Of the N6.26 trillion deficit funding of the proposed 2022 budget, that is the amount of the total budget funded by multi and bilateral loans, N1.155 trillion is directly tied to projects. This sum makes up 18.45% of the total deficit of N6.26 trillion, as presented for the 2022 fiscal year.
Previously, these projects were typically embedded in the budget details of the affected ministries, however, according to the budget document released by the Ministry of Finance, Budget, and National Planning, they were separated in the 2022 budget.
Data on the national budget proposal indicates that this separate document released by the ministry is the first time such projects are outlined separately although still allocated to the concerned ministries.
Three ministries received the highest of this project-tied funding; Federal Ministry of Finance, Budget, and National Planning tops the list with the highest project tied allocation to the ministry at N269.9 billion.
The Federal Ministry of Power has an allocation of N220.6 billion for projects and the Federal Ministry of Communication Technology and Digital Economy has an allocation of N126.9 billion.
The Federal Ministry of Environment received the least of the project-tied funding at N16.4 billion with its projects taking up 1.42% of the total multi and bilateral loans.
Multi and bilateral loans are fundings for different projects by different international organizations. Amongst these organizations are the World Bank, African Development Bank, China NEXIM bank amongst others.
These projects cut across different development areas of the economy from power supply to road construction, agricultural development, and provision of infrastructure. If implemented effectively, they will improve the well-being of citizens.
So What Areas will these Loan-funded Projects Cover?
Power Supply
One of the projects under the federal ministry of finance, budget, and national planning is the Power Sector Recovery Project (PSRP). The PSRP is a world bank tied loan project whose development objective is to improve the reliability of electricity supply, achieve financial and fiscal sustainability and enhance accountability. This project was approved in June 2020 and will run till June 2023, costing $750 million. It was last updated by the world bank as moderately satisfactory towards its achievement on 25th june, 2021.
Nigeria Electricity Transmission and Access Project (NETAP) is a project under the federal ministry of power, and it was approved in 2018. Its main aim is to increase the transfer capacity of the transmission network in Nigeria. This is the project with the highest allocation under the ministry of power. This project’s overall implementation progress was termed moderately satisfactory according to the world bank on 28th May, 2021.
Agricultural Development
The Rural Access and Agricultural Marketing Project, a world bank funded loan, meant to be implemented across selected states. The project has the aim of improving access to agricultural marketing by rural dwellers. The project, approved in 2020, will be entering its third year in the 2022 fiscal year but was termed by the world bank as at 25th of June 2021 as satisfactory in its implementation progress. It aims at boosting and enlarging the marketing base of agriculture in rural areas.
Transforming Irrigation Management in Nigeria (TRIMING) is financed by the world bank and approved in 2014. It aims to improve access to irrigation and drainage services and strengthen institutional arrangements for integrated water resources management and agriculture service delivery in selected large-scale water public schemes in northern Nigeria. This is a project under the ministry of water resources. The world bank on 25th march, 2021 rated the project’s overall implementation progress as moderately satisfactory.
Under the Ministry of Environment, the Nigeria Erosion and Watershed Management Project (NEWMAP) is a project financed by the world bank and approved in 2018 designed to reduce vulnerability to soil erosion and target sub-watershed. This project was negatively impacted by COVID-19 but has continually achieved its project development objectives according to the progress report of December 2020.
Education
The Better Education Service For All (BESDA), a world bank-financed project, was approved in 2017 with the sole aim of increasing equitable access for out-of-school children, improving literacy in focus states, and strengthening accountability for results in primary education in Nigeria.. 17 states in Nigeria are to benefit from this program and were selected due to the prevalence of out-of-school children in these regions.
Infrastructure
A China EXIM bank facility finances the National Information Communication Technology Infrastructure Backbone (NICTIB) Phase2 project under the Communication Technology and Digital Economy ministry. The project aims to improve broadband penetration in Nigeria and improve the country’s internet and network communication experience. Another project under the ministry of communication technology and digital economy is the Nigeria Identification for Development project.
Upgrading and rehabilitation of the Keffi-Akwanga road project under the federal ministry of works and housing financed by the China EXIM bank. It has the economic benefit of driving the economy and creating job opportunities directly and indirectly through its infrastructural developments.
Social Well-being
The world bank finances the National Social Safety Net project (NSSNP) under the Federal Ministry of Humanitarian Affairs, Disaster Management, and Social Development. This project was approved in 2016, and its objective is to provide access to targeted transfers to poor and vulnerable households under an expanded national social safety net. Its implementation rating as at 13th February, 2021 was satisfactory according to the world bank.
Sustainable Procurement, Environmental, and Social Standard Enhancement (SPESSE) projects are under the Ministry of Women Affairs. It’s a project financed by the World Bank and approved in 2020. It aims to develop sustainable capacity in managing procurement, environmental and social standards in the public and private sectors. As of 20th April, 2021 the world bank rated its implementation progress as satisfactory.
Another project to be carried out by the ministry is the COVID-19 Action Recovery and Economic Stimulus Program (NCARES). Also funded by the World Bank aims at expanding the livelihood of Nigerians across the states. Having been approved in December 2020, the project will be entering its second year in 2022. The implementation rating of this project by the world bank was moderately satisfactory, the rating was made as of 21st April, 2021.
Nigeria COVID-19 Preparedness and Response Project (COPREP) is a project under the ministry of health financed by the world bank. The project was approved in 2020 with a life span of 4 years, and its main objective is to protect, detect and respond to the threat posed by COVID-19 at the state level in Nigeria. It was last reviewed by the world bank on 12th, January 2021 and was rated moderately satisfactory in terms of implementation rating.
Outlining these projects in a separate document aids transparency, providing a basis for tracking and monitoring the progress of these projects. Thus implementation can be monitored by social actors to enhance the value for money. It will also enhance the demand for accountability on the status of project implementation.