• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Governors warn that CBN’s proposed loan recovery from FAAC revenue is “suicidal”

William Ukpe by William Ukpe
October 21, 2022
in Business News, Economy
David Umahi, East-West Road

David Umahi

Share on FacebookShare on TwitterShare on Linkedin

Nigerian Governors have warned that given the constant reductions in FAAC Allocation to states, it would be suicidal if the Central Bank of Nigeria (CBN) goes ahead to carry out its proposed recovery of state loans.

In reaction to the warning, the National Economic Council (NEC) said it will negotiate with the CBN and the Finance Ministry on loan recovery.

The developments were disclosed by Governor David Umahi of Ebonyi State after a virtual NEC meeting presided over by Vice President Yemi Osinbajo on Thursday at the Presidential Villa, Abuja.

RelatedStories

CBN, forex

Survey: Over 62% of Nigerians want interest rates lowered ahead of MPC meeting 

July 19, 2025
Naira , dollar, exchange rate

CBN MPC member Sagagi projects Naira to appreciate to N1,450/$1 by December 2025 

July 19, 2025

The Governor added that NEC also agreed to set up a committee to engage the CBN governor and the Finance Minister.

What the Governor said:

He revealed that the NEC also endorsed the reviewed National Social Protection Policy ( NSPP) by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

  • “Council was invited to note the revised NSPP that replaces the 2017-2022 NSPP, which was reviewed in consultation with all states and other stakeholders, he said.
  • “It is subject to review every five years for updates and accommodation of some of the emerging issues, which include pandemics, insecurity, and responsive social protection.
  • “The expected benefits of the revised NSPP include reduction of multi-dimensional poverty; promotion of social justice and equity and inclusive growth, reduction of unemployment, social and economic vulnerabilities and other threats to sustainable development,” he said.

Umahi also stated that the NEC approved a review of the plan for an immediate deduction of funds from the state. He said: 

  • “The governors are saying with the constant reduction in FAAC allocations to states, it would be very suicidal if the CBN goes ahead to carry out their proposed recovery of state loans.
  • “The governors and NEC applauded the president, the Vice President, the Minister of Finance and the CBN Governor for their efforts and commitment to states while noting that a lot of funds that were hidden from the states before the present administration have also been graciously given to states by the president and his team.
  • “That has helped the states very much, so while commending them, NEC agreed to engage the CBN governor with the Minister of Finance and the governors’ forum and the NEC committee.
  • “So, it was agreed that these deductions would have to be reviewed to seek other ways; that if it goes ahead, the states would suffocate and that would not be good for the nation; NEC agreed to set up a committee to engage the CBN governor and the finance minister.” He said.

On the flooding incident across the country, Umahi noted that NEC agreed to set up a committee to look at the immediate solutions and interventions over the flooding and to see how we take care of those who were affected and states too.

What you should know

  • The loans states take from CBN can be used for various purposes mostly infrastructure. Nairametrics reported earlier this year that the Rivers State Executive Council has approved the state government’s request for an N15 billion loan from the Central Bank of Nigeria’s Infrastructure Fund.
  • Rivers state said that tapping the fund will help speed up the completion of these projects, with a low-interest rate of 5% repayable within 20 years and a three-year moratorium.

 


Follow us for Breaking News and Market Intelligence.
Tags: CBNCentral Bank of NigeriaFAAC allocationNational Economic CouncilNEC
William Ukpe

William Ukpe

For further inquiries about this article contact: Email: william.ukpe@nairametrics.com or outreach@nairametrics.com. Twitter: @_sirwilliam_ @nairametrics.

Related Posts

CBN, forex
Economy

Survey: Over 62% of Nigerians want interest rates lowered ahead of MPC meeting 

July 19, 2025
Naira , dollar, exchange rate
Currencies

CBN MPC member Sagagi projects Naira to appreciate to N1,450/$1 by December 2025 

July 19, 2025
inflation rate
Economy

CBN survey finds public perception of inflation improved in June 2025 

July 19, 2025
CBN, forex
Economy

Experts predict hold on MPR amid moderating inflation and naira stability 

July 19, 2025
CBN, forex
Economy

CBN flags spike in loan defaults, small businesses top defaulters in Q2 2025 

July 18, 2025
Naira , dollar, exchange rate
Currencies

Naira stabilises as exchange rate gap narrows to N1 across parallel and official markets 

July 18, 2025
Next Post

Why investors may prefer Sukuk to conventional interest bonds- Expert

Comments 1

  1. 9jaRealist says:
    October 21, 2022 at 8:31 am

    Repay your loans, you DEADBEAT state governors.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

first bank








DUNS

Recent News

  • Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards
  • United States appoints Rick Swart as new Consul General to Southern Nigeria 
  • Survey: Over 62% of Nigerians want interest rates lowered ahead of MPC meeting 

Follow us on social media:

Recent News

Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards

Sabreworks celebrates excellence, rewards outstanding team members with life-changing awards

July 19, 2025
New U.S. Consul General arrives in Lagos 

United States appoints Rick Swart as new Consul General to Southern Nigeria 

July 19, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics