The Federal Government of Nigeria has officially requested a one-year extension from the World Bank for the Multi-Sectoral Crisis Recovery Project (MCRP) to rehabilitate conflict-affected regions in North-East Nigeria.
Initially scheduled to conclude on May 31, 2024, the government seeks to extend the project until May 31, 2025. This extension aims to ensure the completion of ongoing and new activities critical to the region’s recovery, including agricultural support, labor-intensive public works, and relevant training activities for vulnerable populations.
In a letter dated April 3, 2024, the Federal Government outlined the necessity of this 12-month extension. The letter emphasized that the additional time is crucial for completing activities vital to supporting the most affected communities in the North-East. A document from the World Bank’s website confirmed this request and highlighted the task team’s support for the extension, recommending the project be restructured accordingly.
Launched in 2017 with an International Development Association (IDA) Credit of SDR 148 million ($200 million equivalent), the MCRP later received additional financing of SDR 129 million ($176 million equivalent), bringing the total funding to $376 million. The project was initially approved on March 20, 2017, and became effective on January 16, 2018. Additional financing was approved on May 26, 2020, and became effective on March 16, 2021.
The primary objectives of the MCRP are to rehabilitate and improve service delivery infrastructure, provide livelihood opportunities, and strengthen social cohesion in the conflict-affected states of Borno, Adamawa, and Yobe.
Since its inception, the MCRP has achieved significant progress despite facing numerous challenges. As of April 2024, approximately $340 million, or 90% of the total financing, had been disbursed. Under the peacebuilding and livelihoods component, over 1.27 million individuals have benefited from improved livelihood opportunities.
However, the project still faces a shortfall of 1.57 million beneficiaries due to delays in cash-for-work activities originally planned as a COVID-19 response. The infrastructure rehabilitation and service delivery restoration component has also seen substantial progress, with nearly 2.57 million individuals gaining improved access to service delivery infrastructure. Approximately 87% of the 1,907 planned sub-projects have been completed, with ongoing efforts to address delays in complex sub-projects such as road construction and infrastructure rehabilitation.
These delays are attributed to various factors, including the COVID-19 pandemic, security challenges, and the 2023 elections, which collectively hampered the project’s timeline. The continued delays necessitate the proposed extension to ensure the completion of critical activities and the sustainability of project investments.
The extension will facilitate the establishment of robust operations and maintenance (O&M) regimes to ensure the long-term functionality of rehabilitated infrastructure. It will also serve as a bridge for future projects, facilitating the transition to new operations and ensuring continuity in the region’s recovery efforts.
The World Bank’s task team supports the extension, confirming that the project development objectives remain achievable, the Borrower’s performance is satisfactory, and there are no outstanding audits or financial reports.
