Back International Consultants to Conduct the Development Finance Assessment

Background

Nigeria has made a commitment to implement the Sustainable Development Goals (SDGs). In this regard, it has undertaken several initiatives including efforts to integrating SDGs into national planning, developing baseline indicators, and domesticating the iSDG model as a tool for policy analysis. Just like in other countries financing implementation of policies and programmes to achieve SDGs has been a challenge in Nigeria. Lack of an integrated approach to financing SDGs has been a key challenge. Estimates using the iSDG model indicates a public finance gap of $100 billion in the next ten years to achieve SDGs.

While the government has made significant strides in strengthening public financial systems, including through tax reforms, the current state of public finance could make it a challenge. A high debt level means a significant share of revenue (exceeding 50%) is spend on debt service payments, while being too dependent on oil revenue at a time of fluctuating oil prices in international markets. Meanwhile, private sector is yet to fully exploit opportunities from investments relating to SDGs due to a combination of factors including rigid business environment, lack of institutional back-up and coordination issues, among others. Mobilizing the scale of public and private financial resources required to achieve SDGs faces significant challenges ranging from managing complex financing instruments to designing and implementing policies and effective coordination of diverse stakeholders for a common goal. The proposed technical assistance to undertake a Development Finance Assessment will build upon what already exists towards ensuring a more functional development financing system in Nigeria which will enable identification of opportunities to mobilize additional resources required to finance SDGs.

As the first step to roll-out the Integrated National Financing Frameworks (INFF) process in Nigeria, it is proposed to roll-out a Development Finance Assessment (DFA) process to provide the up to date overview of the current financing landscape in Nigeria (from public and private, but also domestic and international financing flows), which will also identify opportunities to mobilize additional sources of finance and use existing financial resources more efficiently towards the SDG achievement. In this regard, a partnership has already been established between UNDP and Delegation of the EU to Nigeria.

The DFA is the tool to support governments to use the concept of the INFF to help strengthen policies and actions for mobilizing different types of finance for economic, environmental and social results into a single, coherent framework.

The DFA methodology was developed in collaboration with key stakeholders including the Delegation of the EU to Nigeria in response to demands from countries for support for policy and institutional reforms that help governments to more effectively manage financing policy for sustainable development results. It assesses the framework that government uses to manage policy toward all resources, building on the call in the Addis Ababa Action Agenda for integrated national financing frameworks to be at the heart of our efforts to realize cohesive nationally owned sustainable development strategies. An integrated national financing framework is the system of policies and institutional structures that government uses to mobilize the investments necessary to achieve the national sustainable development strategy.

The DFA offers support for governments and their partners in identifying and building consensus around solutions to address financing challenges. It makes finance issues accessible to policy and decision makers beyond the technical specialists in ministries of finance. It follows a process of multi-stakeholder consultation informed by accessible analysis on finance policy issues and what they mean for a wide range of actors and builds an agreed roadmap that can support progress across a range of areas, including:

• Mainstreaming the national development plans with the SDGs. The preparation of the new national development plan is underway, and this would provide a perfect time for the government to ensure that the SDGs is mainstreamed into the national development plan to achieve SDGs.
• Strengthening the link between planning and finance policy functions, for example by: strengthening the governance mechanisms that align policies and annual budgets to the national development plan; estimating the cost of national development plans; and developing holistic strategies for mobilizing the public and private resources that will be needed to realize the objectives of a national plan.
• Strengthening multi-stakeholder dialogue on financing, for example by: supporting multi-stakeholder SDG financing platforms in Nigeria to identify financing opportunities and leveraging them; incorporating public and private finance into regular progress reporting on SDGs; and enhancing multi-stakeholder participation in finance policy processes.
• Solutions and reforms for mobilizing resources, for example by: strengthening policy and capacity to attract sustainable, inclusive private investment; and accessing untapped sources of international finance.
• Effectively managing finance for results, for example by: achieving better development outcomes with public finance, developing outcome-based incentives for private investment; broadening the mandate of revenue authorities; more effectively targeting vulnerable or excluded populations; strengthening parliamentary scrutiny over finance; and enhancing data collection systems.

