Independent Costing Study of the PEPFAR/OVC Portfolio in Nigeria

As part of the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) Country Operational Planning
(COP) process in Nigeria, the country teams estimate and document resources used to fund program
activities based on historical expenditure or cost data. In Nigeria, expenditures for orphans and
vulnerable children (OVC) partners have been used to generate unit expenditures (UEs) used to
determine target-based budgets. Currently, there is no clear guidance to OVC partners on how to
allocate shared costs across service types. PEPFAR Nigeria commissioned this costing study to obtain
detailed OVC program costs across implementing mechanisms (IMs). This study explored: (1) current
expenditures across the various IMs’ OVC service packages; (2) the average UE for the various OVC
services packages; (3) allocation of shared expenditure across different service areas; (4) contextual
factors affecting expenditures; (5) expenditures for a “gold standard” package of OVC services; and (6)
recommendations for a framework to develop IM-level budgets for COP. The study covered October
2015 to September 2016, and collected cost data and contextual data from OVC implementing partners
in seven states. The study noted a wide variation in the methods and assumptions for allocation of
shared costs, and IMs do not usually allocate shared expenditures across the OVC service areas. Given
this, the study found the average cost of providing services to one OVC to be $21.7 per year. The
findings and recommendations from this study will be used to develop an effective budgeting tool for
OVC programs taking into account contextual cost drivers, as well as the inputs required to deliver a
“gold standard” package of services.

Resource type: 
Operating Unit: 
Nkata Chuku
Beverly Stauffer
Tosin Adeyemo
Goddy Akhaluola
Erisa Danladi
Funke Falade
Tahirah Ikharo
Samuel Ogboo
Seluman Lecky
Publication date: 
November, 2017
Contract mechanism: 
GH Pro