...27 Cash strapped states seek fresh loans from FG

..Say bailout funds can't clear salary arrears

.NNPC, NIMASA, NPA under probe for defrauding Govt

Most of the states in the country are still in deep financial crisis, even after they have received bailout funds from the Federal Government. And they are asking for more money from the Government.

As at Thursday, 27 of such states have approached the Federal Government to beg for fresh loans to meet their financial obligations to their various stakeholders.

They particularly want the loans from the Excess Crude Account (ECA), which the Federal Government has approved.

The move of the states and the worrisome position of their finances were disclosed at the National Economic Council (NEC) on Thursday in Abuja.

NEC also announced that investigations have begun into fraudulent practices of some federal agencies which collect revenues in dollars but remit the funds to government coffers in naira.

The NEC, chaired by Vice-President Yemi Osinbajo, with state governors and the Central Bank Governor in attendance, named the offending agencies as the Nigerian National Petroleum Corporation (NNPC), the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Ports Authority (NPA).

Highlights of the meeting were disclosed to journalists by the Cross River State Governor, Ben Ayade.

According to Ayade, "a brief report on the Federal Government agencies remitting dollar revenues in naira into the Federation Account was given by the CBN Governor".

It will be recalled that the same agencies and others were already being investigated by a NEC committee headed by the Edo State Governor, Adams Oshiomhole, and foreign audit firms for not fully remitting revenues into the Excess Crude Account.

The NEC was also informed by the Permanent Secretary in the Ministry of Finance that the balance in the ECA stood at $2.25bn as at October 15th, 2015.

Ayade added that "on the provision of provisional loans to states based on collaterisation of the Excess Crude Account, the CBN governor briefed that 27 states have made request for the N10 billion facility and is currently being processed.

"He has called on the affected states to complete all necessary documentation for the same money to the 27 states."

He noted that not all state governments had indicated interest in the ECA collaterised loan, but that Vice-President Osinbajo assured the states of refund for excess expenses they incurred in rehabilitating federal roads in their domains.

Meanwhile, the governors have pointed out that in the face of dwindling revenues to the Federal Government, the bailout funds recently extended to them would still not be enough for the states to offset backlog of salaries.

They however, gave assurances that the funds earmarked for paying off the salaries owed their workers would not be diverted for other purposes.

This is in view of the outcry in some quarters that some state governors planned to divert the bailout funds into other projects.

Speaking for his colleagues, Ondo State Governor, Olusegun Mimiko, said "bailout is a short-term measure on arrears of salaries. But the truth is that the accruals would still not be enough and final solution to the accruals shortfall in the payment of salaries still has to be found."

The governors further disclosed that the Federal Government had assured them that it would assist in tackling the crisis created by floods in the affected states.



http://www.authorityngr.com/2015/10/We-want-more---.html

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