CBN Goes After Governors for Budget Facility Repayment

The Central Bank of Nigeria (CBN) has insisted that the states must begin the repayment of the budget facility taken from the apex bank this May.

The Governor of the Central Bank of Nigeria, Godwin Emefiele, disclosed this at the virtual meeting of the National Economic Council (NEC) presided over by the Vice President, Yemi Osinbajo, on Thursday.

At the meeting, the Governor of Ekiti State and the Chairman of the Nigeria Governors Forum, NGF, Dr. Kayode Fayemi, explained that the governors wanted the repayment to be deferred.

According to Emefiele, several challenges could arise from repayment delay given that it concerned auditing.

However, Vice President Yemi Osinbajo has stated that he will be meeting with state governors, the Minister of Finance, Budget and National Planning, and the Governor of Central Bank of Nigeria to resolve the disagreement over the repayment of the budget support facility obtained by the states.

Laolu Akande, the Senior Special Assistant to the President on Media and Public, Office of the Vice President, said in a statement, “on the Budget Support Facility, state governors restated their request to defer the repayment of the loans, which was to have started this month. Ekiti State Governor, Dr. Kayode Fayemi, who is also Chairman, Nigeria Governors’ Forum, reported interactions with the Finance Minister and the CBN Governor regarding the matter.

“The CBN governor, Godwin Emefiele, also emphasized the importance of the timely repayment of loans, especially those owed to commercial banks, indicating the challenges inherent in a further delay in payment, including audit concerns. He said the repayment of the commercial loans should resume this month.

“In addition, the Vice President stated that he will be holding a meeting soon with representatives of the State Governors, the Finance Minister and the CBN Governor to resolve the issue raised.”