The World Bank has announced its intention to undertake a comprehensive restructuring of the Innovation Development and Effectiveness in the Acquisition of Skills (IDEAS) Project in Nigeria.
Launched with an initial allocation of $200 million, the IDEAS Project has encountered challenges in fulfilling its stated objectives and will undergo substantial modifications aimed at enhancing its operational efficacy, as per the implementation status and results report reviewed by Nairametrics.
Initially approved on February 18, 2020, the primary objective of the project was to bolster the capacity of Nigeria’s skills development framework to cultivate pertinent competencies for both the formal and informal sectors.
Additional investigation conducted by Nairametrics revealed that of the allocated $200 million, only approximately $34.88 million has been disbursed by the World Bank. Citing underperformance as a pivotal concern, the World Bank has withheld further disbursements pending the fulfillment of specific project benchmarks.
The decision to restructure stems from the IDEAS project’s limited progress across various critical domains during the preceding two years. Notably, Component 1, which centered on providing grants to federal and state educational institutions, experienced setbacks characterized by incomplete workshop renovations and delayed procurement of essential equipment, resulting in unsatisfactory performance ratings. Component 2, aimed at enhancing the training of master craftspersons and apprentices, also encountered sluggish advancement. While certain project components displayed marginal improvement, their impact remained constrained in scope.
The forthcoming restructuring endeavors to address these challenges comprehensively, aiming to recalibrate the IDEAS Project towards achieving its intended objectives in bolstering skills acquisition within Nigeria.
“The Mid-Term Review (MTR) mission for the Project took place between October 3-28, 2023. The mission held meetings with the Federal Ministry of Education (FME), the six participating states (Abia, Benue, Edo, Ekiti, Gombe and Kano) and the selected federal and state technical colleges (TCs).
“The mission assessed the reasons for which the project has not performed as envisaged and identified adjustments and changes in project design, implementation arrangements, and resource allocations so that the project could remain relevant, be implemented effectively, and contribute to the country’s goal to produce skilled manpower for the formal and the informal sector.
“The progress towards the Project development objectives and overall implementation progress has remained slow for about two years with limited progress on each component. Component 1 providing grants to federal and state colleges continues to be rated unsatisfactory due to limited in the strengthening of technical education in priority trades.
“Workshop renovations are incomplete for 101 out of 114 targeted trades, and equipment procurement is lagging. Component 2, training master craftspersons and apprentices, is moderately unsatisfactory with slow progress. Component 3 has improved, rated moderately satisfactory, with training initiated for Technical Teachers and Instructors. Component 4 progress is moderately satisfactory, but at a limited scale.
“The project will undergo restructuring to address scalability and sustainability issues. The restructuring involves completing some activities, cancelling others, and implementing a results-based contracting fund to focus on skills training and employment for Nigerian youth.
“This fund aims to provide scalable and cost-effective skills training in priority trades, linking trainees with employers, and ensuring placement in wage employment or support for self-employment.”
In response to the challenges encountered, the World Bank is implementing substantial adjustments as part of its restructuring efforts for the project. Within this framework, certain project activities will be brought to completion while others will be discontinued.
A pivotal aspect of this restructuring is the establishment of a results-based contracting fund. This fund will focus on delivering scalable and cost-effective skills training tailored for Nigerian youth. The primary objective of this initiative is to forge connections between trainees and potential employers, thereby facilitating their integration into wage employment opportunities or facilitating avenues for self-employment.
Scheduled for completion by March 2024, the restructuring process will encompass a thorough review of the project’s results framework. This review will entail the modification of intermediate indicators along with their associated targets.
Under the restructured project, a significant emphasis will be placed on results-based contracting involving both private and public service providers. These entities will assume responsibility for the provision of training as well as facilitating job placements for youth on a broad scale. Concurrently, new results indicators and corresponding targets will be formulated to align with the revised approach outlined for the project.
The report read:
“As per MTR discussions and agreements, the project will be restructured. Accordingly, the results framework – the indicators and their targets will be revised. Because the current project activities will be wound down, the both the PDO and the intermediate results indicator targets will be adjusted downwards as appropriate at project restructuring which is expected to be processed by March 2024.
“The restructured project will be built around results-based contracting of private and public service providers to train and find job placement for youth at scale – the appropriate results indicators and targets will be developed at the processing of project restructuring in March 2024.”
The World Bank’s decision represents a pivotal stride in tackling the scalability and sustainability challenges that have impeded the project’s progress.
By prioritizing results-based approaches and adapting the project’s framework, the World Bank underscores its dedication to ensuring that Nigeria’s substantial investment in skills development translates into measurable outcomes.
