BREAKING NEWS, Business, Featured
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The Central Bank of Nigeria gives Nigerian banks the go ahead to provide funds to state governments which issue irrevocable standing payment order to enable them pay backlog of arrears of salaries to workers
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 is sequel to the decision by the National Economic Council, NEC, at its meeting of June 29, requesting the Central Bank of Nigeria, in collaboration with other stakeholders to appraise and consider ways of liquidating the outstanding staff salaries owed by the 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, ISPO, to ensure timely repayment.
Out of the 27 states involved, funds have been disbursed to two states namely Zamfara and Kwara States that met the requirements as agreed with their respective banks. Efforts will be made in the coming days to conclude disbursements to other states so that all outstanding salaries to civil servants could be cleared.
— Sep 7, 2015 @ 01:00 GMT
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