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» » FG RELEASES CRITERIA TO BE MET BY STATES IN ORDER TO RECEIVE ADDITIONAL BAIL OUT FUNDS
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These are the conditions to be met by State government in order to get additional bail out funds from the Federal government

  • Publish audited annual financial statements within nine months of financial year end.
  • Comply with the International Public Sector Accounting Standards (IPSAS).
  • Publish state budget online annually.
  • Publish budget implementation performance report online quarterly.
  • Develop standard IPSAS compliant software to be offered to states for use by state and local governments.
  • 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.
  • Implement targets
  • Implement a centralised Treasury Single Account (TSA) in each State.
  • Have quarterly financial reconciliation meetings with Federal Government to cover VAT, PAYE remittances, refunds on government projects, Paris Club and other accounts.
  • Share the database of companies within each State with the Federal Inland Revenue service (FIRS). The objective is to improve VAT and PAYE collection.
  • 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.
  • Set limits on personnel expenditure as a share of total budgeted expenditure.
  • Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud.
  • Establish Efficiency Unit.
  • Federal Government online price guide to be made available for use by States.
  • Introduce a system of Continuous Audit (internal audit).
  • Create a fixed asset and liability register.
  • Consider privatisation or concession of suitable State-owned enterprises to improve efficiency and management.
  • 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.
  • Domesticate Fiscal Responsibility Act (FRA).
  • Attainment and maintenance of a credit rating by each State of the Federation.
  • 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.
  • 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.

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