BY TheCable
Zamfara and Kwara states are the first beneficiaries of Central Bank of Nigeria’s N300 billion intervention fund specially packaged to enable states offset their backlog of unpaid salaries.
The CBN said the two states were ones that qualified for the fund so far among the 27 applicants.
The central bank in a statement on Wednesday also revealed that it 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 (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 conditions for accessing the loan facility include resolutions of the State Executive Council authorizing the borrowing and State House of Assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment.
“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. Efforts will be made in the coming days to conclude disbursements to other States so that all outstanding salaries to Civil Servants can be cleared,” the statement added.
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