Bailout: Governors decry ‘excessive deductions’ by federal government

Nigeria Governors’ Forum (NGF)

Members of the Nigerian Governors Forum are protesting what they consider as excessive deductions from states which benefitted from the Federal Government’s budget support facility.

At the end of their monthly meeting in Abuja late on Wednesday night, the governors insisted that there should be a review even though the high deductions have not stopped the benefiting states from honoring their obligations to repay.

Recall that except for Lagos, the other 35 states of the federation accepted a total loan of N614 billion from the federal government.

Chairman of the NGF and governor of Ekiti State, Kayode Fayemi, who gave insight to this development, said the reconciliation of the loan between the federal government and states was in full force already.

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He added: “On budget support facilities specifically, states are already honouring in their obligations. They are already paying back what is owed to the federal government.

“The question of the amount is something that we will continue to review. It is our view that we should be paying a lot less what we are paying, but that is something that has not been addressed yet.

“But that has not stopped us from honouring the obligation to the federal government that lent the resources to us at the time that they did.”

He further said: “On reconciliation for budget support facilities, that is something that has been handled. We have come up with our own recommendations of special funds generally, not just budget support facilities.”

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As At the time of filing this brief report, most of the Governors have converged at the Presidential Villa, Abuja for their National Economic Council meeting, chaired by Vice President, Yemi Osinbajo.

They are expected to take some resolutions relating to health, telecommunications, security among others.

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