Five states meet criteria for N90b budget support loan

As at the last National Economic Council meeting, five states had met the conditions for obtaining the N90 billion budget loan being provided by the Federal Government to support state governments.

One state has however, rejected the new loan that attracts nine percent interest rate.

Governor of Akwa Ibom State, Udom Emmanuel said this in Abuja during a chat with State House correspondents at the end of the 68th NEC meeting chaired by Acting President Yemi Osinbajo.

Emmanuel was accompanied to the briefing by the Deputy Governor of Kaduna State, Mr Bala Bantex, Minister of Trade and Investment, Okey Enelamah, and the Special Adviser to the President on Social Investments, Mrs. Maryam Uwais.

The budget support loan has 22 stringent conditions which states must satisfy before accessing it.

Emmanuel declined to name the five successful states and the one that opted out, but hinted that the disbursement of the loan will begin during the next Federation Account Allocation Committee, FAAC meeting.

“The Honourable Minister of Finance, Kemi Adeosun, also briefed the Council on the Federal Government’s N90 billion budget support loan facility for States at a nine per cent interest rate.

“Five States have already completed the process for borrowing from the Presidential Budget Support Facility for States, which will help states to pay salaries and other pertinent emoluments. Other states are expected to proceed to tap from the facility.

“Though I am not the minister, I can throw more light on the question. The N90 billion is the same thing as I have mentioned. I wouldn’t want you to call it a bail out. I want to call it the exact name that it is.

“What the minister explained was that first tranche of N50 billion bond will be issued and the N40 billion will follow to make N90 billion. It is just to make this available, but it is not compulsory. What is important is that people can have access to a lifeline. We all know that what is happening today is not peculiar to Nigeria as a country. You know the impact of the fall in crude oil price that has actually gotten to oil producing countries like Nigeria.

“What we are looking at are the solutions. We must provide a lifeline for people to survive and to move on. I don’t think it’s too much,” he said.