Tambuwal to CBN: Do not recover $2.1bn loans to states

Sokoto State Governor, Aminu Tambuwal has begged the Central Bank of Nigeria (CBN) to withdraw its plan to recover $2.1 billion loans given to state governments as budget support facility.

This appeal was made by the Sokoto state governor on Tuesday during a panel session at the high-level dialogue on financing safe schools and creating safe learning communities organised by the federal ministry of finance, budget, and national planning in Abuja.

Recall that the federal government in 2015 released out bailout loan facilities to states as a result of huge debts hanging on their necks which made it difficult to pay salaries among other financial obligations.

The CBN governor, Godwin Emefiele on Thursday said the apex bank will ask state governments to repay the loans.

Tambuwal while speaking at the event appealed to Emefiele and the finance minister to avoid recovering the loan at this time.

According to Tambuwal, doing so will hinder state government funding to education and creation of safe schools.

“Recovering the debts now from the states will make it impossible for the state governments to fund education in general and the safe schools project in particular,” he said.

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