Bailout loan to states extended

 
     Acting President Yemi Osinbajo has directed that the budget support loan facility to states be extended beyond a year.

   Finance Minister Kemi Adeosun announced this yesterday while briefing the National Economic Council meeting presided over by Osinbajo. The conditional budget support loan facility was designed by President Muhammadu Buhari in 2016, to provide financial relief to state governments.


  The loan facility is based on the implementation of a comprehensive 22-point Fiscal Sustainability Plan (FSP) that was unanimously agreed upon by state governors during the NEC meeting on May 19, 2016. The programme is essentially aimed at supporting states to overcome current fiscal challenges as well as reforming financial management to ensure their long-term viability.

  Addressing State House reporters yesterday, Gombe State Governor Ibrahim Dankwambo said the NEC was briefed on the budget support to states “because of dwindling revenue and budget implementation.”

  Meanwhile, NEC also agreed that states capable of building prisons should do so, in collaboration with the private sector. Ebonyi State Governor David Umahi said the agreement was reached based on the pathetic situation of prisons painted by Interior Minister, Abdulrahman Dambazzau.