Workers salaries: FG rescues states, suspends April loan repayment deductions

ABUJA — Respite has come the way of the 36 states as the Federal
Government, Tuesday, suspended deductions periodically made
from various loans given to the states to enable them pay workers'
salaries and stabilise their economies.
The suspension of deduction takes effect from April and may be
extended, depending on the debt profile and social needs of states.
The decision was reached at the meeting of the National Executive
Council, NEC, at the Presidential Villa, Abuja.
Minister of Finance, Mrs. Kemi Adeosun, who alongside the
Governor of Nasarawa State, Alhaji Tanko Al-Makura and the Corps
Marshall and Chief Executive of the Federal Road Safety
Commission, FRSC, gave the revelation at a briefing with State
House correspondents, however, stated that the postponement did
not in any way connote financial bailout.
She added that the gesture was principally informed by falling oil
prices which had drastically affected the income of the Federal
Government and states.
She said: “On the update of the financial situation of the states, it
was discussed extensively that currently, the federation account
receipt is among the lowest that has been seen in recent memory.
‘’We are looking at N299 billion this month and that is because of
the very low oil prices recorded in January and February. If you
remember, oil prices went as low as $28 and $31 and, of course,
that has led to a very low federation account as a result of which I
approached the President and the governors that we defer the loan
deductions from the federation account entitlement."
FG, states, LGs share N299bn
Meanwhile, the federal and the two other tiers of government,
yesterday, shared N 299. 747 billion from the Federation Account
and proceeds of Value Added Tax for the month of March.
The figure represented a dwindling profile of the nation’s revenue
which has continued to take its toll on funds available to the three
tiers of government.
The gross statutory revenue stood at N 232.819 billion which was
N30.880 less than the N270.499 billion recorded in the previous
month.
A total of N 64 billion was realised from Value Added Tax, VAT.
The Federal Government took a total of N 109.113 billion from the
statutory allocation and N 9.250 billion from VAT.
The states got a total of N56 billion, while local governments
received N 44. 1 billion.
The nine oil producing states got an additional N19.75 billion,
representing 13 per cent derivation on oil revenue.
Excess Crude Account now $2.3bn
Presenting a report on update of the Excess Crude Account,
Adeosun also revealed that the balance of the account as at the
moment stood at $2.3 billion.
She also said that the board of the Nigerian Sovereign Investment
Authority had been constituted.
“I, as the Minister of Finance, presented a report on the balance of
excess crude account, which stands at $2.3 billion, on the account
of the interest that has been received since the last update."

Good

I hope d state will survive sa