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N43.4b is distributed to 24 States by the Federal Government

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Nigeria Palliatives

N43.4B is allocated by the Federal Government to 24 States – N43.416 billion ($120.6 million) have been disbursed by the federal government as performance-based grants to 24 states.

States were deemed eligible for 2018 outcomes under the World Bank-Assisted States’ (WBAC) System for Fiscal Transparency, Accountability and Sustainability (SFTAS) performance-based subsidy components.

The grant is funded by US$ 750 million loans from the World Bank Group’s International Development Association (IDA).

He said in a statement that, “the implementation has followed the participation of 24 qualifying States in the recent Annual Performance Assessment (APA), and was carried out by the Auditing General Office of the Federation, in coordination with the Independent Verification Agence (IvA), the Auditor General of the Federation (OAuGF), and the Ministry of Finance, Budget and National Planning, Zainab Ahmed.

Ms Ahmed said a $750 million loan to help countries through the provision of performance-based grant amounted to $700 million was generated by a Federal Government.

Furthermore, $50 million in technical assistance was included in the grant to “increase the ability of the system to achieve the outcomes of the Disbursement Related Indicators.”

In Abuja yesterday, Hassan Dodo, the Director of Press and Public Relations, said in his report that, in order to enhance fiscal transparency, accountability and sustainability across the country, “DLIs are extracted from the 22 point fiscal sustainability plan and the 14 Open Government Partnership (OPP) commitments.

The Minister said notes that qualifying notes have a obligation to fulfill the Eligibility Criteria (EC). The Minister also claimed that it had to adhere to the Eligibility Criteria (EC) by publishing the approved annual budget online and audited financial statements for the previous year.

Among the DLIs are: better financial reporting and reliability of the budget; increased transparency and dedication to the budget; better cash management and reduced revenue leaks through implementation of the State Treasury Single Account.

Other requirements needed for the grant are: strengthened IGR collection; biometric identification and the BVN number used to minimize payroll fraud; enhanced procurement procedures for better transparency and value for money.

Enhanced public debt management and fiscal responsibilities; strengthened clearance / reduction of domestic budget arrears; and enhanced debt sustainability are also important.

“This SFTAS program, which has been funded by the World Bank, mainly aims at improved State tax management in order to ensure effective, open, accountable and sustainable movement and use of financial capital for the benefit of their citizens, reducing financial risks and encouraging common fiscal behavior,” the Finance Minister reiterated.

Mrs. Ahmed was pleased that the SFTAS programme’s current effect, which further enhanced the need for best practices in fiscal efficiency, accountability and sustainability as outlined in the SFTAS ideals, was not attained in a best date than today because of “the decline in government revenues due to fluctuations in oil prices.” She also announced that, in the timeframe provided for in the SFTAS System Manual for Operations (POM), some States deemed not eligible in 2018 did not publish their annual budgets and audited financial reports online.

The statement revealed that the 24 beneficiary States who met the eligibility criteria are Abia, Adamawa, Bauchi, Benue, Delta, Edo, Ekiti, Enugu, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Niger, Ondo, Ogun,Oyo, Osun, Sokoto, Taraba and Yobe States.

The twelve countries which have failed to meet the eligibility requirements for the 2018 grant are the countries Akwa Ibom, Anambra, Bayelsa, Borno, Cross River, Ebonyi, Imo, Lagos, Nasarawa, Plateau, Rivers and Zamfara.

The SFTAS plan however takes up a number of starting points so that the 12 countries are still eligible to participate in their meeting with the EC and DLI in the respective success years of 2019, 2020 and 2021.

The total amount of USD 120.6 million (N43,416,000,000.00) to the qualified 24 States has been paid out to date based on their performance.

Kaduna State achieved the largest number of outcomes (nine), with N3,960,000,000,00 having the highest share. The lowest N540,000,000.00 is accessible to Katsina and Benue.

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