Central Bank of Nigeria (CBN) has rejected the State Governors’ plea concerning the repayment of bailout loans.
Gatekeepers News reports earlier reports that the Nigerian Governors’ Forum (NGF) in a meeting presided over by its Chairman and Ekiti State Governor Kayode Fayemi indicated their readiness to achieving debt limits.
However, on Thursday, the CBN Governor, Godwin Emefiele rejected the Governors’ request, maintaining that States must begin the repayment of the budget facility this month (May).
Gatekeepers News reports that Emefiele took his stand when Fayemi, on behalf of his colleagues restated their request during a virtual meeting of the National Economic Council (NEC) which was presided over by the Vice President, Yemi Osinbajo.
The apex bank Governor stressed that several challenges could emerge from repayment delay given that it involved auditing.
Laolu Akande, the Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, made the discussions of the meeting known in a statement.
The statement reads: “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, 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.
Gatekeepers News reports that the Vice President will meet with the State Governors, the Minister of Finance, Budget and National Planning, and the CBN Governor to resolve the difference on the repayment of the budget support facility taken by the states.
“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,” the statement added.
