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FG approves N18.2 billion loan each to 36 governors

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PRESIDENT Muhammadu Buhari has approved a fresh N656 billion Bridge Financing Facility to 36 states where each state will receive N18.2 billion.

  Minister of Finance, Budget and National Planning, Zainab Ahmed, , disclosed this on Thursday at a virtual  meeting of National Economic Council (NEC) , presided over by Vice President Yemi Osinbajo and anchored from the Presidential Villa, Abuja.

  Ahmed said that  each state will receive N18.2 billion and that the bridge facility is 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.   Expectedly, each of the 36 states will have a total loan amount of N18.225 billion, with a 30-year tenor and a two-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.

  It will be recalled that on July 15, the council had received updates on the budget support facility to states. At the meeting, Ms 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.

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