The Federal Government said the 36 state governors on Tuesday kicked against its plan to extend the repayment period of its budget support to state governments from 20 to 30 years.
It explained that the monthly repayment had reduced from N252m to N162m based on the extension.
The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, briefed State House correspondents at the end of the National Economic Council meeting chaired by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja.
The minister was joined by governors Willy Obiano (Anambra), Dapo Abiodun (Ogun), Abdullahi Sule (Nasarawa) and the Minister of Health, Dr Osagie Ehanire at the briefing.
According to her, the state governors were still not satisfied with the repayment extension to 30 years.
She said the Federal Government had made the first and second months’ N252m monthly deductions in September and October, based on the 20 years repayment period.
Ahmed explained that following the outcry of state governors, another repayment schedule plan extending the years to 30 and monthly repayment of N162m was presented to NEC on Tuesday.
She said, “The budget support facility was initially for 20 years repayment period. And when we made the first deduction in September, the states had complained that the amount deducted, which was N252m, was too harsh.
“So, since then, the Central Bank of Nigeria, who is the lender, has revised the condition to make the repayment period longer. And so the new repayment period is 30 years. And this means that the states will be paying N162m monthly. But again today, the states still were not satisfied with the condition.
“So, we are expecting that the Federal Ministry of Finance, Budget and National Planning, the CBN and the states will engage again with the view of having the CBN further revise the condition to reduce the monthly repayment burden.”
The Federal Government had in August said a committee had been put in place to facilitate the recovery of N614bn given to 35 states.
A total of 35 states benefited from the facility and each state is expected to pay back the equivalent of N17.5bn.
The N614bn was a conditional budget support provided by the CBN to help states pay salaries gratuities and pensions.
Ahmed on Tuesday also said as at October 22 2019, funds in the Excess Crude Account stood at $324,035,696.29, while stabilisation fund account was in the margin of N28, 560, 710,627.55 and the natural resources development fund account averaging N70, 691, 826,511.84, respectively.
