The recent bailout given to States by the Federal Government may spell the enslavement of future leaders if the loans are to be repaid in a scope of about 20 years, as reportedly arranged by the Central Bank of Nigeria, CBN. After much dust had been raised about the inability of some states to pay their workers’ outstanding salaries, the Federal Government offered to play a fatherly role by giving them money to settle the huge debt. The bailout came in form of a commercial bank loan, which the CBN guaranteed on behalf of the states, but which will attract a first- line- charge deductions from state allocations. This is why there are fears that the loan, however soft, could be a burden on the future generation of Nigerians.

But the CBN should give further clarifications about the so-called loan, as it is unclear if indeed the Federal Government’s intervention was actually a bailout. This argument becomes potent when considered from the point that some states which owed no workers’ salaries also got the money. Apart from the pall of doubt surrounding the source of the money, there are also discordant tunes coming from state governments, some of whom have admitted the receipt of the money, while others insist that they have received nothing of such from the Federal Government.

Meanwhile, it is doubtful if this money paid to States was authorised by an Appropriation Act of the 8th National Assembly. This suspicion is raised because the Assembly has been enmeshed in controversy since its inception in June this year. If the money was not authorised, it is just apposite that it should be regarded as a supplementary budget. The Federal Government can then forward a Bill on it to the National Assembly later.

If the money was a refurbishment of the shortfall from payments made by the Federal Allocation Committee of President Goodluck Jonathan’s administration, then it means that the Federal Government’s gesture was in order. Government only settled its outstanding debt by paying the money owed the states. But much more concern here is that since the money is not a dedicated fund, the states might be tempted to spend their money on charges other than salaries.

Yet, to debunk insinuations that it embarked on some unconstitutional means of dealing with the intractable problem of unpaid workers’ salaries, the Federal Government needs to make adequate clarifications. It is unpalatable for a good deed which it exemplified to be shrouded in secrecy. Such secrecy has the propensity for destroying the spirit behind the good intentions. Government must clarify how much was paid to each state government; the source of every component of the money, whether it is an ex- gratia award or a freebie to the state governments; and the legal authority upon which the payment was made. This is important and equally good for the integrity of a government which, promised total obedience to the rule of law at its inauguration.

Source: http://dailyindependentnig.com/2015/08/controversy-buharis-bailout/?

Who shall end all these controversy for us ??
God bless Nigeria

Best interest

All protocol must be followed ... No need to rush


#TINN(This Is New Nigeria )

I stand with the OP. From his writeup so many things were not defined. And we are not talking of one state here.It is better everything is explained. If they do, some of the states especialy those who are not owing workers might find there is no need collecting the money unless the payment is ex gratia.

what do you expect

Collect the money first.
nobody is paying back any loan.

The bailout loan, is yet to be given if read between the lines of your news channel, the money shared across all state sometimes ago was the excesses from the Liquidified Natural Gas account "LNG" which has not been shared since 2012.


#i rest my case

Corruption is like pr0stituion.

It neither benefits the seller, client and society at large.

D bailout loan hasn't yet been given out,yet it was publicize on national news-papers dat pmb has given bailout loans to states owing dia workers,smh................

Gov.oshiomole and rochas couldn't jump from one media house to another to tel nigerians dat its nt true...quite alarming

How can someone like the Edo State Governor get bailout after sqandering 200 million in foreign loan when he did not build a new hospital, University or anything to show for it. How can Imo State Govern ask for bail out with incomplete city gates, damaged roads and only thing Imolites can see is a billboard of him shaking Obama Hand and million naira luxury bus's for APC campaign. Chai, now you want to bail these clowns out because instead of using the loans to build industry to support the states IGR they are building the worlds largest talking drum!

APC supporters are just shameless and heartless! #exchangingsparechange4brain....