Nigeria’s President Muhammadu Buhari has approved a fresh N656.112 billion Bridge Financing Facility to the 36 States of the nation
The National Economic Council (NEC) disclosed at the meeting presided over by Vice President Yemi Osinbajo.
The vice president’s spokesman, Laolu Akande, in a statement issued after the meeting, 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 the 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.
Subsequently, the States sought further support leading to the idea of bridge financing.