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, Mrs 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.
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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 receive the sum of N1.1bn.
Investigations by Punch correspondent on Saturday in Abuja showed that the ministry of finance had commenced the disbursement from the first tranche of N50bn to some of the 35 states that applied.
It was gathered that Lagos State opted out from accessing the loan and as such did not send in any application.
A top government official, who spoke in confidence, said that the precarious situation that most of the states found themselves which had made it impossible for them to pay workers’ salaries made the ministry of finance to start releasing the funds at the end of June.
The official said, “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.
When contacted, the Media Adviser to the Minister of Finance, Mr Festus Akanbi, confirmed that the disbursement of the loan to the states had started.