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
spot_img
spot_img

Hot this week

SEC DG: Capital Market Has Capacity to Fund Abuja Infrastructure Projects

Dr. Emomotimi Agama Director-General Securities and Exchange Commission (SEC) The Director-General of...

Mutual Benefits: Shareholders Back Strategic Growth Direction at 30th AGM

Historic 30th AGM: L-R: Managing Director/CEO, Mutual Benefits Life...

NGX, Brazilian Business Delegation Explore Areas of Collaboration, Partnership

WELCOME REMARKS BY ALHAJI (DR.) UMARU KWAIRANGA GROUP CHAIRMAN,...

Leadway’s Post-Recapitalisation Signals Era of Digital-First Insurance for Critical Sectors and Nigeria’s Next Generation

Leadway Assurance, Nigeria’s foremost insurance services provider and a...

The 2026 Almond Insurance Industry Awards Voting Opens Officially

L-R:  Mr. Obinna Chilekezi, Member, Panel of Judges, 2026...

Topics

Global Reinsurers Adjust as Traditional Risks Take Unpredictable Patterns

  Although the global reinsurance industry has been able to...

Stanbic IBTC Named in World’s Top 100 Social Media Savvy Banks

Stanbic IBTC Bank Plc has been named amongst the...

Stanbic IBTC Pension Managers Organises Pre-Retirement Seminars Nationwide

L-R: Nike Bajomo, Executive Director, Business Development, Stanbic IBTC...

Rivers State Govt Heads to Supreme Court over Fight with Pro-Wike Legislators

The Rivers State Government has resolved to appeal a...

Debt Settlement: AMCON Returns Standard Shoe Company to Imo State Govt

Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr....

NNPC GCEO Rallies Judiciary’s Support Against Crude Oil Theft

GCEO NNPC Limited, Mr. Mele Kyari (seated 3rd from...
spot_img

Related Articles

Popular Categories

spot_imgspot_img