• Debt profile nears N20tr, threatens Vision 20:2020 agenda

The Federal Government has in the last two years supported states financially to the tune of N1.75 trillion. The funds were,
however, “extra-statutory,” as they were not captured in the budget.

The revelation contained in a recent survey by a fiscal research
agency, BudgIT, comes in the wake of the approval being
sought by the government for its $30 billion three-year debt
plan, which also includes states’ deals in addition to other
obligations and service charges.

There is the fear that the non-functional budget systems at the
states coupled with misappropriation, non-implementation of
development plans as well as persistent debt deals may thwart
the nation’s ambitious global economic blueprint, Vision
20:2020. It is even being held that these anomalies would
increase poverty in all the sub-national territories before the time.

The roadmap actually seeks to make the country one of the top 20 leading economies of the world by that timeline besides the other desirables like the overall well-being of the citizens through reduction in hunger and poverty. It also aims to upscale healthcare, housing and human capital. Not also left out are gender imbalance, low productivity and
poor basic amenities.

The poverty transmission line, which would trickle down to the already impoverished citizens, is gathering momentum, just as the states recently got a nod for a fresh disbursement of $4.5billion loan from China to fund agriculture.

Meanwhile, the nation’s external and domestic debts may soon hit a N20 trillion mark. It sat atop a N17 trillion liability at December 2016, according to the latest data released by the National Bureau of Statistics (NBS) yesterday. This is just as the nation has brokered several deals to finance its N2.2 trillion budget deficit in the face of dwindling revenue owing to the fallen crude oil price. A request of $5.6 billion is currently awaiting legislative approval.

The N17 trillion quoted by the bureau is the equivalent of a cumulative national fiscal appropriation for 2017 at N7.2trillion; 2016 at N6.6 trillion; and 2015 at N4.6 trillion, plus the supplementary budget. But there is, however, no corresponding increase in the wellbeing of Nigerians or concrete development projects to
show for the huge sums received in the two years of this administration.

A dispassionate review of the monthly allocations from the Federal Accounts Allocation Committee (FAAC) shows an average deduction of more than N700 million covering external debts, contractual obligations, among others.

A close government source, who pleaded anonymity, admitted that most states have no viable projects, yet burdened by debt and salary crises. According to him, a state from the North
East; South East; four from the South West; two in North Central and another three in South-South each had more than N1 billion deductions in March, with some hitting N2 billion due to huge debt overhang.

Source:
https://m.guardian.ng/news/extra-budgetary-bailout-for-states-hits-n1-75-trillion/

yes this is a time bomb waiting for an implosion on States

baralatie:
yes this is a time bomb waiting for an implosion on States

There should be sanctions and investigation on those states still owing salary after the bail out