Financial crisis in states, recipe for disaster, Adams

Edo State Governor, Adams Oshiomhole

Edo State Governor, Adams Oshiomhole, has said the country is witnessing financial crisis since most states are unable to pay workers’ salaries due to the inability of the Federal Government to meet its financial obligations to state governments.

Speaking in Benin on Thursday, Oshiomhole described the development as a recipe for national disaster and with serious security implications.

The governor stated this during a media chat as part of activities marking the country’s 53rd Independence anniversary celebration.

Oshiomhole, who was reacting to the inability of the Federation Accounts Allocation Committee to pay monthly revenue allocations to the three tiers of government, urged the Nigerian National

Petroleum Corporation to pay the N2.3tn it had not remitted into the Federation Account.

He added that the NNPC was not being sincere with Nigerians as regards daily refined crude oil, a situation he said was pauperising the country despite its enormous potential.

The governor said, “I don’t know if the Federal Government is broke, but I know there is a serious crisis and it is unprecedented in the history of this country. For the first time since 1999, allocations can no longer come as at when due to the states.

“I have been involved in trying to understand what the reasons are and I have not seen anything yet. Whether we use the word broke or you deny the word broke, the truth is that there is a financial crisis in Nigeria, which has a very serious national security implication.

“Because when the Federal Government can’t pay salaries as at when due, you can’t pay your contractors and your contractors will begin to retrench their workers, that is a recipe for national disaster. So, I am hoping that the NNPC will wake up and meet its obligation to the Federation Account; otherwise, the integrity of the government is at stake.

“If I can’t keep my promise, the Federal Government can’t keep its promise, all other governors can’t keep their promises; the Nigeria electorate will be so disillusioned and it will be a disaster. So, I am hoping that the NNPC recognises that it cannot be business as usual and it has a few cases to answer as far as I am concerned.”

On the effect of the paucity of funds on the states, the governor said, “In Edo State, like the rest of other 35 states, part of our July allocation has not been paid. About a third of our August allocation has not been paid, and nothing has been paid for September allocation. And it is the first time since 1999 that this thing has happened.”