The Federal Government of Nigeria has received financing in the amount of US$750,000,000.00 equivalent from the World Bank toward the implementation of the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) Programme.
The NG-CARES Programme is a multi-sectoral intervention designed to provide immediate emergency relief to poor and vulnerable individuals and households, Smallholder Farmers and MSEs that were adversely affected by COVID-19 pandemic.
It is a two-year budget support operation to be implemented from 2021-2023. NG-CARES Programme is implemented using the World Bank Programme for Results (PforR) financing instrument at the State level and Investment Project Financing (IPF) at the Federal level. 98% of the resources is allocated to the States and FCT and implemented through existing platforms such as National Cash Transfer (NCT), Youth Employment and Social Support Operations (YESSO), Community and Social Development Project (CSDP), National Fadama Development Project and Government Enterprise and Empowerment Programme (GEEP).
There are three Results Areas (RA) with 11 Disbursement Linked Indicators (DLIs) from which each of the participating States and FCT selects based on the priority of the State or FCT. The remaining 2% of the credit supports operations at the Federal level through the Federal CARES Support Unit (FCSU).
The Federal component is used to provide technical support (capacity building, project management, programme oversight, M&E etc.) to States and FCT. The NG-CARES Programme supports three (3) of the Government’s Economic Sustainability Plan (ESP) objectives, using established platforms at the Statelevel as follows:
a) Protecting the very poor and vulnerable groups through expanding coverage of the existing social assistance interventions at the State level and enabling the delivery of basic social services.
b) Use Labor Intensive Public Works (LIPW) in the social and agriculture sectors to maintain and enhance social and agricultural infrastructure; and
c) Stimulate the economy by supporting agricultural value chains, providing livelihood grants to prevent the collapse of informal enterprises, helping finance costs to help retain workers in MSEs, and enabling technology enhancements to allow businesses to adapt to COVID-19-induced constraints.
2. PROGRAMME DEVELOPMENT OBJECTIVE
The Programme Development Objective of the NG-CARES is “to expand access to livelihood support and food security services, and grants for poor and vulnerable households and firms”.
The key performance indicators are:
• Number of beneficiaries of targeted safety nets and with access to basic social services (disaggregated by gender).
• Number of farmers supported to increase food production (disaggregated by gender).
• Number of vulnerable and viable firms supported by the Programme (disaggregated by gender of ownership).
3. PROGRAMME RESULT AREAS
The Programme by design is structured to be flexible, fast disbursing using three (3) Result Areas and 1 foundation Result Area:
Result Area 1 (RA1): Increased Social Transfer, Basic Services and Livelihood Support to Poor and Vulnerable Households. This Result Area is disaggregated around the following activities:
• Social Transfer to aged, physically challenged, chronically ill and urban poor.
• Labour Intensive Public Work (LIPW) activities.
• Livelihood grants to economically active household members.
• Community and group investment/basic infrastructure services.
Result Area 2 (RA 2): Increased food security and safe functioning of food supply chain. This will include agriculture related activities across the entire Agriculture value chain such as:
• Provision of agricultural inputs and services.
• Labour intensive agricultural infrastructures.
• Agricultural assets for production and mitigation of food loss and waste.
• Upgrading wet markets to function safely.
Result Area 3 (RA 3): Facilitating Recovery and Enhancing Capabilities of MSEs. Activities proposed under this Result Area include
• Provision of well-targeted conditional grants to co-finance loans that eligible MSEs received during the COVID-19.
• Extending conditional grants to MSEs to cover up to 50% portion of the monthly operation cost of MSEs.
• Support adoption of digital payments integration and IT connection cost of MSEs. The implementation of Results Areas 1-3 happens at the State level. Foundation Result Area: Strengthened Institutional Support for State Coordination and Delivery. The Foundation Result Area is implemented at the Federal level and includes
• Verification of Results through an Independent Verification Agent. (IVA);
• Financial Management Service and Technical Support.
• Monitoring and Evaluation; and
• Peer Learning and Experience Sharing.
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