Policy Development Facility Phase II (PDF II) is a flexible, rapid-response facility set up to support Champions of Change in implementing economic and social policies that help reduce poverty in Nigeria. As the successor to PDF, PDF II began operations on 1 April 2015 and will run for five years, through to 31 March 2020.
Funded with UK aid, PDF II’s goal is to provide Champions of Change with improved capacity and evidence to help them pursue vital economic and social reforms. Much of PDF II’s work is aimed at addressing constraints to economic growth and building an evidence base to support action in this area.
PDF II works primarily at the federal level, mainly supporting ministers, but also high-level government officials in relevant National Assembly Committees. It also supports non-governmental organisations that pursue pro-poor social and economic policies.
The initiative reflects the historical bilateral relationship that exists between Nigeria and the UK, as well as UK Department for International Development (DFID) approaches to supporting Champions of Change while countering poor and corrupt management in the public sector. It further aligns with the UK’s new Africa Strategy, which supports governments to enhance inclusive economic growth, boost trade and address the impacts of climate change. The support provided to the Federal Government of Nigeria has generated positive outcomes critical to Nigeria’s poverty reduction agenda.
PDF II has supported the Federal Government of Nigeria in achieving the following outcomes:
Improving Nigeria’s business environment
PDF II provided technical assistance to the Presidential Enabling Business Environment Council (PEBEC) in driving business environment reforms. This led to Nigeria moving up an unprecedented 24 places in the World Bank’s Ease of Doing Business Index rankings.
Supporting a national job creation strategy
PDF II supported job opportunities in the growing technology sector.
Boosting export potential
PDF II supported a Community of Practice to boost the export potential of non-oil businesses and enterprises.
Launching the Nigeria Sovereign Investment Authority (NSIA)
PDF II focused on enhancing the communications strategy of the NSIA, which has boosted investor confidence and channelled investments into critical development projects. Beyond this, PDF II’s technical support contributed to investment in infrastructural health projects, which led to the now active Cancer Research Centre at the Lagos University Teaching Hospital.
Issuing green bonds
PDF II facilitated the issuing of green bonds, which have funded projects that will help Nigeria reduce emissions in line with its climate commitments. Examples include the Energizing Education Project which currently provides energy to nine universities and one teaching hospital in Nigeria, and is expected to cover 37 universities and seven teaching hospitals in the future.
Extending an affordable and reliable supply of renewable power
PDF II helped the government reach rural communities in Sokoto, Cross River, Niger and Ogun States with renewable energy.
Improving the efficiency of spending and overheads
PDF II supported the government’s Efficiency Unit in ensuring that more funds were available to channel into vital public services. The Efficiency Unit delivered approximately NGN 184.2 billion in savings from 2016 to 2018.
Laying the foundations of a more effective auditing system
PDF II supported enhanced accountability across government. The Office of the Auditor General of Nigeria has completed the annual report for 2016 and 2017 highlighting leakages in government revenue.