The DFA is structured as a government-led process, with an oversight team led by the Ministry of Finance, Budget and National Planning to guide the DFA process. The DFA builds consensus for reform in the areas above under the leadership of the oversight team and through consultations that engender participation in, and ownership of, reforms from a wide spectrum of actors at the national level. It aims to demystify technical debate on public and private finance and brings together decision makers from across government, the private sector, International Financial Institutions (IFIs), NGOs, development partners and other actors. By engaging this wide group of actors and making financing dialogue more accessible, the DFA aims both to build a broader base of support for reform agendas and to identify innovative solutions to the challenges of financing the SDGs.

The Development Finance Team of Experts will lead efforts to assist the government to undertake the Development Finance Assessment and be responsible for related analysis, capacity development of key ministry and policy makers on policy recommendations that emerge from the accompanying Integrated National Financing Framework roadmap.

Duties and Responsibilities

The objective of this technical assistance (TA) is to deliver a Development Finance Assessment Report that would lead the way – through a proposed roadmap – for the establishment of an Integrated National Financing Framework at national level.

The Team of Experts will comprise a Team Leader (International) and two additional experts, one of which focusing on issues of public finance and the other on broader private finance (investment). The Team Leader of the Nigeria DFA will have overall responsibility for ensuring that the DFA process and DFA report reflects the 2019 DFA Guidebook. The team will have responsibility for delivering specific aspects of the Nigeria DFA, as outlined below, and under the overall guidance of the Team Leader.

Under the supervision of UNDP RR, the Senior Economic Advisor, the Africa Finance Sector Hub, Delegation of the EU to Nigeria, in close partnership with the oversight team led by the key ministry (Ministry of Finance, Budget and National Planning), the team of experts will support the Development Finance Assessment process, analysis and follow-up actions for financing solutions for Nigeria.

• Map the financing landscape covering all types of finance.
• Assess government’s existing financing strategies, policies and institutional structures to establish a baseline for the building blocks of an INFF building on the existing i-SDG modeling tool and the current government structures at national, but also state level, for the SDG implementation.
• Assess risks and identify policy, institutional and capacity binding constraints that could hinder the DFA/INFF process.??
• Build capacity of key ministry and the policy makers on recommendations that emerge from the accompanying Integrated National Financing Framework roadmap
• Propose an implementation roadmap for establishing an INFF, including areas where Integrated Financing Solutions can support DFA follow-up

A DFA helps Nigerian government to understand and adapt its policies, institutions and strategies for the financing challenges they will face in realizing results across the economic, environmental and social dimensions of the 2030 Agenda. It supports government to establish and strengthen an integrated national financing framework. The analysis for the DFA is guided by an analytical framework composed of five dimensions based on the following logic:

• Understanding the landscape of public and private finance is critical for an effective integrated approach to financing the SDGs. The first dimension of the DFA assesses financing trends – the context, trajectories and availability of all resources in relation to the scale of investments and services required to achieve the SDGs. It looks at available information on the costs or implied financing needs of the SDGs or national plan, though the DFA itself does not undertake a costing exercise.
• It then looks at the foundations of governments’ systems for financing. Integrated planning and financing connect development aspirations with the policies required to realize them. An integrated approach implies complex decision-making processes underpinned by strong leadership and an institutional architecture that breaks down intra-governmental silos and promotes policy alignment and coordination among themselves and with non-state partners.
• In order to operationalize such an integrated approach to financing, a number of interlinked dimensions are needed. Public–private collaboration, including a policy environment that promotes not just growth in investment by private sector and other actors but also sustainable, inclusive growth, is important.
• Strong systems for monitoring and review that track financing and monitor progress towards SDG outcomes are needed to inform ongoing finance policymaking.
• Finally, transparency and accountability between actors, through mechanisms such as parliamentary oversight, participatory policymaking and development effectiveness and coordination mechanisms, are important for the purposes of scrutiny and to help ensure efficiency in resource use.

The DFA analyses these dimensions, considering key aspects of each and using them to build a picture about a government’s approach towards integrated financing for sustainable development. It highlights the strengths of current systems and identifies opportunities to further enhance the ability for government and its partners to finance sustainable development. These form the basis of the DFA roadmap. Further details can be found in the DFA guidebook.

