The Central Bank of Nigeria (CBN) has come to the rescue of States under the salary debt burden as it has approved the request by deposit money banks to provide financial accommodation to such state governments to enable them pay the backlog of salaries of their workers.
According to Leadership report, out of the 27 states involved, funds have been disbursed to two states, namely, Zamfara and Kwara, which met the requirements of their respective banks. The apex bank said 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 conditions for accessing the loan facility, according to the CBN, 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.
The debtor states are:
4. Akwa Ibom
7. Cross River
Out of the 27 states involved, funds have been disbursed to two states, namely, Zamfara and Kwara.
At least six of these states owe a backlog of salaries for six months and above.