ECONOMYTOP STORY

Governors oppose the call for removal of Finance, Budget Ministers

All the 36 state governors in the country have expressed their support for the Finance Minister, Mrs   Kemi Adeosun and Budget and National Planning Minister, Senator Udoma Udo Udoma as against the call for their removal as a result of the recession ravaging the country.

The governors made their stance known on Thursday during a meeting with the Vice President, Yemi Osinbajo in Abuja.

Due to the recession, several members of the Nigerian Senate including its leaders Bukola Saraki and Ike Ekweremadu called for the resignation of both ministers. However, the governors have taken a different stance from the senators.

The reason of the governors is that rather than blaming the two ministers for the declining economy, they should be commended for their efforts in reviving the economy.

Nigeria was last in a recession, for less than a year, in 1991, and experienced a prolonged one that started in 1982 and last until 1984.

The government has so far disbursed more than 700 billion naira in capital expenditure this year, part of a record 6.06 trillion naira ($30 billion) budget for 2016,

Last week, Adeosun revealed the government planned to inject the sum of N350bn into the country’s economy.

The government has also approved a three-year plan to borrow from abroad. Adeosun noted that it would borrow a total of 1.8 trillion naira at home and abroad. The money will be used to fund an expected budget deficit of 2.2 trillion naira.

The foreign loans are expected from agencies such as the World Bank, African Development Bank, China Exim Bank, and other development agencies like the Japanese International Cooperation Agency (JICA).

It is expected that the loans will come with rates of 1.25 percent and a 20-year maturity.

Meanwhile Udoma earlier this week revealed that the country plans to immediately “inject a large amount of fund” into the economy though asset sales, advance payments for license renewals and infrastructure concessions.

He noted that the government had almost finalized a bill-asking parliament for emergency legislation powers to improve the business climate.

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