The World Bank in Nigeria, 1998-2007

This country assistance evaluation assesses the outcomes of the World Banks program in Nigeria during the period 1998–2007. The Country Assistance Evaluation focuses on the objectives of that assistance and the extent to which outcomes were consistent with those objectives. It looks at the Banks contribution to the achievement of those outcomes and at the lessons for the Banks future activities in Nigeria and in other countries. The evaluation includes a review of relevant documents, complemented by interviews with Bank staff and other key donors, as well as with representatives of the Nigerian government, the private sector, and civil society. Overall, the outcomes of the Bank program in Nigeria are rated as moderately unsatisfactory. This reflects an improvement relative to IEG’s 2000–04 assessment, which rated the outcome of Bank assistance as unsatisfactory. The current assessment recognizes the country’s signal achievements in maintaining macroeconomic stability and laying the basis for more effective and cost-efficient performance of the central government. There are major risks associated with this, however. The earnings from Nigeria’s oil and gas resources require strong management that puts the national interest ahead of that of individuals and state governments. In the fragmented context of Nigerian politics, that is a tough proposition to maintain. If the government shows the necessary leadership and successfully leverages the resources it has to provide incentives to state governments to do a better job of delivering social services, there is the potential for real progress in reducing poverty and achieving the MDGs.