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Again, States Seek Another Bailout, Osun Worst Hit - Politics - Nairaland

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Five States Meet Conditions For N90Billion Federal Bailout / States Get Another Bailout To Pay Workers Salaries / “We Are Needing Another Bailout” – Nigerian Governors Declare Bankruptcy (2) (3) (4)

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Again, States Seek Another Bailout, Osun Worst Hit by Adesiji77: 4:18pm On Feb 14, 2016
*Lagos state government refuses to seek bailout
Kunle Aderinokun
Six months after the Federal Government bailed out 19 of the 27 states that were enmeshed in financial crisis, states are seeking another bailout. They have been hit by another cash crunch as a result of the prevailing economic realities, THISDAY has learnt.

THISDAY checks revealed that most of the states that benefitted from the N400 billion intervention fund, in the form of loans offered by the Federal Government through the Central Bank of Nigeria (CBN), have approached the presidency and the CBN for another bailout.

However, investigation reveals that the Lagos State government has refused to join the states seeking bailout. This is an obvious indication of the buoyant finances of the state, which generates about N23 billion monthly.


Apart from the CBN intervention, there were other reliefs endorsed by President Muhammadu Buhari and shared to the states, which included the $2.1 billion Liquefied Natural Gas (LNG) proceeds that accrued to the Federation Account.


Following the CBN intervention fund the distressed states received in July 2015, which attracted repayment with interest, deductions are being made in earnest. However, given the dwindled revenue accruing to states from the federation account occasioned by the crash in the prices of crude oil at the international market coupled with the fact most of them are already neck deep in debt to commercial banks, what remains, after all deductions, amount to almost nothing. States are now seeking more concessions.

Apart from the ripple effect of the plummeting oil prices, which only last Thursday fell to a 12-year low and made a rebound by 12 per cent after suggestions of renewed talks on OPEC cut at the weekend, what compounded their problem is that most of the states are also fulfilling their obligations to the Irrevocable Standing Payment Order (ISPO) they have taken.

Osun State, which is said to be the worst hit of all the states, THISDAY learnt, is left monthly with a paltry N40 million after deductions have been made. This amount could hardly be used to run the basic day-to-day operation of state government let alone pay the workers’ salaries. The other states, THISDAY checks, are also in sorry state as they could not meet obligations.
They are now groaning in pains and are at a loss of to do in order to get out of the quagmire.


The Federal Government, in accordance to the decision of National Economic Council (NEC) in July last year offered of 19 out of the 27 states affected by cash crunch a relief package to pay backlog of their workers’ salaries.
The states included Ekiti, Nassarawa, Kwara, Kebbi, Zamfara, Osun, Niger, Bauchi, Gombe, Abia, Adamawa, Ondo. Others that enjoyed the facility were Imo, Ebonyi, Ogun, Plateau, , Sokoto, Edo and Oyo


Following the approval of the intervention fund, the CBN spokesman, Ibrahim Mu’azu, had clarified that the facility was made available with 20-year tenure except Ogun which had its own on a 10-year tenure.

Essentially, President Buhari endorsed a three-pronged relief for the distressed states. One of it was the intervention from the CBN in form of soft loans to the states for the purposes of paying backlog of salaries and the second one being the NLNG proceeds
The third part of the bailout is a debt relief programme to be proposed by the Debt Management Office (DMO) which will help states restructure their commercial loans currently put at over N660 billion and extend the life span of such loans while reducing their debt-servicing expenditures.”

Already, workers have down tools in some states over unpaid salaries while several other states are currently contending with brewing labour crisis as the states are consistently unable to meet their obligations to their workforce. Projects initiated by states prior to the dip in revenue allocation have stagnated while governors are unable to fulfil their campaign promises.

However, analysts at Dunn Loren Merrifield, an investment banking outfit, has advised states to stop depending on allocations from the federation and look inward by having in place a strong internally generated revenue (IGR) mechanism. By so doing, the analysts pointed out, their finances won’t be subjected to the vagaries of crude oil prices and they will effectively meet expenditure and cater for the needs of people of their states.

“Most states in Nigeria are largely funded by allocations from the federation account as internally generated revenues (IGR) remain weak to meet expenditure needs. The impact of the global headwinds on Federal Government revenues began trickling down to the states evidenced by the inability to meet salary and pension obligations.

“From the foregoing, the urgent need for state governments to look inwards through an improvement in internally generated revenue can’t be overemphasised,” they said.

