Nigeria’s 36 sub-nationals get N656bn in fresh budget support facility

The National Economic Council (NEC), through Zainab Ahmed, minister of finance, budget and national planning, has said President Muhammadu Buhari has approved a fresh N656 billion Bridge Financing Facility for the 36 States.

She disclosed this during a virtual NEC meeting presided over by Vice President Yemi Osinbajo and anchored from the Presidential Villa, Abuja.

According to the minister, each state will receive N18.2 billion in support to help state governments to meet their financial obligations, especially the previous budget support facility due for repayment. She also said the bridge facility was being processed by the Central Bank of Nigeria (CBN).

“The approved bridge facility of N656.112 billion will be disbursed in six tranches over a period of six months to the states. Expectedly, each of the 36 states will have a total loan amount of N18.225 billion; with a 30-year tenor, and a 2-year moratorium at an interest rate of nine percent. The facility is to help the states afford the repayment of previous bailout facilities guaranteed for them by the federal government,’’ she said.

Prior to this time, the National Executive Council (NEC) in July held a meeting where the finance minister revealed that there was an agreement with Nigeria’s Central Bank to begin the deductions of the $2.1 billion budget support facility that was granted to the states by the federal government, from November 2021.

However, at the recent Federation Accounts Allocation Committee (FAAC) meeting, the federal government, states and local government councils (LGCs) shared the sum of N671.910 billion from the revenue generated in October, with the excess crude account (ECA) standing at $60.86 million during the period.