The Federal Government has approved that loan deductions from the states allocations be deferred .
This is to allow states meet their salary obligations to workers .
Minister of finance, Kemi Adeosun revealed this on Thursday after a meeting of the National Economic Council at state house Abuja.
She said: “On the update of the financial situation of the states, it was discussed extensively that currently, the federation account receipt is among the lowest that has been seen in recent memory. ‘’We are looking at N299 billion this month and that is because of the very low oil prices recorded in January and February.
If you remember, oil prices went as low as $28 and $31 and, of course, that has led to a very low federation account as a result of which I approached the President and the governors that we defer the loan deductions from the federation account entitlement.”