The Federal Government has begun the disbursement of the first tranche of the N90bn conditional loan facility to some of the 35 states that have so far applied for the loan.
The Minister of Finance, Kemi Adeosun, had on June 14, while announcing the N90bn conditional loan facility to states, said the funds had been secured from the private sector to state governments through the issuance of bonds in the bond market.
She had during a meeting with commissioners of finance from the 36 states of the federation said the loan would be given within a one year period.
The minister had explained that based on the agreement with the governors of the states and the commissioners of finance, N50bn would be released within the first three months where each of the 36 states would get about N1.3bn.
Thereafter, she noted that N40bn would be released over a nine-month period as the second tranche through the bond market where each state would received the sum of N1.1bn.
Already the ministry of finance had commenced the disbursement from the first tranche of N50bn to some of the 35 states that applied, exluding Lagos which opted out.
“The disbursement of the budget support facility to states has started. Disbursement started in June and has been made to some of the 35 states that applied. Only one state which is Lagos State did not apply for the loan.
“Why we started in June was because of the precarious situation in which many of the states found themselves. There have been complaints about non-payment of salaries and there is no way we can just sit back and watch while workers continue to suffer.