baralatie:
well, consolidation is an option but they are still other solutions that they can look into!
it is called IGR

kelvin100:

It's obvious many have no IGR to generate.

kelvin100:

It's obvious many have no IGR to generate.

kelvin100:
Will bankrupt states like Osun be forced to merge with another state?

The reality of viability of some states is here with us.
What's the way out?

Orunto:
It is an EMERGENCY. Appoint a Military Administrator to return the state to sanity and solvency.

Orunto:
It is an EMERGENCY. Appoint a Military Administrator to return the state to sanity and solvency.

PPAngel:
Why then isn't he paying workers?

The Osun state governor specifically told his lawmakers during the budget presentation not to jack up the figure as the budget was already overstretched at 198bn naira for 2015.

http://www.channelstv.com/2014/12/23/osun-government-budgets-197-8-billion-naira-for-2015/

This in spite of the fact that Osun as at 2014 ,citing mid term report from FAAC spanning January to June 2014, only got 19bn from federal allocation owing to deductions made from source to creditors.


www.nairaland.com/attachments/2291770_midtermreport2015osunislastonfederalallocatedrevenue_jpegc13c5a462fa049557aff7720a310af9d


For the year 2014 Osun budgeted 235bn. So that shows that for 2014 Osun only earned less than 40bn and had a deficit of over 190bn. I am very sure the IGR of Osun could not meet the shortfall.

In 2015, Osun still went ahead to pass another budget of 198bn and given that FAAC allocations shrank even further it is expected that monthly allocations to states including Osun shrank even further.
http://thenewsnigeria.com.ng/2015/05/16/allocation-to-nigerian-states-dwindles-further/


So there is no doubt that Osun state is either having an under performing budget owing to lack of funds or monies quoted especially for recurrent expenditure is being diverted if the Governor was able to secure another loan package.

This is incredulously wicked and insensitive to the people of Osun who elected Aregberascal since he has not only shown not to manage the little the state earns and generates but has taken out a loan package with nothing on ground to show for and further plunged the state into deep debt and poverty.

As things stand now only an upward increase in oil prices to pre 2014 levels can Osun manage to wiggle itself and this will take at least another decade.

Symphony007:
Well, this is a result of the gross incompetence of the state government who in all their years in office could'nt create a revenue base rather choose to spend and spend federal pocket money....the state ultimately will have to be bailed out by the federal government and a financial administrator in conjuction with the national assembly shall control the purse of the osun state government until the crisis is over and they are made to pay back what they owe the Nigerian people.

PvtParts:
Osun should be granted Independence and fenced round and quarantined off the rest of the Polity or better yet we can lease Osun and Everything in it to Nestlé who will put the lazy people to work planting cocoa.

Maybe after 50yrs we can review the lease to Nestlé and if they still want osun we can start another round of negotiations.

PvtParts:


If the FG is to bail a state like Osun out it should only be for Salaries owed only.

The FG will thus have to do a personnel audit of all Osun State workers and an embargo place on employment, promotions and allowances.

The case of the pensioners should be priotized with whatever revenue still coming to the state's coffers should be directed towards settling them and also the inclusion of all current Osun state civil servants into the Federal Pension plan.

Aregberascal should not be given a dime as we know he will still divert the money to pay Tinubu and himself for all the useless abandoned contracts.

The FG should also probe Osun state govt and also sponsor a bill preventing states from running a deficit budget based on bank loans.

Symphony007:
exactly! These are the measure expected of the federal govt. To take against an irresponsible state but I doubt this federal government will want to play hard ball with a state government in the same party. This will be one of the test of pres.buhari's "I belong to no one, I belong to everyone" quote.

PvtParts:



Buhari will need to get a supplementary Budget passed before he begins doling out money.

You can bet that northern senators whose states surprisingly do not owe their workers and have a far lesser debt burden than the SW states will oppose this or use it as leverage to table their own financial demands.

The SS and SE will obviously oppose this move and will rather call for the Osun State govt to declare bankruptcy.

So I don't see how Buhari can easily help Osun.

eaglechild:
Recent turn of events has really exposed those responsible for the reason why Nigeria is finding it difficult to weather the fall in oil prices.

The greedy governors who felt it was better to share the excess crude account instead of working hard towards generating revenue.

PvtParts:


If the FG is to bail a state like Osun out it should only be for Salaries owed only.

The FG will thus have to do a personnel audit of all Osun State workers and an embargo place on employment, promotions and allowances.

The case of the pensioners should be priotized with whatever revenue still coming to the state's coffers should be directed towards settling them and also the inclusion of all current Osun state civil servants into the Federal Pension plan.

Aregberascal should not be given a dime as we know he will still divert the money to pay Tinubu and himself for all the useless abandoned contracts.

The FG should also probe Osun state govt and also sponsor a bill preventing states from running a deficit budget based on bank loans.

chigoizie7:



Include all the current osun state pensioners to FG? Oga are u high on ur urine? If FG should try that, then dis geographical terrain will never come out from the impending doom it will ever witness.

Na only osun waka come?

If FG should try it, den other states will tell FG that they are not stupid as well.

*which state governor does not want his state to be the best based on capital projects?

* oya nah, make all of us begin divert all our allocations and IGR to capital projects, beautify the state, amaze wealth for ourselves and then apply to the FG to bail us out by paying the salaries of all our state workers and also including all our state pensioners into FG pension scheme.

*how do u think this so called country will survive if any of those happens?

*osun state should neither be bailed out or given a dime. Let aregbese go back to the drawing board and find solutions on how to raise money to pay up. As for osun state and other states, let dis be a deterrent for all of its citizens for electing a criminal, so that next time, they will look well b dey leap.