Results-based financing programs have transformed public sector reform across Nigeria. Disbursement Linked Indicators create clear performance targets, structured timelines, and measurable outputs. In theory, this model strengthens accountability. In practice, a pattern has emerged: states begin to optimise for verification — not transformation.
"DLIs are powerful tools. But they must be treated as catalysts — not destinations."
The DLI Trap
We call this the DLI Trap: where compliance performance substitutes for institutional performance. Institutions become skilled at passing verification — without necessarily becoming more capable. Reform gains become shallow. Systems depend on external monitoring. Vulnerability increases once program cycles end.
The fix requires reframing the purpose of DLI achievement — from "did we satisfy the verification checklist?" to "have we permanently improved how this institution functions?" Capacity is visible when systems continue functioning effectively without external supervision. That is the standard that matters.