The Federal Government of Nigeria has officially requested an extension from the World Bank for the Multi-Sectoral Crisis Recovery Project (MCRP) aimed at rehabilitating the conflict-affected regions of North-East Nigeria.
Initially scheduled to close on today, May 31, 2024, the government seeks a one-year extension to May 31, 2025, to ensure the completion of ongoing and new activities critical to the region’s recovery.
The Federal Government of Nigeria, in a letter dated April 3, 2024, outlined the need for a 12-month extension, which was said to be crucial for the completion of ongoing and new activities, including agricultural support, labour-intensive public works, and relevant training activities critical for supporting the most vulnerable populations in the North-East region.
This disclosure was contained in a document obtained from the website of the World Bank by Nairametrics.
A part of the document read: “In a letter dated April 3, 2024, the Government of Nigeria (GoN) requested extending the project closing date by 12 months, from May 31, 2024, to May 31, 2025. The task team supports and recommends extending the closing date to May 31, 2025, and the restructuring of the project.”
Background and Project Objectives
The Multi-Sectoral Crisis Recovery Project (MCRP) was launched in 2017 with an International Development Association (IDA) Credit of SDR 148 million ($200 million equivalent). It was later supplemented by additional financing of SDR 129 million ($176 million equivalent).
This brings the total funding to $376 million.
The project was initially approved on March 20, 2017, but on January 16, 2018. became effective on. The additional financing was approved on May 26, 2020, but became effective on March 16, 2021.
The primary objectives of the project 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.
Implementation Status and Challenges
Since its inception, the MCRP has made significant strides despite numerous challenges. As of April 2024, approximately $340 million, or 90% of the total financing, had been disbursed.
Under the peacebuilding and strengthening social cohesion and livelihoods component, over 1.27 million individuals have benefited from improved livelihood opportunities.
However, the project faces a gap of 1.57 million beneficiaries due to delays in cash-for-work activities originally intended 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 like road construction and infrastructure rehabilitation.
These delays are attributed to various factors, including the COVID-19 pandemic, security challenges, and the 2023 elections, which have collectively hampered the project’s timeline.
These cumulative 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.
The extension will also bridge and prepare 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.
