The Federal Government of Nigeria has partnered with the World Bank to introduce a new initiative called the State Action on Business Enabling Reforms (SABER) programme, a successor to the successful States Fiscal Transparency, Accountability, and Sustainability (SFTAS) Programme.
The primary goal of this initiative is to bolster Nigeria’s business environment at the state level, with the programme scheduled to run from 2023 to 2025.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the Federation Account Allocation Committee (FAAC) retreat in Asaba, Delta State. Edun revealed that the $750 million SABER Programme is awaiting approval from the National Assembly as part of an abridged External Borrowing Plan.
The SABER Programme’s objective is to incentivize and reinforce the implementation of business-friendly reforms. These reforms encompass areas such as land administration, regulatory frameworks for private investment in fibre optic infrastructure, public-private partnerships, investment promotion frameworks, tax administration, and fostering a conducive business regulatory environment.
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Edun reaffirmed the Federal Government’s dedication to fiscal and monetary reforms that aim to create a conducive business environment, diversify revenue sources, facilitate critical infrastructure investment, and ensure macroeconomic stability. He expressed confidence in the collaboration between the government and the World Bank to fortify Nigeria’s economy.
Additionally, Edun acknowledged the accomplishments of the $1.5 billion SFTAS Programme-for-Results, set to conclude in December 2023. He applauded all 36 states for their commendable achievements in enhancing fiscal transparency, domestic revenue mobilization, efficient public expenditure, and debt sustainability.
Encouraging continuity in these reforms beyond the SFTAS period, the minister urged sub-national governments to sustain their efforts.
World Bank Senior Economist, Samer Matta, commended the Federal and State Governments for their fiscal reforms under the SFTAS Program. He stressed the importance of maintaining these achievements, particularly for incoming administrations, by adhering to the SFTAS Charter signed by Governors in August 2022.
Bertine Kamphuis, the World Bank Task Team Leader for SABER, expressed optimism regarding the sustenance of SFTAS achievements. She emphasized incorporating SABER into the sustainability strategy and leveraging SFTAS eligibility criteria, highlighting the importance of timely publication of compliant budgets and audited financial statements and the significance of debt sustainability reporting.
The launch of the SABER programme signifies a joint commitment between the Federal Government and the World Bank to enhance the business environment and stimulate economic growth at the state level in Nigeria.
