To ensure that states are economically vibrant and depend less on the monthly handout from the Federation Account, the Federal Government on Tuesday said it will grant a N90 billion loan to the states.
The loan, according to the federal government, will cover a period of one year.
However, the loan will be extended to the state governments after they meet 22 stringent conditions put together by the federal government.
Addressing journalists at a stakeholders’ meeting held with states’ Commissioners of Finance on the Fiscal Sustainability Plan (FSP), the Minister of Finance, Mrs. Kemi Adeosun, said “the loan is in two tranches – N50 billion for three months to be shared across the 36 states including FCT and then N40 billion for nine months.”
“The idea is to tie states over for a year so that they rebalance. The loan is an average of about N1.3 billion per state for the first three months and N1.1billion for the next nine months.”
“It is a loan and it is fully repayable although it has a secured tie against future dividends, revenues and any amount that government might owe the states.