—Zamfara and Kwara gets funds
—Others to follow
By Omoh Gabriel
Two out of the 27 states that apply to Central Bank of Nigeria fro financial bail out have received disbursement of funds to pay workers outstanding salaries. The two states for with funds have been disbursed are Zamfara and Kwara States. A statement form the Central Bank of Nigeria said that met the two states met the requirements as agreed with their respective banks.
According to the apex bank “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 CBN said “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 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. 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”.
The CBN had promised to assist in the bail out of state governments that were facing financial crisis earlier. The N300 billion Central Bank of Nigeria (CBN) lifeline, which will enable them pay is ready an has been disbursed to two out of the twenty seven states that met the condition for the facility.
Of the 36 states, 27 have had applied to draw from the cash relief packaged by President Muhammadu Buhari through the apex bank. The CBN facility is one of the three-pronged relief designed by the Federal Government to help financially troubled states.
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.
President Buhari, had directed the CBN to package the loan to enable the states pay the backlog of salaries owed their workers. The 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 relief package was reached at the end of discussion at the last National Economic Council (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 per cent, but some governors have 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.
