The federal government has approved an independent monitoring of state finances.
The director of information for the ministry of budget and national planning Salisu Dambatta said eight accounting firms including KPMG, PWC will review the financial management of 35 states across Nigeria.
Eight audit firms will monitor all states finances
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Dambatta said the firms will evaluate the implementation of the 22-point Fiscal Sustainability Plan (FSP) which specified the conditions under which 35 State Governments in June 2016 started accessing the N510 billion Budget Support Facility (BSF).
“It could be recalled that monitoring by the Federal Ministry of Finance has been ongoing since June 2016 however, independent monitoring and verification of the States against agreed milestones under the FSP will now commence by the eight accounting firms,” Dambatta said.
He also added that the budget support facility – a 12-month standby loan facility – was designed to bring immediate financial relief to State Governments and enable them meet their financial obligations.
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He said this will occur with a monthly amount of N50 Billion in the first three months and N40 Billion available for the remaining nine months to the 35 States.
“The Fiscal Sustainability Plan is a 22-point reform programme which commenced in June, 2016 with requirements including increasing internally generated revenues, introduction of biometric payroll, publication of audited annual financial statements, and reduction of wastages
Also, the minister of finance Kemi Adeosun said that the firms were “expected to vigorously monitor, evaluate and verify the performance of the States against the agreed milestones set by each state government under the Fiscal Sustainability Plan.”
She said state governments that fail to implement the action plans, as stated, would be taken off the facility with immediate effect.
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Adeosun had earlier introduced the FSP for sub-national governments in 2016.
The FSP was further assented to by state governments with the view to enhancing fiscal prudence and transparency in public expenditure.
The plan is also part of the nationwide Public Financial Management Reform which is being implemented by the administration of President Muhammadu Buhari through the federal ministry of finance.
Below is a list of the approved firms:
1. KPMG
2. PricewaterhouseCoopers (PWC)
3. Ernst & Young
4. PKF
5. Muhtari Dangana & Co
6. S.S. Afemikhe & Co
7. Ahmed Zakari & Co
8. Ijewere & Co.
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