Why Ekiti's January Allocation was Blocked- Finance Minister Adeosun

Why Ekiti's January Allocation was Blocked- Finance Minister Adeosun

Nigeria's Finance Minister Kemi Adeosun has revealed why the January allocation for Ekiti state was blocked by the federal government.

The January allocation from the Budget Support Facility, to Ekiti State was suspended because the state failed to comply with the basic requirements for participating in the facility, the ministry said on Thursday.

The BSF is a Conditional Loan Programme to State Governments introduced to enhance fiscal prudence, transparency, efficiency in public expenditure and payment of salaries.

"This is not the first time of non-compliance by the Ekiti State Government,” a statement from ministry said.

“His administration defaulted in meeting the conditions specified and agreed upon by the 35 State Governments that are participating in the programme as contained in the Fiscal Sustainability Plan (FSP) and the Ekiti State Government was warned formally of its failure to comply with the full requirements vide a letter on August 5, 2016, with reference number HMF/FMF/ASG/1/2016.

“The failure of Ekiti State Government to comply with the requirements and conditions for the Budget Support Facility (BSF) resulted in a letter sent to the Chief of Staff to notify him of the suspension of BSF for Ekiti State and it was conveyed to Mr. President before payment to the Ekiti State Government was reinstated.

“The Ekiti State Government and all the other participating States are aware of the consequence of failure to comply with the full conditions and it is not the first time that a State would be stopped from accessing the Facility due to non-compliance.

“In the course of its normal duties, the Ministry of Finance has the right to query, suspend or withhold funds as part of the conditions of the Budget Support Facility.”

Governor Ayodele Fayose recently stormed the ministry in Abuja to demand why Ekiti state's January allocation was withheld.