Facebook Twitter Instagram Pinterest YouTube Tumblr LinkedIn RSS
    • About
    • Advertise
    • Contribute
    • Donate
    • Forum
    • Contact
    Login
    InfoStride NewsInfoStride News
    • Home
    • Business
    • Celebrity
    • Crime
    • Nigeria
    • Politics
    • Sports
    • Technology
    • More
      • COVID-19
      • Editor’s Picks
      • Health
      • Opinions
      • Press Releases
      • World
    Subscribe
    InfoStride NewsInfoStride News
    Home»Business Matters»Governors warn that CBN’s proposed loan recovery from FAAC revenue is “suicidal”

    Governors warn that CBN’s proposed loan recovery from FAAC revenue is “suicidal”

    Business Matters By Temitope N.Oct 22, 2022No Comments3 Mins Read
    Facebook Twitter WhatsApp Pinterest LinkedIn Tumblr Email Reddit VKontakte

    Nigerian Governors have warned that given the constant reductions in FAAC Allocation to states, it would be suicidal if the Central Bank of Nigeria (CBN) goes ahead to carry out its proposed recovery of state loans.

    Umahi
    Umahi

    In reaction to the warning, the National Economic Council (NEC) said it will negotiate with the CBN and the Finance Ministry on loan recovery.

    The developments were disclosed by Governor David Umahi of Ebonyi State after a virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.

    The Governor added that NEC also agreed to set up a committee to engage the CBN governor and the Finance Minister.

    What the Governor said:

    He revealed that the NEC also endorsed the reviewed National Social Protection Policy ( NSPP) by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

    • “Council was invited to note the revised NSPP that replaces the 2017-2022 NSPP, which was reviewed in consultation with all states and other stakeholders, he said.
    • “It is subject to review every five years for updates and accommodation of some of the emerging issues, which include pandemics, insecurity, and responsive social protection.
    • “The expected benefits of the revised NSPP include reduction of multi-dimensional poverty; promotion of social justice and equity and inclusive growth, reduction of unemployment, social and economic vulnerabilities and other threats to sustainable development,” he said.
    See also  Ebonyi: PDP, Umahi’s Brother In War Of Words Over High Court’s Judgement

    Umahi also stated that the NEC approved a review of the plan for an immediate deduction of funds from the state. He said: 

    • “The governors are saying with the constant reduction in FAAC allocations to states, it would be very suicidal if the CBN goes ahead to carry out their proposed recovery of state loans.
    • “The governors and NEC applauded the president, the Vice President, the Minister of Finance and the CBN Governor for their efforts and commitment to states while noting that a lot of funds that were hidden from the states before the present administration have also been graciously given to states by the president and his team.
    • “That has helped the states very much, so while commending them, NEC agreed to engage the CBN governor with the Minister of Finance and the governors’ forum and the NEC committee.
    • “So, it was agreed that these deductions would have to be reviewed to seek other ways; that if it goes ahead, the states would suffocate and that would not be good for the nation; NEC agreed to set up a committee to engage the CBN governor and the finance minister.” He said.
    See also  Our Nation's Troubles Are Not President Buhari’s Fault - Governor Yari

    On the flooding incident across the country, Umahi noted that NEC agreed to set up a committee to look at the immediate solutions and interventions over the flooding and to see how we take care of those who were affected and states too.

    What you should know

    • The loans states take from CBN can be used for various purposes mostly infrastructure. it was reported earlier this year that the Rivers State Executive Council has approved the state government’s request for an N15 billion loan from the Central Bank of Nigeria’s Infrastructure Fund.
    • Rivers state said that tapping the fund will help speed up the completion of these projects, with a low-interest rate of 5% repayable within 20 years and a three-year moratorium.

    Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate

    CBN Governors Loan Umahi
    Share. Facebook Twitter WhatsApp Pinterest Reddit Tumblr VKontakte Email LinkedIn

    Related Posts

    2023: I prefer Ogba – Umahi denies sponsorship of PDP guber candidate

    Dec 29, 2022

    2023: Umahi orders arrest of Ebonyi APC chair, Reps candidate over alleged killing of police officer, others

    Dec 27, 2022

    2023: Umahi bans street campaigns by political parties in Ebonyi

    Dec 25, 2022

    Gov Umahi fines Ebonyi APC N5m for contravening order on campaign venues

    Dec 25, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    Get Social with Us
    • Facebook
    • Twitter 6.5K
    • Pinterest 93
    • Instagram
    • YouTube
    Latest Posts

    Chrissy Teigen Flaunts Her Newly Born Daughter’s Face

    Jan 28, 2023

    Maguire Must Fight For His Place In MUFC’s Team – Erik ten Hag

    Jan 28, 2023

    Learn To Fear Women – Portable

    Jan 28, 2023

    I’m Researching The Profile Of Players That Can Improve MUFC – Erik ten Hag

    Jan 28, 2023

    Subscribe to Updates

    Get the latest breaking news straight into your inbox!

    Random News

    I’ll Pay 200k To Anyone Who Knows Where My Terrible Security Man Is – Papaya Ex

    May 21, 2022

    Coronavirus Has Made All Clubs Equal – Pirlo

    Dec 16, 2020

    28 Year Old Bobby Brown’s son Found Dead in His Apartment

    Nov 19, 2020

    Toke Makinwa Wants True Love

    Oct 17, 2016

    InfoStride News delivers the latest breaking news, Nigeria news, world news and top stories on business, celebrity, entertainment, politics, sports, technology and more. Experience the best of in-depth coverage, special reports, football highlights, political opinions, crime watch, celebrity gossips etc.

    GooglePlay Store Button

    Support InfoStride News' Credible Journalism

    Credible journalism involves a lot of efforts and money; and can guarantee a fair, accountable and transparent society, including democracy and government. We need your support to continue offering free access to our loyal readers and visitors like you.

    Click here to Donate

    Facebook Twitter Instagram Pinterest YouTube Tumblr LinkedIn RSS
    • Our Terms
    © 2023 InfoStride News. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Continue with Facebook
    Continue with Google
    Continue with Twitter
    Lost password?