Federal Government Commences State “Bailout” Packages
The federal government of Nigeria has made moves to ensure that financial relief will come the way of many of Nigeria’s debt ridden states.
It is estimated that 18 out of Nigeria’s 36 states are incapable of paying salaries to civil servants. The sharp decline in oil prices late last year ensured that the Excess Crude Account was no longer payable to many of the states therefore rendering them financially handicapped.
President Muhammadu Buhari ordered the sharing of about N413.7bn between the states and the local government and ordered a N250 special intervention fund be arranged by the Central Bank of Nigeria (CBN) to offer financing to the states, in the range of about N250bn to N300bn.
For many of those who question the source of the funds, the Presidency has informed it is from the sale of Liquefied Natural gas. ¨
This news comes as a wave of relief to states such as Osun where civil servants have remained unpaid since December 2014.