by Demola Afolabi

The Federal Government of Nigeria is set to commence an audit into how the N510bn bail-out funds given to some governors was spent.

Eight accounting firms have been appointed to review how state governors have been spending the said money and whether or not they complied with stipulations of the Fiscal Sustainability Plan (FSP), which was the basis for the funds.

The accounting firms are: KPMG, Ernst & Young, PriceWater coopers. PKF, Muhtari Dangana & Co, S.S Afemikhe & Co, as well as Ahmed Zakari & Co and Ijewere & Co.

Mrs. Kemi Adeosu, Minister of Finance said in Abuja yesterday that the accounting firms would evaluate the states based on their implementation of the 22-point FSP.

She said the ministry has been monitoring the utilization since last year but found it necessary at this of employ independent firms for the “monitoring and verification of the States against agreed milestone under the FSP.

She said that the firms were “expected to vigorously monitor, evaluate and verify the performance of the States against the agreed milestones set by each States Government under the Fiscal Sustainability Plan”

The minister warned that state governments that fail to implement the action plans, as stated, would be taken off the facility with immediate effect.

The funds, under a programme of “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 35 states.

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