Emefiele: 35 states seeking loan from excess crude account

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), has revealed that 35 states want excess crude account-backed loans.

According to Laolu Akande, spokesman of Vice President Yemi Osinbajo, Emefiele disclosed this at the national economic council (NEC) meeting on Thursday.

He was quoted to have also said that 30 states had benefited from the federal government’s bail out loans.

“Thirty states have so far benefited with the salary bailout as at 18th May, 2016. 35 states have applied for the Excess Crude Account-backed loans,” Akande quoted the governor to have said.

Kemi Adeosun, minister of finance, was also said to have reported to the council that the balance in the excess crude account (ECA) stood at $2,259,688,878.06 as at April 30, 2016.

She reportedly disclosed that interest accrued to the account for the month of April 2016 was $429,903.55, experiencing a little drop in interest.

The council, which is composed of all 36 state governors and the CBN governor, approved a fiscal sustainability plan, aimed at helping the states navigate the current economic conditions.

Osinbajo, who presided over the meeting told the council that President Muhammadu Buhari has approved the reconstitution of the Niger Delta Power Holding Company board, which he said will be effected in due course.

SPECIAL COURT FOR OIL VANDALS

As regards finding a solution to the vandalism of oil facilities, Seriake Dickson, who was represented by his deputy, said a committee set-up sometimes in 2013 consulted widely with relevant stakeholders, giving its conclusion.

The committee said inadequate operational patrol vessels to conduct patrol of entire pipeline network, massive unemployment among youths in the region and non-availability of petroleum products in the Niger Delta area were responsible for vandalism and illegal bunkering.

The committee recommended the “procurement and deployment of appropriate technology in surveillance and combat vehicles/boats in difficult terrain”.

It said the “federal government should set up special courts for speedy prosecution of oil bunkerers and oil theft suspects”.

KACHIKWU: SUBSIDY CLAIM WAS N16.4 BILLION PER MONTH

Ibe Kachikwu, minister of state for petroleum, explained to the council that the scarcity in the country was due to non-availability of foreign exchange, following a significant decline in government foreign earnings.

He explained the issues at hand, saying scarcity had created abnormal increase in prices resulting “in our people paying an average of N150 to N300 per litre”.

Kachikwu added that there “is no provision for subsidy in 2016 appropriation (bill) as current estimated subsidy claim per month is N16.4 billion”

NIGERIA MAY TURN TO COLUMBITE FOR SALVATION

Abubakar Bwari, minister of state for solid minerals, presented a policy paper to the council, showing Nigeria was once a mining nation and ranked as a leading producer and exporter of Columbite, and sixth largest exporter of the metal.

The minister said Nigeria lost those positions due to greater attention to oil exploration and exploitation, adding that the indigenisation decree of the 70s that led to the departure of the multinationals which owned the then Tin and Columbite mines.

The policy paper was presented to NEC to apprise the reforms of the minerals sector and to particularly address issuance of licences for solid minerals exploration by both federal and state governments.