The Federal Government has announced that 33 states and the Federal Capital Territory (FCT) have signed the Subsidiary Loan Agreement (SLA) under the States Action on Business Enabling Reforms (SABER) program.
According to Mrs. Lydia Shehu Jafiya, Permanent Secretary, Federal Ministry of Finance, only three states are yet to sign the agreement. The SABER program is a three-year initiative (2023-2025) introduced by the Federal Government in partnership with the World Bank.
The program aims to encourage states to implement critical reforms that improve land administration efficiency, regulatory frameworks for private investment, services provided by investment promotion agencies, and government-to-business service efficiency and transparency.
At least 28 states have already benefited from Prior Results Disbursements, receiving between $1 million and $4 million each, out of a total disbursement of $68.36 million. The funds were released following the successful completion of verified reforms by these states.
The Federal Government has finalized arrangements for an Independent Verification Firm to assess the performance of states for 2023 and 2024. This assessment will determine the next phase of disbursements under the programme.
According to Dr. Ali Mohammed, Program Coordinator of the SABER Program, the initiative has been allocated $750 million through the Programme-for-Results (P4R) framework. The P4R is a World Bank financing instrument that ties funding to measurable outcomes rather than just spending.
The SABER Program is expected to drive economic growth, private sector development, and increased foreign investments in Nigerian states. The programme’s focus on business enabling reforms is critical to improving the business environment in states.
Bertine Kamphuis, Program Leader for Equitable Growth, Finance, and Institutions at the World Bank, emphasized that all states have the capacity to carry out the required reforms. She noted that the goal of the SABER Program is to attract private investments into Nigerian states.
