Understanding the NG-CARES Program: Nigeria’s COVID-19 Action Recovery Initiative

The Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) Program is a World Bank-supported initiative designed to mitigate the adverse impacts of the COVID-19 pandemic on livelihoods, food security, and the operations of micro and small enterprises (MSEs) in Nigeria. The program is structured around three key Result Areas, each with specific Disbursement Linked Indicators (DLIs) that guide implementation and measure success. States within Nigeria have the flexibility to select from these DLIs based on their specific needs and priorities.

Result Area 1: Enhancing Social Safety Nets for Vulnerable Households

The primary focus of Result Area 1 of the Ng-cares Program is to bolster social protection measures. This is achieved by providing increased social transfers, essential basic services, and crucial livelihood support to poor and vulnerable households across Nigeria. Specific interventions under this result area include:

1. Social Transfers: Direct financial assistance is provided to vulnerable populations, including the elderly, individuals with physical challenges, those with chronic illnesses, and the urban poor, ensuring a safety net for those most affected by economic hardship.
2. Labour Intensive Public Works: The program facilitates labor-intensive public works projects, creating temporary employment opportunities while simultaneously improving community infrastructure and services.
3. Livelihood Grants: Economically active members of vulnerable households receive livelihood grants to help them restart or strengthen their businesses and income-generating activities, promoting self-sufficiency.
4. Community and Basic Infrastructure Services: Investments are made in community and group infrastructure projects, enhancing access to basic services that improve the quality of life within communities.

Result Area 2: Strengthening Food Security and Food Supply Chains

Result Area 2 of the NG-CARES program directly addresses the critical issue of food security. It aims to ensure the safe functioning of food supply chains, particularly for poor households who are disproportionately affected by disruptions in food availability and affordability. This agriculture-focused component encompasses activities across the entire agricultural value chain:

1. Agricultural Inputs and Services: Farmers are provided with essential agricultural inputs such as seeds, fertilizers, and access to extension services, boosting agricultural productivity and output.
2. Labour Intensive Agricultural Infrastructure: Investments in labor-intensive agricultural infrastructure projects, like irrigation systems and storage facilities, enhance agricultural efficiency and resilience.
3. Agricultural Assets: The program supports farmers with agricultural assets for production and post-harvest management, reducing food loss and waste and improving overall food security.
4. Wet Market Upgrades: Existing wet markets are upgraded to meet safety and hygiene standards, ensuring they function safely and efficiently as vital components of the food supply chain.

Result Area 3: Supporting the Recovery of Micro and Small Enterprises (MSEs)

Result Area 3 of the NG-CARES program is dedicated to facilitating the recovery and enhancing the capabilities of Micro and Small Enterprises (MSEs). Recognizing the vital role MSEs play in the Nigerian economy, this component focuses on providing targeted financial and operational support:

1. MSE Matching Grants for New Loans: Conditional grants, covering up to 40%, are offered to co-finance new loans obtained by eligible MSEs during and after the COVID-19 pandemic, easing access to finance.
2. Operational Support Grants for MSEs: To alleviate operational challenges, conditional grants are extended to MSEs, covering up to 50% of their monthly operating costs, providing crucial financial relief.
3. IT Enhancement Grants: The program supports MSEs in adopting digital payment systems and improving their IT connectivity, promoting modernization and efficiency in business operations.

Disbursement Linked Indicators and Program Implementation

The NG-CARES program utilizes the World Bank’s Programme for Results (PforR) financing instrument. This results-oriented approach means that fund disbursement to states is directly linked to the achievement of pre-defined results, measured through 11 Disbursement Linked Indicators (DLIs). States are reimbursed for program expenditures after independent verification agents (IVAs) confirm the satisfactory implementation and achievement of results, and a No Objection (NOB) is obtained from the World Bank. This rigorous process ensures accountability and effective program delivery.

Monitoring and Evaluation (M&E) are integral to the NG-CARES program at multiple levels. The Federal CARES Support Unit (FCSU) conducts routine M&E, while civil society groups provide third-party monitoring through beneficiary assessments and citizen engagement tools. IVAs play a crucial role in verifying the results claimed by states, preparing verification reports, and certifying DLI achievements, ensuring transparency and credibility in the NG-CARES program’s impact.

Learn more about the NG-CARES Institutional Arrangement (Federal)