The Nigerian government is to provide a budget support facility worth over ninety billion naira to states in the country.
The facility if accessed by any of the thirty six states would help implement the 2016 budget with ease.
Akwa Ibom state Governor, Mr Emmanuel Udom revealed this while briefing Journalists after the National Economic Council meeting held in Abuja.
According to him, Governors that attended the 68th National Economic Council meeting were excited about the budget support facility, which he said would attract an interest of 9%.
“The Honourable Minister of Finance briefed the Council on the Federal Government’s N90 billion budget support loan facility for States at a 9% interest rate. 5 States have already completed the process for borrowing from the Presidential Budget Support Facility for States, which will help states to pay salaries and other pertinent emoluments. Others states are expected to proceed to tap from the facility,” he said.
Mr Udom said disbursements for the facility will commence by the next Federal Accounts Allocation Committee meeting.
Excess Crude Account
He gave the current balance on the nation’s excess crude account ECA, which now stands at $2.6 billion.
“The Honourable Minister of Finance Mrs Kemi Adeosun reported that the balance in the ECA as at June 15, 2016 stood at USD 2,261,249,976.96,” Mr Udom stated.
The Akwa Ibom state Governor also said the Council resolved that the Federal and other levels of government would collaborate more on the ease of doing business, to allow the private sector participate more.
On the flexible foreign exchange policy introduced by the Central Bank, he said the Council expressed satisfaction with the measure, which it recognised would help push the economy forward.
“The CBN Governor briefed the Council on the flexible Forex rate policy adopted recently by the bank, which include Market-driven Exchange Rate, Single Market Structure through interbank window and Access to Forex Proceeds by non-oil exporters,” he explained.
The meeting was presided over by Acting President Yemi Osinbajo.