Bailout: CBN Directs Banks To Release Funds For Arrears Of Workers Salary

The Central Bank of Nigeria (CBN)  has said that  that it had  approved the  request by Deposit Money Banks in Nigeria to provide money to state governments help  them settle the arrears  of salaries of their workers.

The CBN disclosed stated this in a statement   by its   Director, Corporate Communications, , Mr Mu’azu Ibrahim.
According to the apex bank,  the approval was hinged on its (CBN’s) decision to work together with all the relevant stakeholders as part of deliberate efforts aimed at  liquidating the outstanding staff salaries owed by states and local governments.

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

“This is sequel to the decision by the National Executive Council at its meeting of 29th June, 2015 requesting the Central Bank of Nigeria, in collaboration with other stakeholders to appraise and consider ways of liquidating the outstanding staff salaries owed by State and local Governments.
“The conditions for accessing the loan facility include resolutions of the State Executive Council authorizing the borrowing and State House of Assembly.”