27 states to get CBN N300b bailout

Governors and workers of cash strapped states who are owed arrears of salaries, may smile soon as reports indicate that the Central Bank of Nigeria (CBN) lifeline, which will enable the sates pay salaries, will be ready in two weeks.

Of the 36 states, 27 have applied to draw from the cash relief packaged offered by President Muhammadu Buhari through the apex bank, which is one of the three-pronged reliefs 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, about three weeks ago, 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 apex bank, The Nation reports however settled for the higher figure in view of the magnitude and the depth of the financial commitment of the states.

Read also: Osinbajo explains bailout to states

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 last Thursday.

At the meeting were CBN Governor Godwin Emefiele and the governors.

A CBN source said yesterday that barring any unforeseen circumstances, disbursement to the states will begin in two weeks.

There was no information yet on the identities of the states seeking the relief package, even as it was learnt that in making their requests, each of the 27 states submitted details of its indebtedness to the banks, the amount owed to contractors, arrears of workers’ salaries as well as outstanding pensions.

Presidency sources said Buhari’s recourse to the measures was intended to ease the pains workers have been undergoing.

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