The bank noted, “The Salary Bailout Scheme was approved by the Federal Government to assist state governments in the settlement of outstanding salaries owed their workers. Funds are disbursed to banks nominated by beneficiary states at two per cent for on-lending to the beneficiary states at 9 per cent. This also means that the revenue underperformed by 16.99 per cent as it failed to hit the states’ revenue target. States debtAlso, The PUNCH had reported that state governments’ indebtedness to commercial banks rose to N2.2tn amid worsening revenue challenges. He admitted that state governments might be unable to join in the Federal Government’s effort to increase allowance to workers.

Source: Punch October 05, 2023 18:22 UTC