- The Central Bank of Nigeria said on Wednesday that it had given approval to the request by the Deposit Money Banks to provide funds for state governments to enable them to pay the backlog of salaries of their workers.
- The Apex bank stated this in a statement made available to our correspondent and signed by the Director, Corporate Communications, CBN, Mr. Mu’azu Ibrahim.
- It said in the statement that the approval was based on the CBN’s decision to collaborate with relevant stakeholders to consider ways of liquidating the outstanding staff salaries owed by states and local governments.
The statement read in part, “The Central Bank of Nigeria has approved the request by the Deposit Money Banks to provide financial accommodation to state governments to enable them to pay the backlog of salaries of their workers.
“This is sequel to the decision by the National Executive Council 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 authorising the borrowing and state house of assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order to ensure timely repayment.”
The statement said out of the 27 states involved, funds had been disbursed to two states, namely: Zamfara and Kwara states, which met the requirements as agreed with their respective banks.
Efforts, it added, would be made in the coming days to conclude disbursements to other states so that all outstanding salaries to civil servants could be cleared.
