Bail out: Buhari grants one month relief to states

President Muhammadu Buhari has approved the suspension of monthly deduction at source for the states from their Federation Accounts Allocation Committee (FAAC) allocations.

According to the Minister of Finance, Kemi Adeosun, the relief is for the month of April to give the states some financial relief at a time the FAAC allocations are dwindling due to the drop in oil prices.

Adeosun made this known at the 66TH national Executive Council (NEC) meeting on Thursday, presided over by the Vice President, Prof. Yemi Osinbajo.

Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, informed the council that a total sum of N689.5 billion has now been disbursed as salary assistance loan, referred to as bailout, to states and additional N310 billion disbursed as Excess Crude Account-backed loans to states.

Read also: Buhari did not sign currency swap deal with China – Minister

Osinbajo added that the President will continue to review the situation of the States on an on-going basis and take appropriate relief measures as necessary and possible.

The Vice President and Chairman of Council informed the Council of the reconstitution process of the Niger Delta Power Holding Company, NDPHC, with representatives from States based on the six geo-political zones as follows:

(i)     North-Central                  –       Plateau State

(ii)    North-East                       –       Adamawa State

(iii)   North-West                      –       Kebbi State

(iv)  South-East                      –       Anambra State

(v)    South-West                      –       Lagos State

(vi)   South-South                    –       Edo State

A statement by Laolu Akande, Senior Special Assistant, Media and Publicity in the Office of the Vice President said Adeosun also revealed that the Excess Crude Account has a balance of $2.3 billion.

She also gave an update to the Council on the progress regarding the constitution of the Nigeria Sovereign Investment Authority (NSIA) Board, adding, that nominees have been selected to form a Search Committee that will bring up names of potential Board members of the NSIA.

 

 

 

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