N300bn bail out; STATES TO DRAWDOWN FROM IT SOON. Said PMB.

The only thing to lay more emphasis on here, is the issue of judicious use of these fund being issued by the Federal government. That is why Akande on his speech, made it clear for the National Economic Council (NEC)’s to advise the state governors to henceforth make the payment of salaries a first-line charge, do more to increase their internally generated revenue, clean up their payroll to eliminate ghost workers and have  fully functional DMO.

Due to this, agreement has been reached for existing state loans be restructured for 20 years, and regarding the bond option, the rates to be applied would be market-based but with a cap to make it affordable. Within weeks from now, the states are expected to start benefiting from these two parts of the presidential intervention fund.”
The details of the presidential intervention are in three parts including the sharing of about Liquified Natural Gas (LNG) $2.1 billion funds, the CBN’s N250 to N300 billion soft loans to states and a debt relief programme by the CBN and Debt Management Office (DMO), to extend state loans by 20 years.


President Muhammadu Buhari had brought the financial muscle of the Federal Government to bear on behalf of the states, guaranteeing the elongation of the loans by 20 years.

“Besides, the availability of the $2.1 billion from LNG, which has now been shared to the states was made possible because President Buhari had set a new fiscal standard that all monies generated should go to the federation accounts. LNG dividends were going to NNPC designated accounts, before this order was upheld by the president.