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FG approves fresh N28bn budget support for 35 states

Muhammadu Buhari

 Buhari

 

President Muhammadu Buhari has approved a fresh budget support loan facility for 35 states.

Minister of Budget and National Planning, Udoma Udo Udoma, made this known on Thursday when he briefed State House correspondents, alongside Gov. Rotimi Akeredolu of Ondo, on the outcome of the meeting of the National Economic Council (NEC) in the Presidential Villa, Abuja.The meeting was presided over by Vice-President Yemi Osinbajo.
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Each of the 35 states will get N800m to take care of workers salaries.Lagos State is not interested in the loan.

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Udoma disclosed that the Minister of Finance, Mrs. Kemi Adeosun and the Central Bank Governor, Godwin Emefiele, had been instructed by the president to pay the states

“The Accountant General reported to the council that approval has been received and CBN has been directed to pay N800m to each of the 35 states of the federation.

“Governors expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August 2017,” Udoma said.

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On the state of the economy, Udoma said signs of recovery had been observed in the third Quarter.

“Signs of recovery had been observed since Q3 2016 and the recovery consolidated in Q3 2017 with GDP doubling to 1.40 per cent Non-oil GDP contracts in Q3 2017 by 0.76 per cent after growing in Q1 R Q2 2017.

“While the Services sector is still in the negative, the Manufacturing Sector grows negative in Q3 2017 also.

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“Due to high inflationary pressures Household consumption expenditures remain constrained, though it appears such pressure is easing. Headline inflation has declined since January reflecting tight monetary policy. Food price increases have remained persistent but slowing down.

“The total value of capital importation at the end 2017 of Q3 stood at $4.14bn (131.3 per cent growth year on year),” Udoma said.

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