President Muhammadu Buhari has taken a bold approach to improve the country's economy by doling out N18.2 billion to the 36 States in the country. This will enable these States to meet their financial obligations.
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As reported by Peoples Gazette, Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed that this loan is a "Bridge Financing Facility" which is processed by the Central Bank Of Nigeria. She also stated that the loan is with a 30-year tenor and a two-year moratorium at an interest rate of nine per cent. Also, she revealed that the loan would go a long way to help governors repay back bailout funds guaranteed to them by the federal government.
With no doubt, this incentive by President Buhari is huge, appalling and praiseworthy. The President has shown that growing the country's economy is important to him.
Image Credit: Peoples Gazette
With this loan, the negative effect of deducting bailout fund on a state can be limited if not eliminated. Recall that on assumption of office, Buhari gave out funds to states to offset workers salaries. This was necessary as most states were owing their workers salaries, even up to 11 months.
President Buhari has shown his support to the state by not allowing them to suffer the harsh effect of repayment of this bailout fund through cushioning their budget with N18.2 billion. To me, this is a magnanimous effort of a caring leader towards strengthening the country's economy
Well, it is important that Nigerians strongly advocate that state governors make judicious use of this loan so as not to betray the president's effort.
What's your take on this loan? Share your thought with us.
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