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.
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. http://www.vanguardngr.com/2015/08/zamfara-kwara-get-fgs-bailout-money-others-to-follow/

We have two states in Nigeria:




1. Anambra


2. Others


Anambra don't wait FG's bail out, We Bail Out Ourselves By Ourselves For Ourselves

I hope the various government will put the funds into judicious use.

how about Osun??

those shameless governors owing their workers and have been receiving all their entitlements go jus dey jubilate...... Bailout fund indeed

sentaljohn:
how about Osun??

those shameless governors owing their workers and have been receiving all their entitlements go jus dey jubilate...... Bailout fund indeed

I tire ooo, i wonder how those set of clueless governors got into power in the first place...SMH

Hw abt dzz guy wetn b hm name sef, mmm?..Are baba, sebi hin don finsh wt dem wrkz...SMh

Heyu

How did we get to this stage where states have to borrow money to pay wages? Thank God for a state like Anambra and Peter Obi, d lesson is to save for the rainy days....

And those who screamed that states, were yet to receive the bail out money will continue to scream even when all the states have collected the money because, they have nothing better to do than scream.

Abeg how I fit get my share.

Oil money

Oil money.

most states in Nigeria are not economically viable yet some people are still demanding for more states. I think some states in Nigeria should merge as one to reduce cost of government and bureaucracy. Also state government should increase their Internal generated Revenue by reducing labour and increasing productivity. most of these states just wait from federal monthly allocation and don't generate nothing.

Only thing cheerful about this news to me is that workers will get their due wages.

BeeBeeOoh:
We have two states in Nigeria:




1. Anambra


2. Others


Anambra don't wait FG's bail out, We Bail Out Ourselves By Ourselves For Ourselves

What is being done differently in Anambra that other states don't/can't do? This isn't me antagonizing you. I've always studied history but I'm just really starting to get into politics so any insight is appreciated. I want to know why Obiano is succeeding and his counterparts are floundering. Is it that his state has more resources or is his governance the difference maker or is it both? Thanks in advance. I'm igbo by the way. KWENU!