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PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Implementing Agency
Report No.: AB2543
Community based Poverty Reduction Project Supplemental
AFRICA
Other social services (100%)
P102966
FEDERAL GOVERNMENT OF NIGERIA
Federal Ministry of Finance
Finance Headquarters, Central Area
Nigeria
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
National Planning Commission
Old CBN Building
Garki
Abuja, FCT
Nigeria
Tel: 234 2341836
State Poverty Reduction Agencies
Umuahia, Calabar, Ekiti, Lokoja,
kebbi, Yobe, Ilorin, Abakaliki
Nigeria
Tel: 234 58 221371
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
September 13, 2006
September 29, 2006
December 14, 2006
1. Key development issues and rationale for Bank involvement
Nigeria is the second largest country in the African Region with a GDP of about US$56
billion (2005) and a population of about 130 million. It is highly dependent on oil although the
majority of the people are involved in and dependant on the agricultural sector. Economic
growth is highly volatile due to dependence on oil and has averaged only about 3% in the last
few years. Per capita income is estimated at about US$300 (2004). Recent preliminary estimates
from the Living Standard Survey (2004) put the poverty incidence at 57.8% or about 75 million
people. High population growth (about 2.2%), slow economic growth, and great variability in oil
income as well as domestic prices/income, make reducing poverty quickly very difficult.
A large percentage of the population of Nigeria is vulnerable to poverty (about 90% based on
1996 data) and therefore prone to becoming poor or falling deeper into poverty when exposed to
a variety of risks. The large volatility of the economy, especially the high volatility in consumer
prices, is one of the major risks that affect the entire population, but not the only one. Limited
access to basic social services, loss of job/unemployment and other labor market issues as well as
limited economic opportunities – due to a dearth of supportive infrastructure – are major
challenges of the poor in Nigeria. The Community Driven Development CDD approach has
proven to be a veritable strategy in the fight against poverty
The Community-based Poverty Reduction Project (CPRP) – the first World Bank assisted
project using the CDD approach in Nigeria - was approved on December 20, 2000 for a total
credit amount of $60 million. The loan became effective on September 28th, 2001. The project’s
focus was to improve access of the poor to social and economic infrastructure and to increase the
availability and management of development resources at the community level. Project
implementation which was slow at the start, improved significantly and project performance has
been categorized as satisfactory for the past 3 years and highly satisfactory in the last 6 months.
Although all the development objectives have been largely achieved as indicated in the
Implementation Status Report (ISR) after the May 2006 Supervision Mission, and the
disbursement rate is actually 100% as at end July 2006, there are a large number of unmet
demands and requests by community groups for micro-projects in virtually all the States
currently implementing the project.
The success of the project has generated a lot of interest from more communities than earlier
envisaged. There a large number of unmet demands and requests by communities for microprojects in all the States currently implementing the Project. There are requests by the State
Governments for additional funding to respond to the unmet demands by the communities and to
consolidate the achievement of the development objectives. The Government is deeply
committed to the project and has started to design a National Community Driven Development
Programme as follow-on to the CPRP. The extensive consultation process required for the
preparation of the National CDD – that is being facilitated by the National Planning Commission
does suggest that it might take a longer time for the institutionalization of the National CDD.
Thus a formal additional financing request was submitted by the Government to the World Bank
on July 31, 2006.
It is envisaged that the additional financing would ensure that the project maximizes the
achievement of the development objective. More communities would be reached, more social
capital built and the participatory community driven development approach will become wide
spread. It would also ensure that there is continuity until when the National CDD program is
institutionalised
2. Proposed objective(s).
The Project development objective remains same as in original credit. That is to (i) improve
access of the poor to social and economic infrastructure and (ii) increase the availability and
management of development resources at the community level.
3. Preliminary description.
There are no proposed changes to the project’s development objectives, design, and scope. The
project terms and conditions will remain the same.
The additional total project costs will amount to US $25 million over a period of two years. The
closing date of the supplemental credit will be August 31, 2008. The institutional arrangement,
financial management, disbursement arrangements and procurement methods will same as under
the original credit (CPRP).
Changes in the allocation of project resources to States. Based on the request, It is envisaged
that a total of $24.7 million would be notionally allocated as supplementary to the eight states of
Abia, Cross River, Ebonyi, Ekiti, Kebbi, Kwara, Kogi and Yobe. N0.3 million would be
allocated to the Federal Ministry for monitoring of the utilization and reporting of the
supplementary credit. Schedule 1 of the DCA will be revised to reflect these changes.
4. Safeguard policies that might apply
None.
5. Tentative financing
Source:
BORROWER/RECIPIENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
Total
6. Contact point
Contact: Foluso Okunmadewa
Title:Lead Social Protection Specialist
Tel: 5359+247
Fax:
Email: [email protected]
Location: Abuja, Nigeria (IBRD)
($m.)
5
25
30