State Fiscal Transparency, Accountability and Sustainability Program for Result (SFTAS – PforR)

The Economic Challenges faced by the Federal and State Governments in 2015/2016 made it so difficult for them to meet their financial obligations. This resulted in the adoption of various economic measures that will bring back financial stability.

On 19th May, 2016, the Hon. Minister of Finance, Mrs Kemi Adeosun presented the Fiscal Sustainability Plan (FSP) to the National Economic Council presided by the Vice President, Prof. Yemi Osinbajo at the State House, Abuja.

The aims and objective of the plan is to achieve five (5) cardinal objectives. They are:
a) To improve Accountability and Transparency
b) To increase Public Revenue
c) To Rationalise Public Expenditure
d) To improve Public Financial Management
e) Sustainable Debt Management.

The five (5) objectives are to be achieved by carrying out 22 short and medium terms action plans in each state and the federal. The key issues in the plan are the timely preparation of the Annual Audited Accounts and Financial Statements, TSA, IPSAS, Biometrics Capture, Privatisation and concession as well as Budget and Debt management issues.

In June 2016, The President approved the Conditional Budget Support Facility to States and tied them to the achievement of the FSP. In 2017, the Nigerian Governors Forum (NGF) assigned a Consulting firms to assess the level of compliance to the 22 points FSP across the states in Nigeria in line with the Budget Support conditions.

The 2017 and 2018 reports of the Consultants exposed a significant lack of capacity and political will by some state governments towards achieving these 22 identified action plans. Subsequently, on 22nd March 2018 the National Economic Council endorsed a program titled STATE FISCAL TRANSPARENCY, ACCOUNTABILITY AND SUSTAINABLE PROGRAM FOR RESULT (SFTAS PforR).
The SFTAS PforR is designed to assist and encourage the state governments towards achieving the FSP and Open Governance project. It is collaboration between the Nigeria Governors Forum, Federal Ministry of Finance, Office of the Auditor General, Debt Management Office and the World Bank.

All the 36 states submitted written Expression of Interest to the Federal Ministry of Finance, indicating their interest to participate in the program. The World Bank thereafter, approved an IDA credit to the Nigerian Government of USD 750 Million for the program on 27th June 2018.

The State Fiscal Transparency, Accountability and Sustainability Programme for Result (SFTAS PforR) is designed to provide a performance based grants and technical assistance to state governments to enable them implement the 22-points Fiscal Sustainability Plan(FSP) and Open Governance Partnership (OGP) commitments over a 4 year period (2018 – 2021).

To access the annual performance based grants, States has to do the following:-
1. Achieve the Eligibility Criteria (EC) each year
2. Achieve Disbursement Linked Indicators/Results
3. Provide Data and Evidence of achievement to the Independent Verification Agent during Annual Performance Assessment

All State governments are to constitute a State Steering Committee. The membership of the State steering committee shall include representative from the key MDAs responsible for the achievement of the Disbursement Linked Indicators/Results.
They are:-

1. Ministry of Finance
2. Ministry of Budget and Economic Planning
3. State Treasury Office
4. State Public Procurement Agency
5. Debt Management Department
6. State Board of Internal Revenue Service
7. Accountant General Office and
8. Auditor General Office.