‎Buhari to Give Fresh Bailout to Governors

By Joshua AmaugoJune 13, 2016 05:00

Related Articles

• Give power improvement credits to Jonathan, not Buhari – Ex-Minister 0 12.Oct
• Fuel Scarcity: Marketers jittery over Ubah’s actions 0 25.May
• Banks turn up the heat with debtors revealed 0 03.Aug

President Muhammadu Buhari, through the Ministry of Finance, has given States who can no longer pay salaries, 8 conditions for a fresh bailout.

‎It could be recalled, that Buhari on assumption of office, had offered to bailout 27 States, which could no longer pay salaries and meet their daily obligations with the $2.1 billion dividend, paid to the Federation Account by the Nigerian Liquefied Natural Gas Company, NLNG.

Post-Nigeria, had reported that other measures the President adopted on the issue, was the use of a special intervention fund by the Central Bank Nigeria, CBN, meant to help prop up the States, ranging from N250 billion to N300 billion soft loans.

Despite the President’s good gesture, most of the 27 States were reported to have diverted the said sum, as only a few months salaries and arrears were paid.

Related: ‎ Despite Bailout, these Governors refuse to pay salaries

A State like Imo, headed by Governor Rochas Okorocha, of the All Progressives Congress, APC, was accused of diverting N26 billion, while Osun State Governor, Rauf Aregbesola, among several others, were accused of ‎withholding or diverting the billions of bailout funds for personal gains.

Related:‎  PDP blast Aregbesola over bailout funds

Meanwhile, an economic expert, Odilim Enwegbara, had proposed that States who cannot use their Internally Generated Revenue‎, IGR, to pay salaries, be merged, to enable them meet up their recurrent expenditure.

‎Despite all efforts made by Buhari to resuscitate these States, things seem to be getting worse, as most of the Governors are not yet thinking outside the box, but always waiting for their monthly allocations, and one government intervention, or the other.

Currently, most of the State Governors are owing their workers salaries, ranging from 2 months to 8 months backlog.

‎In a bid to ease the sufferings of Nigerians, who have been ravaged with the recklessness of their State Governors, coupled with the present economic realities.

Following this, President Buhari, has ordered for an arrangement of a fresh financial support facility, although with stringent conditions.

‎The scheme is designed to provide relief and according to the Federal Ministry of Finance, the succour would need States to meet a 22 point reform agenda, tagged the Fiscal Sustainability Plan, FSP.

‎The FSP, is said to have been already endorsed by the States themselves at a meeting of the National Economic Council, NEC, recently.

‎Some of the conditions require States to publish their audited financial statements and budgets, biometrics and Bank Verification Number, BVN, as well as payroll review exercise for the workers.

‎Other conditions require States to meet targets aimed at enhancing their IGR, establish Efficiency Units to reduce overhead costs, privatise states ‎owned enterprises, domesticate Fiscal Responsibility Act, and put a limitation on further bank loans, among several others.

‎The Ministry added, that the Federal Government is also developing an International Public Sector Accounting Standards, IPSAS, complaints software for the states to use.

‎It is also developing a new bond issuance guidelines, to ease access to the capital market for States wishing to fund developmental projects.

‎According to Kemi Adeosun, the FSP, “Represents an import programme of reforms that will develop best practice of financial management across all ‎ tiers of government and will improve transparency and accountability.

‎”Overall, we believe that the survival of State Government is essential to the economic recovery of Nigeria, specifically their ability to meet salary obligations”, Adeosun added