The National Economic Council at its meeting on Thursday approved the reimbursement of N535.5bn to states for the funds they spent on federal roads.The Oyo State Governor, Chief Abiola Ajimobi, stated this while briefing state House correspondents after the meeting in Abuja.
He said that 13 states had met the requirements for the reimbursement of the money.
Also at the meeting were his counterparts from Kano State, Abdullahi Ganduje; Samuel Ortom (Benue), and Delta State Governor, Ifeanyi Okowa.
Ajimobi said, “Another issue discussed is the refund of expenses incurred on repair of federal roads by states. As listed here, we have 13 states that have fully complied with the re-imbursement requirements. We have eight states that have partially complied; 21 states without compliance and the total sum of claims to be re-imbursed is exactly N535, 596, 386, in other words, N535.5bn.”
The governor said that N13bn had been disbursed to states as of 2013, adding that government was facing the challenge of inadequate funding.
He also said that 26 state governments had applied for restructuring of their bank loans of about N500bn.
Ajimobi said that 11 of the states had concluded and submitted all relevant documents.
He added that 13 states were involved in the second phase of the loan restructuring.
He said, “The other major item that was discussed had to do with the restructuring of bank loans to state governments, and the restructuring was done into the Federal Government bonds and the Director-General of Debt Management Office reported as follows; ‘that 26 states applied for the loans, that 11 states have concluded and submitted all relevant documents; that 13 states are involved in the second phase to commence immediately. And the total money involved in the restructuring stood at over N500bn.”
According to him, the Accountant General of the Federation told the Council that the Excess Crude proceeds balance was over $2.257bn as of September 15, 2015.
Ajimobi said that the council discussed the NEC Ad-hoc committee on the management of the ECA and the Federation Account.
The governor stated that the committee told the council that it interacted with many revenue generating agencies.
According to him, the committee disclosed that there was lack of transparency and accountability as well as lack of check and balances in the operation of the Federation Account.
The governor stated, “Secondly, they also told the council that the work of the committee is ongoing, so we still have more reports to receive from them; that is in its interaction with the revenue generating agencies.”
He also said that the council was told that fertilizer used by farmers increased by over 271 per cent.
He stated, “Lastly, we discussed the issues of the current and future agricultural policy direction. The Permanent Secretary made a very lucid presentation and it was extensively discussed and he gave us information on database of farmers in proceeds production capacity of food storage and grains increased fertilizer.
“And he told us specifically that fertilizer used by farmers increased by over 271 per cent which was commendable, but the conclusion was that there was the need for more interaction with the states and local governments and their approach in agriculture should be bottom-top approach,” he stated
The governor said that the NEC was also briefed about the planned agricultural training programme of the ministry of agriculture.
According to him, 12 states and the Federal Capital Territory have been selected for the first phase.
He said the second phase would include non -educated youths to be spread across states by geopolitical zones.