The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 10/19/2021 | Report No: ESRSC02371 Oct 19, 2021 Page 1 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Nigeria AFRICA WEST P177308 Project Name NG Accelerating Resource Mobilization Reforms PforR Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Governance Program-for-Results 2/7/2022 3/24/2022 Financing Borrower(s) Implementing Agency(ies) Federal Ministry of Federal Ministry of Finance, Finance, Budget and Budget and National National Planning Planning Proposed Development Objective Public Disclosure The program development objectives are to enhance revenues, strengthen revenue administration and trade facilitation, and improve fiscal and debt transparency and management. Financing (in USD Million) Amount IPF Component 30.00 Total Project Cost 750.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The program development objectives are to enhance revenues, strengthen revenue administration and trade facilitation, improve fiscal and debt transparency and management. D. Environmental and Social Overview Oct 19, 2021 Page 2 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The Operation will be a three-year Program-for-Results (PforR, Program) with an Investment Project Financing (IPF) component (Project), designed to support the Accelerating Revenue Mobilizing Reforms (ARMOR) program. The program and the IPF component will be implemented nationally. The proposed US$750 million lending operation will be implemented by the Federal Ministry of Finance, Budget and National Planning and is expected to contribute to five key result areas to achieve the PDO: (i) Result Area 1: Enhancing tax and exercise revenues through appropriate policy reforms and tax administration measures (ii) Result Area 2: Reducing the amount forgone revenues (iii) Result Area 3: Boosting customs revenues through trade facilitation (iv) Result Area 4: Improve debt transparency and management and strengthen fiscal management and (v) Result Area 5: Safeguard revenues from the oil sector. This ESRS assesses the risks associated with the IPF component of the project which is US$30 million IDA TA component. The TA component will provide technical resources including capacity building, likely procurement of IT equipment to the various Project Implementation Units to help them in activities leading to the achievement of DLIs and addressing government capacity needs. The component allows a closer working relationship between the World Bank, the implementing agencies, the PIU in ensuring that inputs are well-designed, and that sufficient quality assurance is provided, including on the verification of the results. Public Disclosure D. 2. Borrower’s Institutional Capacity The proposed PforR will be implemented in the Federal Ministry of Finance, Budget and National Planning (FMFBNP) with technical assistance under the IPF component. The PforR operation will require the task team to conduct an Environmental and Social System Assessment (ESSA), to evaluate the acceptability of the borrower’s systems against the core principles for managing the identified E&S risks and impacts, and identify potential measures for institutional capacity improvement. Overall, the Federal Ministry of Environment (FMEnv) is responsible for setting policy guidelines on environmental issues and ensuring compliance with national environmental standards, while state-level agencies undertake similar responsibility at the state level. The FMEnv has an Environmental Assessment (EA) department responsible for implementing Nigeria’s EIA Act No. 86 of 1992. The EA department, in conjunction with State Ministries of Environment, ensures adequate monitoring of environmental performance during project implementation consistent with the National and state requirements, WBG ESF, and Good International Industry Practices (GIIP). Although FMFBNP has experience in working with the World Bank in multiple PforR and safeguard policies, the FMFBNP and FMEnv have limited exposure to Environmental and Social Framework (ESF) implementation. It is anticipated that at the Federal level, environmental and social specialists, will be hired/assigned and maintained throughout Program implementation, and who will have to be trained on the requirements of the proposed ESSA for the PforR and ESF to effectively manage environmental and social risks. Nigeria has past PforRs with ESSAs and experience of implementation of TA (IPF) component, in the Power Sector Recovery Operation (PSRO), the States Fiscal Transparency, Accountability and Sustainability (SFTAS) program. This PforR and TA can build on that experience of safeguard compliance. Oct 19, 2021 Page 3 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low Environmental Risk Rating Low The environmental risk is rated Low. Technical Assistance activities will not support or design any kind of physical intervention or civil work. The TA component will provide technical resources including capacity building, likely procurement of IT equipment to the various Project Implementation Units to help them in activities leading to the achievement of DLIs and addressing government capacity needs. Any kind of activities triggering negative environmental and social risk/impact will not be supported by this TA components. The component allows a closer working relationship between the World Bank, the implementing agencies, the PCU/PIU in ensuring that inputs are well-designed, and that sufficient quality assurance is provided, including on the verification of the results. The risks of waste and e-waste that may arise from the likely procurement of computers, scanners, offices accessories and capacity building activities at the various Project Implementation Units to help