More states benefit from Buhari’s relief package


President Muhammadu Buhari
States of the federation have started benefiting from the Special Intervention Fund aspect of the presidential relief package earlier approved by President Muhammadu Buhari.
According to Laolu Akande, Senior Special Assistant for Media & Publicity in the Office of the Vice President, this was disclosed Thursday at the National Economic Council, NEC, meeting held at the State House presided over by Vice President Prof Yemi Osinbajo, SAN.
While briefing the Council, the Central Bank Governor, Mr. Godwin Emefiele said 18 states had been able to draw from the Fund, as at Thursday, while a number of other states are currently being processed for the soft loan facility. This is part of President Buhari’s relief package designed to help states pay backlog of salaries and also ease their financial challenges caused by the drop in federal allocation.
In a similar vein, the Director-General of the Debt Management Office, DMO, Mr. Abraham Nwankwo also informed the NEC that the second phase of the debt restructuring offered to the states is now in effect with 13 new states now being considered, with 12 banks involved.
This is in addition to 11 states whose debts were restructured last month, according to Nwankwo who also told the Council 23 states are now involved in the restructuring. While a total of over N322 Billion of states loans were restructured last month, about N252 Billion have been restructured this month.
The presidential relief package has three core elements. These are: The sharing of about $2.1B in fresh allocation between the states and the federal government. The money was sourced from recent LNG proceeds to the federation account, and its release approved by the president leading to the sharing of federal allocation twice for month of June.
A Central Bank-packaged special intervention fund that will offer financing to the states, to …Read More

Source:: PM Newspaper