614 Bailout: State governors to devise loan exit strategy despite FG’s stance

Some Nigerian State Governors have expressed displeasure as they face a difficult challenge following the directive for repayments of the loans they received from the federal government between 2015 and 2017.

The central government gave out the loans as bailouts during the financial crisis in the states, in the wake of recession when some of them had difficulty in paying workers salaries and to carry out project within the state.

While announcing the directives that states should commence repayment last week, the Minister of Finance, Zainab Ahmed, said each of the states would be required to refund a total of N17.5 billion.

However, reports gathered reveals that the announcement has not gone down well with state governors who have been working on an exit strategy on the loan burden.

It was gathered that Governors affected are concerned that once the repayment commences, the funds may be deducted at source before the monthly allocation, at a time they are complaining that funds accruing to their states were not enough to meet their governance needs.

The Director-General of the Nigeria Governors Forum, Asishana Okauru, confirmed to PREMIUM TIMES during a telephone interview that the situation was creating serious concerns for the governors, who are unrelenting in finding a solution to the problem.

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