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Tuesday, 7 July 2015

Buhari approves N400billion for State Workers Over Unpaid Salaries

President Buhari has endorsed a three-pronged relief package that will end the workers plight by ordering the sharing of about $2.1 billion (N413.7 billion) in fresh allocation between the states and the federal government.

The money is to be sourced, with presidential approval, from the recent Liquified Natural Gas (LNG) proceeds paid into the federation account.

This is a deft political maneuver by the President giving that getting the past administration to so easily shell out this amount to state governments to pay workers salaries will be more difficult than squeezing water out of rock.

A Central Bank-packaged special intervention fund that will offer financing to the states, ranging from between N250bn to N300bn. This would be a soft loan available to states to access for the purposes of paying backlog of salaries;

And a debt relief program proposed by the Debt Management Office, DMO, which will help states restructure their commercial loans currently put at over N660bn, and extend the life span of such loans while reducing their debt-servicing expenditures.

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