Osinbajo Wades Into Govs, CBN Dispute Over Budget Facility Repayment

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-As NSIA records 343% growth in 2020

Vice President Yemi Osinbajo is to meet soon with
representatives of state governors, the Minister of Finance, Budget
and National Planning, and the Governor of Central Bank of Nigeria,
CBN, in an attempt to resolve the disagreement over the repayment
of the budget support facility obtained by the states.

This followed a disagreement between the governors and the CBN
governor, Godwin Emefiele, at Thursday’s virtual meeting of the
National Economic Council, NEC, presided over by the Vice President
at the Presidential Villa, Abuja.

At the meeting, the Chairman of the Nigeria Governors Forum,
NGF, and Governor of Ekiti state, Dr. Kayode Fayemi, had insisted
that the governors wanted the loan repayment due in May to be
deferred.

But the CBN boss, Emefiele insisted that the states should begin
the repayment without future delay especially the monies owed to
the banks.

Emefiele said there were challenges arising from delays
particularly as it concerned auditing.

A statement issued by the Senior Special Assistant to the
President on Media and Publicity, Office of the Vice President,
Laolu Akande said “on the Budget Support Facility, state governors
restated their request to defer the repayment of the loans, which
was to have started this month. Ekiti State Governor, Dr. Kayode
Fayemi, who is also Chairman, Nigeria Governors’ Forum, reported
interactions with the Finance Minister and the CBN Governor
regarding the matter.

“The CBN governor, Godwin Emefiele, also emphasized the
importance of the timely repayment of loans, especially those owed
to commercial banks, indicating the challenges inherent in a
further delay in payment, including audit concerns. He said the
repayment of the commercial loans should resume this month.

“In addition, the Vice President stated that he will be holding
a meeting soon with representatives of the State Governors, the
Finance Minister and the CBN Governor to resolve the issue
raised.”

According to the statement, the Nigerian Sovereign Investment
Authority (NSIA) recorded a 343% growth in total comprehensive
Income totalling N160.06 billion in 2020 compared to N36.15 billion
in the previous year and 33% growth in Net Assets, rising up to
N772.75 billion from the previous N579.54 billion.

The statement reported that the Council held the Annual General
Meeting (AGM) of the NSIA where reports and financial statements,
including the audit were presented.

It said in particular, the Managing Director/Chief Executive
Officer of the NSIA, Mr. Uche Orji, submitted that the NSIA
achieved core income of N109 billion compared to N33.07 billion in
2019, excluding forex gains of N51 billion in 2020 and N1.29
billion in 2019.

The NSIA presentation noted that despite the challenges of
COVID-19, it had a favourable year owing to strong performance from
its investments in international capital markets, improved
contribution from associates, as well as exchange rate gains from
foreign currency positions.

In response to COVID-19, the NSIA partnered with Global Citizen,
a not-for profit group, to form the Nigeria Solidarity Support Fund
(NSSF), acquired and distributed oxygen concentrators to 21
teaching hospitals as part of its Corporate Social Responsibility;
in addition to staffing support to the Presidential Taskforce on
COVID-19 towards combatting the pandemic.

Other major milestones reached by the NSIA were recorded across
domestic infrastructure projects, specifically in roads,
agriculture, healthcare, technology and gas industrialization.

NEC also received a presentation on the Digital Switch Over
(DSO) by the Minister of Information and Culture, Alhaji Lai
Mohammed. He stated that it was the International
Telecommunications Union, ITU, that decided on member states
switching off analogue television transmission to ‘go digital’.

The DSO will be taking off first in Lagos, Kano and Rivers
States, he stated.

According to him, the National Broadcasting Commission (NBC) and
the DSO Ministerial Task Force are tasked with ensuring that
Nigeria ‘digitizes’ and develop a public information and awareness
campaign to inform citizens about DSO/FreeTV.

The Minister disclosed that the switch-over has a revenue
generation potential of N20 billion annually; and that the funds
will enable the NBC support and upgrade DSO initiative, as well as
fund local producers.

The Council also received an update on Nigeria’s response to the
COVID-19 pandemic by the Director-General of the Nigeria Centre for
Disease Control (NCDC), Dr. Chikwe Ihekweazu.

According to the DG, NCDC, in the last two months, there has
been reduction in the number of cases globally, stating that even
India has also experienced reduction in its infection rates in the
last five days.

He added that in Nigeria, the total number of cases as of
yesterday, May 19, 2021, was 165,809, while the number of cases
tested was 2,002,653, with 7,323 active cases. It was also
disclosed that discharged cases were now 156,419, while there had
been 2,067 deaths.

According to the NCDC boss, the “transmission rate in the
country is low,” adding that attention is now on tracking the new
B1.617.2 variant from India. He said there are only three such
cases identified in Nigeria so far.

He added that focus should remain on the protocols to stop the
spread of the virus, while the health authorities and agencies will
keep an eye on tracking the Indian variant. Governments and leaders
in the society are also urged to discourage pandemic fatigue and
stick to the COVID-19 safety protocols.

The Minister of State for Budget and National Planning, Mr. Clem
Agba, gave the Council the monthly update on Excess Crude Account,
Stabilization Account and Development of Natural Resources Account,
with balances as at 18th May 2021 standing at $72,413,574.70,
N24,741,213,941.88 and N23,650,579,140.23, respectively.