Governors put FG’s domestic debts at N5trn

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The Chairman of the Nigeria Governors’ Forum, Alhaji Abdulaziz Yari, on Tuesday said the current financial crisis was not restricted to states alone as the Federal Government is currently battling with domestic debts totaling N5.53trillion.

Yari, who is the governor of Zamfara State, also disclosed that all the 36 states of the federation and the Federal Capital Territory, are owing various debts totaling N658billion.
He spoke while briefing State House correspondents on the outcome of the meeting President Muhammadu Buhari had with state governors at the Presidential Villa, Abuja.

He was joined at the briefing by the Bauchi State governor, Muhammed Abubakar, and the Abia State governor, Okezie Ikpeazu.

Yari said, “At our meeting today, we identified the problem and we are going to find solution.
“Right now, we cannot even pay salaries talk less of development. So, at least we have to work faster and salvage the situation.

“I‎ want you to note that it is not only the states. The states debts are not as bad as that, we made it clear to Mr. President that the total debts of 36 states and FCT is N658 billion but the domestic debts of the Federal Government is N5.53 trillion, so it is not equal.

“So we appreciate the fact that we are all in this problem, the Federal Government cannot pay ministries, departments and agencies and states cannot pay workers.”

The governor explained that their meeting with the President was not just about bailout but about the way forward‎ out of the situation that both the states and Federal Government found themselves.
He said the President himself, before he was inaugurated, was aware that some of the states were in critical situations as regards payment of workers salaries because of the dwindling economy orchestrated by the drop in oil prices.

He said the governors proposed to the President that instead of being given bail out, ‎that the funds for FG projects that were done by the states should be refunded by the Federal Government.
According to him, if the affected states were able to get the money owed them released, they can be able to start paying salaries without bail out.
He said the governors also urged Buhari to help stretch the tenure of loans owed by state governments from the current four to seven years to about 20 years.
He argued that such extension would relieve the affected states and they would be able to continue other businesses, including paying salaries
.