The Federal Government of Nigeria has formally requested a six-month extension to complete the $132.42 million World Bank-funded Innovation Development and Effectiveness in the Acquisition of Skills Project, according to a restructuring document.
The IDEAS Project, which aims to bolster Nigeria’s capacity to develop relevant skills for both formal and informal sectors, was initially approved by the World Bank on February 18, 2020, and became effective on March 15, 2021, according to Nairametrics.
The original completion date was June 30, 2025.
As of the mid-term review conducted between October and December 2023, approximately $40.42 million of the allocated funds have been disbursed, leaving a remaining balance of $92 million.
The project underwent its first restructuring on June 29, 2024, pivoting towards results-based contracting for demand-driven training (DDT), focusing on literate and numerate youth.
This restructuring also led to the creation of the Nigerian Youth Employment Skills Acquisition Fund (NYESAF), aimed at equipping around 75,000 young individuals with market-relevant skills. Additionally, about $70 million in project funds were partially canceled during this restructuring.
The requested extension is critical for Nigeria to meet its training targets and complete essential project components, as outlined in the restructuring paper.
The document read: “In a letter dated June 27, 2024, the Federal Government of Nigeria requested a restructuring of the IDEAS project to increase the focus on results-based contracting of skills training targeted at literate/numerate youth seeking employment, and to limit other training modalities to activities that are already sufficiently advanced and likely to complete prior to closure, and to amend activities and results framework of the IDEAS Project; and to cancel US$70.0 million.
“In the same letter, the Federal Government of Nigeria also requested a 6-month extension in order to meet their training targets under the Results-Based Contracting (RBC) for demand-driven training (DDT).”
“In the same letter, the Federal Government of Nigeria also requested a 6-month extension in order to meet their training targets under the Results-Based Contracting (RBC) for demand-driven training (DDT).”
This extension would move the project’s new completion date from June 30, 2025, to December 31, 2025, specifically for the NYESAF activities.
The extension request comes as the government argues that additional time is needed to finalize three rounds of training and conduct independent verification of results.
The project plan outlines these trainings to be completed in three phases, with the final phase expected by December 2025.
According to the World Bank’s financial statements, Nigeria’s exposure to the International Development Association (IDA) increased by 14.4% from $14.3 billion in the fiscal year (FY) 2023 to $16.5 billion in FY 2024.
This $2.2 billion rise has elevated Nigeria to one of the top three IDA debtors for the first time, shifting from its previous position as the fourth-largest borrower in 2023.
This significant increase highlights Nigeria’s growing reliance on IDA financing amid ongoing economic and developmental challenges.
