By Marcus Ikechukwu
The National Economic Council (NEC) has resolved to halt further deductions from states regarding loans sourced from the Federal Government as bail-out facilities.
The decision was made at a NEC meeting which Vice President Yemi Osinbajo presided over.
Recall that several states are indebted to the Federal Government from the Federation Account allocations, which they mostly source to meet recurrent expenditures.
The Federal Government has been recouping its funds gradually from the defaulting states, a development that may have heightened their inability to meet their monthly obligations to staff.
The decision to halt further deductions was reached on Thursday at the meeting after some states’ chief executives tabled their financial constraints.
Already a directive may have been handed down to the Central Bank of Nigeria (CBN) to halt plans to commence deductions from State governments’ share of the monthly federal allocations.
To this end, the Council resolved to set up a committee with representatives of the Federal Government and the States to review the matter.
According to the Vice President, “bearing in mind all of the financial difficulties, we take the position to review the plan to commence the deduction for the loan.”
NEC resolved that representatives of the Governors’ Forum, the Central Bank of Nigeria and the Federal Ministry of Finance, Budget and National Planning, among others, meet to review modalities for the imminent deductions of funds from States by the Central Bank of Nigeria, to repay the Budget Support Facility granted to States by the Federal Government.
It noted that the decision was made considering the current difficulties State governments experienced in fulfilling their financial obligations.
The NEC also endorsed the revised National Social Protection Policy presented by Minister of Finance, Mrs Zainab Ahmed.
The policy document is expected to be tabled at the Federal Executive Council meeting before onward transmission to the National Assembly.
When passed, the new policy will replace the “2017-2022 National Social Protection Policy.”
The Minister explained that the 2017-2022 National Social Protection Policy “was reviewed in consultation with all States and other stakeholders, and it is to be subjected to review every five (5) years for update and accommodation of some emerging issues including Pandemics, insecurity and shock responsive Social Protection as well as new institutions.”
She added that the expected benefits of the revised NSPP include “reduction of multi-dimensional poverty; promoting social justice, equity and inclusive growth; reduce unemployment, social and economic vulnerabilities, and other threats to sustainable development.”
NEC also resolved to constitute a committee of the Federal Government and State governors to liaise with other relevant stakeholders to find immediate and long-term solutions to flooding problems across the country.
Regarding this, the Vice President noted that the committee liaising with critical stakeholders would support efforts, whether short, medium or long-term, in mitigating the impact of flooding and finding lasting solutions to the issue.
Council also commended the efforts of stakeholders, including the National Primary Health Care Development Agency (NPHCDA), in vaccinating more Nigerians against COVID-19.
According to the presentation of the COVID-19 Scorecard by the Executive Director of NPHCDA, Dr Faisal Shaibu, “over 127 million doses of COVID-19 vaccines have been procured and administered through collaborations by the Federal Government and other partners since the inception of the exercise.
“Additional 10.5 million doses of Johnson and Johnson vaccines have been procured by the Federal Government and are expected in the country before the end of the year.”
Dr Shaibu added that 46 million persons had been fully vaccinated, representing 42 per cent of the eligible population targeted for the exercise.
He commended Nasarawa and Jigawa State governments for their efforts in ensuring the take-off of the accelerated COVID-19 vaccination exercise in their states.
The decisions were among resolutions reached by the Council on Thursday at the end of its 128th meeting with Governors and other Federal Government officials in attendance virtually.
The meeting was also attended the new Ekiti State Governor, Mr Oyebanji Abiodun.