Nigeria appoints audit firms to monitor finances of 35 states

Minister of Finance, Kemi Adeosun
Minister of Finance, Kemi Adeosun

The Federal Government has commenced independent review of State financial management by appointing eight reputable accounting firms including KPMG, Ernst & Young and PWC.

The firms are to monitor and evaluate the implementation of the 22-point Fiscal Sustainability Plan which specified the conditions under which 35 State Governments in June 2016 started accessing N510 billion Budget Support Facility, a statement by the finance ministry said Tuesday.

The statement signed by Salisu Danbatta, director of information in the ministry, said while monitoring of the states by the Federal Ministry of Finance had been ongoing since June 2016, independent monitoring and verification of the States against agreed milestones will now commence by the eight accounting firms.

The Budget Support Facility, a 12-month standby loan facility, was designed to bring immediate financial relief to state governments and enable them meet their financial obligations; with a monthly amount of N50 Billion in the first three months and N40 Billion available for the remaining nine months to the 35 States.

The Fiscal Sustainability Plan is a 22-point reform programme which commenced in June, 2016 with requirements including increasing internally generated revenues, introduction of biometric payroll, publication of audited annual financial statements, and reduction of wastages by establishing efficiency units.

The firms carrying out the monitoring are PWC, KPMG, Ernst & Young, PKF, Muhtari Dangana & Co/S.S. Afemikhe & Co, Ahmed Zakari and Co/Ijewere & Co.

While announcing their appointment, the Minister of Finance, Kemi Adeosun, said the firms were “expected to vigorously monitor, evaluate and verify the performance of the States against the agreed milestones set by each State Government under the Fiscal Sustainability Plan.”

State Governments that fail to implement the action plans, as stated, would be taken off the facility with immediate effect.


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  • Mumudity

    Hahba!…………………………………………..See how the Igbos have been schemed! How come no single Audit firm from the East and South is represented? Whereas we have 2 Audit firms from the North. Wonderful!!! ………..A list of Audit firms in Nigeria shows that the North has the least number of Audit firms (just 7%) and the total number of qualified Accountants as far even below 7 % mark.

    And if one may ask? What are foreign firms doing on the list? After 56 years of independence with over 200 million people, we still cannot audit ourselves with 100% local audit firms? This is mumudity. Colonial mentality!

    • persona

      Afemikhe & Ijewere are from Zaire sir.

    • absam777

      You are Mumu indeed . Read carefully before you post.

  • uzela

    Good move by the finance minister but, auditor or no auditor, as long as those auditors are Nigerians, you can’t expect anything better. Consider that all the stealing and looting that have happened since 1999 passed through the audit departments of the various ministries. And, then at the end of each fiscal year, external auditors were hired to review the past year’s activities, but not even a single audit firm reported any fraud. These newly appointed audit firms will simply grab their own piece of the national loot. But, again, good move, and it doesn’t hurt to try.
    I did work in a fairly high position in the accounts department of a Nigerian federal ministry, and it used to be that ministries and federal universities had to submit quarterly returns of capital and recurrent expenditure to the government agency that gave them the quarterly grants, before they could receive allocation for the next quarter. Why did they abandon that practice?

    • share Idea

      How do you know that they abandoned it. This administration like sensationalisation of things. Have not being hearing in the past that states could not access education support fund because they could not provide both counter part funds and explanations of how previous funds were utilised.

      Government have always have set down rules but our politicians always make governance look like ordinary person transactions without letting the public know the full picture.

  • ukoette ibekwe

    Nigeria is a federation, so to say. The federal government cannot appoint auditors to monitor states. It is illegal and unconstitutional.

    • Aminu

      Ibekwe you are wrong! The Feds allocate these funds to the states and they have complete authority on how these funds are used. Taxes generated by the states themselves are what you are talking about.
      Aminu.

    • Gibson Bosah

      R u related to any governors or expecting any #GovGate

  • mybros

    Well done Finance minister.
    These rascally Governors have really plunged their states into poverty and need better monitoring.
    Afterall the white man does not obey traffic laws because he is nice but bcs there are checks and consequences in place.
    Well done!

  • Tommy Soto

    Good move by the FG to thwart corruption at the state level . For far too long many governors have been using public funds for their private consumption. Hopefully the accountants/auditors are top notch honest and don’t succumb to bribes.

  • Arabakpura

    Are Fayose and Wike going to recuse their states from this evil money?

  • John

    Nice step.