Going forward, states which do not exhibit sound financial discipline will no longer access bailout from the federal government. Nigeria’s Vice President, Yemi Osinbajo, said this in Abuja on Tuesday at a workshop organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on alternative sources of revenue generation for sustainable development in states and local government councils in Nigeria.
Represented by the Honourable Minister of Finance, Kemi Adeosun, the Vice President said that states must fully implement the Action Points in the Fiscal Sustainability Plan (FSP) launched last year before getting assistance by the FG.
The FSP has five key strategic objectives and 22 action points. The five objectives are Accountability & Transparency, Increase in Public Revenue, Rationalisation of Public Expenditure, Public Financial Management Reforms, and Sustainable Debt Management.
“The independent monitoring and evaluation of states against agreed milestones under the FSP, has been conducted and further consideration for support to states, will be solely dependent on reports from this exercise,” he said.
The 22-Point FSP for states and local governments he said “was introduced and acceded to by states governments in 2016 with the view to enhancing fiscal prudence and transparency in public expenditure, monitoring the ongoing public financial management reforms being undertaken by the federal government.”