State governors yesterday approached President Muhammadu Buhari with demands for an 18-month moratorium on bailout loans to allow them fix economic problems in their domains.
The major issue they said, is the inability of two-thirds of the states (24) of the federation to fulfil their salary obligations.
President Muhammadu Buhari said it had become a matter of concern to him that despite the bail-out funds provided to them by the Federal Government, the states were still unable to pay salaries.
Speaking to newsmen after the meeting with the President, Abdulaziz Yari, chairman governors forum, who is also governor of Zamfara State, said after meeting twice and deliberating on the short, medium and long-term solutions to the problems of the states, the forum decided to present it to the President.
“All these are temporary measures” as the governors seek a more lasting solution to their problems.
“For the short term, we are looking at a situation whereby our debts that are hanging since 2005 right from Obasanjo’s exit of the Paris club, some of the monies that were not paid, so that the states that are having difficulties can get money from there.
“Loan restructuring, bailout, and ECA, we are asking for 18 months moratorium before we can start paying, so that we would able to strategise.
“To develop IGR is not overnight, it is a long-term programme that one has to plan for. As part of the medium-term programme, the governors are looking at the revenue mobilisation formula in ensuring that recourses which were due for the past ten years to states will be made available to them after the National Assembly approval.”
The governors also asked that monies committed to Federal Government projects be returned to states so that they can get relief.
The chairman of the Governors Forum, and the Kaduna state Governor, Nasir El-Rufai, who chaired the committee that worked on the Fiscal Restructuring Plan, asked the Federal Government to do more to help the states financially.
The governors told the President that while they had resolved to take other measures to boost their internally-generated revenue, the implementation of the Fiscal Restructuring Plan would help them deal with their funding problems on short, medium and long-term basis.
They said if the plan was adopted and implemented by the Federal Government, states of the federation would become more financially empowered to fulfil their constitutional responsibilities.
To ameliorate the hardship being faced by affected workers due to the nonpayment of salaries, the President said the Federal Government would strive to make more funds available to the states by expediting action on refunds due them for the maintenance of federal roads and other expenses incurred on behalf of the Federal Government.
President Buhari also said that he would establish an inter-ministerial committee to study a Fiscal Restructuring Plan for the Federation which was presented to him by the governors.
The President said the committee would review the plan to improve the finances of state governments and make recommendations on how proposals in the plan should be dealt with by the Presidency, the Federal Executive Council and the National Assembly, through legislation.
President Buhari urged the governors to understand that while he was ready to do all within his power to help the states overcome their current financial challenges, the Federal Government also has funding problems of its own to contend with.
“You all know the problems we have found ourselves in. You have to bear with us,” he told them.
Elizabeth Archibong
