The National Economic Council (NEC) on Thursday announced a fresh N656 billion Bridge Financing Facility to the 36 States of the federation.
Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Thursday at a virtual NEC meeting presided over by Vice President Yemi Osinbajo.
Ahmed said President Muhammadu Buhari gave approval for the immediate release of the facility to help States meet their financial obligations, especially as the previous budget support facility has become due for repayment.
She said the bridge facility, which was being processed by the Central Bank of Nigeria (CBN, would see each state receiving N18.2 billion.
“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 2-year moratorium at an interest rate of nine percent.
“The facility is to help the States afford the repayment of previous bailout facilities guaranteed for them by the Federal Government,’’ Ahmed said.
At that meeting, Ahmed informed NEC that following the updates received on July 15 on the budget support facility to States, deductions for repayment of previous bailout facilities would soon commence.
Subsequently, the states sought further support leading to the idea of bridge financing.
On the updates on the various savings accounts of the Federal Government, the Minister said the balance in the Excess Crude Account (ECA) as at November 15, 2021 stood at about $60.86million; Stabilization Account N27.1034 billion, and Development Of Natural Resources Account N60.889 billion.