Federal Govt Disburses N123,348 Billion World Bank Performance Grant to States

 Federal Govt Disburses N123,348 Billion World Bank Performance Grant to States

32 states out of the 36 states in Nigeria received N123.348 billion from the Federal Government based on their achievements under the performance-based grant component of the World Bank-assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) programme.

This was disclosed by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed in a statement signed by the Ministry’s director of press and public relations, Mr Hassan Dodo in Abuja, explaining that the disbursement followed the achievement of results by the States in the just concluded 2019 annual performance assessment.

This is the second tranche from the performance-based grants. 12 states missed out from the first disbursement of 43.42 billion Naira has they could not meet up with the eligibility criteria like the publication of the approved annual budget, improved financial reporting and budget reliability; increased openness and citizens’ engagement in the budget process; improved cash management and reduced revenue leakages through the implementation of Treasury Single Account (TSA) among others.

The increase in the number of states that benefited from the recent disbursement shows progress in states fiscal reforms. The recent disbursement included how states responded to covid-19 and  implementation of a tax compliance relief programme for individual taxpayers and businesses by various states. Bayelsa, Imo, Rivers and Zamfara States got zero allocation due to their inability to meet up with the criteria.

The State Fiscal Transparency, Accountability and Sustainability Project financed through the International Development Assistance credit is a 750 million dollar credit that will help increase efficiency in spending, strengthen revenue mobilization (of critical importance for the delivery of health, education, water and other services) and debt sustainability in participating Nigerian states.

Jayeola Gbenga

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