Tanko Mohammed
The Central Bank of Nigeria (CBN) has reported that it would from next month commence the deduction of about N1.5 trillion budget support facility given to states.
The deductions would be done directly from the respective states’ Federation Account Allocation Committee (FAAC) fund because it was based on an Irrevocable Standing Payment Order (ISPO).
The decision was taken at its recent meeting and the directorate in charge at the central bank had already been notified.
“We are going to start taking the money out of their FAAC from May. The Committee of Governors of the CBN has given us the directive that the facility should be recovered. The loans to the states are almost N1.5 trillion and they need to be paid,” the source stated.
