Deposit Money Banks (DMBs) have received approval from the Central Bank of Nigeria (CBN) to provide financial ease to state governments, so they can pay the salary arrears to their staff.
This is based on the CBN's decision to collaborate with relevant stakeholders in order to find ways of liquidating the outstanding staff salaries owed by state and local governments.
To access the loans however, approval must be obtained from the State's Executive Council, State's House of Assembly and an Irrevocable Standing Payment Order (ISPO) must be issued.
Zamfara and Kwara states have met the requirements as agreed with their respective banks and the funds have been disbursed to them
"Efforts will be made in the coming days to conclude disbursements to other states so that all outstanding salaries to civil servants can be cleared," the Director of Corporate Communications, CBN, Mr Mu'azu Ibrahim said.
The News Agency of Nigeria (NAN) reports that this comes three days after the Director-General, Debt Management Office (DMO), Dr. Abraham Nwankwo, said bonds had been released to 14 commercial banks to enable them to aid states.
The funds according to the DMO boss is open to all the 36 states of the federation, including the Federal Capital Territory.
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