with said records to be valid as on September 1, 2020 or later; and the Participating State has established institutional arrangements per criteria set out in the Verification Protocol to use the property records to improve or start the collection of property tax. Page 45 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) DLI IN01065757 ACTION Strengthened procurement function for COVID-19 or emergency situation and facilitated participation of SMEs in public DLI 12 procurement in the resilient recovery phase Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 132,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Most states do not have specific emergency Baseline guidelines. Participation of SMEs generally low. Prior Results 0.00 December 31, 2019 0.00 12.1. No later than September 30, 2020, the Public Procurement Authority (PPA) of the Participating State has issued guidelines, which meets the criteria set out in the Verification Protocol, for (i) the procurement of goods and services for COVID-19 December 31, 2020 and other emergency situations; and (ii) the 80,000,000.00 Achieved / Not Achieved adaptation of existing public procurement procedures to support the increase in participation of SMEs (the “SME Guidelines”); AND At least two training sessions for SMEs on the SME Guidelines have been held. 12.2. DLR 12.1 has been achieved; and No later than June 30, 2021, the PPA has published on its official website, a list of all contracts executed to support June 30, 2022 the Participating State’s COVID-19 response in the 52,000,000.00 Achieved / Not Achieved fourth quarter of FY 2020 and the first quarter of FY 2021; AND No later than September 30, 2021, the Participating State has awarded at least 20 more Page 46 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) contracts to SMEs in the period after September 30, 2020, as compared to the period January 1, 2020 to 30 September, 2020. Action: This DLI has been Revised. See below. DLI IN01066989 ACTION Strengthened procurement function for COVID-19 or emergency situation and facilitated participation of SMEs in public DLI 12 procurement in the resilient recovery phase Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 92,496,037.00 0.00 Period Value Allocated Amount (USD) Formula Most states do not have specific emergency Baseline guidelines. Participation of SMEs generally low. Prior Results 0.00 December 31, 2019 0.00 12.1. No later than September 30, 2020, the Public Procurement Authority (PPA) of the Participating State has issued guidelines, which meets the criteria set out in the Verification Protocol, for (i) the procurement of goods and services for COVID-19 December 31, 2020 and other emergency situations; and (ii) the 64,640,042.00 Achieved / Not Achieved adaptation of existing public procurement procedures to support the increase in participation of SMEs (the “SME Guidelines”); AND At least two training sessions for SMEs on the SME Guidelines have been held. 12.2. No later than June 30, 2021, the PPA has June 30, 2022 27,855,995.00 Achieved / Not Achieved published on its official website, a list of all contracts Page 47 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) executed to support the Participating State’s COVID- 19 response in the fourth quarter of FY 2020 and the first quarter of FY 2021; AND No later than September 30, 2021, the Participating State has awarded at least 20 more contracts to SMEs in the period after September 30, 2020, as compared to the period January 1, 2020 to 30 September, 2020. DLI IN01065758 ACTION DLI 13 Established a fiscally sustainable response to COVID-19 through COVID-19 responsive budgets Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 230,000,000.00 0.00 Period Value Allocated Amount (USD) Formula Approved FY2020 State Budgets cannot be implemented as prepared due to substantive Baseline change in circumstances arising from COVID-19 health and economic crisis. Prior Results 0.00 December 31, 2019 0.00 13.1 No later than July 31, 2020, an Amended 2020 State budget, which meets the criteria set out in the Verification Protocol, has been approved by the House of Assembly of the Participating State, assented to by the Governor, and published on a December 31, 2020 205,000,000.00 Achieved / Not Achieved State official website. 