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Wednesday, September 11, 2019

Nigeria Govt To Start Deducting N614 Billion Bailout Funds From States

Image may contain: 1 personThe federal government will start recovering the N614 billion budget support facility from state governments this month. Minister of Finance Mrs. Zainab Ahmed made this disclosure in Abuja on Tuesday while presenting the draft 2020 to 2022 Medium Term Expenditure Framework and Fiscal strategy Paper.

Ahmed stated that the states will start getting direct debits from their monthly Federation Account Allocation Committee (FAAC) disbursements.
According to her, “the recovery process for us is to deduct from the FAAC allocation to the states and then we remit to the CBN and we are going to start this remittances by the next FAAC” which will hold in two weeks time.
To show how serious the government is about making the deductions, the finance minister revealed that “there will be no requirement for us to consider the FSP implementation. We do that as a matter of wanting the states to stay on the path of fiscal sustainability but it will not be a condition for the deduction. We will deduct direct at source and remit to the CBN.”
“The N614 billion bailout funds to states is not going to form part of the revenue for funding the budget, it was a loan which was advanced by the CBN and the repayment will be made to the CBN.”
Federal Government last month said, a committee has been put in place to facilitate recovery of N614 billion given to 35 states. 35 states benefited from the facility, and each state is expected to pay back the equivalent of N17.5 billion.
On the N650 billion to the states the minister spoke about, it was a conditional budget support provided by the CBN to help states pay salaries gratuities and pensions. CBN provided N650 billion in loans at 9% with a grace period of two years. The Federal Ministry of Finance helped in disbursements with documented approval by the presidency. That was why the finance minister said the money belongs to the CBN and is going to be paid into CBN account.

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FACEBOOK COMMENTS

Endy Edeson

Auwalu Abdullahi Shehu Yeah, it was a good initiative for CBN to provide bailout funds. I hope all States can pay back

InsideLife OmoGrace

I pray They pay bk .nice job sha

Endy Edeson

InsideLife OmoGrace Sure, especially Benue State.

InsideLife OmoGrace

God bless our beloved country #NIGERIA

Ben Otas

Hmm, just now

Kingsley Mmeremikwu

THIS IS NOT FROM A LEGIT SOURCE, BECAUSE IT IS NOT POSSIBLE.

States that can't pay salaries are billed to remit money?

Absolutely not from the right source

Auwalu Abdullahi Shehu

Pay back is necessary, but governors did not spend bail out properly looked like missed funds

Lorain Dews

What did the governors use the bailout for? efcc should ask them

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