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FG Bars States From Bank Loans - Politics - Nairaland

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FG Bars States From Bank Loans by FWJOBSNG: 1:21am On Jun 15, 2016
The Federal Government has barred banks in the country from giving loans to state governments. The decision was taken in line with the Fiscal Sustainability Plan, FSP, which has been agreed to by the Federal Government’s economic team and state governors, to ensure prudent management of sub-national resources.

This comes as the Central Bank of Nigeria, CBN, will today announce details of the much anticipated ‘flexible’ foreign exchange rate policy. President Muhammadu Buhari’s administration, Finance Ministry sources said, was disappointed at the manner some past and current governors took loans from banks and misapplied such funds, while mortgaging their states’ finances.

Currently, some states are left with too little to meet even their recurrent obligations, after deductions are made from their monthly federation account allocations. Gives condition for bond proceeds release Rather than bank loans, the Federal Government asked states to source funds from the capital market for their infrastructure development.

It also insisted that funds sourced through bonds must not only be on bankable, measurable projects but must also be released in tranches. Vanguard gathered that the release of the proceeds of bond issuing will, henceforth, be on the basis of satisfactory utilization of earlier released proceeds.

The FSP aims to improve accountability and transparency; increase public revenue; rationalise public expenditure; improve public financial management; and sustainable debt management. Specific action points of the reform include biometric capture of all civil servants; establishment of an efficiency unit in each state, implementation of continuous audit, improvement in internally generated revenue, IGR, and measures to achieve sustainable debt management. States that meet the above FSP conditions can access a new N50 billion facility to be guaranteed by the Federal Government.

http://www.financialwatchngr.com/2016/06/15/fg-bars-states-bank-loans/

21 Likes 3 Shares

Re: FG Bars States From Bank Loans by macnwaobi2: 1:27am On Jun 15, 2016
First to comment. We are getting things right now. Thumbs up to the fin minister

52 Likes 5 Shares

Re: FG Bars States From Bank Loans by Flexherbal(m): 1:35am On Jun 15, 2016
I like this. Some state governors borrow more than they can payback. Although, it will affect even those who borrow such money for good reasons.

31 Likes 3 Shares

Re: FG Bars States From Bank Loans by Standing5(m): 1:44am On Jun 15, 2016
He he he. Nice one. Borrowing should be proportional to IGR.

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Re: FG Bars States From Bank Loans by chriskosherbal(m): 2:20am On Jun 15, 2016
I see
Re: FG Bars States From Bank Loans by Sweetlemon(f): 2:29am On Jun 15, 2016
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.

130 Likes 10 Shares

Re: FG Bars States From Bank Loans by Pavarottii(m): 4:42am On Jun 15, 2016
Sweetlemon:
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.
U r one of d problem of Nigeria. Wat brought NOI into this matter now?

45 Likes 1 Share

Re: FG Bars States From Bank Loans by gebest: 4:50am On Jun 15, 2016
the problem still lies on the fall of oil prize, if crude oil is sold for $100 a barrel now they will ve money to pay d loan, pay salaries nd still ve surplus for capital projects, i mean the sincere governors like Oshiomhole not people like govr Mimiko of Ondo nd Fayose of Ekiti. wailers u can hug transformer if u like.

16 Likes 3 Shares

Re: FG Bars States From Bank Loans by greatiyk4u(m): 5:04am On Jun 15, 2016
At least we are seeing a practical ECONOMIST now not the paper technocrat

God bless Nigeria!

61 Likes 5 Shares

Re: FG Bars States From Bank Loans by Nobody: 5:06am On Jun 15, 2016
grin Time for bayelsa and many south eastern states that can't pay salaries be listed on Olx for intended buyers. Funny biafrans

66 Likes 5 Shares

Re: FG Bars States From Bank Loans by proeast(m): 6:29am On Jun 15, 2016
Thats good, before the state governors in there desparation sinks the banks with toxic loans.

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Re: FG Bars States From Bank Loans by proeast(m): 6:35am On Jun 15, 2016
irunooboo:
grin Time for bayelsa and many south eastern states that can't pay salaries be listed on Olx for intended buyers. Funny biafrans
Like seriously?? Dude, last time I checked, the SE states are in far better financial state than most SW states, indeed, it is only the "no mans land" called Lagos that is excempted, from Osun to Ogun, Ekiti etc are all facing bankrupcy!! Cry for your ojujuwa region, we are better off!!

