COVID-19: Federal Government releases N43.416 billion to 24 states

Federal Government has disbursed N43.416 billion
Federal Government has disbursed N43.416 billion

Based on the results obtained in 2018, the Federal Government has disbursed N43.416 billion as performance related grants to 24 eligible states.

It was made clear in a statement released in Abuja on Wednesday by the Director of Press and Public Relations at the Ministry of Finance, Budget and National Planning, Mr. Hassan Dodo.

She further listed out the qualified states that meet the criteria to be a beneficiary of the money. Those states were 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.

Dodo said Finance Minister Zainab Ahmed said the fund was under the performance-based grant portion of the Fiscal Transparency, Accountability and Sustainability System (SFTAS) for Results of the World Bank-Assisted States.

Ahmed clarified that the project was completely financed by the International Development Association (IDA), a member of the World Bank Community, with a loan amount of $750 million.

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She said the disbursement followed the involvement of the 24 qualifying states in the latest Annual Assessment (APA) conducted by the Federation’s Office of the Auditor General (OAuGF).

The minister explained that the SFTAS Programme was established by Federal Government with the concessional loan of 750 million dollars to support States through the provision of performance-based grants to States to the tune of 700 million dollars.

The programme also included the technical assistance in the sum of 50 million dollars to enhance their capacity to achieve the Disbursement Linked Indicators (DLIs), She said.

“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 all States of the Federation.

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“The Eligibility Criteria (EC) that States have to meet in order to qualify to receive any grants include the 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 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).

“Also strengthening Internally Generated Revenue (IGR) collection; biometric registration and Bank Verification Number (BVN) used to reduce payroll fraud.

In her last point further said others are improved procurement practices for increased transparency and value for money; strengthened public debt management and fiscal responsibility framework; improved clearance and reduction of stock of domestic expenditure arrears and improved debt sustainability.

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