Friday, 29 September 2017

Why We Are Asking For A Fresh Bailout Funds - Governors

The Nigerian Governors Forum (NGF) have asked the Federal Government to release a fresh bailout in the form of budget support.

Governor David Umahi of Ebonyi state disclosed this to reporters at the end of the national economic council (NEC) meeting presided over by vice-president Yemi Osinbajo.

Umahi said the fund was necessary in order to help the governors pay salary arrears, adding that the amount that accrues to the states from the federation account is less than N600 billion.

"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" Umahi said.

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