Osinbajo: FG Has Given States ‘Bridging Financing’ to Repay Support Facility

• NEC endorses 2022-2024 MTEF

Deji Elumoye in Abuja

Vice President Yemi Osinbajo yesterday said the National Economic Council (NEC), has been informed that the issue of the repayment of the Budget Support Facility extended to the 36 state governments by Federal Government has now been resolved

This is just as he disclosed that NEC had endorsed the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) of the Federal Government which was presented to it at an emergency meeting.

Osinbajo made the disclosure, following an emergency meeting of the Council which he presided virtually, with some State Governors, FCT Minister, Finance Minister, Central Bank Governor, and other government officials in attendance.

According to him, under the new arrangement, the Central Bank of Nigeria (CBN) has offered a fresh bridging financing to States as they resume the repayment of the FG-backed facility.

He also said they endorsed the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) which was presented to it by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

In her presentation, the Minister stated that the draft of the 2022-2024 MTEF/FSP was prepared against the backdrop of global economic recovery, amidst improved vaccination outlook and lower incidence of (COVID-19) infection.

She also said the Nigerian economy sustained a tepid recovery in first quarter of 2021 posting a Year-on-Year (YoY) GDP growth of 0.51%, consolidating the exit from recession in Q4 2020, reflecting the easing of COVID-19 induced restrictions.

The Minister recalled that the economy, which lapsed into recession in Q3 2020, after two successive quarters of negative GDP growth, promptly emerged from the recession with a positive 0.11% GDP growth in Q4 2020.

She added that the Medium Term Fiscal Framework showed that there were continuing global challenges in the aftermath of the COVID-19.

Besides MTEF presentation, the Vice President urged States judicial panel on EndSARS where the panels were still sitting to also send interim reports so as to measure progress.

He added that the reports were now being received ahead of a Council meeting where presentations would be made on them, both for States where the panels had concluded their work and those that were still sitting.