35 states apply for N90bn loan
Minister of Finance, Kemi Adeosun
At least 35 states have so far applied to access the N90 billion loan
earmarked by the federal government to boost state governments’ fiscal
sustainability capabilities.
Speaking on Channels Television on Monday, the Minister of Finance,
Kemi Adeosun, disclosed that the 35 states “are in the process of
submitting the required documentation the loan.”
The minister said the monthly disbursements to each state will be
based on compliance with pre-agreed Fiscal Sustainability Plan (FSP)
milestones.
The FSP reforms, she said will take 18 months for full
implementation, adding that there are key milestones within the period
to measure compliance.
Adeosun said, “The objective is to ensure that states are set on a
path towards fiscal sustainability with a clear link between federal
government funding and necessary reform.”
“The FSP is also a path to supporting and increasing productivity and
diversification of states economies, such as in agriculture in order to
enhance food security and opportunities for exports.
“The FSP is about transparency, accountability and sustainability.
State governments have agreed to the 22 points. It is their (the
states) plan, after consultation and discussions between the states and
the Ministry of Finance.”
“The government’s economic plan is strong on fiscal discipline,
because people know we need to get our country working. And to do that
we need to do three things – get the country’s spending in check with
firm financial controls, raise money for targeted investment in much
needed infrastructure and see us diversify the economy from a damaging
dependence on oil.”
“The economic blueprint is about putting in place the financial
pillars to enable states to work effectively and to work effectively
with the federal government, including as recipients of infrastructure
investment. Getting this right will enable states to be critical
economic drivers for prosperity and pillars of professional probity.”
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