The Federal Government has declared an end to financial bailouts for state governments, signaling a shift away from covering their outstanding liabilities.
Previously, the federal government stepped in to assist states struggling to meet financial obligations, such as paying workers’ salaries, settling pension arrears, and managing debts, including contractor payments and the controversial Paris Club refunds.
Reports indicate that 31 states collectively owe the Central Bank of Nigeria (CBN) approximately N339.9 billion in salary bailout loans acquired between 2015 and 2023.
The Accountant General of the Federation (AGoF), Dr. Oluwatoyin Madein, announced the decision during a visit to the Federal Pay Office in Kano State. She emphasized the need for states to boost revenue generation and plug financial leakages to avoid reliance on federal intervention.
“This will ensure that state governments receive their revenues as and when due, and the Federal Government will not be burdened by unpaid liabilities,” Madein stated, as conveyed through a release by Bawa Mokwa, Director of Press and Public Relations at the Accountant General’s office.
She also underscored the importance of financial discipline, instructing Federal Pay Officers (FPOs) to ensure Ministries, Departments, and Agencies (MDAs) strictly adhere to public financial management reforms.
Madein encouraged FPOs to adopt modern financial practices, emphasizing the government’s shift toward digitizing financial operations.
“The use of manual processes in carrying out financial activities will soon be over. The use of modern technology in the accounting profession is key and vital,” she said.
According to Madein, her office has already started implementing an enterprise management system to fully digitize financial activities, including those handled by FPOs.
She further urged officers to embrace a performance management system that would replace the traditional Annual Performance Evaluation Report (APER).
“This system will involve all staff members and serve as a tool for measuring management performance,” she explained, encouraging FPOs to enhance their digital skills.
Aminu Umar, chairman of the Committee of FPOs, expressed appreciation for Madein’s visit, acknowledging its impact on the office’s future direction.
“It (visit) will go a long way as a pace-setter for the incoming Accountant General after you leave,” Umar noted.
(NATION)
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