Federal Government to begin deduction of N614bn bailout funds to states September


The Federal Government will, from this month (September), begin deduction of the N614 billion bailout funds it gave to states for payment of salaries of workers in 2016.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who disclosed this yesterday said that the deduction would commence in the Federation Accounts Allocation Committee (FAAC) provision for states in September.

The minister, who was speaking at a Public Consultative Forum on the draft 2020-2022 Medium Term Expenditure Framework/Fiscal Strategy Paper (FSP) in Abuja, said that the funds would be deducted from source and remitted to the Central Bank of Nigeria (CBN), adding that the refund would not form part of the revenue for funding the budget.

It would be recalled that the Federal Government gave out the loans to 35 states as conditional budget support to help them pay salaries, gratuities and pensions. Only Lagos state did not access the loan.

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