Nigeria eyes $500 million World Bank loan to reduce staffing gaps in education, health sectors

The New Diplomat
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Nigeria is on the verge of securing a $500 million loan from the World Bank, a significant financial boost aimed at addressing critical challenges in the country’s education and healthcare sectors.

This is according to the “Programme Information Document (PID)” for the appraisal stage of the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Programme.

The proposed loan, part of the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Programme, is intended to tackle long-standing staffing gaps and enhance the performance management of basic education teachers and primary healthcare workers.

World Bank likely to approve loan next month

The World Bank is expected to give its final approval for the loan on September 26, 2024.

According to the PID seen by Nairametrics, the loan will focus on three major result areas, with the improvement of recruitment, deployment, and performance management of sector workers being a key component.

This effort is particularly important given Nigeria’s alarming human capital index, which indicates that a child born in the country today will only achieve 36% of their productive potential if current levels of health and education services persist.

One of the primary objectives of the loan is to incentivize improvements in workforce planning within the education and healthcare sectors.

The loan will provide the necessary financial resources to enhance the recruitment processes, ensuring that qualified professionals are adequately deployed to where they are most needed.

The initiative will also address the significant disparities in staffing across Nigeria’s regions, a challenge that has long plagued both sectors.

Nigeria to leverage BVN, NIN to tackle payroll fraud

In addition to workforce planning, the loan will support the adoption of new systems to improve payroll management and reduce fraud. This includes the implementation of the Central Bank of Nigeria’s Bank Verification Numbering (BVN) system and National Identity Numbers (NIN) platforms.

These systems will play a crucial role in ensuring that funds are used efficiently and that only verified employees are on the payroll, thereby eliminating ghost workers.

The planned introduction of biometric check-ins and community monitoring, where available, will further strengthen the accountability and performance of education and health workers.

A part of the PID noted that one of the expected results of the loan program is improved recruitment, deployment, and performance management of basic education teachers and primary health workers, adding that: “This results area will incentivize: (i) the enhancement of the sector and workforce planning function, (ii) reduction of significant staffing gaps and improved deployment and management practices for basic education and primary health care workers, and (iii) adoption of new or existing systems such as the Central Bank of Nigeria Bank Verification Numbering (BVN) system and National Identity Numbers platforms to check payroll fraud, biometric check-ins where available, community monitoring, performance bonuses, automatic payroll deductions.”

Loan programme to run for four years

The HOPE Governance Programme, under which this loan falls, is scheduled to run from 2024 to 2028, providing support for systemic reforms at both the state and federal levels, focusing on cross-sectoral issues such as financial resource allocation, public financial management, fiscal transparency, and accountability.

As part of the World Bank’s support, the loan will also incentivize the reduction of staffing gaps by 40%, with a target that at least 30% of new recruits will be women.

This gender-sensitive approach is intended to address not only the quantity but also the quality and diversity of the workforce in these critical sectors.

The loan is part of a larger $2 billion government program that seeks to accelerate the provision of quality basic education and healthcare services across Nigeria. [Nairametrics]

 

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