Ogun Will Repay Bailout Fund In 10 Years – Amosun | Independent Newspapers Limited
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Ogun Will Repay Bailout Fund In 10 Years – Amosun

Posted: Sep 14, 2015 at 1:05 am   /   by   /   comments (0)

By Laide Raheem Abeokuta

The governor of Ogun state, Senator Ibikunle Amosun, has stated that his government has devised a plan to reduce the repayment period of the bailout funds approved for the state by the Federal Government.

He disclosed that rather than the 20 years debt restructuring approved for states, his government has set machinery in motion to repay the bailout funds just in 10 years.

The governor made this known in Abeokuta when he met workers under the aegis of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). The workers had, last Thursday, staged a rally for good governance in Nigeria.

It will be recalled that the Federal Government, through the Central Bank of Nigeria (CBN), in July approved a restructuring of existing bank loans owed by state governments from a short term repayment period of about seven years to 20 years as part of the bailout for states.

Bank loans acquired for salary arrears, according to the apex bank, will also be extended to a minimum of 15 and not more than 20 years.

But Amosun, who said he did not wish to leave debt for his successor, declared that he would save about N80billion for the state with the option taken by his government.

He disclosed that the state’s bank debt currently stands at N55billion.

The governor also assured workers in the state that salaries and outstanding deductions would be paid as soon as the bailout funds are accessed by the state government.

He, however, charged them to work hard towards increasing the revenue base of the state stressing that if the state could hit N250million monthly in term of IGR, it would no longer have difficulty in paying wages.