The federal Ministry of Finance has said it is withholding the budget support facility from Ekiti state government over its failure to comply with the stipulated conditions for accessing it.
It, however, denies withholding the statutory allocation of the state.
Governor Ayodele Fayose had accused the Presidency of withholding the statutory allocation and budget support loan for Ekiti state.
Fayose had on Wednesday visited the headquarters of the ministry of finance and demanded the release of the state’s N1.1bn budget support facility for the month of January.
During the visit, the governor had requested to see the Minister of Finance, Mrs Kemi Adeosun over the non-payment of the allocation but was told that she was at the Presidential villa attending the weekly Federal Executive Council meeting.
Addressing journalists at the ministry, he had claimed that Ekiti was the only state that had yet to receive its January allocation.
But finance ministry made clear that the budget support loan it withheld was a conditional programme and it had the powers to query or suspend any of the 35 states participating in it, which fails to comply with the necessary requirements.
The ministry accuses Ekiti state government of refusing to comply with the necessary requirement for accessing the loan, which according to it, was introduced to enhance transparency, discipline and efficiency in public expenditure and salary payment.
Before the latest suspension, the ministry recalled that Ekiti state government was warned on August 25, 2016, for not complying with the conditions, and was suspended before intervention by President Muhammadu Buhari reinstated the disbursement of the loan to the state.