CBN Begins Disbursement Of Funds To States To Clear Salary Arrears Owed To Workers

CBN Begins Disbursement Of Funds To States To Clear Salary Arrears Owed To Workers

CBN Governor, Godwin Emefiele

The request by Deposit Money Banks (DMBs) to provide financial accommodation to State Governments to enable them pay the backlog of salaries of their workers has been approved by the Central Bank of Nigeria (CBN).

This follows the decision by the National Executive Council (NEC) at it's meeting of 29th June, 2015 requesting the Central Bank of Nigeria, in collaboration with other stakeholders to apprise and consider ways of bailing out states owing workers salaries. 

Resolutions of the State Executive Council authorizing the borrowing and State House of Assembly consenting to the loan package, as well as issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment are conditions for accessing the loan facility.