No Bailout For States Yet, Says Ondo Govt
At a joint media briefing addressed by the state’s Commissioner for Information, Hon. Kayode Akinmade and his Finance counterpart, Chief Yele Ogundipe in Akure yesterday, the government mentioned that the bailout proposal presented to President Muhammadu Buhari at a recent meeting by state governors was yet to bear a fruit as modalities on it are still being worked out.
Making clarifications on the bailout issue, the Finance Commissioner said following the meeting with President Muhamadu Buhari by the state governors over the lingering issue of default in payment of salaries and other contractual obligations, one of the things that was decided on was that the Federal Government will find a way to bail out the states in terms of loan and the fund in the excess crude account could also be considered for sharing, submitting however that nothing concrete has been done in this regard.
“I can tell you that so far, no concrete action has been taken in that direction, notwithstanding the fact that all across the nation and in particular in Ondo, most people have read in the newspapers and heard that the Federal Government distributed over N720billion to assist the states in the payment of salaries on Monday.”
Putting a lie to the claim, the Finance Commissioner explained that nothing of such happened at the said meeting. “I was present at the Monday meeting and I can confirm to you that what happened was that the taxes paid by the Nigeria Liquefied Natural Gas (NLNG) was distributed among the three tiers of government in proportion of the revenue allocation formulae,” he said.
Explaining further, the Finance Commissioner mentioned that what was distributed was N359billion and less 4% collection taxes due to the Federal Inland Revenue Service as against the N720billion claim.
The net figure distributed across, he further disclosed, was N344.99billion out of which the Federal Government got 52.68 % amounting to about N152billion. The states got 26% which amounted to N92billion for the 36 states and the Federal Capital , Abuja, while the Local governments got 20% which amounted to N71billion.
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