The DLM analysts believed, this could be achieved “through improved fiscal prudence, eliminations of revenue leakages and a reduction in the cost of governance.”

They posited that “the silver lining with this prevailing economic weakness presents an opportunity for states to seek other revenue generating options to improve their respective IGRs which in our opinion had not considered a priority due to Nigeria’s current revenue distribution mechanism.”

Recalling that, “an initiative was formulated by the National Planning Commission and the National Bureau of Statistics in 2013 which was aimed at producing a report which shows States’ Gross Domestic Product (SGDP) in a bid to encourage states to further improve on revenue generating mechanisms and aid healthy competition”, they said: “We are optimistic that this initiative if successfully implemented will increase the drive for states to boost income generating capacity which would further impact on overall national output. The country therefore needs to develop a structure that incentivises and supports states to generate revenues.”

http://www.thisdaylive.com/articles/again-states-seek-another-bailout-osun-worst-hit/231895/

1 Like

Re: Again, States Seek Another Bailout, Osun Worst Hit by nobilis: 4:25pm On Feb 14, 2016
O setie!!!

7 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by baralatie(m): 4:32pm On Feb 14, 2016
shocked
Re: Again, States Seek Another Bailout, Osun Worst Hit by Pavore9: 4:38pm On Feb 14, 2016
This shows that most of these governors have nothing upstairs!

60 Likes 4 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by 4Play(m): 4:39pm On Feb 14, 2016
This is kicking the can down the road and was inevitable. States cannot survive with their over-bloated public sector wages.

The more than tripling of public sector wages by GEJ and Yar'Adua was unsustainable and this was effectively imposed on states with minimum wage going from 5000 Naira to 18,000 Naira. This is fine if oil prices remained at record highs but that was unlikely.

Added to that, many states borrowed with reckless abandon. This is why a state like Anambra is coping but Osun is reeling financially. Bail them out today without addressing the underlying problems - unsustainable public sector wages and debt - and you are merely papering over the cracks.

39 Likes 3 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by ahaika23: 4:40pm On Feb 14, 2016
cheesy my beloved State of Osun! I hail una, doh ooo! Make una come vote for Rivers rerun so that APC go win for assembly come impeach Wike. Then una do abracadabra take put Dakuku so him go continue from where Rotimi the Yoruba/Rivers man stop

29 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by Nobody: 4:41pm On Feb 14, 2016
Remove Non yorubas, federal character and Multi-Nationals from Lagos, it would be like any other yoruba states.

125 Likes 7 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by Anambra1stSon(m): 4:47pm On Feb 14, 2016
baralatie:
shocked
grin grin grin
I predicted this yesterday to my Yoruba friends grin grin grin

15 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by better85(m): 4:51pm On Feb 14, 2016
Knowledge9000:
Remove Non yorubas and Multi-Nationals from Lagos, it would be like any other yoruba states.
no be small thing my brother...dis people ar poverty stricken back warded and suffersticated..weeping in Portugese

78 Likes 4 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by petersje8: 4:52pm On Feb 14, 2016
Thank God for Lagos. If not, SW and Mogadishu go dey compete. Have u wondered why the most patriot and "one Nigeria" singers are the yorubas? They are fighting with their last blood to blast anything concerning Biafra and Nnamdi Kanu. Imagine with the much noise about Lagos loosing investments to Ogun, still yet, nothing to show for it. Am an advocate of one Nigeria but I always wonder why the yorubas carry the matter for head. Also I thought that there Coacoa and Gold deposits in Osun? Nonsense.

96 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by poiZon: 4:57pm On Feb 14, 2016
4Play:
This is kicking the can down the road and was inevitable. States cannot survive with their over-bloated public sector wages.

The more than tripling of public sector wages by GEJ and Yar'Adua was unsustainable and this was effectively imposed on states with minimum wage going from 5000 Naira to 18,000 Naira. This is fine if oil prices remained at record highs but that was unlikely.

Added to that, many states borrowed with reckless abandon. This is why a state like Anambra is coping but Osun is reeling financially. Bail them out today without addressing the underlying problems - unsustainable public sector wages and debt - and you are merely papering over the cracks.




r u saying it was bad for yaradua n gej to increase minimum wage from that paltry 5000 to 18000 naira even when inflation was on the increase then n the paltry 5000 was not even enuf to tek care of their transport money to work?
must we always blame becos we hate them?
why dont u blame the govrs n those whor in charge of salary payment for the political class that includes all sort of rubbish as allowance to dem when the main people doing the work aint benefittng feom any allowance?

