Nigerian govt warned against fresh bailout for states

Nigerian govt warned against fresh bailout for states

The Centre for Fiscal Transparency and Integrity Watch (CFTIW) has expressed shock and dismay over states’ request for fresh bailout funds.

The governors cited the urgent need to tackle insecurity as a reason for the request.

In a statement on Monday by the Communications Lead, Jonah Eket, CFTIW accused states of being over-reliant on the federal government.

“States that have become bastions of lousy governance are, yet again, seeking help from the federal government when they have been unaccountable to the people”, it said.

“These same states have been bailed out with public funds in the past. If fiscally responsible and transparent, they would not have found themselves in months of arrears in salaries and other unnecessary liabilities.”

The body lamented that despite several bailouts over the past five years, there are several reports of poor implementation and diversion for private use.

“Our fears are also borne out of the current practice in which security vote is not subject to scrutiny. Every year, close to $1billion is spent under the banner of security vote by states,
with little to show for it.

“Though we align with the wisdom behind security vote, we reject the manner it has been misused so far. It is important to note that the current state of insecurity is related to bad governance of past and present administrations, mostly at the state level.”

CFTIW added that states witnessing rising cases of banditry, armed robbery, cattle rustling and kidnapping, have paid lip-service to
governance and relegated the people’s welfare.

The statement advised the federal government to consider demands by some governors, insisting that loans and bailout should be given to only those that have been fiscally responsible and accountable with public funds.

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