Shettima Demands States Act Now on $750m World Bank Reform Fund

Vice President Kashim Shettima has issued a direct challenge to Nigerian state governors, urging them to move quickly to access a $750 million reform programme funded by the World Bank. Speaking at the Presidential Villa in Abuja, Shettima said states that fail to act decisively will lose out on funding designed to overhaul Nigeria's business environment. The programme, known as the State Action on Business Enabling Reforms, represents one of the largest coordinated reform efforts in the country's recent history.

Presidential Villa Meeting Sets the Tone

The closed-door session brought together senior government officials and state representatives to assess progress on the reform agenda. Shettima, who chairs the National Economic Council, delivered a blunt message: the window for states to tap into the World Bank facility is narrowing. Sources familiar with the discussions said the Vice President emphasised that funds would be released on a competitive basis tied to measurable performance indicators. Officials present confirmed that fewer than half of Nigeria's 36 states have met the initial benchmarks required to draw down resources from the programme.

What the SABER Programme Requires

The World Bank facility supports reforms across multiple areas, including business registration, land titling, tax administration, and infrastructure permitting. States must demonstrate concrete progress in streamlining regulations before funds are disbursed. The scheme operates on a matching basis, meaning state governments must allocate their own resources to unlock World Bank tranches. Financial analysts said this structure aims to ensure local ownership of reforms rather than imposing top-down directives from Abuja.

Key Reform Areas Under SABER

The programme targets six core pillars. Business registration times must fall below five days in participating states. Land acquisition processes need digitisation to reduce corruption risks. Tax collection systems require modernisation to broaden the revenue base without increasing burden on formal enterprises. Infrastructure permitting must move online to eliminate discretionary approvals. Labour market regulations need updating to reflect modern workforce arrangements. Finally, trade facilitation measures must reduce border delays and associated costs.

Economic Stakes for Nigeria

Nigeria currently ranks poorly on global ease-of-doing-business indices, and the federal government has made economic diversification a stated priority. The World Bank funding arrives at a time when foreign direct investment flows remain subdued due to currency volatility and infrastructure gaps. Market analysts in Lagos said attracting private capital requires demonstrable improvements in regulatory predictability. The SABER programme directly addresses investor concerns about arbitrary enforcement and opaque processes at the state level.

Business groups have welcomed the pressure from the Presidential Villa. The Lagos Chamber of Commerce and Industry noted that fragmentated regulations across states create unnecessary costs for companies operating nationally. A unified reform framework, if implemented consistently, could reduce operating expenses for manufacturers and service providers alike. The chamber called for transparent monitoring mechanisms to prevent states from gaming the performance metrics.

Risks of Inaction

Economists warn that states which drag their feet on reforms risk becoming uncompetitive relative to peers that move faster. Investment tends to concentrate in jurisdictions offering clearer rules and faster approvals. States missing out on the initial funding rounds may find it harder to catch up as the programme advances. The federal structure means Nigeria's economic performance depends significantly on subnational competitiveness, making the state-level response crucial to national outcomes.

Fiscal pressures add another layer of urgency. Several state governments face acute revenue shortfalls and look to federal allocations to meet payroll obligations. The World Bank funding offers a pathway to strengthen domestic revenue generation through improved tax compliance and expanded economic activity. Without structural reforms, states remain vulnerable to oil price shocks and federation account volatility.

What Happens Next

The National Economic Council expects states to submit updated reform action plans within the coming months. The World Bank will conduct verification missions to assess progress before approving disbursements. Officials said the first tranche of funding could reach participating states before the end of the fiscal year if benchmarks are met. The Presidential Villa has made clear that reform momentum will be closely watched, with Shettima expected to publicly name states that fail to deliver on their commitments.

Investors should monitor which states secure early funding, as successful pilots often attract follow-on private investment. Companies planning expansion into Nigeria's interior markets will gain from reduced regulatory friction in reform-minded states. The outcome of the SABER programme could reshape Nigeria's regional economic geography over the next several years.