The World Bank has agreed to make performance based grants worth $27 million to Nigerian states that have succeeded in governance and public financial management (PFM) reforms in the States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme.
The incentive payments were announced at the National SFTAS Programme Results Summit held in Abuja where the Federal Government and the World Bank applauded the states that participated in the programme for enhancing fiscal transparency, revenue generation and procurement systems, as well as budget accountability.
The grants are meant to help promote competition between states and better fiscal discipline as well as efficient use of public resources and sustainable economic management at sub-national level, according to the World Bank.
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The incentives were earned for taking steps, including publishing audited financial statements, enhancing IGR, implementing a transparent procurement process, taking debt sustainability measures and giving a greater public visibility to the budget documents, through Disbursement Linked Indicators (DLIs) verified independently.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, referred to the programme as a significant instrument of Fiscal Reform spread throughout Nigeria, stating that states that have joined the programme have shown greater commitment to Accountability and Wise Financial Management.
Dr. Ndiame Diop, the Country Director of the World Bank for Nigeria, noted that the SFTAS has enabled the formalization of reforms which enhance citizens’ trust and confidence in the accountability of public institutions and their governance practices.
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He called upon the States to continue the momentum beyond the period of the programme by integrating transparency and accountability in their governance.
Since its inception in 2018, the SFTAS Programme has assisted the 36 States of the Federation in conducting some key fiscal reforms which have focused on enhancing the credibility of the fiscal process, improving the mobilisation of domestic revenue and improving service delivery because of better fiscal resource management.
The new incentive package is another sign the World Bank remains confident in reform orientated states, and is designed to encourage others to push for faster governance reforms to draw in investment and boost economic results, officials at the summit said.
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The Federal Government again reiterated its commitment to collaboration with the development partners to enhance fiscal sustainability, augment public sector institutions and stimulate public sector reforms to help enhance inclusive economic growth throughout the country.
