Nigeria Edo State First Development Policy Operation

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The First Edo State Growth and Employment Support Credit Program main policy areas supported are: (a) improving the management of public resources in implementing an infrastructure-oriented development strategy by ensuring fiscal sustainability and improving budgeting institutions and practices; (b) improving the institutional and policy environment for growth and employment creation by improving investment climate and the quality of education. A cross-cutting theme running through these policy areas is that of improving social accountability. This program document proposes the first growth and employment support credit to the State of Edo for SDR 48.4 (US$75 million). It will be the first operation in a series of three annual programmatic development policy operations, with a planned total of US$225 million, that are aimed at supporting the Government's policy and institutional reform program in the implementation of the state's medium-term development strategy that is itself focused on growth and employment creation. In spite of progress made in service delivery, challenges still remain, including the need to ensure sustainability of the gains made. The infrastructure development needs still abound with huge financing gaps to be filled. For instance, there are still many schools at various levels of education requiring rehabilitation. Similarly, although work has begun on the master plan of the Benin City storm water drainage system, the financing requirements of its full implementation are immense. Finally, Government systems remain largely weak which threatens the long-term sustainability of progress. Going forward, the Government's overall strategy is to mobilize more resources, including from external sources, and to strengthen systems and institutions for sustained progress.