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Osinbajo sets up committee to review loan deductions from states’ monthly federal allocations

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Yemi Osinbajo

The plan by the Central Bank of Nigeria (CBN) to deduct the budget support facility extended to states from their share of the monthly federal allocations is to be reviewed.

According to a statement released by Laolu Akande, spokesperson to the vice-president, Yemi Osinbajo, who chaired the National Economic Council (NEC) on Thursday, the current economic condition has made it necessary for the review.

Ripples Nigeria understands that the budget support facility was provided by the Federal Government to states, and it had been previously agreed in July 2021, that the CBN would begin the deduction monthly.

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But state governments have been unable to meet their financial obligations due to the current difficulties, the statement reads, as a result, a committee was setup to look into the modalities of the agreement.

It was gathered that the governors’ forum will provide representatives, CBN will also have a member in the committee, including federal ministry of finance, budget and national planning, amongst others.

The statement quoted Osinbajo to have said, “Bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan.”

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