Ogun State Governor, Sen. Amosun
Workers in the Southwest states of Ogun, Oyo and Ekiti will start receiving their outstanding salaries in a couple of days following the disbursement of their states’ share of the N338bn bailout fund, amounting to N56.2bn.
The Director, Corporate Communications, Central Bank of Nigeria, Mr. Ibrahim Mu’azu, confirmed to our correspondent on Thursday that the three states’ accounts with commercial banks had been credited with the combined sum of N56.2bn.
Oyo State Governor Abiola Ajimobi
According to the breakdown, Ogun got N20bn; Oyo, N26.606bn; and Ekiti, N9.6bn.
Mu’azu said the latest disbursements made to the three states by the commercial banks following the CBN approval had brought to 15 the total number of states that had received the President Muhammadu Buhari-approved bailout fund.
The CBN spokesperson listed the 12 states that had earlier received their share of the N338bn bailout as Osun, Zamfara, Kwara, Adamawa, Abia, Bauchi, Ebonyi, Gombe, Ondo, Kebbi, Imo and Niger.
He said the central bank was ready to give approval within 24 hours to any state that submitted all the required documents for accessing the bailout.
Mu’azu noted that the state governments were aware of the basic requirements for accessing the loan.
Mu’azu said the latest disbursements made to the three states by the commercial banks following the CBN approval had brought to 15 the total number of states that had received the President Muhammadu Buhari-approved bailout fund.
The CBN spokesperson listed the 12 states that had earlier received their share of the N338bn bailout as Osun, Zamfara, Kwara, Adamawa, Abia, Bauchi, Ebonyi, Gombe, Ondo, Kebbi, Imo and Niger.
He said the central bank was ready to give approval within 24 hours to any state that submitted all the required documents for accessing the bailout.
Mu’azu noted that the state governments were aware of the basic requirements for accessing the loan.
Ekiti State Governor, Ayo Fayose
Our correspondent learnt that difficulties in putting all the required documents together by some of the state governments were causing the delay in the release of the money.
Mu’azu said that unless the required documents were complete, the central bank would not give its nod for the disbursement of the loan.
According to him, majority of the states are currently working to meet the requirements, adding that as they did so, they would get the central bank’s approval and gain access to the bailout.
Mu’azu said approval for the bailout was based on the CBN’s decision to collaborate with relevant stakeholders to consider ways of liquidating the salaries owed the workers by state and local governments.
Other conditions for accessing the loans are a resolution of the states’ Executive Councils authorising the borrowing; and the state Houses of Assembly consenting to the loan package.
There is also a need for the issuance of an Irrevocable Standing Payment Order to ensure timely repayment of the loan.
The funds will then be disbursed to the states that comply with the requirements as agreed with their respective banks.
It is expected that some of the remaining 12 states out of the 27 that applied for the N338bn bailout will get the money soon.
Kwara, Zamfara and Imo states had obtained N4.320bn, N10.020bn and N26.906bn, respectively.
Some of the other states that have also got the bailout are: Abia, N14.152bn; Adamawa, N2.378bn; and Bauchi, N8.60bn.
Osun got N34.988bn; Ebonyi, N4.063bn; Niger, N4.306bn; Ondo, N14.68bn; Gombe, N16.459bn; and Kebbi, N0.690bn.
However, Bayelsa State is expecting N1.285bn; Benue, N28.013bn; Borno, N7.680bn; and Cross River, N7.856bn.
Others are: Delta, N10.036bn; Edo, N3.167bn; Enugu, N4.207bn; Katsina, N3.304bn; Kogi, N50.842bn; Nasarawa, N8.317bn; Plateau, N5.357bn; and Sokoto State, N10.093bn.
The bailout loan is repayable by the states at an interest rate of nine per cent over a 20-year period.
This came after high-level discussions involving the National Economic Council led by Vice-President Yemi Osinbajo.
The release of the fund followed the restructuring of the states’ individual debts into bonds by the Debt Management Office at an interest rate of 14.83 per cent of the value.
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