List Of States To Get Bailout Funds From CBN Revealed

The Central Bank of Nigeria (CBN) has reportedly confirmed that the apex bank has begun the spending of federal government’s bailout funds to ensure financially distressed states to pay debt of workers’ salaries.

The central bank made this known in a statement on August 26.

The statement read: “Out of the 27 states involved, funds have been disbursed to two states namely Zamfara and Kwara States 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.”

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“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.

The CBN move was “sequel to the decision by the National Economic Council (NEC) at its meeting of 29th June, 2015 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.

“The conditions for accessing the loan facility include resolutions of the State Executive Council authorizing 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.”

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This comes after months of dwindling federal revenues that have shrunk state budgets and led to many local governments being unable pay their employees, some of whom have gone more than 10 months without wages.

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