them in activities leading to the achievement of DLIs and addressing government capacity needs. the Client will prepare an Environmental Social Management Plan (ESMP), that will detail how the waste, e-waste and OHS related issues will be appropriately managed. The ESMP will be prepared and disclosed by Program appraisal. Social Risk Rating Low The Social risk is rated Low. Some potential critical social risks include: borrower capacity to implement the ESF Public Disclosure requirements under the TA component; inadequate stakeholder engagements, which could lead to poor understanding of the objective of the Program and its outcomes; and issues on grievances and complaints about the Program and its implementation. The Client will engage a Social and Environmental Specialist at the Federal level to ensure ESF and ESSA requirements of the Program are implemented. The Bank E&S Specialist will also provide capacity building opportunities to ensure that all E&S requirements are met. The Client shall also prepare a Stakeholder Engagement Plan (SEP), which will provide information on the procedures and modalities for conducting the stakeholder events in line with WHO and the NCDC guidelines on COVID-19 requirements. The SEP will: (i) describe the Program stakeholders and how they will be engaged throughout the program life, with a focus on identifying vulnerable individuals or groups and applying measures to remove barriers to their participation;(ii) describe the grievance redress mechanism (GRM). B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The TA component is expected to provide resources to the various Project Implementation Units to help them in activities leading to the achievement of DLIs and addressing government capacity needs. The activities will not have any physical footprint. The IPF component supports technical assistance activities within the Federal Ministry of Finance, Budget and National Planning. Specific support activities, managed by the responsible implementation agency and will not generate any adverse direct or indirect environmental risks and impacts. There are no civil works Oct 19, 2021 Page 4 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) under the IPF TA component. However, some of the environmental risks include waste and e-waste management from the offices and capacity building activities that may arise from the likely procurement of computers and offices accessories at the various Project Implementation Units , poor working conditions in offices, OHS and travel-related risks. Potential social risks include: borrowers capacity to implement the ESF requirements under the TA component; inadequate stakeholder engagements, which could lead to poor understanding of the objective of the Program and its outcomes; issues on grievance and complaint about the Program and its implementation. The relevant ESSs that apply to the Project are ESS1, ESS2, ESS3, and ESS10. Under the TA component, in line with the World Bank’s Environmental and Social Framework (ESF), an Environmental and Social Commitment Plan (ESCP), a Stakeholder Engagement Plan (SEP), and an Environmental and Social Management Plan (ESMP) that will detail how wastes and e-waste will be appropriately managed with a section on Labor Management Procedures (LMP) will be prepared by the GoN and will be publicly disclosed by Program appraisal. The SEP will provide information on the procedures and modalities for conducting the stakeholder events in line with WHO and the NCDC guidelines on COVID-19 requirement, describe the Program stakeholders and how they will be engaged throughout the program life, with a focus on identifying vulnerable individuals or groups and applying measures to remove barriers to their participation and describe the grievance redress mechanism (GRM). The Client will engage an Environmental and Social Specialist at the Federal level to ensure ESF and ESSA requirements of the Program are implemented. The Bank E&S Specialist will also provide capacity building opportunities to ensure that all E&S requirements are met. Public Disclosure Areas where “Use of Borrower Framework” is being considered: The operation will not use the Borrower’s E&S Framework in the assessment, development and implementation of sub projects. ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant. The proposed program is expected to involve multiple stakeholders with diverse interests and influence on the program. The inputs and concerns of these stakeholders would need to be considered in the program design and implementation through meaningful stakeholder engagements. Key stakeholders will include: Office of the Vice President; the Central Bank of Nigeria Governor; Ministry of Finance, Budget and National Planning; other relevant Ministers; the Fiscal Policy Reforms Committee (FPRC); Nigeria Customs Service (NCS); Federal Inland Revenue Service (FIRS), and the Debt Management Office (DMO); Federal Executive Council (FEC); National Assembly (NASS); relevant donor organizations; Ministries Departments and Agencies (MDAs) and Other interested parties. The borrower will be required to prepare a Stakeholder Engagement Plan (SEP) consistent with the requirements of ESS10 before Appraisal. The SEP will include stakeholder mapping and communication strategy for interested parties, various beneficiaries and program affected persons, including disadvantaged and vulnerable groups, to ensure adequate inclusion of vulnerable people and allow for meaningful stakeholder consultations and inputs in the program design. Oct 19, 2021 Page 5 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) The SEP will: (i) describe the Project stakeholders and how they will be engaged throughout the program lifecycle, with