Summary Findings. Feasibility Assessment of Cash-Based Interventions in Borno, Yobe and Adamawa states of Nigeria.

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1 Summary Findings. Feasibility Assessment of Cash-Based Interventions in Borno, Yobe and Adamawa states of Nigeria.

2 Objective. Linking Emergency Assistance to Recovery and Development - The role MPGs Abuja, Nigeria CBI technical focal point.

3 Outputs Analyse the feasibility and available response options for potential CBIs covering basic needs, livelihoods and support to vulnerable persons, and moving forward toward MPGs Recommendations and action points Support the Design of a CBI intervention and develop SOPs (2017) Integrate CBIs in contingency plans for Borno, Adamawa, and Yobe states. Draft a multi-year CBI operations strategy for Nigeria. Coordination and support to ongoing programmes

4 Cash Feasibility Assessment Road Map Situation analysis Market capacity analysis Assessment of the capacity of partners, private and public sector alike to deliver the said assistance Delivery mechanism assessment and analysis Skills and capacity analysis Risk analysis Response analysis Design and Implementation

5 Cash Feasibility Assessment: States covered Yobe Borno Gombe Bauchi Plateau Adamawa Taraba

6 Feasibility Assessment Methodology Market survey Key Informant Interviews Self administered questionnaires Triangulation Focussed Group Discussions Observation Assessment team Staff Partners Research Assistants Damaturu, Maiduguri, Adamawa state universities

7 Needs, Capacities and Risk Assessment. Prevalent risk and vulnerabilities for specific groups of concern Impact of the crisis on preexisting and new needs and capacities (sector and multi sector needs) Purchasing power, availability and market access, preference Distinguish needs

8 Household Dynamics House hold size was relatively large, an average of % Literacy Reduction of MEB for PoC and Increase for Host community. Loss of income source economic vulnerability Coping mechanisms borrowing, sale of assets, child labour

9 Shelter Situation > 80% change in shelter situation Average monthly rent Naira Secondary displacement Sale of shelter repair and reconstruction items Land tenure issues

10 Water, Sanitation and Hygiene 41% of the beneficiaries main source of water was buying from vendors. Provision of water in camps Pressure on local natural water resources that existed even before the insurgency. Increased amount of money spent on access of portable water

11 Livelihoods, Income and Assets. Item/Service Monthly Expenditure (Naira) Food 23,851 Rent 6,549 Utilities 1,672 Fuel (Cooking) 2,283 Hygiene Kit 2,840 Education 7,181 Communication (phone) 2,170 Clothing 4,658 Transport 4,166 Health 3,699 Other 2,000 small scale farmers (about 90%). Similarly, they undertook other diverse livelihood income activities pre disaster The mean per capita food expenditure per month was estimated to be 22, % of the households interviewed were food insecure. livestock rearing had 35 % participation rate with fishing having 22%.

12 Health 52% had someone in their HH fall sick in the last one month 27% had faced issues related to access to health services, 98% of those who faced access issues attributing the challenge to lack of financial capability. 12% - chronic or a physical disabled person 7% injured in their HH within the last one month.

13 Legal Concerns. 28% of the respondents stated that they faced a problem of lack of documentation 7% reporting that they had disputes with their landlords 2% being forcefully evicted or claiming harassment.

14 Supply chain - integrated Situation Analysis. and competitive in most LGAs. Market competitiveness increasingly improving Unlikely increase in prices for longer than 3 months if demand increases. that supply chain will respond to CBI if demand for core goods increased during programme intervention period. Traders can increase supply to respond to cash intervention or to the increase in 10 % demand within 2 to 7 days Trader support needed

15 Market Situation Analysis cont.. Risks: Insurgency reoccurrence Bad road due to rainy season Loss of credit and capital for the whole seller as a result outbreak of insurgency. Loss of warehouses as a result of security outbreak of insurgency. Increase in prices due to the changing value of the Naira to the dollar Consumer access reduced as a result of loss of purchasing power, market in accessibility

