Governors seek debt restructuring

From Eric Ikhilae, Abuja

Governors have requested the suspension of deductions from their allocations and restructuring of debt service payments to the Federal Government and Central Bank of Nigeria (CBN).

This is to enable them safeguard their liquidity level in the face of COVID-19 (Coronavirus) attack on their finances.

They suggested the acceleration of an arrangement to suspend all deductions.

This is part of the resolutions at the end of the second COVID-19 teleconference meeting of the Nigeria Governors’ Forum (NGF) on Wednesday.

According to a statement by NGF spokesman Abdulrazaque Bello Barkindo, the governors also resolved to work with the Federal Government to ensure the success of the various measures in place to minimize the effects of the virus on the citizens.

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The statement said: “We, members of the NGF, at our meeting held today (Thursday) deliberated on the COVID-19 pandemic in the country and resolved as follows:

“Following a briefing from the Minister of Finance, Budget and National Planning on fiscal measures taken by the federal government to mitigate the economic impact of the COVID-19 pandemic, the forum called for urgent fiscal measures to safeguard the liquidity of State governments, including the acceleration of an arrangement to suspend all State deductions and restructure all debt service payments on federal government and CBN-owned debts.

“Members also received briefing from the Minister of Humanitarian Affairs, Disaster Management and Social Development, Hajiya Sadiya Farouq on stimulus incentives from the Federal Government to support vulnerable households across the states to enable them  cope with the expected loss of income and livelihoods in the coming months.

“Governors are committed to leading the efforts through state focal persons in charge of social protection to ensure that palliatives, including food and cash transfers, reach the most vulnerable population in all states.

“Members (governors) also discussed the legality or otherwise of lockdowns in other states around the country and resolved to maintain the status quo until the Chairman and Governor of Ekiti State resolves the matter with the Presidential Committee on COVID-19.”