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Why We Seized Ekiti State Federal Allocation & Budget Support Fund – FG

ekiti state federal allocation seized

Feb 17, 2017 – Why We Seized Ekiti State Federal Allocation & Budget Support Loan – FG

The Ministry of Finance says that the Federal Government is not withholding statutory allocation to any state.

The Director, Information, Mr Salisu Dambatta made this known in a statement on Thursday in Abuja.

He said that the claim by the Governor Ayodele Fayose of Ekiti State that the Ministry had withheld statutory allocation due to the state was incorrect.

According to him, the Ekiti State Government has failed to comply with the necessary requirements for participating in the Budget Support Facility (BSF), which is a Conditional Loan Programme to state governments.

“The programme was introduced with the view to enhancing fiscal prudence 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 (FSP).

“The Ekiti state government was warned formally of its failure to comply with the full requirements via a letter on Aug. 5, 2016, with reference number HMF/FMF/ASG/1/2016.’’

Dambatta said that failure of the state government to comply with the requirements and conditions for the BSF resulted in a letter sent to the Chief of Staff to notify him of the suspension of BSF for Ekiti.

He said that the letter was conveyed to President Muhammadu Buhari before payment to the state was reinstated.

According to him, the Ekiti state government and all the other participating states are aware of the consequence of failure to comply with the full conditions.

“It is not the first time a state will be stopped from accessing the facility due to non-compliance.

“In the course of its normal duties, the Ministry of Finance has the right to query, suspend or withhold funds as part of the conditions of the BSF.

“The process is for the Commissioner of Finance of any state or the governor having issues to contact the Federal Ministry of Finance.

“This is so they can resolve the issues without resorting to the media, because such issues are of a financial nature and therefore, confidential.

“They are routinely resolved amicably by the parties involved.

“The Federal Ministry of Finance wishes to restate very strongly that the BSF is a conditional programme and the Federal Government will not be intimidated or threatened in the discharge of its duties.’




  1. Omokehinde

    February 18, 2017 at 1:11 AM

    I’m fine with the ministry of finance explanation for withholding the funds meant for Ekiti state. Every entity must comply with the conditions of every loans or funds allocations from the federal government, but in this case, already struggling people of my state will suffer a greater consequences of Fayose stupidly and fiscal disaster. I beg the federal government to release any funds due to Ekiti state with the last warning attached to the release. So Fayose cannot survive like Lagos state without federal government financial aid? What a shameless governor!

  2. pelumi

    February 18, 2017 at 5:47 AM

    Omokehinde this words are too much from you, do you know the consequence behind it that made him not to comply with the policy, I pray that may the Lord help us in this country.

    • Jilo

      February 18, 2017 at 5:37 PM

      Pelumi, what do you mean by consequence? if other states can comply, what makes you think Ekiti state will be different? Fayose cannot continue to play politics at the expense of Ekiti people. He either complies with the Federal Government or devise another way of generating its own money. You cannot continue to disobey and ignore the rules binding all states in Nigeria because you are a governor from Ekiti.

      This is a program designed by the Federal Government to check excesses of mismanaging state’s fund and to ensure proper accountability so that all citizens of each state can be well served. If other states can follow the rules and Fayose refuses to do so then, that means he intentionally want to subject his people to unnecessary suffering.

  3. don

    February 18, 2017 at 11:55 AM

    What were the conditions giving by the federal government?

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