Nigerian States Owe The Central Bank of Nigeria N1.2 Trillion Amid Dwindling FAAC Allocations
- The Central Bank of Nigeria (CBN) has announced that states in Nigeria are indebted to it to the tune N1.24 trillion
- This comes amid dwindling allocation from the Federal Accounts Allocation Committee which fell short in the last quarter
- According to data from the CBN, the states began borrowing from the apex bank in 2016 and President Buhari approved a bridge financing budget for the states
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In the face of dwindling revenues paid to the states by the Federal Accounts Allocation Committee (FAAC) recently, the total debts owed to the Central Bank of Nigeria (CBN) have increased to about N1.24 trillion.
In November last 2021, President Muhammadu Buhari approved about N656 billion bridge financing facility for all the states in Nigeria to help them meet their respective financial obligations, especially the prior budget support facility for repayment, according to a report by BusinessDay.
Source: Getty Images
A falling revenue allocation
According to Nigeria’s Minister of Finance, budget and National Planning, Zainab Ahmed, the loans would be disbursed to states over the course of six months to ease the effects of their resumption in the repayment of the federal government bailout facility.
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According to data from the Central Bank of Nigeria, the states began borrowing from the CBN in April 2016, with the total loan put at N14.58 billion at the time.
The debt owed to the CBN increased to N300.38 billion in December 2016 and N590.42 billion at the end of 2017.
States’ indebtedness to the CBN went down to N600.62 billion in October 2021 from N614.94 trillion in September 2019 but went up to N700.47 billion in December last year. It went up further to N1.24 trillion in June 2022, the data from the CBN said.
The revenues disbursed by the federal, state and local governments in the first quarter of 2022 fell to N2.18 trillion from N2.46 trillion in the previous quarter of 2022, data from the National Bureau of Statistics said.
NNPC disappoints
FAAC disbursement to states declined to N590.45 billion in the first quarter of 2022 from N640.16 billion in the previous quarter.
The disbursement by FAAC to states declined to N590.45 billion in the first quarter of this year from N640.16 billion in the last quarter.
The FAAC shortfall comes as the Nigerian National Petroleum Company (NNPC) could not many any remittances to FAAC this, with monthly deductions from the net oil and gas revenues to finance petrol subsidy.
Rebranding NNPC was my idea, Atiku knocks APC for stealing his plans
Legit.ng report that the presidential candidate of the People's Democratic Party (PDP), Atiku Abubakar has reacted to the recent unveiling of the new Nigeria National Petroleum Corporation (NNPC), saying that the idea to rebrand and restructure the company was his.
In a social media post on Wednesday, July 20, 2022, Atiku said he floated the idea in 2018 during his campaign to turn the company around by rebranding it.
According to Atiku, the APC government denigrated him for his patriotic vision and said that he is happy that the government has taken the first step along the lines of suggestions.
Source: Legit.ng
