Skip to main content

Zamfara, Kwara get FG’s bailout money; others to follow

Two out of the 27 states that applied to Central Bank of Nigeria, CBN, for financial bailout,  Zamfara and Kwara, have received disbursement of funds to pay workers outstanding salaries.
CBN Governor, Mr Godwin Emefiele
CBN Governor, Mr Godwin Emefiele
A statement from CBN said that the two states met the requirements as agreed with their respective banks.
The apex bank said: “Efforts will be made in the coming days to conclude disbursements to other states so that all outstanding salaries to civil servants can be cleared.
“The Central Bank of Nigeria, CBN, has approved the request by Deposit Money Banks, DMBs, to provide financial accommodation to state governments to enable them pay the backlog of salaries of their workers.

“This is sequel to the decision by the National Executive Council, NEC, at its meeting of June 29, requesting the Central Bank of Nigeria, in collaboration with other stakeholders to appraise and consider ways of liquidating the outstanding staff salaries owed by state and local governments.
Conditions for loans
“The conditions for accessing the loan facility include resolutions of the State Executive Council, SEC, authorising the borrowing and state House of Assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order, ISPO, to ensure timely repayment.
“Out of the 27 states involved, funds have been disbursed to two states, namely Zamfara and Kwara, that met the requirements as agreed with their respective banks.
“Efforts will be made in the coming days to conclude disbursements to other states so that all outstanding salaries to civil servants can be cleared.”
CBN had promised to assist in the bail out of state governments that were facing financial crisis earlier.
The N300 billion CBN lifeline, which will enable them pay is ready and has been disbursed to two out of the 27 states that met the condition for the facility.
Of the 36 states, 27 had applied to draw from the cash relief packaged by President Muhammadu Buhari through the apex bank.
CBN facility is one of the three-pronged relief designed by the Federal Government to help financially troubled states.
Other relief plans
The other two are sharing of the $2.1 billion (about N414 billion) 2014 Income Tax/Education Tax; and dividends paid to the Federation Account through the Federal Inland Revenue Service, FIRS, by the Nigerian Liquefied Natural Gas, NLNG, Limited.
Besides, the states’ loans are to be rescheduled.
The President had directed CBN to package the loan to enable the states pay the backlog of salaries owed their workers. CBN is to package a Special Intervention Fund ranging from N250 billion-N300 billion to the states with low interests.
The decision on the N300 billion package was reached at the last NEC meeting, chaired by Vice President Yemi Osinbajo in Abuja.
At the meeting were CBN Governor, Godwin Emefiele, and the governors.
The sudden dip in states’ finances was as a result of the crash in global oil price that has cut Nigeria’s revenue by more than 50 percent, but some governors blamed it all on the Federal Government, which they alleged owed them backlog of billions they claimed to have spent on maintaining Federal facilities in their domains.
Post a Comment

Popular posts from this blog

U.S. Military Helicopter Crashes In Iraq On Thursday, Killing 7 People On Board

One of the U.S. military helicopter in Iraq has crashed after hitting a power line in Iraq's western Anbar province, killing all seven personnel aboard.

According to a statement from Pentagon this morning, the officials said the crash of the HH-60 Pave Hawk helicopter occurred Thursday afternoon near the town of Qaim.

"All personnel aboard were killed in the crash," Brig. Gen. Jonathan P. Braga, director of operations, Combined Joint Task Force - Operation Inherent Resolve, said in a statement.

"This tragedy reminds us of the risks our men and women face every day in service of our nations," he said. "We are thinking of the loved ones of these service members today."

The statement further said;

Badoo Srine Discovered,Alaka Abayomi Of Alaka Petroleum Apprehended(Video)

The Nigerian police SARS, IRT and RRS, has arrested a popular independent oil marketer of Alaka petroleum Alhaji Abayomi Alaka . Following investigations of the recent killing of a family of five over the weekend , kudos to the gallant men of the Nigerian police

Wife Of Donald Trump Junior Files For Divorce

(Reuters) - The wife of Donald Trump Jr., the eldest son of U.S. President Donald Trump, has filed for divorce in New York, according to court records.

Vanessa Trump, a former model and actress, and Trump Jr. said in a joint statement on Thursday: "After 12 years of marriage, we have decided to go our separate ways."

The statement was provided by the Trump Organization, the president's business empire, which his son helps manage.


Further details were not immediately available on the uncontested divorce filing by Vanessa Trump in a New York state court. She and Trump Jr. have "enormous respect" for each other, according to the joint statement, which also asked for privacy.