Buhari approves fresh budget support loan for states

President Muhammadu Buhari has approved a fresh budget support loan to 35 states of the federation.

The loan was announced by the Minister of Budget and Economic Planning, Udoma Udo Udoma, while briefing State House correspondents, after the National Economic Council, NEC, meeting, presided over by the Vice President, Prof. Yemi Osinbajo in Abuja yesterday.


Udoma said that it was the latest in the series of financial support that has been provided by the Federal government to the states to meet up with their obligations including payment of huge salaries to workers. According to him, each of the 35 states will receive N800million, while the total amount that will be received by the states would amount to N28billion.

He said the Accountant General of the Federation Mr. Idris Ahmed informed council that approval has been received and the Central Bank of Nigeria, CBN, has been directed to pay N800million to each of the 35 states of the Federation. The minister said the Governors at the meeting expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August 2017.

He said: “The Accountant General reported to Council that approval has been received and CBN has been directed to pay N800 million 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.

“The Accountant General of the Federation informed Council that balance in the ECA as at November 17, 2017 stands at $2,309,693,583.35. “Signs of recovery had been observed since Q3 2016 and the Recovery consolidated in Q3 2017 with GDP doubling to 1.40% Non-oil GDP contracts in Q3 2017 by 0.76% 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. “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 $4.14 billion (131.3% growth year on year).”

Also speaking the Ondo State Governor, Rotimi Akeredolu said, “The NEC adhoc Committee set up in September, to advise 2017 Council on export promotion submitted its report. “The report dwelt extensively on an export promotion plan geared towards achieving governments’ policy on the “zero oil Plan The Committee recommended among other things. The establishment of a National Committee on Export Promotion, chaired at the Presidency level.

“A Technical Committee involving Federal and States MDAs to help provide technical information and direction to the proposed Committee. “The Ad-hoc Committee also recommended;

(a) That Export procedures and documentation b streamlined

(b) The identification of existing domestic investors and engagement plan for output expansion “The establishment of more laboratories and tasting centres to help improve quality and standard of export.

(d) The domestication of the Office of Technical Regulation (OTR) as recommended by UNIDO. (e) On Market for Nigeria products the Committee recommended the Deepening of Commercial diplomacy, one-stop shops for export and a National Export Portal to generate global orders to link suppliers to buyers

(f) on Value Chain Development the Committee recommended the development of clusters along product value chain, market driven research and development and the provision of seeds and seedlings.

(g) on Financing, the Committee recommended the recapitalization of NEXlM Bank, the provision of Expor Development Fund in line with NEPC Act, a five-year financial window on export expansion grant and funding scheme for exporters similar to the CBN Anchor Borrowers programme. “The Ad-hoc Committee also recommended a one-State-one product approach based on cooperative advantage for export drive. The establishment of a State Committees on “Zero Oil Plan Implementation with State Governors as Chairmen was also recommended.”