Rivers Misses Out On World Bank’s $750m COVID-19 Grant To States

Rivers State has missed out on the World Bank’s grant of $750 million for Nigerian States to boost their economic recover from COVID-19 pandemic.

Of the $750 million grant, the Federal Government commenced the disbursement of N66.5 billion (USD$175 million) to 35 eligible States on the basis of the amended COVID-19 responsive 2020 budget results achievement.

The Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed, made this known on Wednesday in a statement issued by the Director of Press and Public Relations in the ministry, Hassan Dodo.

She said the disbursement was under the performance-based grant component of the World Bank-Assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results.

According to her, each eligible state received a total sum of N1.9 billion (an equivalent of $5 million).

She explained that Rivers State missed out on the World Bank grant due to its inability to meet the eligibility criteria to access the grant.

“Rivers State is the only one that missed out on the grant due to its inability to meet the eligibility criteria which required the states to have passed and published online on a state’s website by July 31,2020 credible, fiscally responsible COVID-19 Responsive Amended 2020 Budgets duly approved by the State House of Assembly and assented to by the State Governor,” she said.

With the exception of Rivers State, the minister said the other states complied with the Amended COVID-19 Responsive 2020 Budget criteria.

She listed the other criteria required by states to access the World Bank funds to include standardised budget documentation to enhance clarity, transparency and accessibility.

“It must also significantly lower the gross statutory revenue projections – consistent with the revised medium-term expenditure framework (MTEF) and federal government’s budget; reduced non-essential overhead and capital expenditures.

“The budget must be tagged and found to have allocated at least 10 percent of the total expenditure of the amended budget for COVID-19 relief, restructuring and recovery programs; and identified credible sources to fully finance the budget deficit to avoid accumulation of arrears,” she added.

The minister emphasised that the COVID-19 pandemic and the associated economic and fiscal shocks have put significant pressure on States’ fiscal resources and undermined the reality and credibility of the States’ original 2020 Annual Budgets.

She noted that a transparent, accountable and sustainable state-level fiscal/budget framework was a pre-requisite for a robust COVID-19 response, enabling necessary health, social protection and livelihood interventions during the COVID-19 relief, restructuring and recovery phases.

“The achievement of results by the 35 out of 36 States will further strengthen the national fiscal response to COVID-19 and align efforts at both the federal and state-levels.

“The World Bank-assisted SFTAS Programme is principally meant to strengthen fiscal management at the state level, so as to ensure effective mobilisation and utilisation of financial resources to the benefit of the citizens in a transparent, accountable and sustainable manner, thereby reducing fiscal risks and encouraging a common set of fiscal behaviours,” she said.

Ahmed observed that the SFTAS programme could not have come at a better time, given the dwindling government revenue occasioned by oil price volatility coupled with the current impact of COVID-19 which has further intensified the need for improved practices in fiscal transparency, accountability and sustainability as enunciated in the SFTAS ideals.

It would be recalled that the Federal Government had earlier in April, 2020 disbursed the total sum of N43.416 billion ($120.6 million) to the qualified 24 States, based on their performance.