The National Economic Council (NEC) has decided to review the Central Bank of Nigeria’s (CBN) plan to start deducting from State governments’ share of the monthly federal allocations in an effort to determine how to provide States with additional financial assistance regarding repayment of the Federal Government’s Budget Support Facility.
The Council decided to form a committee with members from the Federal Government and the States to assess the situation at a meeting presided over by Vice President Yemi Osinbajo.
According to the Vice President, “bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan.”
The NEC decided that representatives of the Governors’ Forum, the Central Bank of Nigeria, and the Federal Ministry of Finance, Budget, and National Planning, among others, should meet to discuss the procedures for the Central Bank of Nigeria’s impending deduction of funds from States in order to pay back the Budget Support Facility the Federal Government provided to States.
It stated that the choice was made taking into account the existing challenges faced by state governments in meeting their budgetary obligations.
The new National Social Protection Policy, which Minister of Finance Mrs. Zainab Ahmed presented, was approved by the Council in another decision from today’s meeting. The Federal Executive Council will now forward the policy to the National Assembly.
The “2017-2022 National Social Protection Policy” will be replaced by the new regulation whenever it is enacted.
The Minister said the 2017-2022 National Social Protection Policy “was reviewed in consultation with all States and other stakeholders and it is to be subjected to review every five (5) years for update and accommodation of some emerging issues including Pandemics, insecurity and shock responsive Social Protection as well as new institutions.”
She added that the expected benefits of the revised NSPP includes among others, “reduction of multi-dimensional poverty; promoting social justice, equity and inclusive growth; reduce unemployment, social and economic vulnerabilities, and other threats to sustainable development.”
The NEC also decided to form a committee made up of the governors of the Federal Government and the States to work with other pertinent parties to find both short-term and long-term solutions to the nation’s flooding issues.
Regarding this, the Vice President stated that the committee, in coordination with key stakeholders, will assist efforts to lessen the effects of flooding as well as the pursuit of long-term solutions.
