Nigerian states have agreed to reform the finances of state and local governments under a Fiscal Sustainability Programme to ensure their long-term viability, according to a press statement from the Federal Ministry of Finance.
The 22-point fiscal reform action plan to be implemented by states under the programme mirrors the ongoing public financial management reforms being undertaken by the Federal Government, including: biometric capture of all civil servants, the establishment of an Efficiency Unit, implementation of Continuous Audit, improvement in Independently Generated Revenue (IGR) and measures to achieve sustainable debt management.
State governors unanimously agreed to the reforms during the National Economic Council meeting that was held on Thursday, May 19.
The Federal Government is developing a financial support structure, which will be directly tied to the attainment of agreed fiscal reform milestones. The ultimate objective of the Programme is to ensure that States are set on a path towards fiscal sustainability.
