Nigeria's 36 states received N6.5 trillion in seven years - finance minister

A total of 5.030 billion naira plus another $3.4 billion has been paid to the states by the federal government during the lifetime of the Muhammadu Buhari administration, an official said.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, made this known on Thursday during the presentation of the dashboard of the administration of President Muhammadu Buhari (2015-2023) in Abuja.< /p>

Based on the prevailing average official exchange rate of 444 naira per dollar, the amount is 6.5 trillion naira.

The minister said the support covers 13% diversion reimbursement to oil producing states, reimbursement for federal road construction, environmental support, support from the Natural Resources Development Fund, reimbursements from the Paris Club, Stabilization Fund support, COVID response, among others.

“Mr. President has been particularly generous in his financial support to the states,” the minister said.

Talking about the nation's borrowing plans, Ms. Ahmed explained that the nation has ensured that the borrowing facilities are viable.

“Our borrowing has been practical, sustainable and guided by our debt management strategy. Our debt is 33% of GDP, which is still the lowest on the African continent,” she said.

"We don't need to restructure our debt because debt management is on the front line and we haven't defaulted. We plan to repay our debt through short- and medium-term strategies. We are confident in our ability to service our debt."

She added that the government has ensured the full implementation of the Integrated Personnel and Payroll Information System (IPPIS) by all MDAs including education and security agencies, noting that a total of 723 MDAs have been registered with the IPPIS with a total of 5 MDAs.

With regard to state finance and investment, the minister added that the ministry has also facilitated the implementation of various federal government intervention programs with sub-nationals and facilitated federal government intervention mechanisms for sector development in the states, such as the commercial agricultural credit program. (CAC), the Healthcare Support Facility, the Differentiated Cash Reserve Facility (DCRR) and the Multiple Bond Issuance Program.

The ministry worked with relevant stakeholders to get Mr. Buhari to sign an Executive Order (Eo1) on the Ease of Doing Business (EoDB), to reduce documentation requirements from 10 to 7 per cent. exports and 14 to 8 for import activities, she said.

“We have optimized tax incentives to boost productivity in critical sectors including agriculture, solid minerals and manufacturing. 233,974 MSMEs.

“Working with AMCON, the ministry was able to resolve a significant portion of available Eligible Bank Assets (EBAs) and non-performing loan recoveries,” she added.

Ms. Ahmed explained that the ministry coordinates and aligns the operations of banking and financial institutions by establishing financial relationships between federal, state and local governments as well as parastatals and public enterprises. He also oversaw the restructuring of the Ministry of Finance Incorporated (MOFI), which manages state-owned enterprises and government-related companies (GLCs) to drive value creation from different asset classes or FGN investments. MOFI's current portfolio consists of 130 corporate entities valued at around N19 trillion, she said, adding that the goal over the next 10 years is to grow MOFI's assets under management (AUM). to around N34 trillion and achieve a minimum annualized average return of 15%.

The Minister added that the federal government launched the Road Infrastructure Development and Rehabilitation Investment Tax Credit (RITCS) program in 2019 to leverage capital and expertise from the private sector to build, repair and maintain critical road infrastructure in key economic corridors and industrial hubs.

"The President has approved 33 road projects, covering...