The Federal Government of Nigeria has announced that it will no longer cover unpaid liabilities accrued by state governments. This decision is aimed at promoting fiscal responsibility among states and encouraging them to strengthen their revenue collection mechanisms.
According to the Accountant General of the Federation (AGF), Dr. Oluwatoyin Sakirat Madein, states must seal revenue leakages and take charge of their financial obligations ¹. This move is expected to have significant implications for state governments, which will now be required to manage their finances more effectively.
The Federal Government's decision may also have a ripple effect on various sectors, including education. For instance, the Joint Action Committee of the Non-academic Staff Union of Universities (NASU) and the Senior Staff Association of Nigerian Universities (SSANU) has been pressing the government to pay withheld salaries ².
*Key Implications of the Federal Government's Decision:*
- _Fiscal Responsibility_: States will be required to manage their finances more effectively and take responsibility for their unpaid liabilities.
- _Revenue Collection_: States will need to strengthen their revenue collection mechanisms to avoid accumulating unpaid liabilities.
- _Financial Autonomy_: The decision promotes financial autonomy for states, encouraging them to be more self-sufficient in managing their finances.
Overall, the Federal Government's decision is aimed at promoting fiscal discipline and responsibility among state governments. While it may present challenges in the short term, it is expected to lead to more sustainable financial management practices in the long run.
Tags:- *FG Ends Liability Coverage*
- *States' Unpaid Liabilities*
- *Nigerian Federalism and Finance*
- *Financial Autonomy for States*
- *Fiscal Responsibility in Nigeria*
