The Federal Government is yet to offset the sum of N14.37 billion it reportedly borrowed from stabilisation fund account for security purposes, New Telegraph has learnt. There are other debts standing against the FG from the same account with their details undisclosed.

To this end, the custodian of stabilisation account – the Federation Account Allocation Committee (FAAC) – has expressed displeasure over Federal Government’s refusal to repay the loan. FAAC is said to have taken this position after it was briefed by a sub-committee at its last meeting in Abuja.

“Following default by the central government to keep with loan repayment agreement, it was resolved that the Federal Government should repay the loan and other outstanding loans/releases from the 0.5 per cent stabilisation fund and 1.68 per cent Development of Natural Resources Fund Accounts and to henceforth follow the due process in accessing the account.

“Irrespective of the fact that the fund was taken for security purpose, there was the need to follow the due process in accessing the 0.5 per cent stabilisation fund account as stipulated in the allocation of revenue Act,” FAAC declared.

A source privy to FAAC’s deliberation informed New Telegraph that Federal Government’s representative at the meeting explained to FAAC that the fund in question was a loan taken for an immediate security intervention and gave assurance that government was making frantic efforts to repay it.

The Nigeria Air Force (NAF) had, in the past, borrowed from similar stabilisation account to fund some of its key operations, which it repaid with interest. New Telegraph exclusively reported in March, this year, that NAF had paid back N19.44 billion to the stabilisation account.

Air Force repaid both the principal amount and accruing interest in three instalments. A source familiar with the NAF operations said that the larger part of the funds might have been deployed to acquiring hardware to aid in dislodging insurgents in the North-East.

The repayments, made in three tranches, included N9.5 billion, N7.9 billion and N2.04 billion. Stabilisation account is one of several accounts under the control of FAAC. The revenue sharing laws provide that 0.5 per cent of funds accruing to the Federation Account should be remitted to the stabilisation account.

At the peak of crude oil harvest in 2010, the stabilisation account had balances of about N120 billion as of August 2010, but was depleted to N37 billion by October of same year.

Source: NEW TELEGRAPH