Central Bank of Nigeria, CBN, has disclosed that deposit money banks, DMB, have commenced the disbursement of the bailout funds to enable most states clear out outstanding salaries owed workers.
A statement issued yesterday said that out of the 27 states involved, funds have been disbursed to two states, Zamfara and Kwara, that met the requirements as agreed with their respective banks.
It would be recalled that, last month, President Muhammadu Buhari approved a comprehensive relief package to end the lingering and back-breaking burden of unpaid workers’ salaries in several states of the country.
This is sequel to the decision by the National Executive Council, NEC, at its meeting of 29th June, 2015 requesting CBN, in collaboration with other stakeholders, to appraise and consider ways of liquidating the outstanding staff salaries owed by states 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.
President Buhari approved three-pronged relief package, including sharing of fresh allocations, granting of soft loans and restructuring of states’ debt-servicing payments.
Also, CBN was directed to package special intervention fund that will offer financing to the states, ranging from between N250 billion and N300 billion that would come in form of soft loan that states could access to pay the backlog of salaries.
The statement from the apex bank also said that 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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