Ifeanyi Onuba, Abuja
The Federal Government on Thursday explained why the N1.1bn Budget Support Facility for Ekiti State for the month of January was suspended, adding that the state failed to meet some of the criteria specified for the release of the fund.
The development was confirmed by a statement issued by the Director of Information, Federal Ministry of Finance, Mr Salisu Dambatta.

The statement is in reaction to allegations by the Ekiti State Governor, Ayodele Fayose that the ministry of finance deliberately withheld the state allocation.
Fayose had on Wednesday visited the headquarters of the ministry of finance and demanded the release of the state’s N1.1bn budget support facility for the month of January.
During the visit, the governor had requested to see the Minister of Finance, Mrs Kemi Adeosun over the non-payment of the allocation but was told that she was at the Presidential villa attending the weekly Federal Executive Council meeting.
Addressing journalists at the ministry, he had claimed that Ekiti was the only state that had yet to receive its January allocation.
The governor had said that he received a text message from the Central Bank of Nigeria recently that the money had been paid only to be informed again by the apex bank that Ekiti was not included on the list of payments.
This, according to him, was unacceptable as many workers in the state are currently suffering the negative impact of the delay in releasing the fund.
But reacting to the development, the finance ministry in the statement said the state failed to comply with the conditions to get the facility which is a loan by the Federal Government to the states to cushion the impact of revenue shortfall from the federation account.
While the statement from the ministry did not state the conditions which the state failed to comply with, a top official in the ministry said the governor failed to provide evidence that the previous funds he received under the facility were used to pay salaries.
The official, who spoke in confidence also stated that the state governor failed to provide the needed resolution that was passed by the Ekiti State House of Assembly giving approval for the state to access the facility.
The statement said the ministry had written to the state government in August last year drawing its attention to the need to comply with the terms of the loans and that the state would be stopped from accessing the facility due to non-compliance
The statement reads in part, “A claim by the Governor of Ekiti State, Mr Ayodele Fayose, that the Federal Ministry of Finance has withheld statutory allocation due to Ekiti State has been brought to the attention of the Ministry of Finance.
“The ministry categorically denies and states the claim as incorrect as the ministry has not withheld any statutory allocation due to Ekiti State, or any other State in the country.
“The fact is that the Ekiti State Government failed to comply with the necessary requirements for participating in the Budget Support Facility, which is a Conditional Loan Programme to State Governments introduced with the view to enhancing fiscal prudence and designed particularly to enhance transparency, efficiency in public expenditure and payment of salaries.
“This is not the first time of non-compliance by the Ekiti State Government. 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 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.”
It added, “The failure of Ekiti State Government to comply with the requirements and conditions for the Budget Support Facility 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.”
The statement said while the finance ministry in the course of its normal duties has the right to query, suspend or withhold funds as part of the conditions of the Budget Support Facility, the process is the Commissioner of Finance of any State or the Governor having issues to contact the Federal Ministry of Finance and resolve the issues without resorting to the media.
This, it added, was imperative because such issues are of a financial nature and therefore, confidential
“The Federal Ministry of Finance wishes to restate very strongly that the Budget Support Facility is a conditional programme and the Federal Government would not be intimidated or threatened in the discharge of its duties,” it concluded.
There is a total of 22 conditions contained in the FSP. Some of them are that a restriction would be placed on states borrowing from commercial banks; all states must publish their financial statements, budgets and the quarterly budget performance; states finances would no longer be shrouded in secrecy and items like security vote, feeding, travel among others would be made visible.
Others are that states would review obsolete revenue laws and tariffs, and redefine Internally Generated Revenue to include non-tax revenue sources that would reflect local opportunities in each state, especially in solid minerals.
In the same vein, the states were directed to set target limits for recurrent to capital expenditure; set target for personnel costs as a percentage of the total budget; clean up their payroll by eliminating ghost workers as well as set up Efficiency Unit to reduce the cost of governance.

http://punchng.com/withheld-ekitis-n1-1bn-budget-support-facility-fg/, https:///6bTBYjfjWC

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Many states in Nigeria cannot generate revenue to pay their workers,so what's the essence of creating these states,just the increase the numbers of states to create division.The foundation of this country has been laid on sand dunes.

