Five states got $15 million as the World Bank approved $27 million in reform incentives for education and health care

Five states became the biggest beneficiaries of a $27 million performance-based incentive package under the World Bank-backed HOPE Governance Program, after meeting key reform benchmarks in Nigeria’s education and primary healthcare sectors.

Bayelsa, Borno, Kano, Kebbi and Yobe states will each receive $3 million, which combined amounts to $15 million, for the successful implementation of key governance reforms related to the program’s first year performance assessment.

The National Coordinator of the HOPE Governance Program, Assad Hassan, announced the disbursement of the funds on Tuesday during a retreat for commissioners, permanent secretaries and directors of budget and planning from the 36 states and the Federal Capital Territory in Abuja.

Details of the incentive package are contained in a statement issued by the program’s Communications Officer, Joe Mutah.

According to the statement, the HOPE Governance Program, housed in the Federal Ministry of Budget and Economic Planning, approved the incentives after independent verification of states’ performance based on Year Zero Disbursement Related Results of the program.

The statement said: “The World Bank-supported HOPE Governance Program, housed in the Federal Ministry of Budget and Economic Planning, will disburse $27 million in performance-based incentives to countries that successfully achieve Year Zero Disbursement Related Outcomes.”

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The verification exercise is conducted by a Temporary Independent Verification Agent, whose assessments form the basis for determining which states are eligible to receive awards.

Based on Disbursement-Linked Results (DLR) 2.1 and 2.2, Bayelsa, Borno, Kano, Kebbi and Yobe meet all the requirements set out in relation to the implementation of comprehensive guidelines for preparing and submitting consolidated work plans for the state basic education and basic health services budgets.

Each of the five states qualified for $1.5 million based on each indicator, bringing their total revenue from the two areas of reform to $3 million each.

Nine states also received incentives under DLR 2.3, which measures local governments’ implementation of harmonized budget guidelines and charts of accounts. Adamawa, Bayelsa, Borno, Delta, Gombe, Kano, Plateau, Taraba and Yobe will each receive $500,000 to meet program requirements.

Another 15 states are eligible to receive awards under DLR 4.1 after publishing the 2025 Citizens’ Budget for basic education and basic health services before the required deadline. The states are Abia, Bayelsa, Borno, Edo, Ekiti, Enugu, Imo, Jigawa, Kano, Kebbi, Kogi, Nasarawa, Ondo, Plateau and Yobe, with each receiving $500,000.

Explaining how beneficiaries are selected, Hassan said only states that fully fulfill the program’s requirements within the specified time period will be considered.

The statement said: “These incentives are based on the findings and recommendations of the Interim Independent Verification Agent, which conducted a rigorous assessment of states’ performance against Year Zero Disbursement Related Indicators.

“For DLR 2.1 and DLR 2.2, Bayelsa, Borno, Kano, Kebbi and Yobe states meet all the requirements and are therefore eligible to receive $1.5 million each for both indicators.

“For DLR 2.3, nine states successfully adopted aligned budget guidelines and charts of accounts for local governments and will each receive $500,000.

“Additionally, under DLR 4.1, 15 states met requirements related to the issuance of the Fiscal Year 2025 Citizens Budget for basic education and basic health services and will each receive $500,000 equally.”

He explained that many states were unable to access these incentives because they failed to meet program requirements or missed important deadlines.

“Other participating countries are ineligible to receive incentives because they published the required guidelines after the March 31 2025 deadline, failed to meet most of the established criteria, or did not publish the required results on their countries’ official websites,” it said.

Hassan identified poor collaboration between government agencies as a major obstacle to successful implementation of reforms in some states.

According to him, “One of the main challenges faced is the inability of many countries to establish effective institutional coordination mechanisms. This has weakened institutional ownership of reforms and threatened their sustainability.

“Countries need to strengthen coordination between ministries, departments and agencies to ensure that these reforms are not just one-offs, but become institutionalized governance practices.”

He revealed that the Temporary Independent Verification Agent has completed the second stage of verification of the Year Zero assessment, and the process is expected to be completed in July 2026.

Hassan further revealed that the program has begun implementing comprehensive capacity development initiatives aimed at helping countries improve their systems and meet future performance targets.

“The program has begun preparations for the implementation of a robust capacity building action plan that will provide direct technical support to countries. The aim is to help countries improve their systems and successfully achieve the next program outcomes,” he added.

Speaking about the program’s broader objectives, Hassan said the program is designed to strengthen public financial management in the education and health sectors while increasing transparency and accountability in the use of government resources.

According to him, “The program aims to strengthen the implementation of coordinated annual plans for basic health services and basic education, increase accountability of public spending, and close staffing gaps through recruitment and deployment of teachers and priority health care workers across the state.”

The HOPE Governance Program is a $500 million World Bank-backed initiative aimed at increasing financing for basic education and basic health services across Nigeria. It also promotes transparency in public spending while supporting better recruitment, placement, and performance management of teachers and frontline health workers at the federal, state, and local government levels.

The newly approved $27 million incentive package represents one of the program’s earliest performance-based disbursements and reflects a growing emphasis on rewarding states that successfully implement governance reforms that strengthen public service delivery.