The Federal Government has disbursed N43.416 billion as
performance-based grants to 24 eligible states on the basis of the
results achieved in 2018.
The Director of Press and Public Relations in the Ministry of
Finance, Budget and National Planning, Mr. Hassan Dodo, made this known
in a statement issued in Abuja on Wednesday.
She stated that the 24 beneficiary states that met the eligibility
criteria 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 the Minister of Finance, Mrs Zainab Ahmed said the fund was
under the performance-based grant component of the World Bank-Assisted
States Fiscal Transparency, Accountability and Sustainability (SFTAS)
Programme-for-Results.
Ahmed explained that the project was wholly-financed with a loan
amount of 750 million dollars from the International Development
Association (IDA), a member of the World Bank Group.
She said that the disbursement followed the participation of the 24
eligible States in the recent Annual Performance Assessment (APA)
carried out by the Office of the Auditor General for the Federation
(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.
She said 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).
“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.
“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.
“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,” she
added.