Lagos - The Central Bank of Nigeria Governor, Godwin Emefiele, has expressed the Federal Government's concern over the inability of some states to pay their workers.
Speaking in Abuja at the Federation Account Allocation Committee (FAAC) extra-ordinary meeting, he noted the inability of most states to pay salaries was due to the huge debt they incurred.
Emefiele observed that most States take short term loans for long term projects and servicing their monthly obligations to the banks hampers cash flow, thereby restricting them from payment of salaries.
The CBN Governor also informed the States that the apex bank was willing to assist such states in restructuring the loans owed the commercial banks.
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He has directed the affected states to submit to the CBN, on or before Wednesday, the list of their loan obligations and other indebtedness to enable the CBN assist them restructure the loan to a long tenure.
He explained that the assistance by the CBN was in the form of concessionary rates to the interested States.
Emefiele said the CBN will schedule a meeting with the States upon receipt of the required data and expressed optimism that the process will be completed before next week.
He advised recipients of the CBN loans to prioritize salary payment as its first line charge, before meeting other obligations.
- CAJ News