Saturday, May 16, 2026
30.4 C
Lagos

The N714bn Bailout: Matters Arising

It was good news the other morning when news filtered out that the federal government has graciously given cash-strapped states a bailout of approximately N714 billion to settle outstanding salaries and other forms of wages to workers in their states.

To the workers, it was probably the best news of the year 2015, given that some that had fallen into arrears for upwards of seven to nine months. To ordinary Nigerians not directly affected by the salary crisis in the affected states, the bailout represents a moment of relief from the plight of the workers.

For the state governments, the bailout is only a temporary measure to relieve them of the scandalous inability to meet their obligations to workers in the states.

It is important for state governments to look inwards to know why they fell into the arrears in the first instance. A lot has been said about the negative impact of the 2015 general elections in terms of funding of the campaigns of political parties, which according to media reports, amounted to billions, if not trillions of Naira. The alleged expenses on the part of the state governments were said to have contributed to their perilous financial status, leading to non-payment of salaries and finally, the bailout from the federal government.

Our position going forward is that state governors should take the welfare of their people into consideration before embarking on any type of financial jamboree that does not generate income for the state.

There is need for state executives to respect public funds at their disposal for the simple that it is public funds that must be spent solely on public interest.

Finally, we want to commend President Muhammadu Buhari for lending a helping hand to the states to enable them to settle outstanding salaries. We also encourage him to put pressure on state governors to re-assess their priorities and place public funds at the disposal of the people.

For now, we welcome the bailout and hope that the nation will not be compelled to grant another bailout in the foreseeable future.

spot_img
spot_img
spot_img

Hot this week

CIG Motors: Pay ₦3m For a Brand New Car in May Splash Promo on Electric, Petrol Vehicles

New campaign introduces EasyPay auto-financing, major discounts and nationwide...

Understanding Why Corporates Need Credit Rating

In today’s dynamic financial landscape, silence leaves room for...

Distinguished Industry Veteran, Olusola Teniola, to Chair NDSF 2026

The organising committee of the 2026 Nigeria DigitalSENSE Forum...

The Nigeria Prize for Science & Innovation Hits New Peak as 2026 Edition Attracts 237 Entries

The 2026 edition of The Nigeria Prize for Science...

Heirs Insurance Group Named among Africa’s Fastest-Growing Companies in Financial Times Ranking

Heirs Insurance Group has achieved a landmark double recognition,...

Topics

NCC Chief, Danbatta, to keynote Business Journal Lecture on Digital Disruption

Professor Umar Danbatta, Executive Vice- Chairman, Nigerian Communications Commission...

Ecobank: Building Entrepreneurs, Supporting Financial Inclusion via Xpress Point Agents  

  Ecobank Nigeria has reiterated that its agency banking scheme,...

Olashore International Receives 2018 Africa Top Schools CEO Award

The Principal and Chief Executive Officer of Olashore International...

Signal Alliance, MainOne Win at Microsoft Nigeria Partners Award

Microsoft Nigeria recently held its maiden edition of its...

WorldStage Economic Summit 2024 to Address Business, Economic Recovery

With Nigeria’s economy still struggling to shake off the...

Ibru Varsity Pro-Chancellor, Anthony Kila, to Chair Business Journal Annual Lecture 2025

Professor Anthony Kila, Pro-Chancellor, Michael & Cecilia Ibru University,...

NAICOM, CIIN, Youth Min Sign MoU to Train 1m Youths on Insurance

From left: Dr. Usman Jankara (Dep. Commissioner for Insurance,...

Sovereign Trust Insurance Rights Issue Opens June 24

The Management of Sovereign Trust Insurance Plc has announced...
spot_img

Related Articles

Popular Categories

spot_imgspot_img