economy
FG writes World Bank to extend deadline for $100 million Nigeria for Women Project
The Federal Government of Nigeria has officially appealed to the World Bank for a deadline extension of the $100 million Nigeria for Women Project (NFWP).
The request, outlined in a letter dated January 23, 2024, proposes to push the project’s deadline from March 29, 2024, to June 30, 2024, marking a second restructuring attempt to ensure the completion of its objectives.
A document released on Monday and obtained from the World Bank read:
- “This restructuring paper seeks the approval of the Country Director to extend the project closing date of the Nigeria for Women Project (NFWP) (P16134) by three months, from March 29, 2024 to June 30, 2024.
- “In a letter dated January 23, 2024, the Federal Ministry of Finance requested a second restructuring of the NFWP to extend the project closing date by to June 30, 2024. The first restructuring was for a 10 months’ closing date extension. This current extension request, which will result in a cumulative extension of 13 months.
- “The extension is necessary to enable the Borrower to complete the livelihood activities and disburse the unutilized funds under Component 2 (Livelihoods Program).
- “As of March 11, 2024, the NFWP has a cumulative disbursement of US$87.34 million (representing a 92.54 percent disbursement rate), leaving an undisbursed balance under Component 2 US$7.04 million, which should be fully spent before the proposed new closing date.”
About the Nigeria for Women Project
The NFWP, originally approved on June 27, 2018, via an International Development Association (IDA) credit of $100 million, has been primarily designed to foster improved livelihoods for women across various states of Nigeria by engaging them in meaningful economic activities and business ventures.
The project aims to equip women with the necessary skills and resources to engage in sustainable economic activities, enhancing their contributions to household incomes and community development. The project is structured around four main components:
- Building Social Capital: This component focuses on community engagement and empowerment of women through the creation and support of Women Affinity Groups (WAGs).
- Livelihoods Program: It provides direct support to individual and collective business initiatives, offering grants and resources necessary for business development.
- Innovation and Partnerships: This area fosters innovation and strengthens partnerships with local and international organizations to support the project’s goals.
- Project Management, Monitoring and Evaluation, and Learning: This component ensures the effective management and oversight of the project, including the assessment of progress towards meeting its objectives.
The document added:
- “The first restructuring that was approved on May 17, 2023 consisted of an extension of NFWP’s closing date by 10 months and a revision of the results framework (RF). The rationale for the restructuring was to enable the Borrower to fully achieve the PDO, given the significant delays at the project’s start and update the RF to reflect the findings of the project’s mid-term review.
- “At the time the extension was processed, it was assessed that 10 months would be sufficient to complete all planned activities to achieve the PDO. The action plan for the first extension envisaged that the livelihoods activities would be fully disbursed by March 29, 2024, and that the recently formed Livelihood Collectives (LCs) will have sufficient time to mature, prepare business plans, access resources, and ultimately access bigger markets, an intermediate indicator in the RF. It also envisaged that Abia State would complete payments of individual livelihoods grants and Akwa Ibom State would complete payment of revolving funds 2 by the closing date.
- “Despite the above extension, the NFWP has not yet fully disbursed the funds under Component 2 (7.46 percent still undisbursed) nor completed the LC activities under these components. The action plan developed was followed rigidly but, the delayed completion of certain livelihood activities was largely due to capacity and inflation related challenges.”
Status of progress made
Despite a substantial disbursement of $87.34 million as of March 11, 2024, the project still has undisbursed funds amounting to $7.04 million, primarily allocated for livelihood activities under Component 2 of the project.
The rationale for this extension is to allow sufficient time for the completion of these activities, which have faced significant delays due to a variety of challenges, including capacity constraints and inflationary pressures. The delays are notably attributed to the lengthy procurement processes for necessary equipment and the rising costs associated with these procurements.
To date, the project has made notable achievements under its four main components. Component 1 has successfully exceeded its target by mobilizing over 1,091,045 beneficiaries through various community-level activities.
This includes the formation and strengthening of WAGs, which have collectively saved N5 billion and received over N3.1 billion in loans to support entrepreneurial activities.
However, progress under Component 2, the Livelihoods Program, has been slower than anticipated. The component aims to support individual and collective business initiatives but has been hindered by implementation and financial management challenges.
For instance, the Livelihood Collectives, expected to provide women with access to larger market opportunities, are still in the preliminary stages of development.
Despite these hurdles, the World Bank and project coordinators remain optimistic. The midline Impact Evaluation suggests that while the project may not meet all its ambitious targets, it has had a positive and statistically significant impact on several important metrics, such as female labor force participation and income diversification.
Moreover, the extension is expected to solidify these gains by allowing for the completion of all pending activities, including the final disbursements of individual grants and the establishment of necessary infrastructures for the Livelihood Collectives.
As the project moves towards its revised closing date, the focus remains on ensuring that all logistical and financial processes are aligned to meet the extended timeline.
This includes the signing of all pending contracts related to the Livelihood Collectives by April 30, 2024, and the completion of these contracts by the proposed new deadline, experts say.
