DLI 1 is implemented at the national level and focuses on supporting the Government of Nigeria to complete the critical design and institutional steps required for the establishment of the National WASH Fund (NWF). The Fund is identified in the National Action Plan as a key intergovernmental financing mechanism for revitalizing the Federal–State partnership in the WASH sector and strengthening coordinated progress toward national WASH objectives and the Sustainable Development Goals.
The National WASH Fund is designed to improve efficiency, transparency, and accountability in public WASH financing by introducing performance-based incentives and needs-driven prioritization mechanisms. These mechanisms align with the SURWASH Program’s results-based financing approach and are intended to strengthen planning, budgeting, and service delivery performance across participating States. By linking access to funding with measurable institutional and service delivery outcomes, the Fund encourages sustained reforms and improved sector governance.
A core component of this DLI is the development and endorsement of a clear legal and governance framework for the National WASH Fund. This includes formal approval by relevant Federal institutions and the drafting of enabling legislation to establish the Fund as a nationally recognized financing instrument. These steps provide the institutional legitimacy, governance structure, and accountability mechanisms required for the effective and transparent operation of the Fund.
DLI 1 also supports the preparation of a comprehensive Operational Manual for the National WASH Fund. The Manual sets out detailed operational procedures, including fund management and disbursement processes, eligibility and allocation criteria, performance assessment arrangements, financial management rules, and reporting and oversight requirements. This ensures that the Fund is fully operationalized and capable of implementing consistent, rules-based, and performance-oriented financing decisions.
Although implemented at the national level, DLI 1 has direct implications for Plateau State under the SURWASH Program. The establishment of a functional National WASH Fund creates a predictable and transparent pathway for States to access WASH financing, align with national systems and standards, and benefit from strengthened Federal–State coordination in the WASH sector.