Buhari Didn’t Approve Withdrawal From Excess Crude Account; Relief Package Drawn From NLNG Dividends – Presidency
The presidency has denied media report that President Muhammadu Buhari, approved withdrawal from the Excess Crude Account as part of relief measures to enable states pay the backlog of salaries owed workers.
Some section of the media has reported that the president approved the sharing of N391 billion from the Excess Crude Account between the Federal Govt and the 36 states.
But the presidency in a statement by the Special Adviser on Media and Publicity, Femi Adesina Friday said the reports are incorrect.
“Reports in sections of the media today that funds will be drawn from the Excess Crude Account for the relief package approved by President Muhammadu Buhari for states and local governments, are incorrect.?”
Adesina added that: “For the purpose of greater clarity on the matter, the measures approved by President Buhari to deal with the problem of unpaid public sector salaries in many states are as follows:”
*The sharing of the $2.1 Billion dividend paid to the Federation Account by the Nigeria Liquefied Natural Gas Company (NLNG);
* A Central Bank-packaged special intervention fund that will offer financing to the states, ranging from N250 Billion to N300 Billion. This will be a soft loan available to states for the purposes of paying backlog of salaries; and
*A debt relief program designed by the Debt Management Office which will help states restructure their commercial loans currently put at over N660 Billion, and extend the life span of such loans while reducing their debt-servicing expenditures.
The measures approved by President Buhari definitely do not include drawing down the remaining balance in the Excess Crude Account or the “liquidation” of the account as some media outlets have wrongly reported.
No such decision has been taken or approved by President Buhari, and last week’s meeting of the National Economic Council clearly concluded that the Excess Crude Account should be left untouched at this time.