About 35 states have so far applied to access the N90 billion loan earmarked by the federal government to boost state governments’ fiscal sustainability capabilities.
Speaking on Channels Television on Monday, the Minister of Finance, Kemi Adeosun, disclosed that the 35 states “are in the process of submitting the required documentation the loan.”
The minister said the monthly disbursements to each state will be based on compliance with pre-agreed Fiscal Sustainability Plan (FSP) milestones.
The FSP reforms, she said will take 18 months for full implementation, adding that there are key milestones within the period to measure compliance.
Adeosun said, “The objective is to ensure that states are set on a path towards fiscal sustainability with a clear link between federal government funding and necessary reform.”
“The FSP is also a path to supporting and increasing productivity and diversification of states economies, such as in agriculture in order to enhance food security and opportunities for exports.
“The FSP is about transparency, accountability and sustainability. State governments have agreed to the 22 points. It is their (the states) plan, after consultation and discussions between the states and the Ministry of Finance.”
“The government’s economic plan is strong on fiscal discipline, because people know we need to get our country working. And to do that we need to do three things – get the country’s spending in check with firm financial controls, raise money for targeted investment in much needed infrastructure and see us diversify the economy from a damaging dependence on oil.”
“The economic blueprint is about putting in place the financial pillars to enable states to work effectively and to work effectively with the federal government, including as recipients of infrastructure investment. Getting this right will enable states to be critical economic drivers for prosperity and pillars of professional probity.” Click to signup for FREE news updates, latest information and hottest gists everyday
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