The Central Bank of Nigeria (CBN) will commence deductions of the $2.1bn budget support facility granted to states in July.
Nasarawa State Governor Abdullahi Sule disclosed after the National E4conomic Council meeting presided by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.
The governor said the Minister of Finance, Budget, and National Planning updated the council on the state of the federation accounts.
“On the budget support facility that was taken by the states, in view of the current economic challenges facing the states, the CBN actually has gone into some kind of agreement to provide a bridge financing facility to the states so that deduction can commence in this July.
“This is actually to keep the accounts current and to ensure that the commercial banks which have given these loans are able to keep their books.’’
He said Minister of Finance, Budget and National Planning made a presentation and gave us an update on the federation accounts as follows:
“The Excess Account balance as July 13 is 60.8 million dollars; Stabilisation Account stands at N26.3 billion, Natural Resources Account balance stands at N23.5 billion.
Sule said NEC also received presentations from the Group General Manager of NNPC about the current situation of the oil and gas sector.
He said that the presentation was specifically as it affected the consumption of Premium Motor Spirit, popularly known as petrol in Nigeria.
“This is a product that is highly regulated in the Nigerian market and the current consumption is actually sitting at over 60 million litres per day and this is the total amount that is being subsidized on a daily basis.
“And that is eating very deeply to the financials of NNPC; to the point where NNPC is unable to meet up with several of its obligations.
“As a result of that, council actually set up a committee which is being chaired by Gov. Nasir El-Rufai of Kaduna State.