16 Core Commodities/Sectors Accessed Shelter rehabilitation and re-construction materials Cement Zinc/CGI Timber Core Relief Items (NFIs: Kitchen sets, mats, blankets, hygiene and dignity kits, solar lamps, mosquito nets.) Livelihoods Food Items (Depending on the LGA)

17 Operational Feasibility Options available for delivering money Financial Service Providers Mobile Money Electronic vouchers Direct Cash Payment

18 Operational Feasibility Political Feasibility ING Organisations operating in the North-Eastern part of Nigeria had reviewed their structures in relation to CBIs and already rolled out cash based interventions Sufficient donor or internal funding can be secured for CBI to meet response needs and to justify the required investment in organisational capacity

19 Operational Feasibility Political Feasibility Federal Government of Nigeria is in favour of cashbased interventions. The government supports a free cash economy with policies and controls to govern the value of the Naira to foreign currency, transfer values in relation to minimum wage rates, and amounts that can be injected into the local economy at any given time.

20 Operational Feasibility Political Feasibility There are already existing cash based interventions in Nigeria The potential positive effects of CBI including local market economy thriving, multiplier effect, and essentially faster movement from emergency to early recovery go a long way in enabling the political environment around cash programming in the North East of Nigeria

21 PROTECTION BENEFITS FOR CASH Direct transfer to beneficiaries can bridge potential extortion at multiple levels More portable than in-kind assistance, so IDPs who undergo regular or repeated displacement or refugees who are repatriating or resettling may have better access to CBI than to in-kind distributions Many delivery mechanisms for CBI more discreet CBI can be delivered electronically Low visibility nature of FSP delivery mechanisms e.g. mobile phones, bank accounts. Dignity and choice. Access to assistance Promote or improve market connections Management of data, linked to electronic transfers Normalization and local integration

22 RESPONSE OPTIONS SECTORAL Combined Cash + In Kind (Shelter Rehabilitation, Core Relief Items) using FSPs. Cash (Shelter Rehabilitation, Core Relief Items, Livelihood, Food) using FSPs MULTI PURPOSE CASH GRANTS - Linking Emergency Assistance to Recovery and Development, Social Protection Programmes Complementation through the use of FSPs.

23 LIMITATIONS Inter cluster or inter sector coordination is a good place to centralise analysis, identify gaps and duplications in information collection and conclusion drawing. Verification of assumptions and change in response modality, transfer rate, targeting criteria, or introduction of complimentary programmes as required due to the evolving security situation.

24 RECOMMENDATIONS

25 cash transfers, as a modality, can be used to meet the multi sector needs of the PoCs with the recommended mechanism being cash. Food, Shelter, Livelihoods, Core relief commodities, Water, Education and health needs can be met through the provision of cash. The markets in Adamawa, Borno and Yobe states will respond fairly well to an injection of cash and supply should be able to increase. In general, beneficiaries seem to prefer cash distributions of assistance Traders are confident with their ability to access additional commodities and financial resources to meet an increase in demand in all the functioning markets. Core commodity price inflation induced by a cash based interventions is not anticipated. At state level, large market chain players are key to responding to increasing demand for volumes and do not necessarily need price increases to achieve this.

26 There is need to monitor prices in operational areas and at strategic locations outside of the intervention area to try to capture early signs of price changes. It is feasible, considering the cost efficiency of provision of assistance using cash as compared to in-kind, to replace in-kind assistance with cash based interventions with particular focus to the following sectors: - Shelter: Shelter Kits - NFIs: Kitchen sets, mats, blankets, hygiene and dignity kits, solar lamps, mosquito nets etc. - Livelihoods - Support to extremely vulnerable women through cash grants - MPGs in lieu of the above sectoral grants With the improvement in access and security situation, and increased functionality of markets, CBIs will be used during the scaling up of support of the newly liberated areas of Borno, Adamawa and Yobe.

27 Both donor policy and that of the Federal Government of Nigeria is in favour of cash-based interventions. Agencies should be able to scale up with the provision of cash based assistance in newly liberated areas Agencies should develop clear SOPs for cash and CBI implementation strategies.