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.”
READ ALSO: What Is The Real Motive For Bailout
In Nigeria?
“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.”
READ ALSO: Nigerian Governors Cleared The Air
On Bailout Funds
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.