Buhari approves fresh N656bn for 36 states to meet financial obligations

President Muhammadu Buhari has approved a fresh N656.112 billion Bridge Financing Facility to all the 36 states in Nigeria to help them meet financial obligations.

According to the report, each state will get N18.2billion support fund to help them repay previous budget support fund.

This was disclosed at the National Economic Council (NEC) meeting on Thursday which was presided over by Vice President Yemi Osinbajo, Governors, Ministers, Central Bank Governor, and other senior government officials attended.

The Finance Minister, Zainab Ahmed, informed NEC that the Bridge Facility is being processed by the Central Bank of Nigeria (CBN), adding that the funds will be disbursed in six tranches over six months, with a 30-year tenor, and a 2-year moratorium at an interest rate of 9 percent.

Recall that at the NEC meeting on July 15, Ahmed said there would be deductions from state governments as repayment for the previous CBN bailout.

She stressed that states subsequently sought further support which brought about the idea of bridge financing.