Governors not happy over N162 million FG's loan deductions

Governors not happy over N162 million FG's loan deductions

- The minister of finance on Tuesday, October 29, said that Nigerian governors have expressed dissatisfaction with the bailout loan repayment plan

- Zainab Ahmed at the State House assured that there would be a review of the conditions earlier mapped out for the loan repayment

- According to the minister, this would be decided by stakeholders on the bailout funds in a meeting soon

The Nigerian government has decried the worry expressed by state governors over the deduction of N162 million monthly loan repayment for the budget support facility.

The minister of finance, Zainab Ahmed said the governors are not satisfied that the FG revised the repayment plan for the loan.

Speaking to journalists after briefing the vice president, Yemi Osinbajo, at the National Economic Council (NEC) meeting, the minister said governors and stakeholders on the issue will be meeting to review the conditions for the loan repayment.

She said while the repayment plan was billed for a 20 years period, the first withdrawal which was done in Septemeber triggered concerns among governors.

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She said the governors in their complain said the money - N252 million - which was deducted from the states was too high for them.

“Since then the Central Bank of Nigeria(CBN), which is the lender had revised the conditions to make the payment longer; so the new repayment period is 30 years; so this means that states will be paying monthly, N162 million," Ahmed said.

Stating that the federal government through the ministry of finance, budget and national planning is making plans to engage state governors on the best way possible for the repayment of the loan.

Meanwhile, previously reported that at the sixth Nigerian Governors' Forum workshop in Abuja, state governors asked the federal government to allow them more time for repayment of the bailout loan.

The plea by the state governors followed the move by the federal government to commence the deduction of the N614 billion fund.

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Also, the governors pleaded with the FG to take repayment of the loan from money being owed to them on federal projects executed in their various states.

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