FG suspends deduction of state loans

President Muhammadu  Buhari has approved the suspension of deductions from some states’ monthly federal allocations for the bail-out loan granted them through the Central Bank of Nigeria (CBN) to meet their workers salary bill.

Mrs Kemi Adeosun, the Minister of Finance

Mrs Kemi Adeosun, the Minister of Finance

The Minister of Finance, Mrs Kemi Adeosun, said this at the end of the National Executive Council (NEC) meeting presided by the Vice President Yemi Osinbajo on Thursday in Abuja.

She explained that the measure was meant to give the states some financial relief and that no such deductions would be made this month from the federal allocations.

“The Central Bank of Nigeria (CBN) Governor reported to the council that a total sum of N689.5 billion has now been disbursed as salary assistance loan to states and additional N310 billion disbursed as excess crude account backed loans to states,” Adeosun said.

The Vice President, Prof. Yemi Osinbajo who chaired the meeting, added that government would continue to review the situation of the states regularly and take appropriate relief measures as necessary and possible.

The Vice President also informed the Council about the reconstitution process of the Niger Delta Power Holding Company(NDPHC), with representatives from states based on the six geo-political zones.

According to Osinbajo, the North-Central is represented by Plateau State,
North-East by Adamawa State and North-West by Kebbi State.

While Anambra State represents South-East, Lagos represents South-West with Edo represents South-South.

Meanwhile, Chief Executive officer of the Federal Road Safety Corps (FRSC), Corps Marshall Boboye Oyeyemi, also attended the meeting to present the Nigeria Road Safety Strategy Document (NRSS – 2014-2018) to the Council.

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He said the National Economic Council (NEC) had endorsed the document, which serves to address current overlaps, streamline the role and responsibilities of all participants.

These were in order to maximise the benefits of investment in road safety management activities.

By Sodiq Lawal

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  1. Pingback: Nigeria’s states: Another big headache for Buhari - Africa Research Institute

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