Twenty Nigerian states are set to receive a combined $27 million in performance-based grants after independently verified assessments confirmed they met key reform targets in education, healthcare and public financial management under the World Bank-supported Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Programme.
The National Coordinator of the HOPE Governance Programme, Dr. Assad Hassan, announced the incentive package during a retreat for commissioners, permanent secretaries and directors of budget and planning from the 36 states and the Federal Capital Territory in Abuja. The incentives were awarded based on findings of the Interim Independent Verification Agent, which assessed states' performance against the programme's Year Zero Disbursement-Linked Indicators.
Bayelsa, Borno, Kano, Kebbi and Yobe emerged as the biggest beneficiaries, earning $1.5 million each for meeting requirements under Disbursement-Linked Result 2.1, which focuses on adopting comprehensive guidelines for preparing consolidated work plans for state basic education budgets. The same five states also qualified for an additional $1.5 million each under DLR 2.2 for meeting similar requirements covering state primary healthcare budgets, bringing their combined allocation under the two indicators to $15 million.
Under DLR 2.3, which rewards the adoption of harmonised budget guidelines and a chart of accounts for local governments, Adamawa, Bayelsa, Borno, Delta, Gombe, Kano, Plateau, Taraba and Yobe each qualified for $500,000. Meanwhile, 15 states met requirements under DLR 4.1, covering the publication of a 2025 Citizens Budget for basic education and primary healthcare by February 28, 2025, with each qualifying state receiving $500,000.
Hassan said other participating states were ineligible because they missed deadlines, failed to meet required criteria or did not publish results on official state websites, and identified poor institutional coordination as a major challenge affecting states' performance and undermining programme ownership and sustainability.
The HOPE Governance Programme is a $500 million World Bank-backed initiative domiciled in the Federal Ministry of Budget and Economic Planning. The $27 million incentive package represents one of the first major reward mechanisms under the programme and underscores the growing use of performance-based financing to drive reforms in Nigeria's education and healthcare sectors.
The backdrop against which the disbursement arrives is sobering. According to the 2025 State Performance Index, fewer than 30% of Nigerians are satisfied with public healthcare services, while UNICEF reported in late 2024 that about 70% of schools and 88% of health facilities across Nigeria lack access to basic sanitation services.
Hassan said the Interim Independent Verification Agent is expected to conclude the second phase of verification for Year Zero results by July 2026, and that the programme has commenced a capacity-building action plan to provide technical support to states to strengthen their systems and improve performance in future assessments.
The $27 million is a fraction of the $500 million total programme envelope. The real test of HOPE is not whether states can earn the first tranche, but whether the reforms needed to unlock the remainder are the kind that survive a change in administration.
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