Aregbesola, Others Get Relief As President Buhari Suspends Deductions

Osun and Edo States Governors

The Minister of Finance, Mrs Kemi Adeosun had during her reports to the National Economic Council (NEC) meeting said President Muhammadu Buhari ordered the suspension of monthly deduction at source for this month, and no such deductions would be made this month from the FAAC allocations to the States

According to Adeosun: "Regarding the salary assistance loans, the Finance Minister informed Council that President Muhammadu Buhari has approved the suspension of monthly deduction at source for this month, and no such deductions would be made this month from the FAAC allocations to the States."

"This is meant by the President to give the States some financial relief at a time the FAAC allocations are dwindling due to the drop in oil prices."

· The Vice President, Prof. Osinbajo during the NEC meeting added that the President will continue to review the situation of the States on an ongoing basis and take appropriate relief measures as necessary and possible.
The Ministry of Finance in another related press release said that the Federation Accounts Allocation Committee (FAAC) meeting which took place yesterday, presented the lowest FAAC in over 5 years, with less than N300bn in revenue driven by the impact of the historically low oil prices in January and February. This sum also reflects a seasonally low collection period for the Federal Inland Revenue Service (FIRS).

With about 27 states currently experiencing challenges meeting their salary payments and in response to the above, obligatory repayments due to the Federal Government from the states in respect of their restructured loan obligations are being deferred for the current month.

The deferral amounts to a total of N10.9 billion. This is to ensure that the states are in a better position to meet their salary obligations.


We are not able to guarantee that all states will be able to meet their salary obligations, as each state's situation is dependent on its own cost profile and other obligations it may have, but this initiative is to better position them to do so.

All states will receive the relief this month, however further deferrals will be subject to the agreement of a Fiscal Restructuring Plan to be prepared by each state with clear measurable objectives.

It is therefore a no doubt that Osun and other states that are on restructured loan obligations will recieve their full monthly Federal allocations without any deduction at source for this month.

On the state of Excess Crude Proceeds, Minister of Finance told the Council that the Account has a balance of $2.3 billion.

Adeosun also gave an update to the Council on the progress regarding the constitution of the Executive Search Committee of thr Board of Nigeria Sovereign Investment Authority (NSIA Board). The Minister told the Council that nominees have been selected to form a Search Committee that will bring up names of potential Board members of the NSIA.