NEWS

Salary Arrears: CBN approves bank loans for 27 states

The Central Bank of Nigeria (CBN) has approved the request by banks to provide financial succour for States under the salary debt burden to enable them pay the backlog of salaries of their workers.

 

This follows the decision by the National Executive Council (NEC) at its meeting in June 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.

 

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.

 

 

CBN 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.

 

About the author

Omojuwa

In the beginning...Let there be Light http://en.wikipedia.org/wiki/Japheth_J._Omojuwa

Leave a Comment