The National Economic Council (NEC) meeting on Thursday suspended further deduction of state governments’ loans from their accounts maintained in the Federation Account.
Many of the states have taken loans which are repaid through monthly deductions from funds accruing to them in the Federation Account.
The Minister of Finance, Kemi Adeosun, said state governments’ loan repayment to the Federation Account was deferred to allow states have enough money in their coffers to pay workers salaries and meet other obligations in their states.
She spoke with State House correspondents at the end of the NEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
She was accompanied by Nasarawa State Governor, Tanko Almakura and Corp Marshal of the Federal Road Safety Commission (FRSC), Oyeyemi Boboye.
According to her, the current economic situation in the country necessitated the deferral of the loans repayment.
She said: “On the update of the financial situation of the states, it was discussed extensively that currently the federation account receipt are among the lowest that has been seen in recent memory. We are looking at N299 billion this month and that is because of the very low oil prices that was recorded in January and February.
“If you remember oil prices went as low as $28 and $31 per barrel and of course that has led to a very low federation account as a result of this, I approached the President and the governors that we defer the loan deductions from the federation account entitlement.
“The aim of this is to ensure that we support the state governments throughout this difficult period in order for them to meet salary obligations. The government is very committed to stimulating the economy and recognizes that ability of states to meet salary obligations is a very crucial in getting the economy moving again.”

Keneking:
What Jonathan could not achieve

hungryboy:
I know say na because of Osun state, make dem take that decision,
Dem deserve our pity sha, how a whole state go dey survive on 6million naira every month after loan deductions?,
Abeg make una help me tell 'Aregbesoldher',
Make he manage that money well oh.

YourMrBoo:
This is APC trick to favour APC states in return for their massive state looting in putting the state at the centre.

Believe you me, APC knows they will be given a run for their chaos and scam by 2019 and they are suspending the dept payment so that APC controlled states can have enough money to loot and support them come 2019.

Even if they loose the present government both federal and state would have gotten an opportunity to let loot their treasury at their disposal.

What a sham trick from APC government.

YourMrBoo:
This is APC trick to favour APC states in return for their massive state looting in putting the state at the centre.

Believe you me, APC knows they will be given a run for their chaos and scam by 2019 and they are suspending the dept payment so that APC controlled states can have enough money to loot and support them come 2019.

Even if they loose the present government both federal and state would have gotten an opportunity to let loot their treasury at their disposal.

What a sham trick from APC government.

Ezenwammadu:
Aregberascal must be dancing shoki by now

bettercreature:
I bet you wouldnt be spitting beans if your parent haven't got paid for 11 months
Clueless brother!

englishmart:
[size=45pt] who APC EPP? [/size]

RALPHOW:
Osun workers Thank God !!!!!
Please every nairalander should send a letter each to AREGBESOLA to pay workers salaries
with this new bail out.
Everybody know this bail out is because of the miss govern Osun State.