States, FCT owe FG N1.7tn budget support loans

The 36 states in Nigeria and the Federal Capital Territory are jointly owing the federal government the sum of N1.72tn in budget support loans.

The figures were revealed in a presentation on state budget support facility by Office of the Accountant General of the Federation, at the 140th meeting of the National Economic Council presided over by Vice President Kashim Shettima at the Aso Rock Villa, Abuja, on Thursday.

This is according to a statement by the Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha on Thursday titled, ‘NEC endorses take-off of $617M i-DICE programme across states.’

Ripples Nigeria reports that in 2021, the Muhammadu Buhari administration approved a fresh N656bn Bridge Financing Facility for the 36 states.

READ ALSO:Shettima advocates restructuring of Bank of Agriculture to achieve food security

This was part of earlier interventions to “help state governments to meet their financial obligations,” then-Minister of Finance, Zainab Ahmed had said.

Giving a breakdown of the debt, Shettima disclosed that the FCT owes N49.11bn while each of the 36 states carries the same debt burden, totalling N1.72tn.

At a previous NEC meeting held in November 2023, the FG had emphasised that it ceased providing budget support loans in July 2023, partly due to an increase in the federation’s revenues.

In another development, Shettima gave a breakdown of Excess crude account (ECA). According to the VP, the amount in the excess crude account, was $473,754.57, the Stabilisation Account, N33,808,342,662.88, while the Current Balance of Natural Resources account stands at N113,925,600,918.68.

By: Babajide Okeowo

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