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FG appoints Skye Bank to pay N40bn monetised arrears

The appointment of the bank for the exercise, according to the letter of appointment issued by the Federal Ministry of Finance, was based on the…

The appointment of the bank for the exercise, according to the letter of appointment issued by the Federal Ministry of Finance, was based on the bank’s efficient e-payment platform and demonstrated excellence in customer service.

A statement issued by the bank said the mandate represents the strength of the bank as a solid and profitable institution. The statement added that the appointment was a testimony to the trust and confidence reposed in the bank by the government, regulators and the banking public.

The statement said the bank had developed very efficient e-payment platforms to also assist the federal government in ensuring the success of its new policy of paying contractors and civil servants through direct payment into their accounts.

The bank, along with others, would pay all the federal civil servants who are currently being owed arrears of their monetised benefits from 2004. The N40 billion was appropriated in the 2009 budget and has been approved for payment by the National Assembly.

The appropriated money represents 50 per cent of the total arrears being owed the federal civil servants, with the balance expected to be paid after the payment of the first tranche.

Skye Bank is currently in such strategic partnership with states like Rivers, Kaduna, and Akwa Ibom, and is also working with some corporate organizations to enhance their cash flow.