The conditional Budget Support Facility is to help the qualified states overcome their financial challenges.
This was disclosed in a statement issued in Abuja on Saturday, June 11 by the Ministry of Finance.
According to the statement, the conditional Budget Support Facility is to help the qualified states overcome their financial challenges.
The Ministry said the states would only be able to access the facility if they meet a stringent 22-point reform agenda called the Fiscal Sustainability Plan (FSP), that was approved by state governments and the National Executive Council, in May 2016.
The FSP, the Ministry said, encompasses a framework of reform measures including the requirement for the states to publish audited financial statements and budgets, biometric and Bank Verification Number (BVN) payroll review exercises to sanitise payroll costs, as well as limits on recurrent expenditure levels.
It said other reforms will require states to set and meet targets to enhance Internally Generated Revenue (IGR), the establishment of Efficiency Units to reduce overhead costs, privatisation of State Owned Enterprises, domestication of the Fiscal Responsibility Act and limitations on securing further bank loans.