By Mathew Dadiya, Abuja

The Federal Government has revealed that it has deducted a total of N8,750,000,000 from 35 states of the federation as part of the N614 billion National Budget Support Loan Facility given to states in 2016 to offset salary areas owed to workers.

Minister of Finance, Mrs.

The minister said that the deduction was made at source from statutory allocations to the various States by the Federation Accounts Allocation Committee (FAAC) meeting held September, adding that another deduction would be made in this October.

Daily Asset recalls that the fund was a conditional budget support provided by the CBN at 9% with a grace period of two years; while the Federal Ministry of Finance disbursed with documented approval by the presidency to help states pay salaries, gratuities and pensions. 

Mrs. Ahmed spoke alongside Anambra State Governor, Willy Obiano, Ogun State Governor, Dapo Abiodun, Nasarawa State Governor, Abdullahi Sule, and Minister of Health, Osagie Ehanire.

According to her, the Federal Government has made the first and second months, N252 million monthly deductions, in September and October, based on the twenty years repayment period. 

Following the outcry of state governors, another repayment schedule plan extending the year to thirty years and monthly repayment of N162 million was presented to NEC on Tuesday, she added.

However, the minister said that the state governors were still not satisfied with the repayment extension to thirty years.

She said “The budget support facility was initially for twenty years repayment period. And when we made the first deduction in September, the states had complained that the amount deducted, which was N252 million, was too harsh. 

“So, since then, the Central Bank of Nigeria, who is the lender, has revised the condition to make the repayment period longer. And so the new repayment period is thirty years. And this means that the states will be paying monthly N162 million. But again today, the states still were not satisfied with the condition.

“So, we are expecting that the Federal Ministry of Finance, Budget and National Planning, CBN and the states will engage again with the view of having the CBN further revise the condition to reduce the monthly repayment burden”, she stated 

 “The budget support facility was initially for a repayment period of 20 years; when we made the first deduction in September, the states had complained that the amount deducted which was N252 million was too high. 

“Since then the CBN which is the lender had revised the conditions to make the payment longer; so, the new repayment period is 30 years. 

“This means that states will be paying monthly, N162 million but again today, the states still were not satisfied with the conditions. We are expecting that the Federal Ministry of Finance, Budget and National Planning will engage again with a view to having the CBN further revise the conditions to reduce the monthly repayment burden.”

Meanwhile, state governors yesterday rejected the proposed plan by the Federal Government to extend the repayment period of its budget support to state government from twenty years to thirty years. 

Also speaking with State House Correspondents, Nasarawa State Governor, Abdullahi Sule, said the condition for the repayment of the facility was not friendly.

He also said that the Federal Government cannot dictate time state government the morality for the implementation of the new national minimum wage arguing that each state has its peculiarity. 

He said that the Governors Forum had agreed that each state will implement the minimum wage law according to its ability especially the issue of consequential adjustment.

The governor said: “On readiness of the state governors

Just yesterday at the Nigeria Governors Forum meeting, it was presented by the chairman of the forum where we indicated that on the N30, 000 minimum wage and therefore all the state governors are willing to abide by that law. However, the various states will go back and sit down with the labour unions and agree on increment after the N30,000. 

“So, the law is on the increment to N30,000 and I think none of the governors is contesting the N30,000 but it is thereafter that the governors are saying we are going to sit down; we are not going to abide by the template set by the Federal Government. 

“Even the Minister of Labour has clearly stated that we are not under any direct instruction to follow; I think that one was well discussed.

“During the deliberations on matters arising, the governors commended Presidential Enabling Business Environment Council (PEBEC) for the recent improving of the ranking of Nigeria in the World Bank Ease of Doing Business ranking 2020.

“Members of the council congratulated the President, the Minister, members of the PEBEC team, the Vice president for this reforms and vigorous improvements that we have had so far.

“Also, the governor of Kaduna State presented a report on the ad hoc committee to the council; this committee was asked actually to review and reconcile the account between the states, local governments, and the Federal Government to see who is owing who.

It was decided that the report would be submitted to the Federal Government for response and then NEC will discuss the report thereafter.”

In a similar development, the Minister of Finance Zainab Ahmed has said that Academic Staff Union of University (ASUU) has no option other than to comply with the federal government’s directive on Integrated Personnel Payment Information System (IPPIS) because the governor would not rescind its decision.

She explained that the President Buhari directed that every agency of government; every staff must be on IPPIS “and my job is to comply with the president’s directive so that is what I do and we are going to do that.”

The minister said, “it is a pity if ASUU carries out this strike because what ASUU is saying now is that they should be treated differently from other staff of the government of Nigeria who are also on IPPIS; so, we will be engaging ASUU; we will be discussing with them; but at the end of the day, as far as I am concerned, my instruction is from the president.

Earlier.”

She also said that the ministry presented to National Economic Council the balances as that October 22 for the three special accounts: Excess Crude Account, the balance is $324.35 million; Stablisation Fund Account, N28.5 billion; Natural Resource Development Fund, N70.6 billion.