The 36 State Governors have thrown their weight behind the proposal of the Federal Government to share only N900 billion from the whole revenue of N1.9trn which may have accrued to the federation by Federation Accounts Allocation Committee.
The endorsement of the Federal Government’s proposal was made known at a meeting held by the Governors on Wednesday night in Abuja.
The Federal Government had established during the meeting that the sharing of the entire N1.9trn was no wise economic decision as it would shoot up the amount of money in circulation while putting further inflationary pressures in the economy.
One of the governors who attended the meeting confirmed that the Federal Government raised concerns that if the entire N1.9trn is to be shared, it may put pressure on the naira and also affect the price of fuel.
The governors then agreed that N900bn should be shared while the balance of N1trn be transferred to the Central Bank of Nigeria to shore up the nation’s external reserves.
Figures obtained from the Central Bank of Nigeria showed that as of July 18, Nigeria’s external reserves stood at $33.99bn.