CBN orders banks to release bailout funds to states

The Central Bank of Nigeria has instructed Banks to release funds to state governments for the payment of salary arrears of their workers.

The directive was communicated through a statement signed by the Director, Corporate Communications, CBN, Mu’azu Ibrahim.

According to the statement, out of the 27 states involved, funds have been disbursed to Zamfara and Kwara, after meeting the requirements of their respective banks.

The statement said in part: “The Central Bank of Nigeria has approved the request by Deposit Money Banks 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 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 authorising the borrowing and State House of Assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order to ensure timely repayment.”

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