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The Central Bank of Nigeria (CBN) 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 came following the decision by the National Executive
Council (NEC) at its meeting of 29th June, 2015
requesting the CBN, 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.
Meanwhile Kwara and Zamfara States are the first to
enjoy CBN’s N300 billion intervention fund targeted at
helping the states pay backlog of salaries owed to workers.
According to the CBN, out of the 27 states that applied
for the fund, only the two states have so far qualified.
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