Banks get CBN’s nod to release funds to clear states’ salary arrears

Posted by News Express | 27 August 2015 | 2,758 times

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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 is sequel to the decision by the National Economic Council (NEC) at its meeting of June 29, 2015 requesting the apex bank, in collaboration with other stakeholders, to appraise and consider ways of liquidating the outstanding staff salaries owed by state and local governments,” a competent CBN source told News Express yesterday evening.

The source disclosed that 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,” the source said, adding: “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.”

•Photo shows CBN Headquarters.

Source: News Express

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