Economy

FG moves to recover N614bn advanced to States to support budget

The Federal Government has begun moves to recover the sum of N614 billion advanced to 35 states as a budget support facility. 

Minister of Finance, Budget and National Planning, Zainab Ahmed, made the disclosure at the press briefing at the end of the over three hours of the National Economic Council meeting, presided over by Vice President Yemi Osinbajo, at the Council Chambers of the Presidential Villa. 

Recalled, Vice President, Yemi Osinbajo, had disclosed the Muhammadu Buhari administration has in the past three years, intervened through loans, bailouts and Paris Club refunds to states to the tune of well over N1.1trillion. 

He had urged the governors as a retreat for the newly elected governors to think outside the box to boost their states Internally Generated Revenue (IGR) to enable them to meet the demands of the N30,000 new minimum wage among others. 

Osinbajo had said no complaint about the paucity of funds from the governors and newly elected ones is new under the sun, said that

At the briefing of State House Correspondents at the end of the 96th NEC meeting and the fourth for the year 2019 said, her ministry report to council an update on the budget support facility to states.

According to her: “As at today, the budget support facility advanced by the Federal Government to the states is a total sum of N614 billion and this is to 35 states.

“This means an equivalent is N175 billion per state. Council agreed. Council agreed to constitute a team of the Nigeria Governors Forum (NGF), Ministry of Finance and the Central Bank of Nigeria (CBN), to finalize modalities to commence repayment of this facility to the Central Bank.”

Ahmed also gave the balances on two special accounts, the Stabilization Fund Accounts, and Natural Resource Development  Fund which has combined balance as at 20th August of $95,329,245 million. 

She said: “The Stabilization Fund Account which has a balance of N21,729 billion and Natural Resource Development  Fund which has N95,896 billion.”

She said the Adhoc Committee on Excess Crude and other special accounts of the federation requested for an extension to finalize its report and report to NEC meeting. 

The NEC comprises state governors and relevant ministries of government and the Central Bank of Nigeria.

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