The federal government relief aid given to the 36 States and the FCT to help cushion the effects of the removal of the petrol subsidy has be discovered to be a loan
It would be recalled that the Nigerian government through the National Economic Council NEC yesterday announced a N5 billion relief package for each state of the federation, including the federal capital territory (FCT).
Governor Babagana Zulum of Borno State at the end of the national economic council (NEC) meeting presided over by Vice President Kashim Shettima, had revealed that the palliative was given to allow state governments procure 100,000 bags of rice, 40,000 bags of maize and fertilizers to cushion the effect of food shortage across the country.
In a new development, the director-general of Nigeria Governors Forum (NGF), Asishana Okauru in a memo to the governors titled “Re: Distribution of Palliatives – Terms of FG Facility”, ), said states who chose to opt out of the offer should return a sum of N2 billion already given to them.
“I have been directed by the Chairman, H.E. AbdulRahman AbdulRazaq to forward the terms of the facility as follows,” Okauru said in the memo.
“Facility size: N4,000,000,000.00
Loan (48%): N1,920,000,000.00
FGN Grant: (52%)
N2,080,000,000.00 Beneficiary each state government
Tenure: 20 months
Interest Rate: Nil
Moratorium: Three months
Repayment Mode: Monthly
Repayment Amount: N120,000,000.00
Security Irrevocable Standing Payment Order (ISPO)
“Your excellency is invited to note that this offer is optional and states that do not wish to participate may opt-out and refund the N2 billion already disbursed to them.”
