By Levinus Nwabughiogu

ABUJA—National Economic Council, NEC yesterday revealed that a total of 22 States have applied for the Federal Government of Nigeria bonds to raise money to remedy their indebtedness to commercial banks.

Of this number, 11 States have successfully been screened by the Central Bank of Nigeria, CBN and Debt Management Office, DMO.

The Council also hinted that the Excess Crude Accounts accruals for sharing amongs States were $2.207.

Briefing Journalists at the State House after a session chaired by the Vice President, Professor Yemi Osinbajo, the NEC represented by 4 governors of Anambra, Kwara, Jigawa and Ogun states, stated that the transaction was a “funding avenue provided by the federal government” to assist indebted States.

The governors who fielded questions from State House Correspondents intermittently also hinted that the Council also looked at the dwindling oil prices, the CBN new policy on exchange rate.

“The Council received briefings on developments in the Power sector, from the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, the Director-General of the Debt Management Office, Mr. Abraham Nwankwo, Group Managing Director of the NNPC, Dr. Emmanuel Ibe Kachikwu and also from the Ad-Hoc Committee of the Council on the management of the Excess Crude Oil Account.

“The Director-General of the Debt Management Office told the Council that based on the approval of Mr. President on the plan to restructure bank loans of States into FGN Bonds in order to address fiscal imbalance, twenty-two (22) States had submitted reports and applied for restructuring as at August 19, 2015.

“The Director-General also said the Debt Management Office had requested the States to reconcile figures with the banks and have been jointly authenticated with the banks as at June 30, 2015.

“As at August 14, 2015, out of the 22 States that have applied, FGN Bonds have been issued in respect of the loans of 11 States. The bonds were issued to 14 banks after submitting the reconciled figures and other required documents for the restructuring.

“DMO is now reviewing the additional submissions by States in the second phase of the programme.

“The Permanent Secretary, Ministry of Finance reported to the Council that the current Excess Crude Proceeds stand at US$2.207 billion as at August 2015

“CBN Governor briefed the Council on the state of the economy and exchange rate of the Naira. He attributed the situation to some of the following:

“Declining oil price which put a drag on the foreign reserves; Exchange rate movements and pressure on the domestic currency; Inflation and tight monetary policy.”