On Monday, Buhari approved, first, the sharing between the federal and 36 states governments, of $1.7billion (N402 bn) of the $2billion balance in the Excess Crude Account.
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The Central Bankof Nigeria-packaged special intervention fund that will offer financing to the states, ranging between N250 billion to N300 billion, is also another source of the fund, which would take care of the soft loan available to states to access.
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.
Also part of the intervention is a debt relief program proposed by the Debt Management Office, which will help states restructure their commercial loans now put at over 660 billion Naira and extend the life span of such loans while reducing their debt-servicing expenditures.
According to informed sources at the presidency, Buhari has okayed a three-pronged relief package that will end the workers plight.
Buhari has accused his predecessor Goodluck Jonathan’s government of leaving the treasury “virtually empty” and promised to clear the rot in the system.
Beneficiaries of the relief package include workers in Federal Ministries, Departments and Agencies (MDAs) who have remained unpaid for several months. To do this, the Federal Government will now serve as guarantor for the loans.
According to sources, the President took the decision to boost the purchasing power of Nigerians, especially average and low-income earners, and to reflate the economy.
“Some 31 years ago, Buhari, then as a military head of state, also inherited a huge national rot similar to what has been bequeathed to it by the NPN government and had to approve 480 million Naira for the payment of arrears of workers’ salaries”.
The packages are expected to go into effect this week as the President has directed that release of the funds should be made urgently to assuage the plight of thousands of Nigerian workers in the federal and state governments.
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Speaking at the inauguration of the NEC last week, President Buhari asked the Council, which is a constitutional advisory body to him, to consider as a matter of priority how to liquidate the unpaid salaries of workers across the country, noting the untold hardship it has brought to them.