39 Likes 4 Shares

Re: FG Bars States From Bank Loans by YoursGEJ(m): 6:38am On Jun 15, 2016
A lot of these thief governors used to borrow money from banks, embezzle it and just pass on the responsibility of paying back the loan to their predecessors

That is now over

12 Likes 2 Shares

Re: FG Bars States From Bank Loans by Nobody: 6:41am On Jun 15, 2016
What happens to State's monies in bank eg Fidelity and Skye banks undecided
Re: FG Bars States From Bank Loans by DaniDani(m): 6:44am On Jun 15, 2016
proeast:
Like seriously?? Dude, last time I checked, the SE states are in far better financial state than most SW states, indeed, it is only the "no mans land" called Lagos that is excempted, from Osun to Ogun, Ekiti etc are all facing bankrupcy!! Cry for your ojujuwa region, we are better off!!
you get time to reply the ignoramus, she has been infected with severe hatred for Igbos and her body systems are failing her already, I advice her to take her frustrations to whoever made her life miserable

14 Likes 1 Share

Re: FG Bars States From Bank Loans by virginboy1(m): 6:45am On Jun 15, 2016
A very good lovely brilliant development.

I wonder want they use the loans to do.No reasonable fiscal policy plans to make revenue,they just keep piling up loans as if it was in their DNA to gather gbese. At the long run when they foolishly expend it, they go back to the archive and blame either Jonathan or the past governor.

Moverover, what is Benue state governor doing? ....I don't just understand the CHANGE in Benue.

9 Likes

Re: FG Bars States From Bank Loans by 4Play(m): 6:46am On Jun 15, 2016
Sweetlemon:
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.

I am not surprised you put LOL at the end of your post as you must have been reeling with laughter at the sheer stupidity of your post. The person you are singing her praise was also the Commissioner of Finance for Ogun state for 4 years until 2015 and can you remind us whether Ogun state needed a bailout by the end of her tenure?

Had the FG's finances been mishandled as badly as states' finances, including Ogun's, the FG won't be in a position to be arranging a bailout for the states.

34 Likes 1 Share

Re: FG Bars States From Bank Loans by lincolnj88: 6:48am On Jun 15, 2016
grin aresbesola in trouble

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Re: FG Bars States From Bank Loans by virginboy1(m): 6:52am On Jun 15, 2016
gebest:
the problem still lies on the fall of oil prize, if crude oil is sold for $100 a barrel now they will ve money to pay d loan, pay salaries nd still ve surplus for capital projects, i mean the sincere governors like Oshiomhole not people like govr Mimiko of Ondo nd Fayose of Ekiti. wailers u can hug transformer if u like.

But sir why oil, oil,oil.... the crude oil over dependence is just kind of annoying, don't other states have national resources that the nation can tap from. Why always crude oil. Moreover how do countries without crude oil survive?

All professional economist in Nja should come together as one to see how we Naija can zap resources from other states.

2 Likes

Re: FG Bars States From Bank Loans by DoyenExchange: 6:53am On Jun 15, 2016
Good. Let them look inwards for other sources of funds. Meanwhile, we have E-currency for sell. We also buy...same day!

1 Like 1 Share

Re: FG Bars States From Bank Loans by smsshola(m): 6:56am On Jun 15, 2016
Nice one I know of state governor who is planning to get loan of 10b from one of the commercial bank for road construction meanwhile the money his predecessor borrowed they are yet to settle that one... this is a state that cannot boast of 1b IGR.

I wish wailer will read the content before they comment.

5 Likes 1 Share

Re: FG Bars States From Bank Loans by Nobody: 7:02am On Jun 15, 2016
Sweetlemon:
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.
My sister you don't need to act like a typical naija woman and engage in woman fights na. Wedging Kemi against NOI is not worthy of a debate, it's like comparing Wole Soyinka and Chimanda Adichie. While one is graceful in retirement with international repute and acclaim, the other is like a budding flower, who we're unsure how bright it would blossom and how sweet it would smell.
Back to the topic, the economic team has come up with a policy which I can truly applaud, however let's not trumpet it like they have been on a brilliant streak. We know the fate of most of their other policies and we know the current state of our economy.

12 Likes

Re: FG Bars States From Bank Loans by MisterGrace: 7:09am On Jun 15, 2016
Sweetlemon:
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.

Do you really know the difference between former and latter?

