Monday, April 20, 2026
33.6 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

Bank of Industry Signs Strategic Partnership with RMRDC to Foster Agric Value-Chain Growth

Managing Director and Chief Executive Officer of the Bank...

CBN, FMDA Unveil Nigerian Overnight Financing Rate as New Money Market Benchmark

The Central Bank of Nigeria (CBN), in collaboration with...

Mutual Benefits Customer to Nigerians: Embrace Insurance Because it Works

A customer of Mutual Benefits Assurance Plc, Mr. Abdelhamid...

Guinness Nigeria: N1tn Market Capitalisation Signals Strong Investor Confidence, Sustained Value Creation

Guinness Nigeria Plc has achieved a landmark milestone, surpassing...

Stanbic IBTC Asset Management Bags Top Asset Management Award 2026 by Global Banking & Finance Review

In a noteworthy achievement in Nigeria's asset management landscape,...

Topics

Global Airlines Financial Monitor: December 2018

The industry-wide EBIT profit margin remained broadly unchanged in...

DRONES: $100bn GDP Boost, 5m Job Opportunities in India-WEF

Putting drones at the centre of a technology-led transformation...

NNPC Committed to Building Huge Oil, Gas Infrastructure to Make Sector Thrive

NNPC Limited's Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan...

9mobile Seeks Partnership with Cross River State to Accelerate Development, Growth in the State

L-R: Commissioner of Finance, Cross River State, Mike Odere;...

FINCA Unveils Platform for African Fintechs, Microfinance Firms

Finca International in partnership with the USAID’s initiative Partnering...

Cairo Ojougboh Foundation Back Govt’s Education Development Drive

L-R: Son of the late Dr. Cairo Ojougboh, Mr....

NCDMB Co-Chair, Ekpo, Meets ES, Pledges Support for Local Content Programmes

L-R: The newly appointed Co-Chair of the Governing Council...
spot_img

Related Articles

Popular Categories

spot_imgspot_img