Public finance management in Nigeria: Finalisation of a PEFA assessment

This public finance management assessment, which was launched at the request of the Nigerian authorities, was a first for Expertise France as well as for AFD in an English-speaking country.

A factual and standardised assessment of public finance management

The main part of the report, established using a methodology overhauled in 2016, is a factual and standardised assessment of performance based on seven pillars of a consistent public finance management system (PFM), set out in 31 indicators objectively informed by evidence-based items. The report also comprises elements on the economic situation, the structure of the public sector and the institutional framework. In addition, it provides an overview of the initiatives taken by the public authorities to improve PFM performance.

Two experts have been mobilised to join the assessment team: Jacques Perreault from France and Timothy Effiong from Nigeria. The assessment was launched by a training seminar in PEFA assessment for Nigerian officials and comprised over 5 weeks of joint field work, between the end of January and beginning of May 2019, with feedback to the Federal Government authorities, which are invited to give their comments.

PEFA, a recognised methodology

PEFA is a methodology to assess the performance of public finance management (PFM). This method provides a framework for the assessment and presentation of the strong points and weak points of public finance management using quantitative indicators to assess PFM performance. The PEFA Framework provides an overview of the quality of PFM at a given time, thanks to a method which can be used for successive assessments and therefore allow developments to be monitored over time. It is also a useful tool for planning reforms, the dialogue on the strategy and priorities, and the monitoring of the progress achieved.

It is a very useful exercise for assessing the situation of public finance management with regard to international good practices and promoting paths for progress in this field. By the end of 2019, Expertise France will implement assessments at the subnational level: a PEFA assessment in Ouagadougou (Burkina Faso) and two PEFA assessments in Mozambique, in Maputo and Matola.

Find out more about the project to support the PEFA initiative