Supplementary memorandum submitted by
the Department for International Development
Note by DFID following the evidence session
on 24 April 2008
African Development Bank Governance, Economic
and Financial Management Department Focus on Nigeria, April 2008
The following activities are currently being
supported by the Governance, Economic and Financial Management
department (OSGE) for Nigeria. They are aimed at tackling ongoing
governance challenges from an operational and policy perspective,
through projects, and economic and sector analyses:
INSTITUTIONAL SUPPORT
PROJECT FOR
GOVERNANCE, CAPACITY
BUILDING AND
POVERTY REDUCTION
Total ADF grant—UA 4.00 million
Total Government Contribution—UA 0.92
million
The efforts of the Federal Government of Nigeria
to achieve rapid economic growth and reduce poverty are being
undermined by the weak capacity of key government agencies for
economic management and governance. The aim of the project is
to support and complement efforts of the Nigerian Government and
development partners to strengthen the country's capacity for
economic management and good governance.
The Government's overall sector goal is to contribute
to poverty reduction by enhancing the capacity for good governance
and economic management. Specifically, the project is contributing
to building the capacity of the Ministry of Finance (the African
and Bilateral Relations Unit—ABER) the Judiciary, and the
National Assembly, to build their capacity in the following areas:
(i) ABER—Enhancing project appraisal,
implementation, coordination and management capacity for improved
implementation rate of ADB financed projects
(ii) Supreme Court, and the Federal High
Court—Enhancing legal and judicial capacity for better governance
(iii) National Assembly—Improving oversight
function and enforcement of accountability in the budget cycle.
This is being achieved through relevant functional
training programs and study tours, and the provision of operational
equipment. The project is scheduled to be completed by 30 June
2008.
SUPPORT TO
THE AFRICAN
PEER REVIEW
MECHANISM
The Bank has been lending its support to the
African Peer Review Mechanism (APRM) together with its strategic
partners the UNDP and United Nations Economic Commission for Africa,
ever since the Inaugural Summit of the APRM Committee of Participating
Heads of State and Government (APR Forum) in 2004.
The APRM is a mutually agreed instrument voluntarily
acceded to by member states of the African Union as a self monitoring
mechanism. The mandate of the APRM is characterized by African
ownership and leadership, and the overarching goal is for all
participating countries to accelerate their progress towards adopting
and implementing the priorities and programs of the New Partnership
for Africa's Development (NEPAD), achieving mutually agreed objectives
and compliance with best practice in respect to each of APRM areas
of governance and development, namely: Democracy and political
governance, Economic governance and management, Corporate governance
and Socio Economic development. The AfDB has been mandated by
NEPAD to in particular focus on Corporate and Economic Governance.
Nigeria has acceded to the APRM, and recently,
after having completed its Country Self Assessment report, received
a country review mission in February 2008, to validate its report
and prepare a country review report that will eventually be peer
reviewed by Heads of State during the next AU summit. The Bank
provided technical support to the preparation of the report and
the national action plan that will help Nigeria articulate, and
implement activities based on best practices for good governance.
The bank is also lending its support to the revision of the overall
ARPM process that will include reviewing the Monitoring and Evaluation
framework of national plans of action. This revised framework
will positively impact Nigeria's capacity to achieve sustainable
results in the area of governance.
ECONOMIC AND
SECTOR WORK
(i) Country Governance Profile
The Bank's Country Governance Profiles are a
general assessment and dialogue tool on the key governance issues
in any given country. They support both the exercise of the Bank's
fiduciary responsibilities and the achievement of its development
objectives. For the fiduciary responsibilities, the CGP identifies
the strengths and weaknesses of governance arrangements in particular
areas in a country and helps in assessing the risks that these
may pose to the use of Bank funds. Concerning the development
objectives, the CGP helps facilitate a common understanding by
the Bank and where possible, development partners, of the country
governance arrangements in both the public and the private sectors,
thus facilitating the design and implementation of capacity building
programs and specific reforms.
The Bank undertook its first CGP for Nigeria
in 2002. The profile is currently being updated to highlight the
evolution of key governance issues and the trends being experienced
in the implementation of Nigeria's governance priorities. In identifying
the main challenges, OSGE will be guided in its policy dialogue
and its approach to economic and financial governance activities.
(ii) Fiscal Decentralization study
The Bank plans to carry out a study that will
assess and evaluate fiscal discipline at state level, for more
sustainable, transparent and accountable financial management
of public resources. This follows the recent adoption of Nigeria's
Fiscal Responsibility Bill. Though this has been adopted at the
federal level, there are concerns over how implementation will
be conducted at the state level. The study which is expected to
be completed in early 2009, will form the basis for a subsequent
Institutional Support Project that should contribute to minimizing
fiscal indiscipline at the local level, and enhancing fiscal decentralization
and macro-economic development nationwide.
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