Fed Govt, World Bank Launch “State Action on Business Enabling Reforms (SABER)” Programme
By Patience Ikpeme
In a bid to bolster the strides made through the States Fiscal Transparency, Accountability, and Sustainability (SFTAS) Programme, the Federal Government, in collaboration with the World Bank, has unveiled the “State Action on Business Enabling Reforms (SABER)” initiative.
Set to operate from 2023 to 2025, this programme aims to overhaul Nigeria’s state-level business environment. Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed these plans during the Four-day Federation Account Allocation Committee (FAAC) retreat in Asaba, Delta State.
The proposed $750 million SABER Programme awaits approval from the National Assembly as part of an abridged External Borrowing Plan. Its core objectives encompass incentivizing and fortifying the implementation of reforms vital to fostering a conducive business environment.
These reforms span areas such as land administration, regulatory frameworks for private investment in fiber optic infrastructure, public-private partnerships, investment promotion frameworks, tax administration, and business regulatory enhancements.
Emphasizing the government’s commitment to ongoing fiscal and monetary reforms aimed at facilitating a business-friendly atmosphere, diversifying the economy’s revenue base, investing in critical infrastructure, and ensuring macroeconomic stability, Mr. Edun articulated the collective endeavour to build a resilient economy for Nigeria.
Moreover, the Minister underscored the accomplishments of the $1.5 billion SFTAS Programme-for-Results, concluding in December 2023. He urged sub-national entities to sustain the commendable reforms initiated during this period, extending beyond the SFTAS timeline.
Assuring the World Bank of the federal government’s dedication, Edun highlighted the substantial impact of the SFTAS programme, enhancing governance approaches and public finance management within State Governments.
The World Bank Senior Economist, Mr. Samer Matta, commended the Federal and State Governments for their pivotal fiscal reforms initiated through the SFTAS Programme. He stressed the need for continuity, urging adherence to the SFTAS Charter signed by Governors in August 2022, to ensure sustained achievements.
Matta attributed the success of the SFTAS programme to a variety of factors, including fair eligibility criteria, robust verification processes, and transparent, performance-based standards. He highlighted how these reforms have bolstered states’ fiscal practices, contributing to their credibility within capital markets through improved fiscal data and evidence-based decision-making.
Ms. Bertine Kamphuis, World Bank Task Team Leader for SABER, expressed optimism about maintaining SFTAS principles even without additional incentives.
She reiterated SABER’s alignment with sustainability strategies, incorporating SFTAS eligibility criteria and further enhancing criteria related to timely financial reporting.
In essence, the launch of the SABER Programme marks another concerted effort to reinforce Nigeria’s economic landscape by fostering a more conducive environment for businesses at the state level, building upon the successes achieved through the SFTAS initiative.
