Wednesday, 15 June 2016

Requirements for bail out funds for states in Nigeria

Here is a list of all the 23 conditions state governors have to
fulfill to access the Federal government's N90 billion loan that was
announced by Minister of Finance, Kemi Adeosun yesterday June 14th.
The conditions include;
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 privatization 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 issuance 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.

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