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 a recent press release from the Finance Ministry.
The 22-point fiscal reform action plan to be implemented by states under the programme mirrors the on-going 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.
The reforms were unanimously agreed by state governors during the national economic council meeting that was held on Thursday 19th may.
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.
