VP Osinbajo Resolves CBN and Governors’ Disagreements on Loan Repayment

Prof-Yemi-Osinbajo

VP Osinbajo Resolves CBN and Governors’ Disagreements on Loan Repayment

NewsReport July 4, 2021

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The mediation of Vice President Yemi Osinbajo in the dispute between the Central Bank of Nigeria (CBN) and states over repayment of budget support facilities obtained has resulted in reconciliation NewsReport gathered.

Governors had requested that the loan repayment, which was due in May, be postponed.

The CBN Governor, Godwin Emefiele, has, on the other hand, emphasized the importance of timely repayment of loans, particularly those owed to commercial banks, citing the difficulties that would arise if payment was delayed further, including audit concerns.

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

The CBN has offered new bridging financing to states as they resume repayment of the FG-backed Facility under the new arrangement.

At the meeting, Osinbajo also urged governors of states where State Judicial Panels were established across the country following last year’s EndSARS protests to submit interim reports in order to track progress.

He stated this at the emergency National Economic Council (NEC) meeting, which he presided over at the State House in Abuja, where the governors remained, 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 completed their work and those that are still sitting.

After President Muhammadu Buhari disbanded the Police SARS unit, the Council recommended the establishment of judicial panels across the country to address complaints of police brutality. The panels were set up by almost every state in the Federation, including the Federal Capital Territory.

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

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

The meeting is attended by several state governors, the FCT Minister, the Finance Minister, the Central Bank Governor, and other government officials.

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

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

She recalled that the economy, which entered a recession in Q3 2020 after two consecutive quarters of negative GDP growth, quickly emerged from it with a positive 0.11 percent GDP growth in Q4 2020. She went on to say that the Medium Term Fiscal Framework demonstrated that global challenges remained in the aftermath of COVID-19.