Relief, yesterday, came the way of states on the recovery of the budget support facilities given to them by the Federal government.
Several of the states are in financial straits, now worsened by the floods that have ravaged their farmlands, swept away means of livelihood and sacked communities.
According to the Federal government, more than 603 persons have died, and 2.5 million people rendered homeless in the 33 states affected by floods.
The relief came through a decision taken by the National Economic Council (NEC) to engage the Central Bank of Nigeria (CBN) and the Minister of Finance, Budget and National Planning on the recovery of loans to the states.
At its virtual meeting yesterday, the NEC agreed to review the apex bank’s plan to begin deductions from state’s monthly allocations from the Federation Account.
Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Mr. Laolu Akande, confirmed through a statement that the decision to halt and review the repayment terms was taken during the Council’s meeting, which was chaired by Vice President Yemi Osinbajo.
The statement described the decision as a move to explore how to provide financial succour for states by setting up a committee with representatives of both the federal and state governments to review the matter.
“Bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan,” the statement quoted the vice president as saying.
The statement said the NEC resolved to raise a panel of representatives of the Nigerian Governors’ Forum (NGF), the CBN and the Federal Ministry of Finance, Budget and National Planning, among others, meet to review modalities for the imminent deductions from states’ allocations from source.
It noted that the decision was in consideration of current difficulties being experienced by state governments in fulfilling their financial obligations.