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Governors Wanted FG To Borrow To Augment March Shortfall – Minister

Federal government says it turned down a request by state governors to borrow from the Central Bank of Nigeria (CBN) to augment the N50 billion federation account allocation committee (FAAC) shortfall in March.

Minister of finance, budget and national planning, Zainab Ahmed, made this known in a breakfast show on Nigeria Television Authority (NTA) on Monday.

Governor Godwin Obaseki of Edo state, Southern Nigeria, had alleged that the federal government printed N60 billion to support states’ allocations in March.

Governor of CBN, Godwin Emefiele, had dismissed Obaseki’s claim describing it as “unfortunate and totally inappropriate.”

Minister of Finance said the federal government takes money from some reserve accounts whenever there is reduction in federal allocation, but all state governments were asked to manage their resources in the case of March allocation which fell by N50 billion.

Ahmed said, “It is a difficult time, I can explain to you how difficult it is not just for the federal government but also for the states, we see increasing reduction in our FAAC revenue.”

“In the month of March, we had a shortfall of FAAC that is almost about N50 billion and we did not have enough accrued in any of those accounts, the states to be honest wanted us to borrow from the Central Bank, but we resisted, we just told everybody to go back to live within what they had.

“So it was very surprising for us when we heard a sitting governor saying that CBN has printed money for FAAC, that was very unfortunate because it is not true.”

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