20 Tough Steps to N90bn Bailout Facility to States

Nigeria's Finance Minister Kemi Adeosun speaks after the inauguration of the Efficiency Unit during an exclusive interview with Reuters in Abuja, Nigeria, November 30, 2015.   REUTERS/Afolabi Sotunde

Nigeria’s Finance Minister Kemi Adeosun speaks after the inauguration of the Efficiency Unit during an exclusive interview with Reuters in Abuja, Nigeria, November 30, 2015. REUTERS/Afolabi Sotunde

The Minister of Finance, Mrs Kemi Adeosun gave the following conditions to states who want to access the N90bn (bailout) loan :
1.Publish audited annual financial statements within nine months of financial year end;
2.Introduction and compliance with the International Public Sector Accounting Standards (IPSAS);
3.Publish State budget online annually;
4. Publish budget implementation performance report online quarterly;
5. Develop standard IPSAS compliant software to be offered to States for use by State and Local Governments;
6. Set realistic and achievable targets to improve independently generated revenue (from all revenue generating activities of the State in addition to tax collections) and ratio of capital to recurrent expenditure;
7. Implementation of a centralised Treasury Single Account (TSA) in each State;
8. Quarterly financial reconciliation meetings between Federal and State Governments to cover VAT, PAYE remittances, refunds on Government projects, Paris Club and other accounts;
9. Share the database of companies within each State with the Federal Inland Revenue Service (FIRS). The objective is to improve VAT and PAYE collection;
10. Introduce a system to allow for the immediate issue of VAT / WHT certificates on payment of invoices. Review all revenue related laws and update of obsolete rates / tariffs;
11. Set limits on personnel expenditure as a share of total budgeted expenditure;
12. Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud;
13. Establishment of Efficiency Unit.
Federal Government online price guide to be made available for use by States;
14. Introduce a system of Continuous Audit (internal audit);
15. Create a fixed asset and liability register;
16. Consider privatisation or concession of suitable State owned enterprises to improve efficiency and management;
17. Establish a Capital Development Fund to ring- fence capital receipts and adopt accounting policies to ensure that capital receipts are strictly applied to capital projects;
18.Domestication of the Fiscal Responsibility Act (FRA);
19.Attainment and maintenance of a credit rating by each State of the Federation;and
20. No commercial bank loans to be undertaken by States.

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