See The Real Reason FG Provided Bailout Funds To States
Shortly after the APC led government assumed office in 2015, the Federal Government provided what it called a bailout fund to state governments running into hundreds of billions of Naira.
The government said at the time that because the recession had set in and majority of the state governments were unable to pay workers’ salaries, it had to step in by providing the bailout fund.
But Nigeria’s Vice President, Yemi Osinbajo while speaking on a topic, “Light at The End of The Tunnel” at an event organized by Covenant Christian Centre in Lagos on Monday, gave other reasons for the bailout.
According to him, the states constitute the nation. And once a state is disadvantaged fundamentally one way or the other, as they were, when they simply didn’t have the money to pay salaries, then the whole economy suffers.
"That of course reflects on the performance of the entire economy, so we tried very hard to ensure that the states met some preconditions before some of the bailout were given to them," he shared.
Said Osinbajo: “As of 2015, when we assumed office, two-third of the states have been owing salaries.
“We began a systematic scheme of support for the states in three phases and only recently paid 25% of Paris club refunds, a debt owed the states since 2005.
“All of these interventions were able to ensure that the states survive the recession and workers continue to earn their pay and also support their families.”
He also added: “There are all manners of arguments around the support that the Federal Government provided the states. There are those who said the states should not be supported at all.
“There are those who say that perhaps, the support should come with some preconditions. What we have tried to do is to provide some preconditions for providing the support.”