The critical situation of indebtedness of most states in Nigeria has become a growing concern to most Nigerians. This is coming after States were unable to pay the salaries of their workers for more than 9 months in some cases.

Against the backdrop of this horrific trend, the former Governor of Anambra State, Peter Obi has revealed that they were all warned about saving for the rainy day, or in other words the Governors were advised to eschew fiscal irresponsibility which was a bane to economic development.

In an interview with journalists, Obi gave clarifications on the recent bail out approved for States from the Nigeria Liquefied Natural Gas Company, NLNG dividends by President Muhammadu Buhari and the rationale behind the creation of the Excess Crude Account, ECA, as well as the Sovereign Wealth Fund, SWF.

He also revealed that during his tenure as a Governor the former Finance Minister, Dr Ngozi Okonjo Iweala was persistent in advancing for the cause of saving for the rainy day.

“I have read newspaper reports that it is ironic that she spoke of a rainy day when it was already pouring.
“I personally remain indebted to her because it was from her persistent preaching on the need to save in the Sovereign National Wealth Fund that made me incorporate savings in foreign currency that is why one third of the money we left on leaving office was in foreign currency, $156 million(N25 billion at that time).

“With interest now it would be about $170 million and with the current rate it is almost N40 billion.”

Civil servants in the country especially in Osun State have been owed salaries for up to eight months by the Rauf Aregbesola led Government, which has led to untold hardship.

Aregbesola had disclosed that his hands were tied, adding that there was nothing he could do since the banks had decided to stop lending him funds.


This scenario is a reflection of the critical situation most States have found themselves in on account of their bad economic management. Most of the Governor had blamed the financial hardship in the States on dwindling revenue from crude oil.

Obi believed that the bailout given to the States would help them restructure their debts and added that bad habits should not be rewarded with more money. Hence, he insisted that the bailout should be followed with a clause which would make the states to become prudent.

“I have said severally that there is nothing wrong with bail-out or restructuring of debts, but I insist that such relief must be with conditions to instill fiscal discipline; else we make it a bad habit.
“A debtor must live and behave like one.

“So as a nation, whenever there is a need for a bail-out, be it for a states, banks or another sector we must ensure that such bail-outs do not allow the same irresponsibility that brought about its occurrence.”

Following this development, the Chairman of the Nigerian Governors Forum, NGF, and Governor of Zamfara state, Abdulaziz Yari has disclosed that some indebted States have already lost their bailout funds to servicing outstanding loans they took from banks.

Yari painted a bleak picture showing how the bailout given to the states has not yielded meaningful results as most States have not enjoyed the benefits of the stimulus.

See: Bailout: NGF Chairman scolds fellow Governors, says more trouble ahead

The Governors who are already in a vicious cycle could not get much from the bailout because of their huge debt profile, hence prompting the banks to collect most of the funds released and leaving them with relatively nothing.

http://www.post-nigeria.com/bailout-we-were-warned-about-rainy-days-peter-obi/

hmmmm






I have a problem with your moniker

‎
I had previously made a Presentation that all states without exception should be mandated to  generate at least 25% of their expected expenditure (monthly or annually) as a pre- requisite for obtaining the 75% balance from the federation account. (with real evidence to show that such monies are "organically" generated and not recycled) 

This will ensure that state Governors live up to expectations and stop gallivanting around with nothing to show for their stewardship.

Most of our governors from 1999 till dates irrespective of party affiliation have turned themselves to resource "wasters" instead of opening up their states  and generating good incomes they look for phony openings were they can stash public funds further improverishing their people.

Virtually all states in Nigeria has at least 2 items ( Mineral, Geographical or Human edge) that is capable adding good Dollars to the state coffers.

Towing this part will alleviate fiscal irresponsibility and  transform our "cashier  Governors" and "cup in hand states executives"  into the real titans they are meant to be. 

May God continue to Bless Nigeria and Nigerians

Peter Obi the Okwute Ndi Igbo, the man who saw tomorrow. He saw tomorrow when he started saving for the state, he saw tomorrow when he brought in the technocratic Texaco international auditor in the person of Dr Willie Obiano to take over from him. Today, Anambra is the winner.

,

common sense even tells you to save rather than start projects like tallest drum

lalasticlala Seun ishilove

To all those Governors backbiting Ngor....
Here's to you, a big Ntooor!!!

I always have problem with govs like Oshiomhole, who was adviced by Ngozi, the way Obi was adviced to save for rainy days but choose to waste his state's resources on white elephant & collapsing projects with frivolous hosting of winners of immoral shows (looking for wives) only to turn around and look for whom to blame when the rainy days came.

Nigerian governors are the useless clogs in Nigeria's wheel of progress.

GEJ was not the problem.

He also revealed that during his tenure as a Governor the former Finance Minister, Dr Ngozi Okonjo Iweala was persistent in advancing for the cause of saving for the rainy day.

She warned them but they wouldn't listen but turned around to blame her for their foolishness. You wonder why Anambra isn't feeling the pinch. Instated of saving for the rainy day some of the yeye governors went on with frivolous projects like world tallest talking drum (whatever the drum is supposed to tell the hungry Osun people), roundabouts (as if that will pay the salaries of striking Imo workers).

There is something special about Peter Obi.

Most politicians/governors doesn't care about the petroleum politics or trend. All the are interested in is the petrodollars!. They quickly started big projects, a sure avenue to looting.

The saw nothing good in investment or industrialization. How many of these governors invested on refinery or petrochemical plants, Farm or fertilizer plants, Steal rolling or power plants, textile mill or Chemical plants?

Nigeria was very much productive until we government opted out of production. We keep saying Government has no business in business. Now government is broke, a clear indication of the fact that civil servants are not producing what they earn.

Nigeria depends much on what is under her feet than that between her ears!

kutchs:
She warned them but they wouldn't listen but turned around to blame her for their foolishness. You wonder why Anambra isn't feeling the pinch. Instated of saving for the rainy day some of the yeye governors went on with frivolous projects like world tallest talking drum (whatever the drum is supposed to tell the hungry Osun people), roundabouts (as if that will pay the salaries of striking Imo workers).

apc Governors are the most useless Governors in Nigeria

Osho and Amaechi were the most vocal towards the sharing of the SWF against the advice of NOI to save for the future. The duo alleged that the FGN was keeping the money towards the elections. Fast forward to this day, same Osho is shouting himself hoarse to the high heavens on this same matter.

These guys forget we still remember and there's something called internet that never forgets.

We are watching.

The face of Scam

AnambraDota:
The face of Scam

meaning?

tell, them governors only interested in looting. the only forward thinking gov we have had are fashola, Sullivan chime and probably akpabio. the rest especially those in the poverty stricken and terrorist infested north are the most backwards and highest looters