Building PFM Capabilities IN NIGERIA

Sector:
Public Sector

The Challenge

How might we strengthen Public Finance Management systems for budget execution and monitoring and evaluation in the Federal Government?

Nigeria is one of many developing countries that struggle with persistent PFM problems. The most recent Public Expenditure and Financial Accountability (PEFA) assessment, conducted in 2021, shows that overall the country had weak PFM processes and outcomes. Although previous reforms have recorded successes in areas such as fiscal responsibility, taxation, and public procurement, and ancillary functions, the multiplicity of reforms has often hampered their overall objective. This is an important developmental issue and an area in which many countries have been trying for decades to build capabilities. 

The complexity of the process of putting together and managing a budget for an entire government has required that countries possess a series of interlinked capabilities to keep the government running effectively. As such, it has become paramount to keep track of key PFM capabilities to identify areas for improvement and the facilitation of incremental reforms.

The SOLUTION

In partnership with Asara Consulting, Made Culture carried out an institutional and personnel capabilities assessment to take stock of the functional PFM system in Nigeria. 

The focus of the assessment was on budget implementation, monitoring and evaluation capabilities in the Federal Government of Nigeria and it was followed by a validation workshop to share preliminary findings, get feedback on the information gathered, reflect on key capability gaps, and generate directional ideas on the implications for PFM effectiveness and potential policy responses.

THE OUTput

The final output from the PFM Capability Assessment was a validation workshop report that provided a summary of the feedback and recommendations from the capability assessment and validation workshop sessions.