Nigeria—DFID Policy Development Facility (PDF2)

Client: U.K. Department for International Development

Duration: 2015-2020

Region: Sub-Saharan Africa

Country: Nigeria

Solutions: Economic Growth Governance

To develop a competitive and dynamic non-oil economy, particularly one based on pro-poor growth, Nigeria needs to pursue innovation and reform in its policy and public investment framework.

Funded by the U.K. Department for International Development (DFID), this Abuja-based facility is increasing capacity throughout Nigeria to craft and implement evidence-based policies and initiatives. These may be in: economics (macro, fiscal, industry), trade and trade relations, private sector development, public expenditure management, tax policy and regulation, fiscal decentralisation, social development, poverty analysis, and social impact assessment.

The first phase (PDF1) operated from 2010 to 2015. Our approach for PDF2 will continue to be both responsive and proactive, so that DFID can offer information, organizational support, and initiatives useful to stakeholders that may not otherwise have been requested.

Sample Activities

  • Support initiatives by key economic reformers and organizations with qualified and effective embedded advisers and other complementary technical support.
  • Promote evidence-based, pro-poor policy dialogue to strengthen the institutional linkages between the suppliers and consumers of information.
  • Undertake economic data collection, research, and analysis that can inform the dialogue between the Government of Nigeria and DFID, and align with or complement other subprojects within PDF or the wider DFID portfolio.
  • Manage the procurement of local staff and advisers, including contract administration, quality assurance, reporting and monitoring/evaluation, and communication.

Select Results (from PDF1)

  • Established Nigerian Sovereign Investment Authority to address the shortcomings of the Excess Crude Account; it has received funding from the Federal Government and made its first investments, including for new bridges.
  • Improved implementation of YouWIN!, a government-run business-plan grant competition, helping it be viewed as merit-based rather than patronage-based; over three YouWIN! competitive rounds, applications rose from 24,000 to 114,000.
  • Supported restructuring of the Development Finance Institution (DFI) sector and created a “wholesale” DFI; the new entity (alongside World-Bank-supported restructuring of the existing DFIs) will bring more private sector discipline, access to funding for Nigerian enterprises, and access for smaller borrowers to formal financial services.
  • Embedded advisers who helped: deliver national policies for sugar, automotive, and solid minerals and mining; improve enabling environments via the Investment Climate Reform Programme and Nigerian Business Charter; and develop plans and delivery mechanisms, such as for the national Investment Strategy and Infrastructure Plan.
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