40 Likes 3 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by CCsurplus007(m): 5:02pm On Feb 14, 2016
so these governors cannot come up with some ingenious ways to make money from their states? like a baby they keep waiting for the fg to breastfeed them montly smh . 21st century leaders with paleozoic mentality

12 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by Sctests: 5:08pm On Feb 14, 2016
petersje8:
Thank God for Lagos. If not, SW and Mogadishu go dey compete. Have u wondered why the most patriot and "one Nigeria" singers are the yorubas? They are fighting with their last blood to blast anything concerning Biafra and Nnamdi Kanu. Imagine with the much noise about Lagos loosing investments to Ogun, still yet, nothing to show for it. Am an advocate of one Nigeria but I always wonder why the yorubas carry the matter for head. Also I thought that there Coacoa and Gold deposits in Osun? Nonsense.

lol

11 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by Africonji: 5:17pm On Feb 14, 2016
Thanks God oel is drying up. Imagine a state like Imo govt telling us sontin like the state is broke?? It is a lie! I don't think Abia and Enugu state will collet bailout again. Ikpeazu is working. cool

15 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by Sctests: 5:17pm On Feb 14, 2016
CCsurplus007:
so these governors cannot come up with some ingenious ways to make money from their states? like a baby they keep waiting for the fg to breastfeed them montly smh . 21st century leaders with paleozoic mentality

The thing tire me. These politicians make all promises under heaven and earth just to attain power. One would even think that at least they'll be creative in creating wealth after killing people to get there but alas their plan is simple-
-kill your way to power.
-Go to FG to collect allocations.
-Take your own billions and throw the crumbs to the people.
-When the FG is cash-strapped throw your hands up in helplessness and tell the workers there is no money.

Even an ijjiot can be a governor, if governance is about "collect from Abuja and pay workers".

They are not governors functionally, they are just middle men.

17 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by talktimi(m): 5:18pm On Feb 14, 2016
Osun should be merged with Anambra state

28 Likes 3 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 5:26pm On Feb 14, 2016
Knowledge9000:
Remove Non yorubas and Multi-Nationals from Lagos, it would be like any other yoruba states.

Remove Peter Obi's prudence and Anambra will be in the same boat as the rest of the SE. Remember even Obiano has started borrowing to complete projects -- e don spend all of Obi savings finish cheesy Your SE with the exception of Anambra isn't any better than the Yorubas states you are running down. Even Osun is far better than Imo and Abia which are oil producing and a market state. Abi dem no be Igbo/SE states again? Abi na aliens or Yorubas dey rule those states? What did Rochas do with all the Oil money? Osun never fire workers like Rochas did o.

38 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 5:30pm On Feb 14, 2016
PedroJP:

Dem go soon dey trans come East come beg.

Lol. That will be the day! First try to convince your almajiris to remain in your region or successfully convince the millions earning a living in the SW and North to return first, then you all will be taken seriously. Any other yarn na usual hype. grin

10 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by Mckennedy: 5:33pm On Feb 14, 2016
Sophisticated only on pages of News papers covered by brown envelope journalists, that's why they're willing to die countering anything Biafra in other to keep covering their failures & shame.

36 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 5:37pm On Feb 14, 2016
Mckennedy:
Sophisticated only on pages of News papers covered by brown envelope journalists, that's why they're willing to die countering anything Biafra in other to keep covering their failures & shame.

Guyman, Imo, Abia, Enugu, Ebonyi collect bailout too o. Okorocha said Imo is broke o. Those are Biafran states o, not SW. cheesy

24 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by EteEdoho: 5:43pm On Feb 14, 2016
Re: Again, States Seek Another Bailout, Osun Worst Hit by shizzy7(f): 5:44pm On Feb 14, 2016
Noooooo..They should not be given anything. They should look for a way to survive and be independent. They have natural resources.

They should come and account for the one they were given some months ago.

Even NIGERIA needs bailout, I need bailout.

As usual, some Lassa infected people above have turned into their usual comparisons...
They are too blind to see all the northern states listed..it's forever SW.
Awon olori gbeske
Zika boys
Ebola People..

7 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by MCMLXXVI(m): 5:49pm On Feb 14, 2016
Enugu and Anambra are not in the list.
Hmmm...