I trust oshoko

,

Naija matter just weak me

Just know that people are dying of hunger in Ekiti State

I regret been born in naija

Oshoko over to you

This fayose is just playing politics with everything, he does not know were to stop. Meet the requirement for the loan which is not statutory allocation as you made the public to believe.

Fayose my man is careful not to post the financial statements of his state as it may be used against him by bubu, his political arch enemy. A careful study of the requirements is a clear indication that this money is a bait to expose financial statements. He wants a money that had been set as trap but don't wants to fall victim....LA money LA evidence that may be used against you. Very confusing situation.

It is not compulsory for the federal government to give Ekiti state loan and he desperately wants the loan let him do the needful by fulfilling the conditions set by FG. Fayoshe should bear it his mind that if he is going to some one to ask for loan he should go with courtesy. The insults he is constantly howling at the FG and the noise makes have dire repercussions.

this is pure politics and punishment to Ekiti state workers.....

I BELIEVE THIS NEWS 100 % COS I KN FAYOSE CAN DO IT, FOR THE AVOIDANCE OF DOUBT, D MONEY IS NOT MONTHLY ALLOCATION ITS A LOAN BSF FROM FEDERAL GOVT TO STATE GOVT SO DEY CAN B ABLE TO PAY SALARIES TO THEIR WORKERS FOR DOS OWING WORKERS SALARIES, THE MONTHLY ALLOCATION HAS BEEN PAID TO ALL STATES INCLUDING EKITI STATE, DIS IS A LOAN, SO EKITI PEOPLE DONT LET FAYOSE DECIEVE U, MONTHLY ALLOCATION HAS BEEN PAID. E DON USE UNA MONEY DO FLY OVER, BUT FAYOSE U ARE HEARTLESS O, LATER U WILL B CALLING GOD GOD GOD YET INNOCENT EKITI PEOPLE ARE DYING OF HUNGER, FORGET FLY OVER PAY THEIR SALARIES FOR GOODNESS SAKE. WORKERS SALARIES SHOULD BE A NUMBER ONE PRIORITY TO ALL STATE GOVERNORS.

Is the ministry of finance now saying it's only Ekiti state that failed to meet the whatever conditions?

Fayose do the needful. As a matter of fact prove to us that Osun, Taraba and Kogi got the loan meeting certain conditions that you also met. Just point one state that did all you did and got the loan while you didn't get it. Just one state Mr Fayose since the conditionalities are the same. FG sha wise o! See trap. Fayose is as usuall turning to gullible Nigerians instead of facing the issues with the finance ministry. He should go to court and seek redress if he is sure of himself.

dodelight:
Is the ministry of finance now saying it's only Ekiti state that failed to meet the whatever conditions?

. It's possible. Judas was a one man mopol. He had no denial gang with him to deny christ. Fayose should use his investigative skills he normally use against Buhari to get Intel to investigate Osun, Taraba and Kogi. How did they get it and he didn't get it? The guilty is afraid bro..

dodelight:
Is the ministry of finance now saying it's only Ekiti state that failed to meet the whatever conditions?

I trust Oshokomole to respond swiftly and appropriately. Personally I don't subscribe to incessant loans/bailouts to States but what's good for the goose is equally good for the gander. If the FG has chosen to be a father Xmas, then it should be fair to all.

OreMI22:
So what did Ekiti fail to fulfill that Osun was able to do?
or better still, what did Ekiti fail to prove that Katsina was able to prove ?

Buhari is just a bloody tyrannical bully.

Now poor civil servants in Ekiti would go hungry simply because Buhari cannot stand their governor speaking the truth to power.

