Tambuwal Begs CBN not to Demand $2.1bn States’ Debt Payment
- The CBN has been urged not to recover loans given to Nigerian states
- Governor Tambuwal of Sokoto made this plea in Abuja during a panel session
- Meanwhile, the governor tried to settle the differences between CBN and the Edo state Governor, Godwin Obaseki
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Following a threat by the Central Bank of Nigeria (CBN) to recover the $2.1bn loans given to state governments as budget support facility, a top governor has appealed to the apex bank.
Specifically, Governor Aminu Tambuwal of Sokoto made the plea in Abuja, Punch reports.
Source: Twitter
The money in question was an intervention package approved in 2015 to help bankrupt states pay salaries and offset contractors’ obligations, The Cable added.
The threat to recover the loan stemmed from the allegation raised by Governor Godwin Obaseki.
Obaseki recently alleged that N60bn was printed to augment the March 2021 Federation Account Allocation Committee funds for states.
The insistence by Governor Godwin Obaseki that the federal government printed additional N50 to N60 billion to bridge the shortfall in allocations to states has come as a shock to the Progressive Governors’ Forum.
In a statement on Sunday, April 18, by its chairman, Governor Abubakar Atiku Bagudu of Kebbi, the forum explained that Obaseki's position has the capacity of negatively impacting the credibility of government both at federal and state levels.
Bagudu said the forum admits that "there are periods when the country experiences significant fiscal shocks in federation revenues" but that they are offset by other savings serviced from the federation account.
Legit.ng also reported that the federal government gave more clarifications over the allegation made by the governor of Edo state that N60 billion was printed to augment its March monthly allocations to the states and local governments.
The governor of the Central Bank of Nigeria, Godwin Emefiele, said the apex bank would ensure the full and timely repayment of all facilities extended to states.
Legit.ng gathered that Emefiele made this known on Thursday, April 15, at the end of a facility tour of Dangote Sugar plantation in Awe, Nasarawa state.
He stated that the N614 billion budget support facility was extended to the states between 2016 and 2018 to offset the backlog of unpaid salaries and other emoluments due to the recession occasioned by the crude oil slump.
Source: Legit.ng