Responsibilities:

The team of experts will drive the process under the guidance of the Nigeria oversight team, Nigeria UNDP country office, Delegation of the EU to Nigeria and Africa Finance Sector Hub advisor, including but not limited to the following activities throughout the various phases of the DFA process:

Research phase

• Compile and analyze data and policy literature to build an understanding of financing trends and the current policy and institutional landscape, following the DFA analytical framework
• Oversee national consultant in data collection, analysis and outreach to national stakeholders
• Actively participate in planning for the research mission with the country office, including determining the schedule and objectives for collection of data/information and engaging the participation of key stakeholders in the process
• Undertake research mission to (i) collect data and information, (ii) engage key stakeholders in the DFA process and (iii) share, socialize and refine initial emerging findings and ideas for recommendations to be developed
• Lead technical discussions at a multi-stakeholder consultation workshop
• Engage closely with the oversight team to ensure the process remains in line with their guidance and objectives for the proces
• Prepare first draft DFA report

Consultation phase

• Engage in substantive dialogue with the oversight team and other key stakeholders to refine the draft report
• Develop draft DFA roadmap
• Engage in dialogue around the DFA roadmap to refine recommendations, clarify responsibilities and build buy-in
• Undertake second mission including validation workshops: (i) with the oversight team, (ii) with the wider group of stakeholders engaged in the DFA process
• Finalize the DFA report and roadmap under the guidance of the oversight team
• Draft / feed into terms of references for priority recommendations to be taken forward and implemented in follow up to the DFA

Launch

• Support launch as required (e.g. preparation of presentations).

Please see the DFA process module in the DFA guidebook for further details on the DFA process.

Expected Outputs/Deliverables for the Team of Experts

• Inception scoping and preparation for 1st mission
• 1st mission, including consultation workshop
• First draft report
• 2nd mission, including validation workshops
• Final draft report including roadmap

Review and Approvals will be Required by the Economic advisor

Institutional Arrangement

The Team of consultants will work under the close guidance of the UNDP Country Office (CO), Delegation of the EU to Nigeria and the Africa Finance Sector Hub throughout the assignment period.

Duration of the Work

The expected duration of this assignment is 40 working days starting from 16th March 2020 and planned to be completed by 11th May 2020. The timeframe and expected deliverables are shown in the table under section D above.

Duty Station

The selected team of consultant will be home based with an anticipated two missions to Nigeria.

Qualifications of the Successful Team of Experts

The team will include a team leader and two experts who collectively demonstrate expertise as required for the DFA including:

• Public finance management with a particular focus on outcome-based resource mobilization strategies
• Policy and Planning with a particular focus on poverty and environment
• Results based management
• Private sector development and Public Private Partnerships
• Municipal finance
• International Finance

Competencies

• Possess excellent analytical and writing skills.
• Good knowledge of economic and development cooperation issues in Nigeria, including development finance challenges, development effectiveness and related fields;
• Knowledge of Public finance; Policy and Planning with a particular focus on poverty and environment; Results Based Management; Private sector development and Public Private Partnerships; Municipal finance;
• Extensive knowledge of data collection, analysis and statistics tools;
• Ability to conduct interviews, including with senior Government officials and other stakeholders;

Required Skills and Experience

The required skills and experience for consultants are:

Education:

• Minimum Master’s degree or equivalent advanced degree in economics, public finance, public policy and administration, development studies or related field;

Work Experience:

• Minimum of 5 years of relevant professional work experience with track record of research analysis;
• Research and data collection experience in the areas of public finance, budget review and public expenditure management (PER, PEFA, MDGs Assessments) are required;
• Experience in public finance management, tad administration, debt management and innovative development financing;
• Advanced quantitative and econometric skills and experience with related data analysis tools are an advantage;
• Previous work experience with UNDP, European Union and other donor agencies is an asset.

Language

• Excellent written and spoken English.

Selection Criteria 

• Educational Qualifications (15 Marks)
• Professional Qualifications and Certifications (15 Marks)
• Proven and experience/satisfactorily implementation of similar assignment in the past (70 Marks)