Monday, October 20, 2025
29.3 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

When Transparency Becomes Luxury: INEC and ₦1.5bn FOI Controversy

By Chike Walter Duru When the Independent National Electoral Commission...

Unity Bank Corpreneurship Challenge Beneficiaries Hit 578 as 30 More Winners Emerge

  No fewer than 578 young entrepreneurs across Nigeria have...

Polaris Bank Reinforces Commitment to Exceptional Customer Experience at Global Trade Forum in Ibadan

Chris Ofikulu, Executive Director, Retail & Commercial Banking, Polaris...

Fidelity Bank Bags Awards for Best Export, Trade Support and Innovation

  Fidelity Bank’s market leadership has been affirmed once again...

13-year-old Rhema-Love Abraham Emerges Winner of 2025 Heirs Insurance Essay Championship

L:R- Funmi Olotu, National Coordinator, National Social Safety-Nets Coordinating...

Topics

Nigeria Postpones Derivatives Trading Launch to 2017

The Nigerian Stock Exchange (NSE) has postponed to 2017...

SEC: Banks’ Growth Hinges on Firm Regulatory Framework

Securities and Exchange Commission (SEC) has said the remarkable...

Kenya’s mSurvey Mobile Solution to Launch in Nigeria

mSurvey, the mobile-first consumer experience platform, is expanding into...

NAICOM Targets Digital Transformation of Insurance Industry

Mr. O. S. Thomas Commissioner for Insurance National Insurance Commission (NAICOM) The...

NAICOM CEO, Thomas, Visits Lagos Governor, Sanwa-Olu

Mr. O. S. Thomas recently led a delegation to...

Sen. Seriake Dickson Endorses Subnational Climate Governance Ranking Report

The Chairman, Senate Committee on Ecology and Climate Change,...

FBN Insurance, LASPEC Win Inspenonline Awards

Inspenonline Media has given awards to seven insurance firms,...

Stanbic IBTC Pension Unveils N32m FUZE Talent Hunt Festival

R-L: Executive Director, Investment, Stanbic IBTC Pension Managers Limited,...
spot_img

Related Articles

Popular Categories

spot_imgspot_img