Sunday, 19 June 2016

FG Bailout: Governors Seek Nigeria’s Restructuring To Boost Revenue

Samuel-Ortom-and-Abiola-Ajimobi
The Governors of Benue State Samuel Ortom and that of Oyo State, Abiola Ajimobi, have expressed worries over the inability of some Nigerian states to pay workers.



They stressed the need for a lasting solution to States’ dwindling revenues to avoid crisis that could arise if the Federal Government becomes unable to give bailout to states.
It may be a sad truth but the stark reality is that most Nigeria states of the federation may collapse financially if the Federal Government’s monthly allocation fails.
Although the States get monthly allocation, most of them are unable to pay their workers, leading to the request for a loan from the Federal Government.
The Governors’ opinions on the financial status of Nigerian states are coming as the Federal Government prepares to roll another round of bailouts to the states with several conditions to be met.
Governors Ajimobi and Ortom are asking for the restructuring of the nation to make the states viable and capable of sustaining itself.
In an exclusive interview with Channels Television, Governor Ajimobi advocated for the unbundling of the Federal Government.
“If you remove Federal Government allocation monthly to every states, between 85 and 90 per cent of the states will collapse.
“The Federal Government must unbundle. It has no business in agriculture. It should be a policy formulating body,” the Oyo State Governor stressed.
He further advocated the review of the exclusive and concurrent lists, saying a social-economic restructuring of Nigeria was necessary and apt.
On his part, Dr Ortom clarified the essence of the bailout, saying it was a loan and not a grant.
“The last support we had from the Federal Government through the Central Bank, to borrow money from the bank, was not a bailout. If you talk about baling out, you talk about grants.
“I think that the proposal right now is being misinterpreted. It is a budget support fund to be borrowed to support the states.
“Everybody is aware of what is happening. Salaries are not being paid, even in Benue State, we were affected,” Governor Ortom Stated.
chanmelstv

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