FG Disburses ₦123.348bn Grants To States

…Bayelsa, Imo, Rivers and Zamfara get zero
allocation

The Federal Government has disbursed ₦123.348billion
(USD324.6million) to states under its States Fiscal Transparency
Accountability and Sustainability (SFTAS) Programme for
Results.

Minister of Finance, Budget and National Planning, Mrs. Zainab
Shamsuna Ahmed disclosed this in a statement signed by Mr. Hassan
Dodo, the Ministry’s Director of Press and Public Relations,
Wednesday in Abuja.

The finance minister explained that the disbursement followed
the achievement of results by the states in the just concluded 2019
Annual Performance Assessment (APA).

Mrs. Ahmed said the disbursement included N91.048 billion
(USD239.6 million) of performance-based grants for the 2019 APA
results achieved by 32 Eligible States across various Disbursement
Linked Indicators (DLIs) covering fiscal transparency,
accountability, expenditure efficiency, revenue mobilization and
debt sustainability.

States received grants in line with the number of results
achieved, with Sokoto State receiving the highest amount of
N6.612billion while Kano State got the lowest amount of
N1.710billion.

“Bayelsa, Imo, Rivers and Zamfara States got zero allocation due
to their inability to meet the 2019 eligibility criteria which
required States to publish online approved annual budgets and
audited financial statements within a specific timeframe,” she
said.

She further noted that the 2019 APA results were a significant
improvement on the 2018 APA results where the total
performance-based grants of N43.416 billion (USD120.6 million) were
received by 24 Eligible States, demonstrating the substantive
progress States have made on fiscal reforms.

The minister added that “the second part of the disbursement
involved a new COVID-19 response DLI: The implementation of a tax
compliance relief programme for individual tax payers and
businesses by States by 30 September 2020 where 34 out of 36 States
(only Anambra and Zamfara States missed out) were able to achieve
the results for this new DLI for the total of N32.3 billion (USD 85
million) of grants”.

This round of disbursement is coming after the recent one in
November, 2020 by the Federal Government where the sum of
N66.5billion (USD175 million) was granted to 35 States which
achieved results under another new COVID-19 response DLI: the
passing of an Amended COVID-19 Responsive 2020 Budget by 31 July
2020.

The Minister observed that since the first disbursement in April
2020, the Federal Government has so far disbursed the total sum of
N233 billion(USD620.6million) to the States under the US $750
million World Bank-Assisted States Fiscal Transparency,
Accountability and Sustainability (SFTAS)
Programme-for-Results.

Mrs. Ahmed reiterated that the World Bank-assisted SFTAS
Programme is principally meant to strengthen fiscal management at
the state level so as to ensure effective mobilisation and
utilisation 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 fiscally
responsible behaviours.

She noted that the SFTAS programme could not have come at a
better time, given the dwindling government revenue occasioned by
oil price volatility and 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.

The Minister stressed that with the disbursement of the total
sum of N233.264 billion (USD620.2 million) since the beginning of
the Programme for Results, “we have thus far successfully adapted
and implemented the SFTAS Programme to provide timely support to
States with a view to strengthening their fiscal capacity for
responding to numerous fiscal challenges in their respective
domains.”

“The increase in the number of benefitting States and results
achieved is indicative of the wider acceptance of SFTAS ideals by
all States of the Federation and this would herald a new era of
transparency and accountability in fiscal governance at the
sub-national level,” she said.

…Bayelsa, Imo, Rivers and Zamfara get zero
allocation

The Federal Government has disbursed ₦123.348billion
(USD324.6million) to states under its States Fiscal Transparency
Accountability and Sustainability (SFTAS) Programme for
Results.

Minister of Finance, Budget and National Planning, Mrs. Zainab
Shamsuna Ahmed disclosed this in a statement signed by Mr. Hassan
Dodo, the Ministry’s Director of Press and Public Relations,
Wednesday in Abuja.

The finance minister explained that the disbursement followed
the achievement of results by the states in the just concluded 2019
Annual Performance Assessment (APA).

Mrs. Ahmed said the disbursement included N91.048 billion
(USD239.6 million) of performance-based grants for the 2019 APA
results achieved by 32 Eligible States across various Disbursement
Linked Indicators (DLIs) covering fiscal transparency,
accountability, expenditure efficiency, revenue mobilization and
debt sustainability.

States received grants in line with the number of results
achieved, with Sokoto State receiving the highest amount of
N6.612billion while Kano State got the lowest amount of
N1.710billion.

“Bayelsa, Imo, Rivers and Zamfara States got zero allocation due
to their inability to meet the 2019 eligibility criteria which
required States to publish online approved annual budgets and
audited financial statements within a specific timeframe,” she
said.

She further noted that the 2019 APA results were a significant
improvement on the 2018 APA results where the total
performance-based grants of N43.416 billion (USD120.6 million) were
received by 24 Eligible States, demonstrating the substantive
progress States have made on fiscal reforms.

The minister added that “the second part of the disbursement
involved a new COVID-19 response DLI: The implementation of a tax
compliance relief programme for individual tax payers and
businesses by States by 30 September 2020 where 34 out of 36 States
(only Anambra and Zamfara States missed out) were able to achieve
the results for this new DLI for the total of N32.3 billion (USD 85
million) of grants”.

This round of disbursement is coming after the recent one in
November, 2020 by the Federal Government where the sum of
N66.5billion (USD175 million) was granted to 35 States which
achieved results under another new COVID-19 response DLI: the
passing of an Amended COVID-19 Responsive 2020 Budget by 31 July
2020.

The Minister observed that since the first disbursement in April
2020, the Federal Government has so far disbursed the total sum of
N233 billion(USD620.6million) to the States under the US $750
million World Bank-Assisted States Fiscal Transparency,
Accountability and Sustainability (SFTAS)
Programme-for-Results.

Mrs. Ahmed reiterated that the World Bank-assisted SFTAS
Programme is principally meant to strengthen fiscal management at
the state level so as to ensure effective mobilisation and
utilisation 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 fiscally
responsible behaviours.

She noted that the SFTAS programme could not have come at a
better time, given the dwindling government revenue occasioned by
oil price volatility and 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.

The Minister stressed that with the disbursement of the total
sum of N233.264 billion (USD620.2 million) since the beginning of
the Programme for Results, “we have thus far successfully adapted
and implemented the SFTAS Programme to provide timely support to
States with a view to strengthening their fiscal capacity for
responding to numerous fiscal challenges in their respective
domains.”

“The increase in the number of benefitting States and results
achieved is indicative of the wider acceptance of SFTAS ideals by
all States of the Federation and this would herald a new era of
transparency and accountability in fiscal governance at the
sub-national level,” she said.