President Buhari Approves N656.11bn Fresh Bailout For 36 States

President Muhammadu Buhari

The sum of N656.112 billion has been approved by President Muhammadu Buhari for the Bridge Financing Facility of the 36 States.

This was disclosed at the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo on Thursday, November 18.

A statement released by Laolu Akande, spokesperson of the Vice  President, said each state would receive N18.225 billion with a 30-year tenor, and a 2-year moratorium at an interest rate of 9%.

According to the presidency, this step was taken in a bid to help state governments meet financial obligations, especially the previous budget support facility due for repayment.

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 N656.112 billion will be disbursed in six tranches over a period of six months to the States.

It would be recalled that on 15th of July, 2021, the Council had received updates on the Budget Support Facility to States. At that meeting, the Finance Minister had informed the Council that the deductions from State Governments would commence soon as repayment for the previous bailout from the CBN.