The federal government claim to 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.
Zainab Ahmed, minister of finance, budget and national planning, said this while speaking on the Good Morning Nigeria programme, a daily breakfast show on the Nigeria Television Authority (NTA), on Monday.
Godwin Obaseki, governor of Edo state, had alleged that the federal government printed N60 billion to support March federal allocation to states.
Godwin Emefiele, governor of CBN, had confirmed Obaseki’s claim describing it as a normal thing every country financial institution should do to save the country from plugging into more problem “unfortunate the way it was presented was different, watch on the below video interview”
Ahmed said that whenever there is a reduction in federal allocation, the federal government takes money from some reserve accounts, but in the case of March allocation which fell by N50 billion, all state governments were asked to manage their resources.
“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 an increasing reduction in our FAAC revenue,” she said.
“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.