In a significant financial development, the World Bank has announced the disbursement of $1.45 billion to Nigeria as part of the States Fiscal Transparency, Accountability, and Sustainability (SFTAS) Program. This financial injection, aimed at enhancing fiscal transparency and accountability, is expected to support various state governments in achieving sustainable fiscal practices. The disbursement comes as a vital step in the broader initiative to strengthen Nigeria’s economic foundation and governance.
Key Points:
- Purpose of Disbursement:
- The $1.45 billion fund is part of the broader $1.5 billion SFTAS Program aimed at promoting fiscal transparency, accountability, and sustainability among Nigerian states.
- The funds are intended to assist state governments in implementing the 22-point Fiscal Sustainability Plan and the Open Government Partnership, fostering better governance practices.
- Tranches and Dates:
- The disbursement was made in two tranches: $737.13 million and $717.51 million, reflecting the World Bank’s commitment to supporting Nigeria’s fiscal development.
- Both tranches were received by the Federal Government, with the amounts contributing to the overall financial health of the nation.
- Extended Implementation Period:
- The World Bank has expressed its intention to extend the program’s end date to April 2024, signaling a commitment to further deepen the implementation of sustainability strategies.
- This extension underscores the importance of sustained efforts in achieving the program’s objectives.
- Previous Disbursements and Federal Allocation:
- The document did not specify the amount disbursed by the Federal Government to its sub-national entities. However, a previous disclosure indicated that N471.9 billion was disbursed to states in August 2022.
- The SFTAS Program, initiated in 2018, has seen previous disbursements contributing to fiscal reforms at both federal and state levels.
The World Bank’s disbursement of $1.45 billion to Nigeria marks a pivotal moment in the ongoing effort to enhance fiscal transparency and accountability. As the program aims to strengthen various states’ fiscal practices, the extended implementation period signals a sustained commitment to achieving lasting improvements. The funds will play a crucial role in supporting Nigeria’s economic development, fostering good governance, and ensuring the effective utilization of financial resources at both federal and state levels.
