FG, states agree on bailout strategies

The meeting between President Muhammadu Buhari and the state governors ended in Abuja Tuesday with both parties agreeing on how to raise funds to address the financial crisis being faced by the states.

On their part, Governor Abdulazeez Yari of Zamfara State, who is also the Chairman of the Nigeria Governors Forum, said instead of bailouts, the governors requested for the refund of Federal Government projects they carried out in their states.

He said the governors also asked that the tax paid by the Nigeria Natural Liquefied Gas Company be paid into the Federation Account and be shared, and that the Federal Government should ensure that all monies are paid into the Federation Account for sharing as stipulated by the constitution.

On his part, President Buhari assured the governors that the Federal Government will refund monies spent on federal projects by state governments, but insisted that due process must be followed.

Buhari also assured that the days of impunity, lack of accountability, and fiscal recklessness in the management of national resources are over in Nigeria, and vowed that funds stolen by government officials who abused their offices in the recent past will be recovered and systemic leakages stopped.

“There are financial and administrative instructions in every government parastatal and agency. But all these were thrown to the dogs in the past. Honestly, our problems are great, but we will do our best to surmount them.

“The next three months may be hard, but billions of dollars can be recovered, and we will do our best,” the President told the governors.

The President declared that the payment of national revenue into any account other than the Federation Account was an abuse of the constitution, adding that what he had heard was going on in many agencies and corporations, particularly the NNPC, was clearly illegal.

He also said that a comprehensive statement on the economic and financial situation inherited by his administration will be made to the nation within the next four weeks.

On an immediate lifeline for states that owe salaries running into many months, President Buhari said that a committee headed by the Vice President, Professor Yemi Osinbajo, will look at the Excess Crude Account and see what can be shared immediately.

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