M&E FOR ACCOUNTABILITY: THE CASE OF NIGERIA’S VPF Presentation by the Office of the Senior Special Assistant to the President on MDGs, Nigeria

AfrEA 2007OSSAP-MDGs 2 Outline Introduction Background The Concept of the Virtual Poverty Fund Overview of Public Expenditure in NEEDS: Nigeria’s VPF Establishing an M&E mechanism for OPEN Challenges and Lessons Conclusions

AfrEA 2007OSSAP-MDGs 3 Introduction (1 of 2) In September 2005, the Paris Club group of creditors granted Nigeria debt relief worth US$18billion. The deal was negotiated off the back of key economic and political reforms. Recurring issues of corruption and accountability fuelled fears as to whether savings from the deal would be well-utilised, and not misspent or embezzled.

AfrEA 2007OSSAP-MDGs 4 Introduction (2 of 2) M&E in Nigeria to date has been partial, superficial and sporadic. Insufficient to report on debt relief savings. Debt relief became a platform to rejuvenate the country’s system of M&E. Overview of Public Expenditure in NEEDS (OPEN) was designed and implemented to adequately track the expenditure, outputs and impacts of debt relief gains, as well as overhaul Nigeria’s M&E capacity.

AfrEA 2007OSSAP-MDGs 5 Background ‘Buy-back’ created controversy around national funds being used for debt deal rather than domestic spending. Members of legislature, media and civil society concerned about how debt relief savings would be spent. Donors interested in what debt relief savings will be spent on. Need to prove that debt relief was spent judiciously.

AfrEA 2007OSSAP-MDGs 6 The Concept of the Virtual Poverty Fund Coding system within existing budget classification structure that enables the ‘tagging’ and ‘tracking’ of poverty-reducing spending. Integrated into the standard budget coding structure for the 2006 Federal Budget. Ignores whether receipts truly reflect realities on the ground, the quality of the outputs, non-financial inputs such as policy objectives, and the needs of beneficiaries and so on.

AfrEA 2007OSSAP-MDGs 7 Overview of Public Expenditure in NEEDS: Nigeria’s VPF Broader ‘OPEN’ initiative included: – Improved planning procedures – Facilitating and Tracking Implementation – Comprehensive monitoring and evaluation component. Need to more comprehensively track debt relief. Focus on results chain.

AfrEA 2007OSSAP-MDGs 8 Establishing an M&E mechanism for OPEN (Aims) 1. Provide the nation’s citizens, the Nigerian Government, and the international community with verifiable details of the outputs, outcomes and impacts of debt relief. 2. Act as the platform for the restructuring of M&E processes at the Federal level. 3. Build capacity for improved M&E across government.

AfrEA 2007OSSAP-MDGs 9 Establishing an M&E mechanism for OPEN (operational framework) Field M&E: – Zonal teams of private sector consultants and civil society organisations. – National M&E team consolidate and harmonise data from zonal teams. – National Coordinator overseas the implementation and smooth running of the field M&E system. – Presidential Committee to oversee coordinating office’s work. Baseline diagnostic study, redesign of federal M&E and capacity building.

AfrEA 2007OSSAP-MDGs 10 Establishing an M&E mechanism for OPEN (garnering political will) Presidential initiative. Appointment of Senior Special Assistant to operate the OPEN initiative. High level involvement of the National Assembly. Professional and transparent communication of results at Presidential Committee and other fora.

AfrEA 2007OSSAP-MDGs 11 Challenges and Lessons (1 of 2) In designing OPEN, there was a need for experimentation in aspects of both M&E and planning. Looked ahead to the changing context into which M&E reform would fit. What system of M&E will be necessary at each stage of the reforms? Capacity building: – Training which focussed on the use of M&E concepts in every-day work. – ‘Civil-servant friendly’ M&E tools, tested, both in the field and in the classroom. – MDA officers from institutions in which OPEN processes would be institutionalised selected for secondment to OPEN team. – Private sector and civil society special needs catered for.

AfrEA 2007OSSAP-MDGs 12 Challenges and Lessons (2 of 2) Incentivised reforms: funds, political commitment, and communication. Important for stakeholders to recognise need for pilot year. Improved planning in the MDAs is possible. Civil society integrated and independent rather than as a parallel reporting unit. Took longer than we thought!

AfrEA 2007OSSAP-MDGs 13 Conclusions OPEN is still in its initial stages. However, there are preliminary results that can be shared, and discussed. Feedback on implementation welcome from all quarters. Lessons from OPEN may be useful for other countries, especially other African countries, in the creation of a comprehensive monitoring and evaluation system for public expenditures.