N510bn loan fg to audit states

You're referring to the recent news about the Federal Government of Nigeria (FG) approving a loan of N510 billion to audit the accounts of all 36 states in the country.

Here's a brief summary of the story:

The Federal Government has approved a loan of N510 billion to conduct a comprehensive audit of the accounts of all 36 states in Nigeria. The audit is aimed at identifying and recovering any mismanaged or misappropriated funds, as well as to ensure transparency and accountability in the management of state finances.

The loan was approved by the Federal Executive Council (FEC) during its meeting on Wednesday, March 15, 2023. The audit is expected to be conducted by the Office of the Auditor-General for the Federation (OAGF) in collaboration with the National Assembly and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

The audit is expected to cover a period of five years, from 2018 to 2022, and will focus on identifying and addressing any irregularities, mismanagement, or misappropriation of funds by state governments. The audit will also assess the compliance of state governments with the Fiscal Responsibility Act and other relevant laws and regulations.

The loan is expected to be repaid by the states over a period of 20 years, with an interest rate of 12% per annum. The loan is seen as a step towards promoting transparency and accountability in the management of state finances, and towards ensuring that state governments are held accountable for their actions.

It's worth noting that this loan is not the first time the Federal Government has provided financial support to states to conduct audits. In 2020, the FG approved a loan of N500 billion to conduct a similar audit of state finances. However, the outcome of that audit was not made public, and it's unclear whether any significant recoveries were made as a result of the audit.

Overall, the approval of this loan is seen as a positive step towards promoting transparency and accountability in the management of state finances in Nigeria.