FG Approves N656 Billion Fresh Loan For 36 States

The federal government has approved N656 billion fresh loan for the 36 states of the country.

The details of the loan as announced during the National Executive Council (NEC) meeting on Thursday, each state is expected to receive N18.2 billion.

In a statement issued by Laolu Akande, spokesperson to the vice-president, the loan is to support states and will be released in six tranches over a six-month period.

“In a bid to help state governments meet financial obligations, especially the previous budget support facility due for repayment, President Muhammadu Buhari has approved a fresh N656billion Bridge Financing Facility to the 36 States. Each State would receive N18.2B,” the statement reads

“This was disclosed today at NEC’s 121st meeting (10th in 2021), which was held virtually and was presided over by Vice President Yemi Osinbajo, SAN, with State Governors, Federal Ministers, the Central Bank Governor, and other senior government officials in attendance.

“The Honourable Minister of Finance Budget and National Planning, Dr Zainab Ahmed, informed the Council that the Bridge Facility is now being processed by the Central Bank of Nigeria (CBN).

“The approved Bridge facility of N656.112billion will be disbursed in six tranches over a period of six months to the States. Expectedly, each of the 36 States will have a total loan amount of N18.225billion; with a 30-year tenor, and a 2-year moratorium at an interest rate of 9%.

“The Facility is to help the States afford the repayment of previous bailout facilities guaranteed for them by the Federal Government.”

Following the agreement in July between the governors and the CBN, “the States sought further support leading to the idea of bridge financing”.