The National Executive Council, NEC has announced the approval of the sum of N656 billion Bridge Financing Facility to the 36 states Governors.

Recall that the Council had in July 15, 2021, received updates on the budget support facility to States that sought further support leading to the idea of bridge financing.

President Muhammadu Buhari granted the approval to assist state governments to meet their financial obligations, especially the previous budget support facility due for repayment.

The minister of Finance, Budget and National Planning, Zanaib Ahmed made this known at a virtual NEC meeting presided over by Nigeria’s Vice President, Yemi Osinbajo.

Each State will receive N18.2 billion, according to Ahmed in the bridge being processed by the Central Bank of Nigeria, CBN.

“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 per cent.

“The facility is to help the states afford the repayment of previous bailout facilities guaranteed for them by the Federal Government,” she said.

The deductions for repayment of previous bailout facilities would commence soon as approved by NEC, according to Daily Nigerian report.

“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 per cent.

“The facility is to help the states afford the repayment of previous bailout facilities guaranteed for them by the Federal Government,” she said.

The deductions for repayment of previous bailout facilities would commence soon as approved by NEC, according to multiple sources.

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