CHANNELS TV
The Governor of Akwa Ibom State, Udom Emmanuel, has described the Buhari administration’s N90 billion budget support loan to states as a positive development in view of current economic challenges arising from the fall in global oil prices.
The Governor made the remark on Tuesday while speaking to correspondents at Government House in Uyo, the State capital.
Describing the development as a sound economic policy, Governor Emmanuel, who is a financial expert praised the Federal Government for providing such important lifeline, which he said would help states to fund their development programs.
He explained that the loan is not a bailout for the payment of salaries or pensions but a financial lifeline to support states fund their development projects as contained in their budget.
He added that states were at liberty to accept or decline the offer as it was not compulsory.
The Governor said his administration was yet to take a decision on whether Akwa Ibom State will take the loan.
The fall in oil prices has caused a sharp decline in Nigeria’s revenue.
This has in turn affected the monthly financial allocation to States from the Federation Account.
The federal government had announced that it will grant a 90 billion Naira loan to the 36 states of the federation.
The loan, according to the federal government, will cover a period of one year.
However, the loan will be extended to the state governments after they meet 22 stringent conditions put together by the federal government under the fiscal sustainability plan.
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