Bailout: Federal Govt Reviews CBN’s Plan To Begin Deduction From States’ Accounts

In a bid to give soft landing to states in repayment of federal government’s budget support facility, the federal government has resolved to review the Central Bank of Nigeria’s (CBN) plan to commence deductions from state governments’ share of the monthly federal allocations.

Following the decision taken at a virtual meeting of the National Economic Council (NEC) presided over by Vice President Yemi Osinbajo, the federal government has set up a committee with representatives of the federal government and the states to review the matter.

The vice president said, “Bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan.”

NEC agreed that representatives of the Nigeria Governors’ Forum (NGF), the CBN and the federal ministry of Finance, Budget and National Planning, among others, should meet to review modalities for the imminent deductions of funds from states by the apex bank to repay the budget support facility granted to states by the federal hovernment.

It noted that the decision was in consideration of current difficulties experienced by state governments in fulfilling their financial obligations.

Another resolution at the NEC meeting is the endorsement of the revised National Social Protection Policy presented by minister of Finance, Hajiya Zainab Ahmed.

The policy will be tabled before the federal executive council (FEC) from where it would be taken to the National Assembly.

When passed, the new policy will replace the “2017-2022 National Social Protection Policy.”

The minister said the 2017-2022 National Social Protection Policy which “was reviewed in consultation with all states and other stakeholders is to be subjected to review every five (5) years for update and accommodation of some emerging issues, including pandemics, insecurity and shock responsive social protection as well as new institutions.”

She listed the expected benefits of the revised NSPP to include “reduction of multi-dimensional poverty; promoting social justice, equity and inclusive growth; reduce unemployment, social and economic vulnerabilities, and other threats to sustainable development.”

NEC also resolved to constitute a committee of the federal government and state governors to liaise with other relevant stakeholders to find immediate and long-term solutions to flooding problems across the country.

To this effect, the vice president noted that the committee, liaising with critical stakeholders, will support efforts, whether short, medium or long term, in mitigating the impact of flooding as well as finding lasting solutions to the issue.

The council also commended the efforts of stakeholders, including the National Primary Health Care Development Agency (NPHCDA) in the vaccination of more Nigerians against COVID-19.

According to the presentation of the COVID-19 Scorecard by the executive director of NPHCDA, Dr Faisal Shaibu, “over 127 million doses of COVID-19 vaccines have been procured and administered through collaborations by the Federal Government and other partners since the inception of the exercise.

“Additional 10.5 million doses of Johnson and Johnson vaccines have been procured by the Federal Government and is being expected in the country before the end of the year,” he added.

Shaibu added that 46 million persons have been fully vaccinated, representing 42 percent of the total eligible population targeted for the exercise.

He commended Nasarawa and Jigawa State governments for their efforts in ensuring the take off of the accelerated COVID-19 vaccination exercise in their states.

The meeting also had in attendance the new Ekiti State Governor, Mr Oyebanji Abiodun.

Also, according to a presentation by the minister of Water Resources, Suleiman Adamu,  28 out of 36 states have urban water utilities with 16 states being fully functional.

He said only 11 per cent of schools in the country have basic water supply, sanitation and hygiene services.

The minister urged governors to endorse the WASH Pledge Card which is a commitment to make Nigeria Open Defecation Free by 2025.

The presentation also urged governors to prioritize the WASH Campaign.