With economic difficulties being experienced by most states of the federation, the FG has decided, again to bail-out states.



The federal government while willing to show this gesture of largesse has not done so without conditions. The federal Government has promised to give the N90bn over one year to all the states if and only if they fulfill these 23 conditions.

You can read them below.

1. Publish audited annual financial statements within nine months of financial year end.
2. Comply 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. Implement targets
8. Implement a centralised Treasury Single Account (TSA) in each state
9. Have quarterly financial reconciliation meetings with federal government to cover VAT, PAYE remittances, refunds on government projects, Paris Club and other accounts
10. Share the database of companies within each state with the Federal Inland Revenue service (FIRS). The objective is to improve VAT and PAYE collection
11. Introduce a system to allow for the immediate issue of VAT/WHT certificates on payment of invoices. Review all revenue related laws and update obsolete rates/tariffs
12. Set limits on personnel expenditure as a share of total budgeted expenditure
13. Biometric capture of all states’ civil servants will be carried out to eliminate payroll fraud
14. Establish efficiency unit
15. Federal government online price guide to be made available for use by states
16. Introduce a system of continuous audit (internal audit)
17. Create a fixed asset and liability register
18. Consider privatisation or concession of suitable State-owned enterprises to improve efficiency and management
19. 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
20. Domesticate Fiscal Responsibility Act (FRA)
21. Attainment and maintenance of a credit rating by each state of the federation
22. Federal government to encourage states to access funds from the capital markets for bankable projects through issuance of fast- track Municipal bond guidelines to support smaller issuances and shorter tenures
23. Comply with the FRA and reporting obligations, including: No commercial bank loans to be undertaken by States; Routine submission of updated debt profile report to the DMO.

The minister of Finance, Kemi Adeosun explained how the loan was going to be implemented, “The amount of the loan is N50billion for three months to be shared across the 36 states, including FCT and then N40billion for nine months. “The idea is to tie states over for a year so that they rebalance, which is an average of about N1.3billion per state for the first three months and N1.1billion for the next nine months. “It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.

“The idea is to tie states over for a year so that they rebalance, which is an average of about N1.3billion per state for the first three months and N1.1billion for the next nine months. “It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.

“It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.


http://www.newshelm.com/2016/06/federal-government-ready-to-bail-out.html

cc lalasticlala, mynd44

Before dey arrange d money for FAYOSE dey should let him know dat d money is not him to be buying ponmo, mango, plantain, bread and beans all over EKITI

bail bail every year. why don't CBN PMB join these companies states together as one big state to form a strong capital base and viable state.

How many of theses states can meet all these requirements

So apart from tax and allocation our state governors can't generate funds??
I don't get at all.. . A state like Benue that's has excess lands can aquire 200,000 hectare of land and plant yam and export to Japan for the beer production (yes Japan uses yam for beer and Ghana is there keep supplier and the can't meet there demand) This will generate over 200bn a year for the state and a profit for capital projects of 50bn to 100bn. ..
Edo can export pinapple to Europe and middle east and make far more than 500bn per year
Bayelsa can produce enough rice for West Africa, the excess converted to ethanol and exported
Ogun can plan 500,000 hectares of cassava for ethanol production and the waste for cow and pig farming

Why are this governors lazy..... am 24 and If not that's age thing I think I should be preparing to govern imo statet .. ..
Can't this governors think out side the box for once??

This is commendable if it can be fully implemented. If possible, devise an electronic telecommunication means to monitor payments made by the FG and create toll free networks to report mischievous deeds, setting up a monitoring team to publicise infos with evidence.

terms and conditions for mainly bail out fund, pls reduce ur list

cckris:


Corrupt State BUREAUCRATS will NEVER ACCEPT these conditions. Neither will the Governors.

ONLY Constitutional Restructuring can COMPEL people to do the needful.

100000 likes for you

cckris:


Corrupt State BUREAUCRATS will NEVER ACCEPT these conditions. Neither will the Governors.

ONLY Constitutional Restructuring can COMPEL people to do the needful.

correct

Hmmmm what a condition.

cckris:


And SWEET pears.

thank u jor

cckris:


Corrupt State BUREAUCRATS will NEVER ACCEPT these conditions. Neither will the Governors.

ONLY Constitutional Restructuring can COMPEL people to do the needful.

Let them not accept the conditions because they're corrupt. But they must find alternative means to solve their cash inflow challenge.

Another good thing is they're already barred from accessing bank loans too. Let's see how they survive without FG bailout and bank loans.

I like the stringent conditions given for state governors to access the bailout funds. Many of them couldn't adequate account for the last one they got. It is so disheartening to see state governors go cap in hand to the federal government for funds. It only buttresses the ironies in our federal structure. The bailout is just just another round of fix to able-bodied governors who should be given the trawlers seek out fish themselves.

cckris:


Politically, Buhari can't SUCCESSFULLY be fighting Saraki, ND Avengers, Nnamdi Kanu, & now,

The Corrupt Bureaucrats United, coached by State Governors, & cheered on by more rudderless

Local Govt Chairmen, aka Thugs & hoodlums.

Buhari is just looking for who to blame, for the OVERWHELMING burden of the presidency of a Nigeria, that has no political foundation.

Your own thinking/reasoning.

PMB doesn't give in to blackmailing and he dares to venture into many uncharted waters and succeed where many failed.

Just watch out.

BTW, who is Kanu? What clout has he? ND Avengers will fizzle out as their predecessors of MEND and co.