Skip to main content

Fed Govt disburses N43.4b to 24 states

Fed Govt disburses N43.4b to 24 states

The   Federal Government has disbursed N43,416 billion ($120.6 million) as performance-based grants to 24 states.

The states were considered eligible for the results they achieved in 2018 under the performance-based grant component of the World Bank-Assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results.

The grant is financed with a loan of US$750 million from the  International Development Association (IDA), a member of the World Bank Group.

The   Minister   of   Finance,   Budget   and   National   Planning,   Mrs. Zainab Ahmed, in a statement, explained that “the disbursement followed the participation of the 24 eligible states in the recent Annual Performance Assessment (APA).”

The assessment was done by the Office of the Auditor- General for the Federation (OAuGF) as the Independent Verification Agent (IVA), in collaboration with a third party firm, JK Consulting Limited and the SFTAS Programme Coordination Unit (PCU).

Mrs. Ahmed explained that the SFTAS Programme was established by the Federal Government with a loan of $750 million to support states through the provision of performance-based grants of $700 million.

In addition, a technical assistance worth $50 million was also factored into the grant “to enhance their capacity to achieve the Disbursement Linked Indicators (DLIs) i.e. the Programme results”.

According to a statement signed by the Ministry’s Director of Press and Public Relations, Mr. Hassan Dodo, yesterday in Abuja, “the DLIs are derived from the country’s 22-Point Fiscal   Sustainability Plan and the 14 Open Government Partnership (OGP) commitments aimed at strengthening fiscal transparency, accountability and sustainability across states.

The Minister said for states to qualify for the grant they must meet the Eligibility Criteria (EC) through online publication of the approved annual budget and audited financial statement for the previous year and the DLIs that eligible States receive grants for achieving.

Some of the DLIs include: improved financial reporting and budget reliability; increased   openness and citizens’ engagement in the budget process; improved cash management and reduced revenue leakages through implementation of State Treasury Single Account (TSA).

Other conditions to be met to qualify for the grant are: strengthened Internally Generated Revenue (IGR) collection; biometric registration and Bank Verification Number (BVN) used to   reduce payroll fraud; improved procurement practices for increased transparency and value for   money.

Also required are strengthened public debt management and fiscal responsibility framework; improved clearance/reduction of stock of domestic expenditure arrears; and improved debt sustainability.

The finance minister reiterated that “the World Bank-assisted SFTAS Programme is principally   to strengthen fiscal management at the State level so as to ensure effective mobilization and utilization of financial resources to the benefit of their citizens in a transparent, accountable and sustainable manner, thereby reducing fiscal risks and encouraging a common set of fiscal behaviours.”

Mrs. Ahmed was happy that the SFTAS programme couldn’t have come at a better time than now “given the dwindling government revenue occasioned by oil price volatility coupled with the current impact of COVID-19 which has further intensified the need for improved practices in fiscal transparency, accountability and sustainability as enunciated in the SFTAS ideals.”

She recalled that in 2018, the first year of the Programme, only 24 States met the Eligibility Criteria. She also disclosed that those States declared ineligible for 2018 failed to publish their annual budgets and audited financial statements online within the time frame as stipulated by the SFTAS Programme Operation Manual (POM).

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 12 States that missed out on the 2018 grants because they did not meet the Eligibility Criteria are Akwa Ibom, Anambra, Bayelsa, Borno, Cross River, Ebonyi, Imo, Lagos, Nasarawa, Plateau, Rivers and Zamfara States.

However, the SFTAS Programme accommodates different starting points, so the 12 States can still participate in the 2019, 2020 and 2021 respective performance years by meeting the EC and DLIs in the said years.

The total sum of (N43,416,000,000.00) USD120.6 Million has so far been disbursed to the  qualified 24  States based on their performance.

Kaduna  State achieved the highest number of results (nine) and got the highest share with N3,960,000,000.00. Katsina and Benue got the lowest amount of N540,000,000.00 each.


Labels:

Comments

Post a Comment

Popular posts from this blog

Court orders Okowa government to account for over N200bn education funds, allocations

Court orders Okowa government to account for over N200bn education funds, allocations The Federal High Court sitting in Lagos, in a landmark judgment, has “ordered the disclosure of the spending details of over N200bn public funds collected by the government of former Delta State governor Ifeanyi Okowa from the Universal Basic Education Commission [UBEC] fund and allocations from the Federation Accounts.” The court ordered the Delta State Governor Sheriff Oborevwori to “disclose details of budgetary allocations and actual spending by the Okowa government between 2015 and 2019, including specific projects carried out to improve primary education in Delta State, and the locations of such projects.” The judgment was delivered by Honourable Justice Daniel Osiagor, following a Freedom of Information suit number: FHC/L/CS/803/2019, brought by Socio-Economic Rights and Accountability Project (SERAP). In his judgment, Justice Osiagor held that, “SERAP has cognizable legal right to inquire and
Post a Comment
Read more

Olu Of Warri Defends Tradition, Speaks on Christianity

Olu Of Warri Defends Tradition, Speaks on Christianity  The Olu of Warri, His Majesty Ògíamẹ̀ Atúwàtse III, has dispelled the insinuation that there is a conflict between the traditional thrones and Christendom. The monarch, who stated this when he received the Soun of Ogbomoso land, Oba Ghandi Afolabi Olaoye, Orumogege III, in his Palace in Warri Kingdom, Delta State, said that the two institutions were not necessarily antithetical. He also debunked the assumption that traditional institutions were synonymous with fetishism and the worship of creations made by human beings and reasoning. He, however, noted that the two institutions can play complementary role that will contribute to the growth and development of the country. The Olu, who said he was elated by the Soun’s visit, said the new Ogbomoso monarch’s choice of Warri kingdom as his first place of visit was divinely directed, just as his choice for the throne was divinely ordained. He said that they owe i
Post a Comment
Read more

Many Benefited as Tantita Save Niger Delta From Enviromental Ruins

Many Benefited as Tantita Save Niger Delta From Enviromental Ruins  It is on record over the past twenty years in the Niger Delta region, South-South Nigeria where incessant fire disaster and untimely death was on the increase in weekly basis as result of the activities of illegal oil bunkering, especially the process of local refining popularly known as Kpo-Fire. The menace also renders our young married ladies widows in the ljaw riverine communities because most of their life partners venture into the Kpo-Fire business due to its lucrative nature in making quick money. To proof your doubt, take a tour to any of the ljaw riverine communities across Burutu, Warri South-West, Bomadi, Patani in Delta State, and Southern ljaw, Ekeremor, Nembe and Brass LGAs in Bayelsa State, you will discovered that most of our youths are facially disfigured in parts of their body as result of severe fire accident incurred during cooking and burning (refining) of crude oil to kerosene, fuel and desiel for
Post a Comment
Read more