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Bailout: CBN Injects N338b Into 27 States As Stimulus

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… As Kwara, Zamfara, Osun Begin Payment Of Salaries

SAN FRANCISCO, August 30, (THEWILL) – The Central Bank of Nigeria (CBN) will continue its stimulus in the country when it resumes the disbursement of special intervention funds totaling N338 billion to 27 cash strapped states of the federation this week.

Already, Kwara, Osun and Zamfara states, which got their share of the funds last week, have commenced the payment of salary arrears owed their employees.

A source at the apex bank gave a breakdown of the loans to the states, which was pegged at 9% with repayments spread over 20 years as follows:

Kwara N4.320bn, Osun N34.988bn, Zamfara N10.020bn, Abia N14.152bn, and Adamawa N2.378bn.

Bauchi N8.60bn, Bayelsa N1.285bn, Benue N28.013bn, Borno N7.680bn, Cross River N7.856bn, Delta N10.036bn; Ebonyi N4.063bn, Edo N3.167bn, Ekiti N9.604bn, Enugu – N4.207bn; Gombe – N16.459b; Imo – N26.806b; Katsina – N3.304b; Kebbi – N0.690b; Kogi – N50.842b; Kwara – N4.320b; Nasarawa – N8.317b; Niger – N4.306b; Ogun – N20.00b; Ondo – N14.686b; Osun – N34.988b; Oyo – N26.606b; Plateau – N5.357b; Sokoto – N10.093b and Zamfara – N10.020b.

For the states to be able to access the loans they must obtain resolutions of the State Executive Council authorising the borrowing; approval of the State House of Assembly consenting as well as issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment.

The approval for the special intervention fund was sequel to the decision by the National Economic Council (NEC) at its meeting of June 29, 2015, that had requested that the CBN, in collaboration with other stakeholders, should appraise and consider ways of liquidating outstanding workers' salaries owed by state and local governments.