From Uche Usim, Abuja
State Governors involved in the World Bank-assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme for Results (PforR) are eagerly awaiting the release of the final tranche of the grant by the Federal Ministry of Finance.
The four-year SFTAS Programme (2018-2022) was approved by the World Bank in June 2018 and commenced in May 2019 to galvanize states into imbibing fiscal transparency, accountability and sustainability.
It was designed to provide performance–based grants and technical assistance to participating states to implement the 22-point Fiscal Sustainability Plan (FSP) and the Open Government Partnership (OGP).
So far, N471.9 billion have been disbursed in two tranches to the participating states.
Speaking at a dinner/award night in Abuja on Monday night to celebrate the success of SFTAS and recognise best performing States in the successive Annual Performance Assessments, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, urged the States to “expert credit alerts in the next few weeks for the last tranche of the performance-based grants; including N1 billion withheld by the Central Bank through naira exchange deficit; thus bringing to a close, the Performance for Results Grant even though the technical assistance component will continue to be delivered by implementing agencies and partners till June, 2023 when the programme will finally wind down”.
She said SFTAS has achieved its set objectives and recorded significant milestones in improved fiscal transparency and accountability; increased domestic revenue mobilization; increased efficiency in public expenditure; and strengthened debt management in line with the already imbibed ideals.
“These good practices include preparation of citizen-based budgets, timely preparation and publication of Annual Budget and Audited Financial Statement as well as adoption of National Chart of Account amongst other Disbursement Linked Indicators (DLIs).
“It is my strong belief that with the resounding success recorded, especially the wholesale adoption of the SFTAS Charter by all the 36 State Governors here present, the programme ideals already entrenched in the fiscal governance space at sub-national level would continue to enjoy a place of pride in the conduct of fiscal governance even in the absence of any further fiscal incentives.
The original $1.5 billion loan from the World Bank comprised two components–the performance-based grants from the federal government to states for achieving the Annual Eligibility Criteria and the Disbursement Linked Indicators (DLIs), which is the programme results.
Also speaking, Shubham Chaudhuri, the Country Director of World Bank, said SFTAS remains a flagship programme that has lived up to expectations.
He applauded the deep involvement of both the federal and state governments, thus underscoring the need to cement the relationship between the federal and state governments in order to deepen accountability and transparency.
“States are where the action is. The states are closer to the people. Fiscal management is the beginning, then other things follow”, he said.
Sokoto State Governor, Aminu Tambuwal who also spoke at the event, said States the grants were very useful, adding that states have begun to streamline their operations, cut cost, publish their accounts and deepen citizen engagements.
He also noted that the release of N1.2 billion to states to fight the COVID-19 pandemic was timely and vital.
He said many states have tweaked their laws to improve tax payments, just as deliberates efforts were made to swell the internally generated revenue and publishing performance report every quarter.
“States have signed a fiscal responsibility charter and are willing to work with partners and stakeholders to move forward”, he said.