Osinbajo Resolves CBN, Governors Differences Over Loan Repayment

…As Apex Bank Offers New Bridging Gap Finance To
States

Vice President Yemi Osinbajo’s mediation in the disagreement
between the Central Bank of Nigeria (CBN) and states over the
repayment of the budget support facilities obtained has resulted in
reconciliation.

Recalled that governors had requested that the loan repayment,
due in May, be deferred.

The CBN Governor, Godwin Emefiele, had, however, 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.

Osinbajo’s spokesman, Laolu Akande, in a statement, said the
Council was informed that the issue of the repayment of the Budget
Support Facility has now been resolved after a meeting presided
over earlier this week by the Vice President, Governor Kayode
Fayemi, representing the States, the Finance Minister, and the CBN
Governor, Emefiele.

Under the new arrangement, the CBN has offered a fresh bridging
financing to States as they resume the repayment of the FG-backed
Facility.

Osinbajo at the meeting also urged governors of states where
State Judicial Panels set up across the country after last year’s
EndSARS protests to submit interim reports so as to measure
progress.

He said this at the emergency National Economic Council (NEC)
where he presided at the State House, Abuja, where remained the
governors that the reports are now being received ahead of a
Council meeting where presentations would be made on them, both for
States where the panels have concluded their work and those that
are still sitting.

It will be recalled that the Council recommended the
establishment of judicial panels nationwide to address complaints
of police brutality after l President Muhammadu Buhari dissolved
the Police SARS unit. Almost all states in the Federation set up
the panels, including the Federal Capital Territory.

The Council comprises the 36 State Governors, the Minister of
the Federal Capital Territory, and the Governor of the Central Bank
of Nigeria (CBN), as well as other senior Federal Government
officials.

The NEC has endorsed the 2022-2024 Medium Term Expenditure
Framework and Fiscal Strategy Paper (MTEF/FSP) which was presented
at the Council.

The meeting which has several State Governors, FCT Minister,
Finance Minister, Central Bank Governor, and other government
officials in attendance.

During the presentation of the MTEF to the Council, the Minister
of Finance, Budget and National Planning, Dr. Zainab Ahmed, stated
that the draft of the 2022-2024 MTEF/FSP was prepared against the
backdrop of global economic recovery, amidst improved vaccination
outlook and lower incidence of (COVID-19) infection.

She also said the Nigerian economy sustained a tepid recovery in
first quarter of 2021 posting a Year-on-Year (YoY) GDP growth of
0.51%, consolidating the exit from recession in Q4 2020, reflecting
the easing of COVID-19 induced restrictions.

She recalled that the economy, which lapsed into recession in Q3
2020, after two successive quarters of negative GDP growth,
promptly emerged from the recession with a positive 0.11% GDP
growth in Q4 2020. She added that the Medium Term Fiscal Framework
showed that there are continuing global challenges in the aftermath
of the COVID-19.

…As Apex Bank Offers New Bridging Gap Finance To
States

Vice President Yemi Osinbajo’s mediation in the disagreement
between the Central Bank of Nigeria (CBN) and states over the
repayment of the budget support facilities obtained has resulted in
reconciliation.

Recalled that governors had requested that the loan repayment,
due in May, be deferred.

The CBN Governor, Godwin Emefiele, had, however, 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.

Osinbajo’s spokesman, Laolu Akande, in a statement, said the
Council was informed that the issue of the repayment of the Budget
Support Facility has now been resolved after a meeting presided
over earlier this week by the Vice President, Governor Kayode
Fayemi, representing the States, the Finance Minister, and the CBN
Governor, Emefiele.

Under the new arrangement, the CBN has offered a fresh bridging
financing to States as they resume the repayment of the FG-backed
Facility.

Osinbajo at the meeting also urged governors of states where
State Judicial Panels set up across the country after last year’s
EndSARS protests to submit interim reports so as to measure
progress.

He said this at the emergency National Economic Council (NEC)
where he presided at the State House, Abuja, where remained the
governors that the reports are now being received ahead of a
Council meeting where presentations would be made on them, both for
States where the panels have concluded their work and those that
are still sitting.

It will be recalled that the Council recommended the
establishment of judicial panels nationwide to address complaints
of police brutality after l President Muhammadu Buhari dissolved
the Police SARS unit. Almost all states in the Federation set up
the panels, including the Federal Capital Territory.

The Council comprises the 36 State Governors, the Minister of
the Federal Capital Territory, and the Governor of the Central Bank
of Nigeria (CBN), as well as other senior Federal Government
officials.

The NEC has endorsed the 2022-2024 Medium Term Expenditure
Framework and Fiscal Strategy Paper (MTEF/FSP) which was presented
at the Council.

The meeting which has several State Governors, FCT Minister,
Finance Minister, Central Bank Governor, and other government
officials in attendance.

During the presentation of the MTEF to the Council, the Minister
of Finance, Budget and National Planning, Dr. Zainab Ahmed, stated
that the draft of the 2022-2024 MTEF/FSP was prepared against the
backdrop of global economic recovery, amidst improved vaccination
outlook and lower incidence of (COVID-19) infection.

She also said the Nigerian economy sustained a tepid recovery in
first quarter of 2021 posting a Year-on-Year (YoY) GDP growth of
0.51%, consolidating the exit from recession in Q4 2020, reflecting
the easing of COVID-19 induced restrictions.

She recalled that the economy, which lapsed into recession in Q3
2020, after two successive quarters of negative GDP growth,
promptly emerged from the recession with a positive 0.11% GDP
growth in Q4 2020. She added that the Medium Term Fiscal Framework
showed that there are continuing global challenges in the aftermath
of the COVID-19.