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NEC sets up committee to review states’ repayment of budget support loan

NEC sets up committee to review states’ repayment of budget support loan
October 20
21:53 2022

The national economic council (NEC) says it will review the Central Bank of Nigeria’s (CBN) plan to commence deductions from state governments’ share of the monthly federal allocations.

The deductions are for the repayment of the federal government’s budget support facility.

In July last year, the CBN and state governors agreed to start deductions of the budget support facility.

At a meeting presided over by Vice-President Yemi Osinbajo on Thursday in Abuja, the council resolved to set up a committee with representatives of the federal government and the states to review the matter.

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According to a statement released by Laolu Akande, spokesperson to the vice-president, the council said that the decision was in consideration of current difficulties experienced by state governments in fulfilling their financial obligations.

“Bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan,” Osinbajo was quoted as saying.

NEC resolved that representatives of the governors’ forum, the CBN and the federal ministry of finance, budget and national planning, among others, meet to review modalities for the imminent deductions of funds from states by the CBN to repay the budget support facility granted to states by the federal government.

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The NEC also endorsed the revised national social protection policy presented by Zainab Ahmed, minister of finance.

When passed, the new policy will replace the 2017-2022 national social protection policy.

The minister said the 2017-2022 national social protection policy “was reviewed in consultation with all states and other stakeholders and it is to be subjected to review every five (5) years for update and accommodation of some emerging issues including pandemics, insecurity and shock responsive social protection as well as new institutions”.

She added that the expected benefits of the revised NSPP include “reduction of multi-dimensional poverty; promoting social justice, equity and inclusive growth; reduce unemployment, social and economic vulnerabilities, and other threats to sustainable development”.

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The council further resolved to constitute a committee of the federal government and state governors to liaise with other relevant stakeholders to find immediate and long-term solutions to flooding problems across the country.

Osinbajo said the committee liaising with critical stakeholders, will support efforts, whether short, medium or long term, in mitigating the impact of flooding as well as finding lasting solutions to the issue.

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