Governors push for fresh bailout funds

Ebun Francis || The governors of the 36 states are asking the federal government for another bail in the form of Budget support to assist states to offset arrears of accumulated salaries, allowances, and pension.

The governor of Ebonyi State, David Umahi made the disclosure while briefing newsmen at the end of the National economic council (NEC) meeting in Abuja on Friday presided over by Vice President Yemi Osinbajo.

Umahi said the governors convinced the minister of finance, Kemi Adeosun to find ways of sustaining the provision of budget support to the states.

According to him, the support is needed, “especially when the amount that accrues to the states from the federation account is less than N600 billion”.

The Ebonyi governor said, “We came to the understanding that every month if the total shareable revenue in the federation account is less than N600billion, the minister of finance will give each state budget support.”

“We concluded that in the last 12 months and that continued for the second year, states have done very well, some states have been able to pay their accumulated salary debts and then also increased their commitment to infrastructure and generation of revenue.

“However, from July, that was not paid and in the month of August, I think about seven states were paid because according to the minister, other states did not comply with the set down rules, the most outstanding of that was the non-remittance of VAT from the states.

“So those seven states have been paid but more states have complied but we requested that those states that have complied should be paid.”