18 states have benefited from bailout, says FG

Eighteen states have so far benefited from the special intervention fund earlier approved by President Muhammadu Buhari.

Over N322 billion of states’ loans were restructured in August, 2015, while about N252 billion have been restructured this month.

This was disclosed on Thursday at the national economic council meeting held at the state house and presided over by Vice President  Yemi Osinbajo.

While briefing the council, Godwin Emefiele, governor of the Central Bank, said 18 states had been able to draw from the fund.

Laolu Akande, spokesman to Osinbajo, quoted Emefiele as saying a number of other states were currently being processed for the soft loan facility.

The  relief package was designed to help states pay backlog of salaries and also ease their financial challenges caused by the drop in federal allocation.

Abraham Nwankwo, director-general of the Debt Management Office, was also said to have informed NEC that the second phase of the debt restructuring offered to the states was now in effect with 13 new states being considered and 12 banks involved.

This is in addition to 11 states whose debts were restructured last month, according to Nwankwo, who also told the council that 23 states were now involved in the restructuring.