a focus on identifying vulnerable individuals or groups and applying measures to remove barriers to their participation; (ii) describe the grievance redress mechanism (GRM); (iii) provide the budget, responsibilities, and implementation arrangements for the implementation of stakeholder activities and will also provide measures to ensure that all stakeholder engagement activities will be conducted in compliance with the National COVID-19 protocols on social distancing and the World Bank guidance note on “Public Consultations and Stakeholder Engagement in WB- supported operations” B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions While the IPF TA component will mostly be implemented by government workers, it is anticipated that the Project will have direct workers who will be consultants hired to support certain TA objectives. These hired consultants would help the government project implementation unit deliver on the requisite technical inputs that the government may be lacking in skills or capacity. The IPF component supports technical assistance activities includes carrying out procurements and addressing government capacity needs. To address ESS2 requirements, a Labor Management Procedures (LMP) will be prepared Public Disclosure in the ESMP and implemented by the GoN and will be publicly disclosed by Program appraisal. A Program level GRM will be included in the ESMP. ESS3 Resource Efficiency and Pollution Prevention and Management ESS 3 is considered relevant due to solid and e-wastes that may be generated from office management and capacity building activities. The IPF TA component will not finance activities that may generate pollution. No rehabilitation or construction of new infrastructure or other actions having an impact on the environment will be financed through this IPF. Therefore, the project will prepare and adopt and implement a Waste Management Plan included in the ESMP to manage the risks that will be generated from office management including e-wastes. In addition, the project will promote energy efficiency by using energy saving and efficient bulbs including biodegradable materials where applicable. In case of purchasing IT and electronic equipment, energy and resource efficiency will be considered. GHG emissions will be negligible, therefore no GHG emission estimation is needed for the project. ESS4 Community Health and Safety Not relevant at this stage of the project as per available information regarding project design. Relevancy of this standard will be revisited during appraisal. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Oct 19, 2021 Page 6 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) Not relevant at this stage of the project as per available information regarding project design. The outcome of E&S screening did not identify any potential risks and/or impacts relevant to ESS5. The Technical Assistance will not require land acquisition that would result in the impacts covered under this Standard. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Not relevant at this stage of the project as per available information regarding project design. The outcome of E&S screening did not identify any potential risks and/or impacts relevant to ESS6. The IPF component supports technical assistance activities to specifically allow carrying out procurements and addressing government capacity needs. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is not relevant. There are no identified Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities in the project area. ESS8 Cultural Heritage Not relevant at this stage of the project as per available information regarding project design. The outcome of E&S screening did not identify any potential risks and/or impacts relevant to ESS8. The IPF component supports technical assistance activities to specifically allow carrying out procurements and addressing government capacity needs. Public Disclosure ESS9 Financial Intermediaries Not relevant. This standard does not apply. B.3 Other Relevant Project Risks Not applicable C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners None at this moment Oct 19, 2021 Page 7 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: i. Preparation of Draft Stakeholder Engagement Plan and Information Disclosure Plan (SEIDP)-PIU at Federal level; ii. Preparation of Draft Environmental and Social Management Plan (ESMP) including Labor Management Plans (LMP) and waste including e-waste management plans - PIU at Federal level; iii. Preparation of the Environmental and Social Commitment Plan (ESCP) with measures for addressing the environmental and social risks identified in the project. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): Occupational Health and Safety Plan (OHP), Labor Management Plan (LMP), Stakeholder Engagement Plan (SEP), Waste Management Plan (WMP) etc C. Timing Tentative target date for preparing the Appraisal Stage ESRS 24-Jan-2022 IV. CONTACT POINTS Public Disclosure World Bank Contact: Rajul Awasthi Title: Senior Public Sector Specialist Telephone No: Email: rawasthi@worldbank.org Contact: Samer Naji Matta Title: Senior Economist Telephone No: +1-202-473-5202 Email: smatta@worldbank.org Borrower/Client/Recipient Borrower: Federal Ministry of Finance, Budget and National Planning Implementing Agency(ies) Implementing Agency: Federal Ministry of Finance, Budget and National Planning V. FOR MORE INFORMATION CONTACT Oct 19, 2021 Page 8 of 9 The World Bank NG Accelerating Resource Mobilization Reforms PforR (P177308) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Samer Naji Matta, Rajul Awasthi Practice Manager (ENR/Social) Sanjay Srivastava Recommended on 14-Oct-2021 at 13:06:34 GMT-04:00 Public Disclosure Oct 19, 2021 Page 9 of 9