The Central Bank of Nigeria (CBN) and state governors have agreed to start deductions of the budget support facility this month.
Zainab Ahmed, minister of finance, budget and national
planning, made the disclosure on Thursday during the National Executive
Council’s 118th meeting.
The meeting, held virtually, was presided over by Yemi
Osinbajo, vice-president, attended by state governors, federal ministers, CBN
governor, and other senior government officials.
The repayment plan had caused a rift between the governors
and the apex bank.
In May, Godwin Emefiele, governor of the CBN, had asked
states to start repayment, but the governors insisted on postponement.
The federal government extended the conditional facility to
states in 2017 through the CBN to help cushion the impact of dwindling
resources and help meet their various obligations.
At the expiration of the two-year grace period, the
deductions were suspended for one year to enable states to stabilise their
finances following the outbreak of the COVID-19 pandemic.
At the meeting, Ahmed informed the council that deductions
from state governments will now commence from July with the agreement reached
on the matter.
She also revealed that the country’s excess crude account
(ECA) stood at $60.85 million, stabilisation account at N26.35 billion and
development of natural resources account at N23.57 billion as at July 13, 2021.
NEC noted that the federal government is working out
modalities of providing mass transit buses to major cities nationwide as
cheaper alternatives to PMS/petrol for transportation based on the planned
removal of fuel subsidy.
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