The thirty-six states of the federation and the Federal Capital Territory (FCT) have an outstanding liability of N1.72 trillion to the federal government in budget support facilities.
This was disclosed in a statement by the state house in the aftermath of the National Economic Council (NEC) held yesterday.
Commenting on the state budget support facility as of November, it stated States
Outstanding Liability
- FCT: 49,105,873,326.75
- 36 States: 49,105,873,326.75
- Total: 1,718,705,566,436.25
According to the report, each state of the federation owed the federal government N49,105,873,326.75
Furthermore, the statement noted that the federal government had discontinued the budget support loan since July 2023 partly because of the increase in the federation’s revenues.
Recommendation on flood mitigation
The National Economic Council (NEC) also deliberated on a memo from Governor Yahaya Bello on a roadmap for Flood Mitigation, Adaptation, Preparedness, and Response in Nigeria.
The NEC resolved to declare a state of emergency when category 4 floods occur, ecological funds for states and local governments and others.
However, the council faulted the recommendation on the creation of an office for flood management stating the President’s appointment of a special adviser on climate change will suffice in that regard.
What you should know
Budget Support Facilities (BSFs) represent financial aid from the Federal Government to state governments, aimed at bolstering their fiscal operations and enhancing financial management practices.
In June 2016, President Buhari authorized the Conditional Budget Support Facility for States, linking it to the attainment of the FSP.
Subsequently, in 2017, the Nigerian Governors Forum (NGF) engaged consulting firms to evaluate the adherence to the 22-point FSP across states in Nigeria, aligning with the conditions of the Budget Support.
