Breaking News

Osun begins Interview for shortlisted Teachers across the State | FLOODING: GOVERNOR ADELEKE COMMISERATES WITH VICTIMS IN IWO, DIRECT COMMISSIONER FOR ENVIRONMENT TO CONDUCT ON THE SPOT ASSESSMENT | OSUN HEALTH INSURANCE : TAKING HEALTHCARE DELIVERY BEYOND THE WALL OF FREEDOM. | GOVERNOR ADELEKE CONDOLES ORANGUN OF ILA OVER THE PASSING OF OLOORI ABOSEDE OYEDOTUN EESAYA | Governor Adeleke Surpasses APC’s 12 Years Records under Three Years – Osun Student Leaders | Governor Adeleke Reviews State Policies at Exco Meeting, Issues Further Directives to MDAs. | Osun Appoints Director-General and Special Envoy on Climate Change and Renewable Energy | Governor Adeleke Expands Start-Up Grants to 2000 Youth/Women, Flaunts Achievements in Cooperative Financing. | GOVERNOR ADELEKE FELICITATES WITH ODUA INVESTMENT GROUP CHIEF, OTUNBA LAI ORIOWO ON HIS BIRTHDAY. | Students’ Requests: Governor Adeleke Says Phase 1 of Ada-Ire Road is Completed as Phase 2 will Soon Commence. | Osun State Government Launches Imole Wi-Fi: Public Internet Service Introduced. | Governor Adeleke Congratulates Dr. Akindele on His Birthday Anniversary, Eulogized His Commitment to Duty. | GOVERNOR ADELEKE CELEBRATES DR BOLORUNDURO ON HIS BIRTHDAY. | Gov Adeleke Resolves Feud Within Ife PDP as Stakeholders Reunite Ahead of 2026 | GOVERNOR ADELEKE MOURNS THE PASSING OF OLOFA OF OFATEDO | Governor Adeleke Bags New Honours, Decorated as Patron of FRSC Special Marshals, Pioneer Patron of Forensic Guards Nigeria. | Maulud Nabiyy: Renew your commitments to a prosperous Osun, Governor Adeleke tasks Muslims. | Gov. Adeleke: Osun Is President’s Home, Must Not Be Turned Into Battleground. | GOVERNOR ADELEKE GREETS ZAMFARA GOVERNOR, DAUDA LAWAL, AT 60. | GOVERNOR ADELEKE SALUTES VICE PRESIDENT SHETTIMA AT 59. | Olubadan Designate Endorses Governor Ademola Adeleke for Second Term
CBN
Webmaster September 1, 2015

Good News: N338b Loans For Ekiti, Oyo, Kwara, Ondo, Osun, Others

CBNCash-strapped workers who are being owed salaries are set to smile again, with the disbursement of the Central Bank of Nigeria (CBN) – backed bailout loans for states.
Fourteen banks are disbursing N338 billion “to stimulate the economy”.
Kwara and Zamfara have received their loans and have begun the payment of salary arrears to workers.
A CBN source confirmed that the other states will get the cash this week.
A breakdown of the loans repayable at an interest rate of nine per cent over 20 years is as follows:
Abia- N14.152b; Adamawa- N2.378b; Bauchi- N8.60b; Bayelsa – N1.285b; Benue – N28.013b;
Borno – N7.680b; Cross River – N7.856b; Delta – N10.036b; Ebonyi – N4.063b; Edo – N3.167b; Ekiti – N9.604b; Enugu – 4.207b; Gombe – N16.459b; Imo – N26.806b; Katsina – N3.304b; Kebbi – N0.690b; Kogi – N50.842b; Kwara – N4.320b; Nasarawa – N8.317b; Niger – N4.306b; Ogun – N20.00b; Ondo – N14.686b; Osun – N34.988b; Oyo – N26.606b; Plateau – N5.357b; Sokoto – N10.093b and Zamfara – N10.020b.
The CBN last week announced that it had approved that Deposit Money Banks (DMBs) lend money to requesting states to pay salary arrears owed their workers.
Some of the conditions for accessing the loan include:

  • resolutions of the State Executive Council authorising the borrowing;
  • State House of Assembly consenting to the loan package; and
  • issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment.

With the signing of the ISPO, “it is clear that the facility is not free as the states’ financial exposure to the banks becomes first line charges deducted from their monthly allocation”.
The CBN official explained that specific figures were attached to the facilities to be disbursed to the states is because “every state is to come up with its specific needs in order to access the facility from the commercial banks. They’re (states) working out what they need from the banks according to the conditions they reached with the banks”.
The decision to borrow money from commercial banks is sequel to the decision by the National Executive Council (NEC) at its June 29 meeting, requesting the CBN “in collaboration with other stakeholders to appraise and consider ways of liquidating the outstanding staff salaries owed by state and local governments.”
The Buhari administration announced a bailout package for states to take care of the backlog of workers’ salaries and access funds for development through the rescheduling of their debts by banks with the CBN’s guarantee.
Eleven states have had their commercial debts to DMBs restructured with a proviso to pay 14.83 per cent of the value of their bonds which their commercial debts were converted to. Eleven others are also to have theirs restructured.
Debt Management Office (DMO) Director-General Abraham Nwankwo said “the restructuring was effected using a re-opening of the FGN-Bond issued on July 18, 2015 and maturing on July 18, 2034. The pricing was based on the yield to date of the bond at a 30-day average, resulting in a transaction yield of 14.83 per cent.”The impact of the restructured states’ commercial debts to domestic bonds, he said, is that “management operations will include: monthly debt service burden will drop by a minimum of 55 per cent and a maximum of 97 per cent, among the 11; and interest rate savings for the 11 states ranging from 3 per cent to 9 per cent per annum.”
THE NATION

Leave a Reply

Your email address will not be published. Required fields are marked *