Only Kwara, Zamfara out of 27 states have met bailout requirements – CBN

Only two States have met the requirements for the disbursement of the bailout funds approved by the Federal Government to settle the backlog of workers’ salaries.
The conditions include resolutions of the State Executive Council authorizing the borrowing and the State House of Assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment.

The Central Bank of Nigeria (CBN) said in a statement yesterday that “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”.

CBN also stated that it 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 Economic 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 CBN said.