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LequteMan
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The Muhammadu Buhari government has approved a N90bn loan for Nigerian states to help them out of their difficult financial situations.
The loan will help the states in their bid to be less dependent on the monthly handout from the Federation Account.
According to Finance Minister, Kemi Adeosun, it will be given over one year and will be extended to the states after they have met some very stringent conditions.
“The amount of the loan is N50billion for three months to be shared across the 36 states, including FCT and then N40billion for nine months,” she said.
The idea, “is to tie states over for a year so that they rebalance, which is an average of about N1.3billion per state for the first three months and N1.1billion for the next nine months,” she said.
"It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.
“We are not suspending the federation account; federation account will still be there, but we expect the federation account to recover and as it recovers, we will withdraw the need for this support," she added.
The Nation
The loan will help the states in their bid to be less dependent on the monthly handout from the Federation Account.
According to Finance Minister, Kemi Adeosun, it will be given over one year and will be extended to the states after they have met some very stringent conditions.
“The amount of the loan is N50billion for three months to be shared across the 36 states, including FCT and then N40billion for nine months,” she said.
The idea, “is to tie states over for a year so that they rebalance, which is an average of about N1.3billion per state for the first three months and N1.1billion for the next nine months,” she said.
"It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states”.
“We are not suspending the federation account; federation account will still be there, but we expect the federation account to recover and as it recovers, we will withdraw the need for this support," she added.
The Nation