Interestingly, all the "sophisticated" states are well represented there except, of course, Lagos.

20 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 5:52pm On Feb 14, 2016
MCMLXXVI:
Enugu and Anambra are not in the list.
Hmmm...

Interestingly, all the "sophisticated" states are well represented there except, of course, Lagos.

What are you celebrating? There is no list of states requesting fresh bailout in the report. The list of states up there was from the last bailout which includes every other SE state (even though the incomplete list left out Enugu) except Anambra.

12 Likes 1 Share

Re: Again, States Seek Another Bailout, Osun Worst Hit by petersje8: 5:55pm On Feb 14, 2016
MCMLXXVI:
Enugu and Anambra are not in the list.
Hmmm...

Interestingly, all the "sophisticated" states are well represented there except, of course, Lagos.

U can imagine a whole state collecting paltry N40m monthly. I can even give them that one. Too bad.

2 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by godoluwa(m): 5:57pm On Feb 14, 2016
By the time APC finished with this country, zombies will be unable to afford buying pant to cover their unclothedness

26 Likes 2 Shares

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 5:57pm On Feb 14, 2016
petersje8:


U can imagine a whole state collecting paltry N40m monthly. I can even give them that one. Too bad.

It's not as bad as an Oil producing (Imo) state that has gone broke. At least we know how much Osun collects, please how much be Imo own, since Okorocha has come out to tell us the state is broke. Why not address that? At least Imo is in your region.

http://www.dailytrust.com.ng/news/general/imo-is-broke-okorocha/131102.html

7 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by MCMLXXVI(m): 6:03pm On Feb 14, 2016
OkutaNla:


Remove Peter Obi's prudence and Anambra will be in the same boat as the rest of the SE. Remember even Obiano has started borrowing to complete projects -- e don spend all of Obi savings finish cheesy Your SE with the exception of Anambra isn't any better than the Yorubas states you are running down. Even Osun is far better than Imo and Abia which are oil producing and a market states. Abi dem no be Igbo/SE states again? What did Rochas do with all the Oil money? Osun never fire workers like Rochas did o.

Bros, abeg no vex, but no repeat that bolded part again o.
As bad as things may be, both states can NEVER be as bad as Osun state at the moment.
You want us to count the ways?

Do you mean Osun state that is SO indebted, that the creditors now deduct from the state's monthly allocation, to the point that only 55 MILLION ends up getting to the state? the raw, cold and bitter facts are there with the National Bureau of Statistics if you want them. We're talking real facts here, not conjecture.

Even as indebted as Imo state is, they don't have churches and Senators ALL THE WAY FROM BAYELSA donating money to buy them food like refugees. But we all know Osun's story, don't we?

Agreed, the three states experienced profligacy at the hands of their governors whp betrayed them. That's a fairly good point from you.
But abeg, don't attempt stretching it to say Imo and Abia are anywhere close to Osun in spine-chilling "sufferheadism", because na there you go chop L.

41 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by OkutaNla: 6:05pm On Feb 14, 2016
MCMLXXVI:


Bros, abeg no vex, but no repeat that bolded part again o.
As bad as things may be, both states can NEVER be as bad as Osun state at the moment.
You want us to count the ways?

Do you mean Osun state that is SO indebted, that the creditors now deduct from the state's monthly allocation, to the point that only 55 MILLION ends up getting to the state? the raw, cold and bitter facts are there with the National Bureau of Statistics if you want them. We're talking real facts here, not conjecture.

Even as indebted as Imo state is, they don't have churches and Senators ALL THE WAY FROM BAYELSA donating money to buy them food like refugees. But we all know Osun's story, don't we?

Agreed, the three states experienced profligacy at the hands of their governors whp betrayed them. That's a fairly good point from you.
But abeg, don't attempt stretching it to say Imo and Abia are anywhere close to Osun in spine-chilling "sufferheadism", because na there you go chop L.

Say whatever you like but Osun NEVER FIRED 3000 WORKERS!!!!! None of you have so far mentioned Imo's sorry plight (the RICHEST SE state for that matter and highest Oil producer in the region). You are all a bunch of hypocrites and I am here to terminate your propaganda. Face your own indebted states abeg.

14 Likes

Re: Again, States Seek Another Bailout, Osun Worst Hit by godoluwa(m): 6:05pm On Feb 14, 2016
abeg lalasticlala, make una cum land dis jet for fp

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