"Ministry of Finance Secures $5.6 Million World Bank Loan for SFTAS Project Implementation"
The Ministry of Finance, Budget, and National Planning's Home Finance Department has successfully secured a substantial $5.6 million loan from the World Bank. This financial support, designated under the State Fiscal Transparency, Accountability, and Sustainability (SFTAS) project initiated in 2018, aims to enhance the operational capacity of the ministry through the procurement of essential items.
Despite the official conclusion of the SFTAS project in 2022, recent insights from a World Bank document reveal that the implementation of its initiatives continues. The project, which garnered a total commitment of $1.5 billion in two batches, $750 million each in December 2018 and December 2020, is pivotal in promoting fiscal transparency and sustainability at the state level.
It's noteworthy that although the funds are granted to state governments, they are considered a loan to the Federal Government. The Home Finance Department meticulously outlined its procurement plan in alignment with World Bank guidelines, emphasizing transparency and accountability in the utilization of the funds.
The procurement plan specifies allocations for various necessities, including $25,713 for office stationery, $39,357 for additional office equipment and supplies, $64,190 for furnishing the SFTAS Public Service Institute space, and $24,038 for video conferencing equipment.
Of significant mention is the substantial approval of $4.78 million for providing spatial data to states, reflecting the project's commitment to utilizing advanced technologies for effective governance. The allocation of $409,638 for project vehicles and the investment in an Inverter Power Backup System for the SFTAS Programme Coordinating unit further underscore the strategic use of the loan.
As of December 2023, the Home Finance Department's procurement progress report indicates two canceled items, four successfully completed projects, one under implementation, three pending implementation, and 11 projects signed.
Nigeria, recognized as the top recipient of World Bank loans in 2022, received approximately $2.9 billion. The country presently services about $14.12 billion from 108 approved loans, spanning from 1989 under Gen. Ibrahim Babangida to the most recent approval in 2018 during the administration of Muhammadu Buhari.
Ibrahim Mohammed, the SFTAS’ Communications Specialist, clarified that the procurement of items at the project's outset is a routine procedure, ensuring the successful implementation of the SFTAS initiatives. The procured items, including furniture and ICT infrastructure, are designated for the Home Finance Department of the Ministry of Finance, with consultants drawing salaries from the allocated funds to provide crucial technical assistance to the involved states.
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