₦airaland Forum

The Federal Government says states must do more to increase internally generated revenue to avoid future financial crisis.

Vice President Yemi Osinbajo said this in Addis Ababa, Ethiopia, yesterday while meeting with Nigerians resident there. He said the states must also clean-up their payrolls to eliminate
ghost workers.

He said state governments should also have a vibrant Debt Management Office (DMO) while ensuring a general atmosphere of transparency and accountability in their public
expenditures.

Osinbajo was in Addis Ababa to attend the 3rd international conference on Financing for Development hosted by the United Nations.

At the meeting hosted by the Nigeria’s Envoy to Ethiopia and the African Union, Ambassador Usman Baraya, Osinbajo said “there is so much hope and expectations. A new Nigeria is
happening, we are going to see a new Nigeria. The reason why I am so convinced is because everyone of us one way or the other believes that there should be a change. I am not
saying those who voted for President Muhammadu Buhari and myself, even if it was the other government, everyone of us expected some kind of change.”

He reiterated Buhari’s determination to deliver the change promised during the campaigns, saying “the ideas are there, we just need to do a good job with implementation, and that is
what we shall do.”

On the recent salary bail-out to the states, he clarified that the money from the Excess Crude Account was not used, but proceeds in dividends and taxes from the LNG were released
for sharing.

He listed the bail-out package approved by the president as including: The sharing of about $2.1B from LNG proceeds, made up of $1.6B in taxes and $500m in dividends.

The money is released for the payment of workers salaries, which has been unpaid for several months in many states, a Central Bank-packaged special intervention fund that will offer financing
to the states, ranging from between N250B to N300B.

This would be a soft loan available to states to access for the purposes of paying backlog of salaries and a debt relief program
designed by the Debt Management Office, DMO, and the CBN which will help states restructure their commercial loans currently put at over N660B, and extend the life span of such
loans while reducing their debt-servicing expenditures.


According to Osinbajo, “This third option, by extending the commercial loans of the states, would therefore make available more funds to the state governments which otherwise would
have been removed at source by the banks. The federal government will sway its financial muscle to guarantee the elongation of the loans for the benefit of the states.”



http://dailytrust.com.ng/daily/index.php/news-menu/news/60100-osinbajo-how-states-can-avoid-financial-crisis

That is why nigeria is still where it is today. What the so-called governors know is how to squander money, they don't think about generating their own revenue. Each time they look up to the federal to get allocations. Many states in nigeria have some unique mineral resources to be explored but their over dependence on oil revenue will not allow them to think straight. I just hope this oil will finish so that every state will sit up

is Osun state in Ethiopia?

Too late, they should have sent this blueprint to Aregbese last year, it would have saved Osun people a lot of suffering.

ol

ok

Mogidi:
Too late, they should have sent this blueprint to Aregbese last year, it would have saved Osun people a lot of suffering.

What PDP failed to do

Naija will be great again under PMB...

that's change