NEC approves N18.2bn bailout to each state

President Muhammadu Buhari has approved a fresh N656 billion Bridge Financing Facility to the 36 states.

Each state would receive N18.225 billion, with a 30-year tenor, and a two-year moratorium at an interest rate of 9%.

The bailout is to help state governments meet financial obligations, especially the previous budget support facility due for repayment.

This was the outcome of Thursday’s National Executive Council (NEC) meeting, which was held virtually and was presided over by Vice President Yemi Osinbajo.

State governors, ministers, the Central Bank Governor, and other senior government officials were in attendance.

Minister of Finance, Budget and National Planning, Mrs. 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 N656.112 billion will be disbursed in six tranches over a period of six months to the states.

The facility is to help the states afford the repayment of previous bailout facilities guaranteed for them by the Federal Government.