13.2 The Participating State has executed at least 90 percent of the tagged COVID-19 response expenditures in their Amended 2020 State Budget, per criteria set out in the Verification Protocol. Page 48 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 13.3 The Participating State has executed at least 90 percent of the tagged COVID-19 response June 30, 2022 25,000,000.00 Achieved / Not Achieved expenditures in their 2021 State Budget, per criteria set out in the Verification Protocol. Action: This DLI has been Revised. See below. DLI IN01066990 ACTION DLI 13 Established a fiscally sustainable response to COVID-19 through COVID-19 responsive budgets Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Text 204,940,948.00 0.00 Period Value Allocated Amount (USD) Formula Approved FY2020 State Budgets cannot be implemented as prepared due to substantive change Baseline in circumstances arising from COVID-19 health and economic crisis. Prior Results 0.00 December 31, 2019 0.00 13.1 No later than July 31, 2020, an Amended 2020 State budget, which meets the criteria set out in the Verification Protocol, has been approved by the House of Assembly of the Participating State, assented to by the Governor, and published on a December 31, 2020 177,652,199.00 Achieved / Not Achieved State official website. 13.2 The Participating State has executed at least 90 percent of the tagged COVID-19 response expenditures in their Amended 2020 State Budget, per criteria set out in the Verification Protocol. Page 49 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) 13.3 The Participating State has executed at least 90 percent of the tagged COVID-19 response June 30, 2022 27,288,749.00 Achieved / Not Achieved expenditures in their 2021 State Budget, per criteria set out in the Verification Protocol. Page 50 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) ANNEX 2: PROGRAM ACTION PLAN . . PAP_CHANGE_TBL Action Completion Description Source DLI# Responsibility Timing Measurement Action Fiduciary staff of Fiduciary Systems DLI 6 All Recurrent Semi-Annually Staff for FM No Change the implementing Implementing engaged in each agencies are Agencies implementing trained in Bank agency, trained FM procedures by Bank team and and fulfilling Disbursement requirements for Guidelines financial reports and maintenance of records. Provision of Technical DLI 7 DMO Due Date 09-Aug-2021 Templates and No Change templates and guidelines to guidelines to States for DLI#7 States for DLI#7: prepared and • State disseminated quarterly debt with training report (debt report, SDSA, SMTDS) • Debt Sustainability Analysis • Medium-term debt management strategy Provision of Technical NGF with inputs Due Date 30-Jul-2021 Guidance No Change guidelines and from other provided to all workshops for the agencies States for new new DLIs added results added to through the the Program Program through restructuring. restructuring in 2020. In compliance Environmental and Social PCU Due Date 15-Oct-2021 GRM manual for Revised with PforR core Systems the operation in principles, iclude place and training environmental conducted for all and social States on management implementation. rules in the operation. Proposed Page 51 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) In compliance Environmental and PCU Due Date 15-Oct-2021 GRM manual for with PforR core Social Systems the operation in principles, iclude place and training environmental conducted for all and social States on management implementation. rules in the operation. Create awareness Environmental and Social States SFTAS Due Date 15-Oct-2021 Outreach and Revised for the use of the Systems focal person training covering States’ all States ombudsman to conducted. protect basic human rights of people potentially affected by the SFTAS Proposed Create awareness Environmental and States SFTAS Due Date 15-Oct-2021 Outreach and for the use of the Social Systems focal person training covering States’ all States ombudsman to conducted. protect basic human rights of people potentially affected by the SFTAS Introduction of Other DLI 2 PCU with Other April 2021 for Climate change No Change climate change support of NGF FY2021 and budget tagging budget tagging in April 2022 for and subsequent the FY2021 and FY2022 State reporting and FY2022 Annual budgets presentation in State Budgets quarterly BERs and citizens' budgets completed by - 6 States for FY2021; 18 States for FY2022. Introduction of Fiduciary Systems States Due Date 30-Mar-2022 Report by the No Change risk-based Accountant PCU detailing the internal audit General implementation function outside of the action in the expenditure selected States. processing cycle n Pilot MDAs in selected states Conduct of an Technical DLI 6 FMoF HFD/PCU Due Date 31-Dec-2021 Report of an Marked for independent will hire the independent Deletion procurement audit firm procurement Page 52 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) audit on random audit on random sample of at least sample covering 5 percent of state at least 5% of government state government capital