Why States Can’t Pay Salaries, By Buhari | Independent Newspapers Limited
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Why States Can’t Pay Salaries, By Buhari

Posted: Mar 25, 2016 at 3:06 pm   /   by   /   comments (0)


President Muhammadu Buhari has disclosed that 27 states in the country are finding it difficult to pay the salary of workers in the face of “unfavourable economic situation.”

The President essentially blamed the nation’s reliance on oil as its sole economic driver for the hardship now facing most Nigerians.

He said this at the second National Executive Committee meeting of the All Progressives Congress in Abuja on Thursday, giving more insight into the biting economic crunch, which he said his administration has been striving to stabilise since he came into office.

Buhari said: “The fall of oil prices after Nigeria has made itself a mono-economy is a disaster. I wonder why people could not believe that in Nigeria, about 27 out of the 36 states, have difficulties in paying basic salaries of their workers.

“If from 1999 to at least 2003, oil was above $100 per barrel and an export of about two million barrels per day, how come Nigeria failed to make some arrangements to cushion the effect of a probably volatile oil market?”

The crash of oil price, down to almost $25 at its worst in recent times, has seen Nigeria suffering huge revenue shortfalls and sharp reduction in the allocation to states.

Many states depend on allocations from the Federation Account.

The President also said corruption and treasury looting was part of the country’s undoing, as he disclosed that his government had been able to save at least N3 trillion through the implementation of the Treasury Single Account, thereby cutting waste, blocking loophole and recovering monies that hitherto went into private pockets.