Nigeria: Bailout - Govs Tackle Govt Over 'High' Deductions

24 January 2020

The Nigeria Governors Forum has described as too high, deductions for the budget support facility received from the Federal Government.

The chairman of the NGF and governor of Ekiti State, Kayode Fayemi, said this in an interview with reporters Wednesday night after a meeting of the forum held in Abuja.

Fayemi said the governors were honouring their obligations to pay back the budget support facility despite disagreements over the mode of payment.

"On reconciliation for budget support facility, that is something that has been handled. We have come up with our own recommendations of special fund generally, not just the budget support facility.

"On budget support facility, specifically, states are already honouring their obligations. They are already paying back what is owned to the federal government. The question of the amount is something that we'll continue to review.

"It is our view that we should be paying a lot less what we're paying, but that is something that has not been addressed yet. But that has not stopped us from honouring the obligation to the federal government that lent the resources to us at the time that they did."

The governors had, at the October 29, 2019 National Economic Council meeting, rejected the conditions set out by the federal government for the repayment of budget support facility.

The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, while briefing State House correspondents at the end of that NEC meeting, had said the governors opposed the initial N252m monthly repayment plan for 20 years which was deducted in September and October.

The minister had also said that the governors equally kicked against the new suggestion of N162m monthly repayment for 30 years.

Ahmed had also said the federal government would continue to engage the governors.

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