5 Likes

Re: FG Bars States From Bank Loans by Agimor(m): 7:16am On Jun 15, 2016
Nice initiative .Governors are delibrately take loans that will impoverish the state to the detriment of incoming government. Fayose is one of them.
Re: FG Bars States From Bank Loans by SuperS1Panther: 7:21am On Jun 15, 2016
Example of such Govs that borrowed recklessly from the banks is Aregbesola and he simply enriched himself and his cohorts with it.
Re: FG Bars States From Bank Loans by Nobody: 7:31am On Jun 15, 2016
Pavarottii:

U r one of d problem of Nigeria. Wat brought NOI into this matter now?
many things brought her into the matter. Just check out the amount of things uncovered that went unnoticed under her watch. First, it was ghostworkers bleeding the nation, yet she kept on paying then. Next, military officers earning more than they should earn cos they inflated their salary. Under her, governors borrowed without caution only to loot the money at the end and impoverishing their states. I wonder what she ever stopped in her time. Yet, you all want us to see her as the best thing since garri.

30 Likes 2 Shares

Re: FG Bars States From Bank Loans by kenny987(f): 7:37am On Jun 15, 2016
I'm happy with any thing that keeps d thieving fingers of our mostly dull governors from more loans expended on thrash projects or personal use.

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Re: FG Bars States From Bank Loans by koboko69: 7:43am On Jun 15, 2016
Pavarottii:

U r one of d problem of Nigeria. Wat brought NOI into this matter now?
She was the ex. finance minister that you guys keep celebrating and glamoring for her to come back and supervise more lootings. That's what brought her into the matter. Or was she not the finance when states were taking all this frivolous loans?

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Re: FG Bars States From Bank Loans by koboko69: 7:52am On Jun 15, 2016
[s]
frenchwine:

My sister you don't need to act like a typical naija woman and engage in woman fights na. Wedging Kemi against NOI is not worthy of a debate, it's like comparing Wole Soyinka and Chimanda Adichie. While one is graceful in retirement with international repute and acclaim, the other is like a budding flower, who we're unsure how bright it would blossom and how sweet it would smell.
Back to the topic, the economic team has come up with a policy which I can truly applaud, however let's not trumpet it like they have been on a brilliant streak. We know the fate of most of their other policies and we know the current state of our economy.
[/s]

Make we hear word. What was the current state of the economy before your world celebrated left? At 57usd she was borrowing to pay salaries despite selling crude fir average of $100/barrel for more than 3 years. Off course the west will always celebrate any oe that does their biddings to make Africa grossly underdeveloped. Why do u think world bank and IMF always release statistics that never reflected on an average Nigeiran on the street.

26 Likes 3 Shares

Re: FG Bars States From Bank Loans by Pavarottii(m): 7:56am On Jun 15, 2016
bloodyBLOGGER:
many things brought her into the matter. Just check out the amount of things uncovered that went unnoticed under her watch. First, it was ghostworkers bleeding the nation, yet she kept on paying then. Next, military officers earning more than they should earn cos they inflated their salary. Under her, governors borrowed without caution only to loot the money at the end and impoverishing their states. I wonder what she ever stopped in her time. Yet, you all want us to see her as the best thing since garri.
[b]All these ones Don come again. No matter how many grammar u speak. In d whole of Africa. She stands out. Apart from her CV. Her results speak 4 her. Wen Adesoun starts performing. Talk to me. But 4 now. She is failing woefully. It's like u don't know that our economy should be in recession by d end of second quarter this year. And these decision she made about state govt stopping to take loans but she didn't say the FG should stop. Well d decision has its pros and cons. Can't start lecturing u now. Got work to attend to this morning.
And please don't ever compare those 2 again. God might be angry with u. NOI is a lecturer while Adesoun Is a student in Economics.[size=14pt]U r hailing someone that under her watch Foreign reserve depleted to 26billion dollars, economy grew by negative first time in decades 0.37%, inflation at 14.7%, NSE reduced by a 9billion dollars, FDI as good as nothing, Banks av lost more than a trillion in desk deposit. Unemployment rate at almost 20something%. Guy I will even do better than her. If they make me finance minister.
She Is complete, absolute failure. [/size][/b]

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Re: FG Bars States From Bank Loans by omenka(m): 7:56am On Jun 15, 2016
Sweetlemon:
When people kept complaining that Kemi Adeosun does not have credentials to compete with Iweala and all that I kept telling them to hold on a little and give her a chance.
The difference between the two is that while the latter impresses you with economic jargons, the former is more realistic about situations on ground while giving practical solutions to issues.
Give Kemi another two years, most of you will campaign for her to be our Hillary Clinton. Lol.

3 Likes

Re: FG Bars States From Bank Loans by Nobody: 7:58am On Jun 15, 2016
This is commendable. Accountability and probity are anathemas to many state governors. They have no moral scruples leaving their states in heavy debts.

2 Likes

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