Tuesday, 7 July 2015

President Buhari Okays Sharing of N413.7bn LNG Proceeds to Help States Pay Salaries

Respite will this week come the way of states owing salaries and others, as President Muhammadu Buhari has approved a bailout, Daily Sun can authoritatively reveal.

Twelve out of 36 states and the Federal Government owe workers salaries  about N110billion.

To help states pay salaries, Buhari, in a three-pronged relief package, has approved the sharing of N413.7billion Liquefied Natural Gas (LNG) proceeds between the states and the Federal Government using the revenue allocation formula.

Daily Sun gathered that the President has also instructed the Central Bank of Nigeria (CBN) to package a special intervention fund of between N250 billion and N300 billion from which states could obtain soft loans to pay salary arrears.

Also, Buhari has okayed a debt relief programme, as proposed by the Debt Management Office (DMO), to help states restructure their commercial loans now put at over N660billion

It was also gathered that commercial banks would be persuaded to extend loans owed by states. To do this, the Federal Government  will now serve as guarantor for the loans.

Confirming Buhari’s bailout package,  the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, said the President’s gesture was necessitated by his concern about non-payment of workers’ salaries.

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