Some financial experts have advised the Federal Government to ensure that the N804.7 billion bail out to states for payment of workers’ salaries is judiciously used.
Mr Titus Okurounmu, an economist, told the News Agency of Nigeria (NAN) that Federal Government’s intervention owas the only available option in the circumstance.
He said that the intervention was a good development, particularly as it was designed to bring stability to the affected states and the Federal Government.
Okunrounmu said that the government could face more challenges in future if the government had not taken such step to tackle the inability of states to pay wokers’ salaries.
He said that the bailout could not lead to inflation as feared by some since it was not a salary adjustment, but arrears of salary payment to workers.
Okunrounmu, who was a former CBN director, said that it was time that state governments reviewed their current expenditures.
Mr Boniface Chiezea, a financial consultant, however, said that as laudable as the Federal Government’s gesture could be, the processes of disbursing the fund should be ‘tidy’.
Chiezea said that the inability of the Federal Government to monitor the fund effectuvely could become distarious to the ecinomy.
On whether the government could continue with the bail-out if the situation persisted, he said that would mean encouraging inefficiency among states.
He advised the Federal Governments to make public the given to each state from the bail-out fund.
NAN recalls that President Muhammadu Buhari on June 7 approved the sum of N804.7 billion to assist states that are unable to pay salaries to do so.
A total of N413.7 billion is to be shared in fresh allocations among the states and the Federal Government.
Also the Central Bank of Nigeria (CBN) is packaging a special intervention fund that will offer financing to the states ranging from between N250 billion and N300 billion.
NAN
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