FG to support state governments financially… but the conditions are strict

The federal government, on Tuesday, set out stringent fiscal conditions for states before they can access a conditional Budget Support Facility which is aimed at providing financial support to any of the 36 states facing financial difficulties.

This was contained in a statement made available by the Ministry of Finance.

The states can only access the bailout funds if they meet a 22-point reform agenda called the Fiscal Sustainability Plan (FSP) which was approved by state governments and the National Executive Council last month.

The states are expected to publish audited financial statements and budgets, biometric and Bank Verification Number (BVN) review exercises.

The states will also need to establish Efficiency Units to reduce overhead costs, privatise state owned establishments, meet targets to enhance their internally generated revenue (IGR) and domesticate Fiscal Responsibility Act and limitations on securing loans from banks.

The Ministry of Finance noted that for the funds to be given to any state, it must first fulfill all the conditions set out and subject itself to monitoring and evaluation by Independent Monitoring Agents.

Failure to meet the agreed conditions will result in states being excluded from the funding.

Leave a reply

Your email address will not be published. Required fields are marked *

cool good eh love2 cute confused notgood numb disgusting fail