Home News NEC to engage CBN, finance minister on recovery of state loans

NEC to engage CBN, finance minister on recovery of state loans



ABUJA- The National Economic Council (NEC) says it will engage the Central Bank of Nigeria(CBN) and the Minister of Finance, Budget and National Planning on recovery of CBN loans to states.

Gov. David Umahi of Ebonyi State briefed State House correspondents after a virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.

Umahi said NEC meeting also featured memorandum for consideration and endorsement of 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.

“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 that the council endorsed the presentation and the prayer of the minister.

Umahi said the revised NSPP would be transmitted to the Federal Executive Council for its own endorsement after which it would go to the National Assembly.

The governor said that NEC approved a review of the plan for immediate deduction of funds from state by the CBN.

“The governors are saying with the constant reduction in FAAC allocation 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, 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.’’

On flooding, Umahi said the menace  was extensively discussed and NEC offered condolences to those who had lost their lives and sympathy to the families and  to the suffering Nigerians.

According to him, the flooding is due to climate change as the council will work towards forestalling future occurrence.

“NEC is commending the president, having met with some governors with regard to this flooding issue.

“ So, 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.

“And also to proffer long-term solutions in line with what the Minister of Water Resources is doing together with the action plan of the president in this regard,’’ he said.(NAN)

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