Osun, Niger, Ebonyi get N43.457bn bailout

CBN Governor, Mr. Godwin Emefiele

Workers in Osun, Ebonyi and Niger states will start receiving their outstanding salaries in a couple of days following the disbursement of the states’ shares of the N338bn bailout fund to their respective state government accounts, amounting to N43.457bn.

The Central Bank of Nigeria confirmed on Thursday that the three states’ accounts with their commercial banks had been credited with a combined sum of N43.357bn.

According to the breakdown, Osun got N34.988bn; Ebonyi, N4.063bn; and Niger received N4.306bn.

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The Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, said the disbursements were made this week.

He said the central bank was ready to give approval within 24 hours after the submission of all required documents by the states for accessing the bailout.

“Disbursements were made to Ebonyi, Osun and Niger this week. Documentations from other states are being expected,” he stated.

Our correspondent learnt that putting all the required documents together by some state governments had been causing the delay in the release of the money.

The release of funds to Osun, Ebonyi and Niger states brought to six the number of states that have so far been paid from the N338bn bailout.

Kwara, Zamfara and Imo states received the money last week.

Mu’azu had said that unless the required documents were complete, the central bank would not give its approval.

He noted that the state governments were aware of the basic requirements for accessing the loan.

According to him, majority of the states are currently working to meet the requirements, adding that as they do so, they will get the central bank’s approval and gain access to the bailout.

Mu’azu said that the approval for the bailout was based on the CBN’s decision to collaborate with relevant stakeholders to consider ways of liquidating the salaries owed workers by state and local governments.

Other conditions for accessing the loans are a resolution of the State Executive Council authorising the borrowing; and the state House of Assembly consenting to the loan package.

There is a need for the issuance of an Irrevocable Standing Payment Order to ensure timely repayment of the loan.

The funds were disbursed to the states that had complied with the requirements as agreed with their respective banks.

It is expected that some of the remaining 21 states out of the 27 that applied for the N338bn bailout will get the money next week.

Kwara, Zamfara and Imo states last week got N4.320bn, N10.020bn and N26.906bn, respectively.

The remaining 21 states and the amounts they are to get are: Abia State, N14.152bn; Adamawa State, N2.378bn; Bauchi State, N8.60bn; Bayelsa State, N1.285bn; Benue State, N28.013bn; Borno State, N7.680bn; and Cross River State, N7.856bn.

Others are : Delta State, N10.036bn; Edo State, N3.167bn; Ekiti State, N9.604bn; Enugu State, N4.207bn; Gombe State, N16.459bn; Katsina State, N3.304bn; Kebbi State, N0.690bn; Kogi State, N50.842bn; Nasarawa State, N8.317bn, Ogun State, N20bn; Ondo State, N14.686bn; Oyo State, N26.606bn; Plateau State, N5.357bn and Sokoto State, N10.093bn.

The bailout is a loan repayable by the states to the banks at an interest rate of nine per cent over a 20-year period.

This came after a high-level discussion involving the National Economic Council let by Vice-President Yemi Osinbajo.

The release of the fund followed the restructuring of their debts into bonds by the Debt Management Office at an interest rate of 14.83 per cent of the value.