Transparency in fiscal matters: The federal government transfers N352 billion to the states.

Ibekimi Oriamaja Reports.

Under the States’ Fiscal Transparency Accountability and Sustainability Act, the federal government has disbursed N351. 6 billion to state governments (SFTAS).

The SFTAS, a World Bank Program, was launched in 2018 to encourage state governments to implement fiscal policies that promote transparency and accountability in public finance administration.

Mr. Stephen Okon, the National Programme Coordinator, made the announcement over the weekend in Abuja while briefing Civil Society Organizations (CSOs) on the SFTAS program’s sustainability.

Mr. Okon responded to journalists’ questions by saying, “SFTAS had started disbursing the second tranche of the $750 million long ago, and it might interest you to note that up to now, approximately N262 billion naira has been disbursed to states as grants for achievements made in respect of what we call the Disbursement Linked Indicators (DLIs).”

He went on to say that SFTAS was “making additional disbursements for the 2020 Annual Performance Assessment (APA) and the 2021 APA.” The 2021 APA, which we expect to distribute in October, will be the final installment of this disbursement.”

The World Bank provided the federal government with $1. 5 billion to encourage state governments to be more accountable.

Mr. Okon stated that there was no clear position on the program’s extension, but he did mention its impact on public finance management at the second tier of government.

“The program has done so much to improve transparency, accountability, and sustainability among states,” he says, emphasizing accountability.

All states have increased their internally generated revenue and published their budgets and end-of-year accounts on time.”

“In terms of establishing a baseline for comparison among states, we now have all of the states on the same page in terms of TSA, procurement law, audit law, almost all of the states in the federation now have all of these in place, and it has really promoted accountability and transparency among the federation’s states.”

The Coordinator also stated that the Federal Ministry of Finance, Budget, and National Planning’s SFTAS Programme Coordination Unit was engaging demand-side stakeholders such as CSOs to ensure fiscal transparency and accountability in state public finance management as part of its strategies to ensure the long-term viability of fiscal reforms.