Promoting Good Governance.

Finance Minister, State Finance Commissioners Meet To Discuss Fresh Bailout

Minister of Finance, Kemi Adeosun
Minister of Finance, Kemi Adeosun

The Minister of Finance, Kemi Adeosun will today meet with finance commissioners from the 36 states of the federation to finalise discussions on a fresh bailout package.

The meeting will afford the commissioners the opportunity to explain how their states managed the first bailout given to them by the federal government.

The federal government and the state governors during the last National Economic Council meeting on Thursday, 9 June, agreed on a 22-point fiscal reform action plan codenamed Fiscal Sustainability Programme, FSP, which if fully adhered to by the various states, would qualify them for a fresh bailout package.

The FSP has five key strategic objectives namely: accountability and transparency, increase in public revenue, rationalization of public expenditure, public financial management reforms and sustainable debt management. The aim of the programme is to enable the various states achieve fiscal sustainability.

Requirements contained in the FSP include, biometric capture of all civil servants in the state, establishment of an efficiency unit, implementation of continuous audit, improvement in internally generated revenue, among others.

Under the FSP, states are also required to publish audited annual financial statements within six months of financial year end. States will also publish their annual budgets as well as budget implementation performance quarterly with effect from March 2017.

The federal government will provide the various states with an International Public Sector Accounting Standards, IPSAS, software to monitor the progress of the programme.