Home Latest News FG raises panel on recovery of N614bn bailouts to states

FG raises panel on recovery of N614bn bailouts to states

FG raises panel on recovery of N614bn bailouts to states


The Federal Government has set up a committee to work out modalities for the recovery of bailouts to states which total amount stands at N614 billion.

This was disclosed at the end of the monthly National Executive Council (NEC) meeting by the Minister of Finance , Budget and National Planning,, Zainab Ahmed.

According to the minister, the decision to raise the recovery committee followed a briefing from her to the council.

She said the committee would be made up of members of the Nigeria Governors Forum (NGC). which constitute the bulk of membership of the council , the Central Bank of Nigeria (CBN) and the Ministry of Finance.

She said: “The Honourable Minister of Finance briefed NEC on the progress of the facilitate detailing how the FG has made a total of over N614 billion available to 35 States being N175 billion each

“Council agreed to constitute a team from the Nigerian Governors Forum to meet with the CBN and Ministry of Finance to finalize modalities for commencement of payment.”

In 2015, a Salary loan of about N338bn was disbursed to states. The term of the loan was 20-year and the purpose of the loan was to help states facing fiscal strain meet outstanding salary obligations.

Barely a year later, the sum of N7.85bn was also approved by the federal government to assist states with revenue short falls in January 2016 from the dividend remitted by NLNG.

In July 2016, the federal government endorsed the allocation of N3.6bn from solid minerals savings to states as part of the routine monthly FAAC disbursements.

A total of N117.3bn was also disbursed to states, amount taken from excess revenue generated from Petroleum Profit Tax (PPT).

They were expected to pay back through deductions from their monthly allocations at source.

The finance minister also reported to council that balances in the Excess Crude Account as at 20th August 2019 is $95,329,245.24.

Also at the briefing , Edo State governor, Godwin Obaseki said an update on Polio eradication was presented by the minister of Health and other health officials.

He noted that 21st August, 2019 marks exactly 3 years milestone without a case of Wild Polio Virus (WPV) in Nigeria.

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