Nigeria - Development Finance Project (English)

Table of Contents

• Independent Evaluation Group IEG 1
• 1. Project Data 1
• Project ID Project Name 1
• Country Practice AreaLead 1
• LCTF Numbers Closing Date Original Total Project Cost USD 1
• Bank Approval Date Closing Date Actual 1
• IBRDIDA USD Grants USD 1
• Prepared by Reviewed by ICR Review Coordinator Group 1
• 2. Project Objectives and Components 1
• DEVOBJTBL a. Objectives 1
• Independent Evaluation Group IEG 2
• Did the Board approve the revised objectiveskey associated outcome targets 2
• Date of Board Approval 2
• Component 1 Technical Assistance and Capacity Building Amount at approval of US12 million actual amount of US7.78 million 2
• Component 2 Line of Credit Facility Amount at approval of US445.0 million actual amount of US395.00 million 2
• Component 3 Credit Guarantee Facility Amount at approval of US35.0 million actual amount of US85.00 million 2
• Independent Evaluation Group IEG 3
• Component 4 Project Management Amount at approval of US6.75 million actual amount of US2.60 million 3
• Cost 3
• Project Financing 3
• Borrower Contribution 3
• Dates 3
• Restructurings 3
• Independent Evaluation Group IEG 4
• Assessment methodology 4
• 3. Relevance of Objectives 4
• Rationale 4
• Country context 4
• The World Bank and the borrower in partnership with other donors set the stage for this project. 4
• Alignment with Government strategy. 4
• Independent Evaluation Group IEG 5
• Alignment with Bank strategy. 5
• Rating 5
• 4. Achievement of Objectives Efficacy 5
• OBJECTIVE 1 5
• Objective 5
• Rationale 5
• Independent Evaluation Group IEG 6
• Theory of change 6
• Outputs and intermediate outcomes 6
• Enhanced technical capacity to support the MSMEs sector 6
• Independent Evaluation Group IEG 7
• Operationalizing the DBN and the Impact Credit Guarantee Limited ICGL 7
• Outcomes 7
• Independent Evaluation Group IEG 8
• Rating 8
• OBJECTIVE 1 REVISION 1 8
• Revised Objective 8
• Revised Rationale 8
• Theory of change 8
• Independent Evaluation Group IEG 9
• Outputs 9
• Outcomes 9
• Independent Evaluation Group IEG 10
• Revised Rating 10
• OVERALL EFFICACY 10
• Rationale 10
• Overall Efficacy Rating 10
• OVERALL EFFICACY REVISION 1 10
• Independent Evaluation Group IEG 11
• Overall Efficacy Revision 1 Rationale 11
• Overall Efficacy Revision 1 Rating 11
• 5. Efficiency 11
• Financial efficiency. 11
• Independent Evaluation Group IEG 12
• Economic efficiency. 12
• Efficiency Rating 12
• Rate Available Point value CoverageScope 12
• 6. Outcome 12
• Overall the project weighted outcome is rated as Satisfactory as indicated in Table 1 below. 12
• Independent Evaluation Group IEG 13
• Table 1 Overall Weighted Outcome 13
• Assessed against the 2014 PDO Indicators and Targets 13
• Assessed against the 2021 PDO Revised Indicators and Targets 13
• Overall Rating 13
• 1. Relevance 13
• 2. Efficacy 13
• 3. Efficiency 13
• 4. Outcome 13
• 5. Rating value 13
• 6. Weight disbursed amount 13
• 7. Weighted value 5.2 rounded to 5 13
• 8. Overall outcome rating Satisfactory 13
• Outcome Rating 13
• 7. Risk to Development Outcome 13
• Macroeconomic risks 13
• Institutional and regulatory risk 13
• Governance and political risks 13
• Independent Evaluation Group IEG 14
• 8. Assessment of Bank Performance 14
• The project was designed to address critical issues of sustainable access to finance by MSMEs. 14
• The project design was underpinned by background analysis and relevant lessons learned. 14
• The project preparation was thorough and participatory 14
• Institutional and managerial arrangements were crafted by a Bank team working in tandem with high-level staff from the Borrower Government 14
• Critical risks were identified and mitigation measures were built into the project design 14
• Independent Evaluation Group IEG 15
• Quality-at-Entry Rating 15
• The Bank team exerted flexibility to adapt to the countrys challenging macro-economic environment 15
• Installing the implementation office within the DBN headquarters building facilitated supervision and reporting 15
• Supervision teams provided timely support to the client on safeguards procurement and FM 15
• The Bank team addressed implementation challenges including issues within the PIU disbursement delays and COVID-19 disruptions 15
• Independent Evaluation Group IEG 16
• The Bank team succeeded in limiting the Governments interference in the project implementation 16
• The Bank team supported the Borrower in addressing high market volatility and high level of informality within the economy. 16
• Quality of Supervision Rating 16
• Overall Bank Performance Rating 16
• 9. ME Design Implementation Utilization 16
• The DBN was under the oversight of banking supervisory bodies and there was an alignment between the theory of change and the results framework of the project 16
• PDO indicators and targets were not fully realistic at appraisal were not precisely formulated and had to be revised twice. 16
• Independent Evaluation Group IEG 17
• Institutional and managerial arrangements were appropriate. 17
• ME implementation consisted in periodic reporting and surveys to capture project progress and impact 17
• ISRs and Aide-memoires were key instruments to report on project progress toward the project objective 17
• The results framework was revised in 2019 and 2021 for improved formulation and to make PDO indicators and targets more realistic respectively. 17
• Independent Evaluation Group IEG 18
• ME Quality Rating 18
• 10. Other Issues 18
• Independent Evaluation Group IEG 19
• Procurement 19
• Financial management 19
• 11. Ratings 19
• Independent Evaluation Group IEG 20
• Ratings ICR IEG Reason for DisagreementsComment 20
• 12. Lessons 20
• Establishing a wholesale DFI that does not directly engage in retail lending or take on credit risk can contribute to promoting MSME finance without crowding out private sector lenders 20
• Strong and independent corporate governance and controls can contribute to fostering a DFIs ability to increase outreach and additionality 20
• Sustained support from the Government and its entities can contribute to ensure the success of a DFI wholesale lending operations including an efficient pricing strategy 20
• Independent Evaluation Group IEG 21
• 13. Assessment Recommended 21
• 14. Comments on Quality of ICR 21