FEDERAL GOVERNMENT’S BAILOUTS SAVED STATES FROM GOING UNDER, SAYS PRESIDENT BUHARI
The Federal Government has said many states of the federation are still afloat because of the financial reliefs the Muhammadu Buhari-led administration gave them.
Information and Culture Minister Lai Muhammed said this while addressing State House correspondents at the end of the week’s virtual Federal Executive Council (FEC) meeting, presided over by President Buhari at the Presidential Villa in Abuja.
The minister noted that although some states, especially those under the main opposition Peoples Democratic Party (PDP), recently claimed that they were not gaining anything from the Buhari administration, most states, notwithstanding which party they belong to, had been sustained with bailouts and lifelines from the Federal Government.
He said not less than 24 states, crossing party lines, had demanded and received refunds from the current Federal Government for projects done on Federal roads and bridges.
Mohammed said records showed that the refunds amounted to N477 billion.
“I think this is a good opportunity to also let you know exactly what the Federal Government has done between 2015 and today to ensure that states stay afloat. Honestly, without the Federal Government bailout, most states would have gone under.
“Like I said, apart from these refunds that were made, I said earlier on that when we came in, 27 states could not pay salaries and the Federal Government had to bail those 27 states out. Not only did they give them money to pay salaries, they also gave them bailout to pay arrears.
“No, refunds are completely different. Refunds are when you refund for jobs that were done on behalf of the Federal Government. That was the first one that we spoke about and we’re speaking about it because Yobe State just completed its own.
“But before then, I have here Phase one of 24 states that were refunded for what they did on behalf of the Federal Government, even before we came in.
“These claims were not based on what they did on our behalf but what they did in previous administrations. Number Two: I have said that when we came in, 27 states could not pay salaries. So, we bailed them out to be able to pay salaries and pay their arrears.
“Now, in addition, we found out also that the states were in difficulties and they could not start any work, in terms of infrastructure, and the Federal Government gave each of them N10 billion.“
When the price of oil, again, collapsed and states were in trouble, the Federal Government again gave out a bailout of N1 billion per month to each state for eight months and N800 million per month per state for over eight months. The records are there.
“When also the states complained that they did not benefit from the Paris Debt Refund, the Federal Government, again, gave the states their own share of Paris Fund. I can say that Jigawa State, in particular, received N40 billion of this Paris Club Refund. Next time I come, I’ll give you what every state received in terms of Paris Club.
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