Governors of the 36 states have warned that given the constant decline in allocations from the Federation account to to states, it would be suicidal if the Central Bank of Nigeria (CBN) goes ahead to carry out its proposed recovery of state loans direct from the allocations.
Governor David Umahi of Ebonyi State, said this was one of the issues discussed after a virtual meeting of the National Economic Council (NEC) presided over by Vice President Yemi Osinbajo on Thursday.
According to him, NEC had resolved to set up a committee to negotiate with the CBN and the Finance Ministry on loan recovery.
Umahi also stated that NEC approved a review of the plan for an immediate deduction of funds from the state.
“The governors are saying with the constant reduction in FAAC allocations to states, it would be very suicidal if the CBN goes ahead to carry out their proposed recovery of state loans.
“So, it was agreed that these deductions would have to be reviewed to seek other ways; that if it goes ahead, the states would suffocate and that would not be good for the nation; NEC agreed to set up a committee to engage the CBN governor and the finance minister,” he said.
Umahi further revealed that the NEC also endorsed the reviewed National Social Protection Policy ( NSPP) by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
“The expected benefits of the revised NSPP include reduction of multi-dimensional poverty; promotion of social justice and equity and inclusive growth, reduction of unemployment, social and economic vulnerabilities and other threats to sustainable development,” he said.
On the flood incidents across the country, Umahi noted that NEC agreed to set up a committee to look at the immediate solutions and interventions over the flooding and to see how we take care of those who were affected and states too.
