FG to release N656.1bn bailout bridge facilities to states

The federal government is set to release N656.1 billion as six months bailout bridge facilities to state governments that benefited from the FG’s bailout programme.

This is to cushion the effect of the bailout loans recovery which will soon commence by the FG.

A statement by Mr Olajide Oshundun, the Ag. Director (Information), Federal Ministry of Finance, quoted the Minister of Finance, Budget and National Planning, Mrs Zainab S. Ahmed to have stated this at the National Council on Finance and Economic Development (NACOFED) with the theme “Public Sector Finance Management in the New Normal (Post COVID -19)” holding in Lagos.

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She said: “President Buhari has approved a bridging facility in the sum of N656.1 billion to be granted to States over a period of six months towards cushioning the effect of the resumption in the repayment of the three FGN Bailout facilities”, disclosing that already the modalities of the facility had been worked out and the disbursement is expected to commence soon.

The Minister also hinted that based on the commitments shown by the 36 State governments in implementing the different reforms of the federal government, the FG has also concluded arrangements with the World Bank to further make available another sum of $750 million as additional financing for States under the States Fiscal Transparency, Accountability and Sustainability (SFTAS) programme.

Earlier, the Permanent Secretary Finance, Mr Aliyu Ahmed, during his welcome address, stated that various recommendations of NACOFED conferences in the past served as inputs for preparation of annual budgets as well as for policy formulation towards economic growth and development at both the federal and sub-national levels, adding that this forum will discuss topical issues of national interest and proffer suggestions towards charting the best way forward for the country.

Daily Trust