….we envisage galvanized agric finance management- Agric Ministry

By Gabriel Ewepu, ABUJA

AS food production remains central to sustaining the growing population across Africa, the International Fund for Agricultural Development, IFAD, Tuesday, commenced training workshops for financial officers from Nigeria, Ghana, Gambia, and countries in Central Africa under its programmes and projects on financial management on agricultural projects.

The three-day training is tagged ‘First Regional Workshop on Financial Management of IFAD-funded Projects for Anglophone and Central Africa’ in Abuja, which is organised by IFAD.

The country Director, IFAD, Nigeria, Dede Ekoue, in a welcoming speech explained the essence of the workshop, which includes practical implementation of the reforms, Train projects on the use of the Financial Execution module,strengthen understanding of IFAD’s fiduciary management procedures, and others.

Ekoue said: “The primary objectives of the workshop are to discuss the practical implementation of the reforms (specifically the Interim Financial Report and disbursements); Train projects on the use of the Financial Execution (FE) module of the IFAD Client Portal (ICP) for submitting financial reports and linking to Was; strengthen understanding of IFAD’s fiduciary management procedures; discuss key FMD-WCA themes and issues Identify obstacles encountered during project implementation and propose solutions to these obstacles.

“The current portfolio of IFAD’s WCA Region consists of 62 programmes in 23 countries with a total financing amount of approximately USD 4 billion, of which IFAD contributes approximately USD 1.9 billion.

“The 2022 edition of the International Fund for Agricultural Development’s (IFAD) Annual Report on Development Effectiveness (RIDE) on the way forward indicates that IFAD is implementing dedicated action plans to improve performance in vulnerable regions.

“Under the current Country Strategic Operation Programme (COSOP) in Nigeria, a portfolio of four investment programmes (CASP, VCDP, LIFE-ND, and SAPZ) have been implemented, the most recent of which was CASP.

“These programmes were able to secure a total investment of $467 million while leveraging co-financing of $513 million.

“As part of the People, Processes, and Technology Plan, the Fund is implementing a more robust risk-based assurance methodology that encompasses both financial controls in currency disbursement and financial management, two of the most important factors influencing efficiency. Indicators relating to the scope of interventions, natural resources, environmental management, and climate change adaptation are typically met by IFAD-funded projects.

“Significant reforms have occurred in financial management, notably in financial reporting, disbursements, IT systems (ICP financial execution module, etc.), and the introduction of the Project Financial Management and Financial Control Arrangements Letter.

“You will agree with me, ladies and gentlemen, that the workshop’s objectives are noble if we are to fulfill our mandate while also ensuring value for money that improves the quality and standard of living and livelihoods of the most vulnerable communities and smallholder farmers.

“To improve the quality of financial management of IFAD-funded projects and programmes, it is crucial to find methods to strengthen the capacities of stakeholders.”

Meanwhile, the Special Guest of Honour at the training workshop, the Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Dr Ernest Umakhihe, in an opening remark and while declaring the workshop open pointed out that the finance management is essential for ensuring transparency, accountability, and value for money in agricultural programmes and projects.

Umakhihe who was represented by the Director, Planning and Research, Federal Ministry of Agriculture and Rural Development,Tanimu Ibrahim, also expressed hope that the workshop will provide participants with an opportunity to network and exchange experiences with their colleagues including IFAD staff and experts.

He added that by improving finance management capacities, better results will be delivered and impacts made on farmers and rural communities including strengthening partnership with IFAD and other donors and stakeholders who support agricultural development agenda.

He said: “As you all know, agriculture is a key driver of our economy, contributing about 25% of our GDP and employing about 70% of our labor force. Agriculture is also a vital source of food security, income, and livelihoods for millions of our rural poor people. However, agriculture also faces many challenges, such as climate change, low productivity, market access, infrastructure, and governance. That is why our ministry has been working hard to implement the National Agricultural Investment Plan (NAIP), which aims to transform the agricultural sector into a more competitive, inclusive, and resilient one. The NAIP has four strategic objectives: to increase food production and availability; to enhance value addition and market linkages; to create employment and income opportunities; and to improve the enabling environment for agricultural development.

“That is why our ministry has been actively engaged in supporting the implementation of the Regional Strategic Framework for Agricultural Transformation in West and Central Africa (RSF), which was endorsed by the Heads of State and Government of ECOWAS, ECCAS, and UEMOA in 2016. The RSF aims to accelerate the transformation of the agricultural sector in the region into a more productive, competitive, inclusive, and sustainable one.

“To achieve these objectives, we need to ensure that we have efficient and effective finance management systems in place. Finance management is not only about accounting and reporting, but also about planning, budgeting, monitoring, evaluating, and learning. Finance management is essential for ensuring transparency, accountability, and value for money in our agricultural programs and projects.”

Meanwhile, the Director Financial Management Division, IFAD, Ms Ruth Farrant, said that, “The central theme in FMD reforms has been the move to principle as compared to rule-based assurance, and analytical rather than transaction-based processing for disbursement to projects.

“Over the last year, IFAD has made important progress on its ambitious suite of financial management and disbursement reforms.

“In line with IFAD’s focus on strengthening efficiencies and improving service delivery to clients, the new disbursement system introduced a streamlined processing of withdrawal applications (WAs), moving out of transactional monitoring (SOE reviews) to reviewing Interim Financial Reports (IFRs) as a basis for disbursement to all investment projects.

“IFRs will include semi-annual cash forecasts based on project needs and approved work plans and budgets.

“IFRs also provide a more analytical basis for monitoring financial progress and financial management risks for the benefit of Project Delivery Teams.

“The IFRs provide quarterly information on; Current financial performance and variance analysis by components in the quarter/annually/cumulative.

“Cash forecast for next implementation period.

“Project liquidity available at projects Contributions to the project from Borrowers and other Co-financing partners.

“Other reforms have included: Omnibus revisions of the Letters to the Borrower (LTB) now referred to as Project Financial Management and Financial Control Arrangements Letter (FMFCL).

“Decommissioning of the Finance and Administration Manual and its replacement with the Financial Management and Financial Control Handbook.

“Automation of the Project Financial Management and Financial Control Arrangements Letter (FMFCL).

“Go-live of the new ICP (FE) module which requires projects to upload Interim Financial Reports as well as audit reports on a regular basis.

“Financial Management Division has organized change management support for IFAD clients, including training resources in the form of videos, Quick cards, Frequently Asked Questions (FAQs) translated in official IFAD languages, and strengthened Help Desk support. Access to these resources is provided through ICP website. This training workshop falls in line with the above initiatives.”