In a statement in Abuja, the Federal Ministry of Finance said: “All states will receive the
relief in this instance,
however further deferrals will be subject to the agreement of a Fiscal
Restructuring Plan to be prepared by each state with clear measurable objectives.
The ministry is keen to ensure that the programme of Financial Discipline being driven by the Federal Government
is replicated in all tiers of government, including elimination of payroll
fraud and increased spending efficiencies in overhead.
Enhanced financial transparency by the publication of audited
accounts and submission of debt profile may also be required.”
The ministry clarified
that the debt repayments due to the States’ creditors will be fully paid notwithstanding the
deferral.
“The Federal Government will make the due debt repayments, which
would be offset against liabilities owed to the states. Hence all creditors,
including bondholders, will not be adversely impacted,” the statement said.
The ministry further
reiterated that the deferral is not a bail out but rather a responsive measure
by the Federal Government to put states in a better position to meet their salary obligations. The
deferral amounts to a total of N10.9 billion.
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