Thirty states of the Federation have failed to meet the 22 stringent conditions demanded by the Federal Government in order to access the N90 billion budget support loan facility for them at nine percent interest rate.
This was even as only one state declined to access the loan.
Akwa Ibom State Governor, Udom Emmanuel broke the news to State House Correspondents, yesterday, that, only five states met the stringent conditions for the loan.
The loan will be disbursed at the next Federation Account Allocation Committee (FAAC) meeting in Abuja.
This is the third bailout the Federal Government has given to states to enable them meet their obligations, including payment of salaries.
President Muhammadu Buhari had, in July 2015, approved about N804.7 billion intervention package to help bankrupt states pay salaries. A repayment plan was also worked out on how the states would meet those obligations.
Also, the Federal Government deferred up to N10.9 billion obligatory repayments due from states for April this year, in respect of their restructured bailout loan obligations.
On Tuesday, government announced a fresh N90 billion bond for states with 22 stringent conditions attached to it. The conditions are contained in its Fiscal Sustainability Plan (FSP) Fiscal Framework for Sub-National Governments (states) in Nigeria which Minister of Finance, Mrs. Kemi Adeosun, released at a stakeholders’ meeting attended by the 36 states Commissioners for Finance.
The stringent conditions followed a report the Independent Corrupt Practices and Other Related Offences (ICPC) published, which showed that most of the states diverted the funds earlier given as bailouts.
Addressing newsmen at the end of the National Economic Council meeting presided by Vice President, Yemi Osinbajo, Emmanuel, said it was not compulsory for states to access the bailout, but noted that it was as a result of the economic crunch that has hit the country today. “It is not compulsory. What is important is can people have access to a lifeline? You see, what is happening today is not peculiar to Nigeria as a country, you know the impact of the fall in crude oil price that has actually affected oil producing countries like Nigeria.
“What we are looking at are solutions; we must provide a lifeline for people to survive and to move on, I don’t think it’s too much.
“It doesn’t actually mean that states which will take this money do not have something accruable also from the federal government, pending the time we reconcile our books. The federal government may have some balances for the state government, but, in the meantime, while we are waiting for those reconciliations to be concluded, can we open up the window so we can have access to liquidity and implement our 2016 budget. I think that is the whole idea.”
Minister of Finance, Kemi Adeosun, reported to the council that the balance in the Excess Crude Account (ECA) as at June 15, 2016, stood at $ 2.261 billion.




http://sunnewsonline.com/bailout-3o-states-fail-test/

meh?nn
They can't meet the requirements.They are too capacity deficient to be transparent.