2007年-世界发展银行全球_Nigeria_-_A_Fiscal_Agenda_for____________Change___Public_Expenditure_Management_and_Financial____________Accountability_Review_Volume_I_Main_report_270页_19mb

Summary of Nigeria's Fiscal Agenda for Change (PEMFAR)

Core Content

The Public Expenditure Management and Financial Accountability Review (PEMFAR) is a comprehensive assessment of Nigeria's public financial management (PFM) system, conducted by the World Bank in 2007. It aims to improve the efficiency, transparency, and accountability of public finance management, both at the federal and state levels, and to identify key reform directions. The report is part of a broader effort to align Nigeria's fiscal policies with sustainable economic growth and poverty reduction goals.

Main Trends in Nigeria Public Finance

A. Recent Macroeconomic Developments

• Nigeria made progress in macroeconomic stabilization and structural reforms.
• The National Economic Empowerment and Development Strategy (NEEDS) focuses on three pillars: governance and anti-corruption, private sector growth, and improved service delivery.
• The strategy aims for 7-9% annual growth in the non-oil economy and at least 4% real per capita income growth.
• It also targets single-digit inflation, 7-8 months of international reserves to cover imports, and sustainable public debt levels.

B. Fiscal Performance of the Consolidated Government

• Government revenue as a percentage of GDP increased from 42.1% in 2001 to 48.5% in 2005.
• Total government expenditure as a percentage of GDP decreased from 47.0% in 2001 to 35.4% in 2005, indicating some fiscal consolidation.
• Oil revenues were a significant component of the government’s finances, contributing to volatility in the fiscal system.

C. Fiscal Operations of the Federal Government

• The Federal Government has made efforts to introduce fiscal rules based on oil prices to manage the volatility of oil revenues.
• Public spending was constrained, and fiscal reserves were built up, especially during periods of high oil prices.
• There were notable improvements in fiscal transparency and corruption control, particularly through initiatives like the Extractive Industries Transparency Initiative (EITI).

D. Federal Expenditure Structure and Quality of Expenditure

• The structure of federal expenditures was analyzed in terms of functional groups.
• The quality of expenditure was found to be inadequate in several areas, particularly in core public services.
• There were deviations between approved and executed budgets, indicating inefficiencies in budget execution.

E. Non-Budget Components of the Fiscal System

• Extrabudgetary funds and special funds played a role in financing certain government activities.
• These funds were often not transparent or accountable, creating risks of mismanagement and inefficiency.
• The Federal Government provided explicit budget support to some parastatals, which raised concerns about resource allocation and sustainability.

F. Conclusions and Recommendations

• The PFM system in Nigeria was found to be weak and inefficient.
• The report emphasizes the need for modernization of financial management, improvement in budget spending quality, and strengthening the capacity of the Budget Office.
• It recommends better coordination between the executive and legislature, enhanced transparency, and accountability mechanisms.

Strategic Directions for Reform

A. Performance Against Previous World Bank Reports

• The report evaluates the progress made in reforming the PFM system against recommendations from earlier World Bank reports such as the Public Expenditure Review (PER), Country Financial Accountability Assessment (CFAA), and Country Procurement Assessment Review (CPAR).

B. Main PFM Trends

• The PEFA assessment identified key trends in public financial management, including improved fiscal transparency, reforms in procurement, and enhanced budget accounting.
• However, accountability mechanisms were still underdeveloped, and budget execution remained inefficient.

C. Strategic Directions for Reform

• Modernization of Financial Management: Implementing modern financial systems such as the Accounting Transaction Recording and Reporting System (ATRRS) and Government Integrated Financial Management Information System (GIFMIS).
• Improving Quality of Budget Spending: Ensuring that budget allocations are targeted and efficient, with a focus on core public services.
• Strengthening the Capacity of the Budget Office: Enhancing the capacity and efficiency of the Budget Office of the Federation (BoF) to better manage public finances.

D. Recommendations for Priority Reforms

• The report suggests prioritizing reforms in budget formulation, expenditure control, and procurement transparency.
• It recommends enhancing collaboration between executive and legislative bodies to ensure better budget execution.
• The PEMFAR aims to inform development partners on how to support PFM reforms more effectively.

Assessment of Public Financial Management in Nigerian States

A. Overview

• The PEMFAR also assessed the PFM performance of four states: Bauchi, Cross River, Enugu, and Kaduna.
• These states were selected for a detailed analysis of their budgetary processes and fiscal management.

B. Context of PFM Reforms

• The PFM reforms in Nigerian states were influenced by the federal-level reforms and the NEEDS framework.
• The state-level PFM was found to be inconsistent and inefficient, with weak accountability mechanisms.

C. Detailed PEFA PFM Assessment

• The PEFA framework was used to assess the PFM performance of the states.
• The assessment focused on comprehensiveness, transparency, accountability, and budget execution.
• Several weaknesses were identified, including poor budget execution, inadequate revenue collection, and weak internal control systems.

D. Conclusions and Recommendations

• The PFM system in Nigerian states requires improvement in budget formulation, expenditure control, and public accountability.
• The report recommends enhancing budget monitoring, strengthening internal audits, and improving procurement processes.

Public Financing of the Power Sector

A. The Challenge

• The power sector in Nigeria was identified as a key area for reform.
• The sector faced significant challenges including inefficiency, corruption, and underfunding.
• The NEEDS strategy aimed to improve the power sector through better financing and management.

B. Sector Performance and Recent Policy Initiatives

• The power sector had low generation capacity and high demand.
• The NEPA (National Electric Power Authority) and NERC (National Electric Regulatory Commission) were key institutions in the sector.
• The government introduced the Medium Term Expenditure Framework (MTEF) and fiscal rules to improve sector management.

C. Government Spending in the Sector

• The Federal Government spent significant amounts on the power sector from 1999 to 2004.
• The spending was not always effective, and budget deviations were common.

D. Main Factors Affecting the Sector

• System-wide PFM issues such as budget transparency, procurement inefficiencies, and weak internal controls affected the effectiveness of the power sector.
• Sector-specific issues included inadequate infrastructure, corruption, and lack of coordination between different agencies.

E. Conclusions and Recommendations

• The power sector requires improved financing, better management, and enhanced accountability.
• The report recommends the introduction of transparent procurement systems, improved budget monitoring, and greater coordination between federal and state agencies.

Key Recommendations

• Modernize financial management systems using international standards such as IPSASs and IFMIS.
• Improve the quality of budget spending by focusing on core public services and efficient resource allocation.
• Strengthen the capacity of the Budget Office to better manage public finances.
• Enhance transparency and accountability in the PFM system, particularly in procurement and budget execution.
• Improve collaboration between executive and legislative bodies to ensure better budget execution.
• Support the reform of extrabudgetary funds to ensure better fiscal transparency.
• Enhance the role of development partners in supporting PFM reforms by identifying key bottlenecks in the reform process.

Conclusion

The PEMFAR highlights the need for comprehensive reforms in Nigeria's public financial management system to improve economic performance, service delivery, and fiscal accountability. The report emphasizes the importance of modernization, transparency, and collaboration in achieving these goals. It also recommends enhancing the role of development partners in supporting PFM reforms and improving the quality of budget spending. The PEMFAR is a key tool for guiding reforms and improving fiscal management in Nigeria.