Vice President Kashim Shettima has called on Nigeria's 36 state governments to move quickly on a $750 million World Bank reform programme, warning that delays could cost states access to critical funding meant to unlock economic growth across the country.
Presidential Villa Meeting Sets Tone
The call came during a high-level gathering at the Presidential Villa in Abuja, where Shettima addressed state officials directly on the State Action on Business Enabling Reforms programme. The Vice President stressed that the funding window will not remain open indefinitely, and that states which drag their feet risk being left behind. Officials present at the meeting said the tone was unusually direct, with Shettima making clear that political will at the state level will determine whether Nigeria can fully draw down the available funds.
What the SABER Programme Offers
The World Bank programme is designed to help Nigerian states cut bureaucratic red tape, improve the business environment, and attract private investment. States that meet reform benchmarks stand to receive direct financial support that could fund infrastructure projects, streamline permit processes, and modernise local government operations. The programme targets improvements across multiple sectors, including land administration, business registration, and trade facilitation.
Why Many States Have Lagged Behind
Despite the funding available, several states have made limited progress on required reforms. Sources familiar with the programme say bureaucratic inertia, limited technical capacity, and competing political priorities have slowed implementation in many regions. Some state governments have struggled to meet the baseline conditions set by the World Bank, which include passing specific legislation and establishing monitoring mechanisms. The gap between high-performing and low-performing states has widened since the programme launched.
Regional Disparities in Reform Progress
States in the southern region have generally advanced faster than their northern counterparts, according to programme data. Lagos State has already implemented several business reforms that exceed World Bank benchmarks, while a handful of smaller states have yet to pass foundational legislation required under the programme. This disparity has raised concerns about equitable development if reform funds concentrate in already-prosperous regions.
Shettima's Message to State Governors
Shettima told assembled officials that the federal government cannot force states to act, but the consequences of inaction fall heaviest on ordinary citizens. He pointed to potential job creation, improved public services, and private sector growth as the rewards for states that commit seriously to reform. The Vice President also noted that state-level reforms directly affect daily life for Nigerians, from how long it takes to register a business to whether roads get built to connect rural communities to markets.
World Bank Conditions and Benchmarks
The World Bank has structured the programme in phases, with states required to hit specific milestones before accessing successive tranches of funding. Initial disbursements depend on passing enabling legislation and establishing a functional business reform unit within each state government. Later phases require measurable improvements in regulatory efficiency, with independent verification of progress. The bank has made clear that funds will be withheld from states that cannot demonstrate concrete results.
Economic Stakes for Nigeria
Nigeria's economy has faced persistent challenges in attracting private investment partly because of the difficult operating environment at the state level. The World Bank's Ease of Doing Business rankings have historically placed most Nigerian states below global standards, and the SABER programme represents a direct attempt to address that gap. If states fully implement reforms, economists estimate the programme could unlock billions in private capital that currently stays away from Nigeria's markets.
What Happens Next
State governments have a defined timeline to submit reform action plans to the federal coordinating office. The World Bank will conduct its next assessment within six months, and states that fail to show progress risk losing access to their allocated portion of the $750 million. Citizens should watch for announcements from their state governments about specific legislative changes, new business registration processes, and infrastructure investments funded through the programme. The next major review is expected before the end of the fiscal year.
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