Some state govts lost bailout money to bank loans – Gov. Yari

Governor Abdulaziz Yari of Zamfara State

Governor Abdulaziz Yari of Zamfara has said that some indebted state governments lost their bailout money to servicing outstanding loans they had obtained from banks.

It would be recalled that the money was sourced from the revenue paid to the Federation Account by the Nigerian Liquefied Natural Gas (NLNG).

Yari, who was fielding questions from State House correspondents in Abuja, expressed concern that many state governments were still facing financial challenges, in spite the disbursement of the NLNG money.

“What I’m saying is that no money is released yet apart from the NLNG money. But I think the NLNG money that was given, some states, their own was taken by the banks because it is due for them to repay some certain loans.

“So, therefore, automatically, that has to go there.”

“But for sure, some other governors reported that money went to their accounts, it was taken by some banks because of their outstanding loans.”

He, however, stated that the Central Bank of Nigeria (CBN) was negotiating with the banks on how state governments could freely access the next batch of the bailout funds, to enable them to settle outstanding salaries of their respective workers.

On the West African Examination Council (WAEC) debts owed by some states, Yari, who is also the Chairman of the Governors’ Forum, said the issue was being addressed by the affected states.

“Some state governments need to verify between the WAEC and their Ministries of Education and other departments of education. So, that’s why some states cannot pay the registration fees,” he added.

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4 Comments

Muriano123 says:

August 12, 2015 at 3:38 pm

If any states fail to developed to workers to make genuine revenue. Whole no be available to request for the state bailout.

Sunny Akhigbe says:

July 30, 2015 at 6:47 am

I have said it over again that any state that is owing workers salary arrears of more than six months would never be able to pay no matter the amount of bailout. Even if they pay now, they would soon fall back to the old position. Some of the governors are reckless and have no foresight. Even the idea of putting pressure on banks to renegotiate loan terms taken by the states would not work. Would the federal government bailout the banks if they go under? These governors would not learn any lesson until one of them is impeached on account of not being able to pay salaries. People like Jonah Jang are now in the senate after messing up their states. How can a system work like that?

On those owing WAEC, it is really unfortunate. If not for the poor students and their parents, I would have supported WAEC withholding those results. But the Governors’ children are not in this category. We should not also forget that some of the governors were playing politics when they declared “free” education in their states. They were boasting that they were paying even examination fees for JSS 3 and SSS3 students. Now they cannot pay salaries and they are owing WAEC. They have robbed Peter, robbed Paul. Stupid!