FG refunds over N700bn to states in 6 years

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The federal government has said it has refunded over N700 billion to state governments for the development of federal infrastructure across all states of the federation over the past six years.

The government said this in a statement titled ‘President Buhari’s Administration at Six’ obtained from the Federal Ministry of Finance, Budget and National Planning in Abuja.

According to the statement, the current regime had extended more than N2 trillion in bailout packages to state governments to enable them meet their salary and pension obligations.

This, it said, was especially in the face of dwindling oil revenues in the first three years of the regime.

The government explained that in 2015, the Debt Management Office restructured DMBs’ loans with a total value of N575.52 billion for 23 states to reduce the debt service burden on the states.

“In exchange for their loans to state governments, the banks were issued 20-year FGN Bonds at a yield of 14.83 per cent per annum,” it stated in the document.

The government further stated that the support came in the form of Budget Support Facility of N614 billion that was extended to the states and Paris club refunds of $5.4 billion.

It said other forms of support included loan restructuring for facilities with Deposit Money Banks.

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