Are u saying that it's not possible for only one student to fail an exam. Don't worry Ekiti people are used to suffering. Dey really don't care. He only gave them Christmas bonus of N1,500 without paying their salary. Owing them 6months salary

If it was a northern or APC state, he would have been paid. The tyrant should continue, his tenure will surely come to an end.

infohenry:
This fayose is just playing politics with everything, he does not know where to stop. Meet the requirement for the loan which is not statutory allocation as you made the public to believe.

INSTEAD OF FAYOSE TO SEEK WAYS OF GENERATING INCREASED REVENUE FOR EKITI, HE IS BUSY SPENDING MONEY ON SO CALLED PRAYER PROPHETS & FINANCING FORMER CRIMINALS WHOSE ACCOUNTS ARE FROZEN


NOW HE IS CONFUSING A LOAN FACILITY FOR REVENUE ALLOCATION

OreMI22:
So what did Ekiti fail to fulfill that Osun was able to do?
or better still, what did Ekiti fail to prove that Katsina was able to prove ?

Buhari is just a bloody tyrannical bully.

Now poor civil servants in Ekiti would go hungry simply because Buhari cannot stand their governor speaking the truth to power.

O go! get answers to your questions first

APC has really failed us.

Some people who commented on this topic are like Fayose himself, illiterates. The simple facts here is that this is a Loan by the federal government with conditions. Those conditions are fair enough, how can you cash a loan in the bank or IMF without meeting the conditions?
That they've been paying him before is an indulgence which he has now taken too far. Rather than going to the Ministry of Finance when he knows Kemi will be in FEC,he should have spent those time brainstorming on how to meet those conditions.
In all these, Fayose has a choice, don't take the loan if you dont like or cannot meet the conditions

When a drum beats to much, it will tear...Fayose should take things easy.whatsoever rationale behind his obstinacy, he should realize that Nigeria is bigger than Ekiti state...

Ekiti didn't meet conditions??!!

Did Imo State meet conditions??

In fact, which state met conditions?

We ain't that dumb...

Fayose thought that the withheld fund is monthly allocation. When all Governors are looking for alternative, Fayose prefers to scare investors with negative outburst every time.

No wonder the newspapers always consult him when attack is needed.

azimibraun:
Fayose do the needful. As a matter of fact prove to us that Osun, Taraba and Kogi got the loan meeting certain conditions that you also met. Just point one state that did all you did and got the loan while you didn't get it. Just one state Mr Fayose since the conditionalities are the same. FG sha wise o! See trap. Fayose is as usuall turning to gullible Nigerians instead of facing the issues with the finance ministry. He should go to court and seek redress if he is sure of himself.

The truth is that the loan's conditions promote transparency and ccountability which can aid FG to track down any Governor that misuse it. One of the conditions is that it must be specifically spent on an infrastructural facilities the expected budget of which must be submitted before the loan will be released.

But Fayose is playing hide and seek game thinking he can bend corners: he wants the loan, but doesn't want FG to intervene on its usage.

Einl:
Ekiti didn't meet conditions??!!

Did Imo State meet conditions??

In fact, which state met conditions?

We ain't that dumb...

Is Ekiti the only state governed by PDP?
Is Wike and co not opposing PMB openly just like Fayose?
In consideration of the incessant conflicts between Amaechi and Wike, who is not supposed to get the loan between Fayose and Wike?


In fact, it seems that you are 'super dumb'.

Lifestone:
Some people who commented on this topic are like Fayose himself, illiterates. The simple facts here is that this is a Loan by the federal government with conditions. Those conditions are fair enough, how can you cash a loan in the bank or IMF without meeting the conditions?
That they've been paying him before is an indulgence which he has now taken too far. Rather than going to the Ministry of Finance when he knows Kemi will be in FEC,he should have spent those time brainstorming on how to meet those conditions.
In all these, Fayose has a choice, don't take the loan if you dont like or cannot the conditions

Spot on

Political denial of loan.