The Federal Government has announced that in the next few weeks, States will receive the last tranche of the $1.5 billion World Bank-Assisted States Fiscal Transparency Accountability and Sustainability (SFTAS) Programme grant as well as the sum of one billion naira withheld by the Central Bank through naira exchange deficit.
Disbursement of the last tranche of the
performance-based grant, according to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, will be given to states under the SFTAS Programme of the federal government for the results achieved following various annual assessments.
Disclosing this at an event held to celebrate the achievements of SFTAS on the sidelines of the 28th Nigeria Economic Summit, the Minister said that further fiscal incentives to states will stop after the disbursement but the technical assistance component part of the programme would continue till the end of the programme in June, 2023.
Chairman, Nigeria Governors Forum Committee on SFTAS and Edo state Governor, Godwin Obaseki assured that all the 36 States have signed a charter to sustain the programme ideals already entrenched in the fiscal governance space at the sub-national level.
Chairman Nigeria Governor’s Forum(NGF), Aminu Tambuwal lauded the SFTAS programme, noting that it has enabled states to undertake various reforms that have increased their Internally Generated Revenue(IGR).
Represented by the the Governor of Kebbi State, Abubakar Bagudu, Tambuwal said “With the financing of over 1.2 billion dollars in disbursement to States so far, has been timely and ameliorating the fiscal constraints occasioned by the increasing expenditure in it, the Covid-19 pandemic and shortfall in remittance of revenue by NNPC to the federation account following the rising subsidy payment and crude oil theft”.
He revealed that with the signing of a sustainability charter by the forum on the 17th of August, 2022, all states have resolved to work with relevant stakeholders in conducting the first non-grant back assessment performance in 2023.
On his part, The World Bank Country Director, Mr. Shubham Chaudhuri, commended SFTAS, noting that the programme has improved fundamental aspects of governance in Nigeria.
Chaudhuri said the SFTAS business enabling reforms has given the Federal and State Governments the opportunity to hold each other accountable to their citizens.
Acknowledging that the states have recorded a laudable feat in fiscal management, the World Bank country rep. encouraged that more efforts should be invested in the areas of Business enabling reforms and Basic service delivery, while expressing hope that the SFTAS becomes a model for other positive programmes in the country.
The Director General, Debt Management Office(DMO) Patience Oniha, asserted that the SFTAS provided a platform for her office to upscale its performance in assisting the States migrate to doing debt sustainability analysis and debt management strategy.
Oniha advised that continuity in these areas would help sustain fiscal transparency and accountability as well as debt management in line with the already imbibed ideals of SFTAS.
On the impact of SFTAS in the last three years of it’s existence, the SFTAS Programme Coordinator, Mr. Ali Mohammed said states have become more transparent about their budgets and in their Internally Generated Revenue (IGR).
High point of the event was the presentation of awards to States for outstanding performance in various Disbursement Link Indicators (DLIs) for the intervention.
SFTAS, a Federal Government initiative under the President Mohammadu Buhari administration, focuses on strengthening the fiscal sustainability, transparency and accountability of Nigerian states.
