Why State Governments are Seeking $3.25b Loan from World Bank – El-Rufai

The Kaduna State Governor, Mallam Nasir El-Rufai has declared that state governments in the country were broke. This was as he disclosed that governors of the 36 states are putting machinery in place to access a $3.25bn loan from the World Bank in a bid to survive the current economic downturn in the country which has made it difficult for some of them to pay workers’ salaries.

Briefing State House Correspondents about the decision to approach the World Bank at the end of a meeting of Nigeria Governors’ Forum at the Presidential Villa, Abuja, El-Rufai explained that the loan being sought after is capable of turning around the fortunes of the states.

“The World Bank portfolio for the states for this year is $4.25bn and out of that, $3.25bn is lying there undisbursed, which means the states are not meeting their conditions or not moving fast enough to draw this $3.25bn.

“You know $3.25bn can do a lot to improve the lives and livelihood of our citizens in the states, and the World Bank has expressed its flexibility to look into the challenges we are facing as well as the procedure to ease accessing this money. The World Bank wants us to withdraw the money as quickly as possible so that our citizens will get the benefits from health to education, agriculture and the revival of livestock and water supply.

“These are the areas for which most of these funds are dedicated and we all need the money, because we are all broke. So, we are going to work very hard to try to get the money in trust,” he explained.

http://www.sofreedomains.com/2016/05/why-state-governments-are-seeking-325b.html

State governments except Lagos abi?

Until we tilt our system towards true federalism, Governors will keep putting pressure on the National purse and loot.
Oil isn't drying up in El rufai's backyard so he can afford to borrow into the next 20 years and have oil windfall service the bulk of the depth.
If every state was made to get allocation proportional to its IGR, then the state govt will be motivated to increase their IGR to get more money back. I suggest all states get 70% of their IGR back to motivate them to leave the centre alone.
Imagine this reward system in place, Osun state wouldn't embark on Free Food and Money schemes without demanding productivity from its 50% ghost workforce.

otokx:
State governments except Lagos abi?

I think so because I read somewhere that 35 states wants access to the fund.

It'll be embarrassing if Lagos is among.

Imagine it is GEJ that won the 2015 election and all these are happening under his watch.
APC members and their co-travellers would have result to using encyclopaedia to search for unprintable words to describe his ineffectiveness.
Always thank God for your life. Anything He does to you is the best for you. Thank God GEJ realised the loss was a blessing in disguise.

Forget stealing, the current mentality of governors is what is killing the country. Borrowing money to pay workers only create artifical money circulation. Why not create sustainable industries that would impact more people's lives in the long run?

Ajibel:


I think so because I read somewhere that 35 states wants access to the fund.

It'll be embarrassing if Lagos is among.

so you believe Lagos makes a lot of money that they don't need more? the fact that a state can pay salary does not mean it has enough. Lagos is actually two Cities in one . The Tinubu's part of Lagos and the other part. The state needs 3 to 4 times what it is making now to make any sensible development.