The Nigerian Government has announced plans to fund it’s 2020 supplementary budget with COVID-19 donations from the private sector.
According to a report by theCable, the plan is part of a new framework adopted by the Federal Government which include the opening of five donor account linked to the TSA.
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The five accounts were opened to receive and coordinate donations towards containing COVID-19 in the country and cannot be accessed except by legislation.
This empowers the Minister of Finance, Zainab Ahmed to approach the National Assemble for approval of the funds for a supplementary budget.
“Disbursements of all COVID 19 Fund including those being collected directly by CBN and those domiciled with commercial banks shall be through appropriation,” the framework read.
“The Honourable Minister of Finance, Budget and National Planning may liaise with the National Assembly for emergency passage of a supplementary budget for the utilization of COVID-19 donation based on estimated total collection for the year.
“Funds are to be appropriated directly to participating MDA and spending units like Ministry of Health, Ministry of Humanitarian Affairs, Nigerian Centre for Disease Control, etc rather than to an intermediary agency like the Presidential Task Force (PTF).”
The framework says this process is to “enhance” transparency, which is more likely “when funds are spread to more MDA than when a huge amount is put under the control of a single entity”.
According to the finance minister, the move is necessary to ensure transparency In the utilisation of Covid-19 funds.
“All the requirements of the Financial Transparency Policy of the Federal Government shall be complied with. All collections into the Commercial bank accounts are to be swept into FGN Sub-Recurrent Account with the CBN.
“Failure to sweep all balances within 24 hours shall be deemed a violation of the Presidential directive on TSA which shall attract sanctions.
“It is mandatory for all participating MDA to provide information on all COVID-19 Fund transactions to any member of the public – individual or corporate – under the Freedom of Information Act (FOI) within 7 days of receiving the request.
“Failure to publish timely report of COVID-19 activities in the prescribed format and at the stipulated intervals or to respond to FOI request will constitute early warning signs of mismanagement and shall be deemed as contravention of this Guideline.”
Donations from the private sector towards the effort against COVID-19 currently stands at N25.8 billion.