President Muhammadu Buhari has approved the sum of N656 billion as Bridge Financing Facility to the 36 States of the federation.

This was disclosed by the Minister of Finance, Zainab Ahmed on Thursday at the virtual NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja, according to NAN.

The Minister stated that each state will receive the sum of N18.2 billion to enable governors to meet financial obligations.

What the Minister is saying

She revealed that the facility is being processed by Nigeria’s Central bank, adding that the approved bridge facility of N656.112 billion will be disbursed in six tranches over a period of six months to the states.

“Expectedly, each of the 36 States will have a total loan amount of N18.225 billion; with a 30-year tenor, and a 2-year moratorium at an interest rate of nine per cent.

“The facility is to help the states afford the repayment of previous bailout facilities guaranteed for them by the Federal Government,” she said.

On July 15, the council had received updates on the budget support facility to states. At that meeting, Ahmed informed NEC that the deductions for repayment of previous bailout facilities would commence soon. Subsequently, the states sought further support leading to the idea of bridge financing.

In case you missed it

Nairametrics reported in July that the National Economic Council (NEC) said there is an agreement with the Central Bank of Nigeria (CBN) to commence deductions on the $2.1 billion budget support facility that was granted to the states by the Federal Government from this month.

The Federal Government, States and Local Government Councils (LGCs) shared the sum of N671.910 billion as Federation Accounts Allocation Committee (FAAC) for the month of October, as Excess Crude Account (ECA) stands at $60.860 million dollars.