capital procurement procurement transactions for transactions for States achieving States achieving DLI#6 DLI#6. Reporting of Fiduciary Systems PCU, State CoF Recurrent Semi-Annually PCU to include in No Change complaints and & Attorney- semi-annual allegations for General progress report fraud and the positive corruption confirmation related to the from all States Program by all regarding States reporting of complaints and allegations and actions taken as per agreed format. States submit Fiduciary Systems States Recurrent Yearly Receipt and No Change audited financial Accountant acceptance of statements with General Audited Financial the necessary Statements of information participating required for the States with SFTAS Program disclosure of PEF Audit no later expenditures. than nine months after end of the fiscal year. Designate Fiduciary Systems All Due Date 31-Mar-2021 Staffing for FM in No Change Financial implementing place for each Management agencies implementing Specialist/Project agency. Account, Project Internal Auditor and support accounting technicians in each implementing agency Develop state Technical States’ Recurrent Yearly Action plans No Change SFTAS annual Ministries of prepared by all action plans Finance participating achievement of states to ensure the Eligibility focus on Criteria and DLRs, achievement of including capacity DLIs and EC. Page 53 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) building activities Provision of Technical DLI 2 Nigeria OGP Due Date 30-Jul-2021 Templates No Change templates and Secretariat; developed and guidelines to FMOF as training provided States for DLI#2 HFD/PCU to States for to increase adoption and use. citizens’ engagement in the budget process: • Citizens Budget • Citizens Accountability Report Ensure PCU is Other FMoF HFD /PCU Recurrent Yearly All key positions No Change adequately filled and selected staffed consultants throughout the performing as per program duration TORs. with a program manager, FM specialist, Procurement specialist, Capacity Building specialist, Communications and Outreach specialist, and M&E specialist . Page 54 of 55 The World Bank States Fiscal Transparency, Accountability and Sustainability PforR (P162009) ANNEX 3: DLI ALLOCATION ADJUSTMENTS IN SDR FOR THE ORIGINAL AND ADDITIONAL FINANCING Total Financing Allocated to Category (SDR) CATEGORY (including Disbursement-Linked Indicator (DLI) as A - Original financing B - Additional financing applicable) Current Adjusted Current Adjusted allocation allocation allocation allocation 1 DLI 1: Improved financial reporting and budget reliability 24,510,042 19,257,000 29,115,240 27,157,016 DLI 2 Increased openness and citizens’ engagement in the 2 9,128,596 11,212,000 32,515,560 31,284,883 budget process DLI 3: Improved cash management and reduced revenue 3 12,868,596 11,786,000 25,502,400 26,070,736 leakages through implementation of State TSA DLI 4: Strengthened Internally Generated Revenue (IGR) 4 32,828,638 53,154,998 48,171,200 46,347,974 collection DLI 5: Biometric registration and bank verification number 5 26,570,042 29,687,999 59,505,600 58,659,155 (BVN) used to reduce payroll fraud DLI 6: Improved procurement practices for increased 6 26,594,326 37,805,000 35,420,000 41,278,665 transparency and value for money DLI 7: Strengthened public debt management and fiscal 7 36,832,901 50,853,999 30,815,400 29,691,671 responsibility framework DLI 8: Improved clearance/reduction of stock of domestic 8 10,610,028 7,765,000 22,668,800 18,828,865 expenditure arrears 9 DLI 9: Improved debt sustainability 39,850,063 35,558,000 22,314,600 21,001,426 DLI 10: Enhanced transparency and accountability of funds in 11 6,565,202 0 90,675,200 118,766,684 the COVID-19 response and resilient recovery phases DLI 11: Provided structured tax relief in response to COVID-19 and strengthened tax administration (personal income tax 12 65,102,329 61,536,000 69,423,200 73,504,990 and property taxation) to enhance non-oil tax collection in the resilient recovery phase DLI 12: Strengthened procurement function for COVID-19 or 13 emergency situation and facilitated participation of SMEs in 65,102,329 45,373,000 29,752,800 19,553,052 public procurement in the resilient recovery phase DLI 13: Established a fiscally sustainable response to COVID-19 14 130,204,658 124,700,000 35,420,000 19,154,883 through an amended COVID-19 responsive 2020 budget SDR (DLI only) 486,767,750 488,688,996 531,300,000 531,300,000 Goods, consulting services, non-consulting services, Training 10 34,832,250 32,911,004 0 0 and workshops, and Operating Costs under the Project SDR (DLI + IPF/TA) 521,600,000 521,600,000 531,300,000 531,300,000 Page 55 of 55