Retroactive Financing

Disbursement Linked Indicators Report
by States and LGAs to SPHCDA

Retroactive Financing


Adamawa State

Nigeria State Health Investment Project (NSHIP) (2013-2018) aims to increase the delivery and use of high impact maternal and child health interventions and to improve the quality of care at selected health facilities in the participating states. It uses results-based financing approaches that consist of performance based financing (PBF) and decentralized facility financing (DFF) at health facilities, and disbursement linked indicators (DLIs) at states and Local Government Areas (LGAs).

  • PBF: Payments made quarterly to individual health facilities based on the quantity and quality of services delivered.
  • DFF: Selected facilities that are not implementing PBF will receive quarterly payments based on completion of specific contractual obligations.
  • PHC Department: LGA PHC Departments will carry out quarterly supervision of selected facilities for which they will be reimbursed.
  • DLI for LGAs: Financing to LGAs based on their performance against specific DLI in areas such as budgeting and HMIS reporting.
  • DLI for states: Financing to the three States for achieving key process and service delivery indicators-DLIs.

NSHIP is a Bank Sector Investment Loan (SIL) and consequently disbursements reimburse eligible expenditures as is done under traditional SWAps. DLI payments to states and LGAs reimburse Eligible Expenditure Program expenditures already incurred. LGAs will receive a maximum of US$50,000/year and states will receive US$500,000/year and US$1,000,000 in years 2 and 4 depending upon compliance with DLIs. Each DLI is individually priced based on the allocation ratio (%) of the maximum payment (Annex 1). DLIs are not ‘tranched’ meaning that if one is missed it does not affect the payment of others that were satisfied and hence will be paid.

This report summarizes the achievements of the DLIs by Adamawa State and Fufore LGA for the retroactive financing of the expenditures.

DLI Report