Bailout Funds: FG Extends Repayment Plans To Thirty Years

– FG made the first and second months, N252 million monthly deductions, in September and October, based on the twenty years repayment period
– “The budget support facility was initially for twenty years repayment period. And when we made the first deduction in September, the states had complained that the amount deducted, which was N252 million, was too harsh
– The new repayment period is thirty years. And this means that the states will be paying monthly N162 million
 
Following the outcry of state Governors, the federal Government has made another repayment schedule plan extending the year to thirty years and monthly repayment of N162 million.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, briefed State House correspondents at the end of the National Economic Council meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
According to her, the Federal Government has made the first and second months, N252 million monthly deductions, in September and October, based on the twenty years repayment period.
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She said “The budget support facility was initially for twenty years repayment period. And when we made the first deduction in September, the states had complained that the amount deducted, which was N252 million, was too harsh.
“So, since then, the Central Bank of Nigeria, who is the lender, has revised the condition to make the repayment period longer. And so the new repayment period is thirty years. And this means that the states will be paying monthly N162 million. But again today, the states still were not satisfied with the condition.
“So, we are expecting that the Federal Ministry of Finance, Budget and National Planning, CBN and the states will engage again with the view of having the CBN further revise the condition to reduce the monthly repayment burden,” she stated.