{"id":22173,"date":"2021-04-16T08:08:06","date_gmt":"2021-04-16T07:08:06","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=22173"},"modified":"2021-04-16T08:08:06","modified_gmt":"2021-04-16T07:08:06","slug":"states-must-start-paying-2-1b-budget-support-loan-says-cbn","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/04\/16\/states-must-start-paying-2-1b-budget-support-loan-says-cbn\/","title":{"rendered":"States must start paying $2.1b budget support loan, says CBN"},"content":{"rendered":"<p>Governor Godwin Emefiele, the Central Bank of Nigeria (CBN) on Thursday stated that\u00a0state governments must begin to pay back the Budget Support Loans given to them by the Federal Government.<\/p>\n<p>This statement was made by the CBN governor while\u00a0reacting to claims by Edo State Governor Godwin Obaseki that the Federal Government printed money to augment the March revenue shared by the Federation Account Allocation Committee (FAAC).<\/p>\n<p>Obaseki alleged\u00a0that the Federal Government is borrowing without a sustainable plan to sort out the debt load.<\/p>\n<p>The Minister of Finance, Zainab Ahmed on Wednesday described\u00a0Obaseki\u2019s claims as \u201csad\u201d and \u201cuntrue\u201d<\/p>\n<p>The Edo Governor, Obaseki countered the comments of the finance minister, saying she should\u00a0rather \u201crally <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/04\/14\/nigerian-jailed-in-new-york-for-3m-email-scam\/\">Nigerians<\/a> to stem the obvious fiscal slide facing our country\u201d.<\/p>\n<p>He added: \u201cRather than play the Ostrich\u201d, the government should \u201ctake urgent steps to end the current monetary rascality, so as to prevent the prevailing economic challenge from degenerating further.\u201d<\/p>\n<p>Obaseki added: \u201cit is imperative to approach the <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/04\/14\/viral-report-of-nigerian-ship-with-7200-human-penises-impounded-in-china-is-false\/\">Nigerian<\/a> project with all sense of responsibility and commitment and not play to the gallery because ultimately, time shall be the judge of us all.\u201d<\/p>\n<p>Emefiele explained that the apex bank\u2019s interventions are meant to address the grim economic outlook because \u201cNigeria is unfortunately in a very bad situation,\u201d He added: \u201cIf you understand the concept of printing of money, it is about lending money\u201d.<\/p>\n<p>\u201cThat is our job. To print is about lending money. So, there is no need of putting all the controversy about printing of money as if we go into the factory, print the naira and start distributing on the streets.<\/p>\n<p>\u201cIt\u2019s very inappropriate for people to give colouration to printing of money as if it\u2019s some foreign words coming from the sky\u201d.<\/p>\n<p>Giving further clarification, Emefiele said \u201cit\u2019s important for me to put it this way that in 2015\/16, the kind of situation we found ourselves in, we did provide a budget support facility to all the states of this country\u201d.<\/p>\n<p>\u201cThat loan is still unpaid up till now. We are going to insist on them paying back those monies since they\u2019re accusing us of giving them loans\u201d.<\/p>\n<p>In July 2015, President Muhammadu Buhari approved\u00a0$2.1billion as intervention package to help bankrupt states pay salaries and offset contractors obligations. Government revenue had dropped at the time because of the fall in the price of oil.<\/p>\n<p>Defending government\u2019s action, Emefiele said \u201cmost countries in the world today are confronted not only by the challenges coming from the COVID-19 pandemic causing economic crisis and the rest of them.<\/p>\n<p>\u201cWhat I keep saying is that it will be irresponsible for the CBN or any other federal reserve to stand idle and refuse to support its government at this time and what we are doing here is being done in other\u00a0 climes.<\/p>\n<p>\u201cAt the last MPC meeting, I gave data on what is being done in other climes to shore up their economy and take them out of recession.<\/p>\n<p>\u201cI\u2019m not going to pretend about it. We are facing a problem about productivity output which is GDP. Luckily, we managed to exit from recession, now we are looking at how to get our head above the water\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Governor Godwin Emefiele, the Central Bank of Nigeria (CBN) on Thursday stated that\u00a0state governments must begin to pay back the Budget Support Loans given to them by the Federal Government. This statement was made by the CBN governor while\u00a0reacting to claims by Edo State Governor Godwin Obaseki that the Federal Government printed money to augment [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":22188,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[5730,1172,3108,2947,5729],"class_list":["post-22173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-budget-support-loans","tag-central-bank-of-nigeria","tag-godwin-emefiele","tag-godwin-obaseki","tag-nigerian-states"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>States must 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