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24 States Owe Workers Salaries, FG Confirms

President Buhari
Posted: Apr 28, 2016 at 7:51 pm   /   by   /   comments (0)

Federal Government on Thursday confirmed that about 24 out of the 36 states of the federation owe workers salaries, despite previous bail-out funds extended to them.
President Muhammadu Buhari said the development was worrisome and called for out of the box solutions by the affected governors.
But the State governors under the auspices of Nigerian Governors Forum accused the Federal Government of bias in the revenue sharing formula of resources that acrue to the federation account.
This,the governors said must be subjected to a review by the government to assist the debtor states meet their salary obligations.
The governors particularly want the Federal Government to reconsider its loan restructuring programme by offering at least another 18 months moratorium, to serve as a bail-out system,before they can map out repayment plans.
The affected state governors hinged their inability to save and pay workers at the end of each month on the situation where they share only 26 percent of the national revenue while federal retains 52 percent.
Chairman of the Governors Forum, Abdulaziz Yari told State House reporters, shortly after they met with the President that they would also like a situation where federal government would pay them funds used in the maintenance of federal roads and other expenses incurred on its behalf.
Such measures they insisted would also boost their revenue profile considerably.
Yari argued that till date all the support states have gotten from the federal government was in terms of bailout, deferred debts payment of one month and about 15% of the Excess Crude Account for development.
He said since states provide a larger chunk of the resources that acrues to the federation account,it was only reasonable that they receive a larger percentage from the federation account.
Yari also stated that debts owed the states since 2005, used by ex-President Olusegun Obasanjo to settle some of the Paris club debts were still crippling the states.
“Our meeting was centred on the economy,we deliberated amongst our colleagues and we passed our demands to the federal government to look at these demands per state.
“You will agree with me that states are the landlords, we own the land and the people, so therefore the economy of this country lies in the state. Everything comes from the state, the oil, agricultural produce, mining and people are in the states while the federal government is in Abuja.