State govts lost bailout money to banks – Govs

The Nigerian Governors’ Forum (NGF) has said that some indebted state governments lost their bailout money to servicing outstanding loans they had obtained from banks.
The chairman of the forum, Governor Abdulazeez Yari of Zamfara State, made this known in Abuja, yesterday.
It would be recalled that the money was sourced from the revenue paid to the Federation Account by the Nigerian Liquefied Natural Gas (NLNG).
Yari, who was fielding questions from State House correspondents in Abuja, expressed concern that many state governments were still facing financial challenges, in spite the disbursement of the NLNG money.
“What I’m saying is that no money is released yet apart from the NLNG money. But I think the NLNG money that was given, some states, their own was taken by the banks because it is due for them to repay some certain loans. Therefore, automatically, that has to go there.
“But for sure, some other governors reported that money went to their accounts, it was taken by some banks because of their outstanding loans.”
He, however, stated that the Central Bank of Nigeria (CBN) was negotiating with the banks on how state governments could freely access the next batch of the bailout funds, to enable them to settle outstanding salaries of their respective workers.
He also said that the inability of some state governments to ascertain the total amount of money involved was responsible for their current face-off with the West African Examination Council (WAEC).
WAEC had threatened to withhold the results of candidates in 19 states who wrote the May/June 2015 WASSCE following unpaid examination fees by the state governments.
Yari said that his state was also involved in the matter and attributed the situation to a mix up.
He said there was need for some of the affected states to verify the figures before payment.
The governor said discussion would be held with WAEC with a view to resolving the impasse.
“You see, including my own state, we are in that trouble. But the reason we are in that trouble is because we cannot ascertain the exact figure, which one is for the public, which one is for the private. It is a mix up.
“Some state governments need to verify between the WAEC and their ministries of education and other departments of education. So, that’s why some states cannot pay.

“And yes of course, some states are giving free education. Those WAEC monies are not being paid by the parents. It is being sponsored by the government like ours.
“The first primary charge I think is the salaries. If the states cannot pay salaries, how much more about other secondary expenses. Therefore, there is no surprise that some states cannot be able to do that, to pay their dues.
“But I think it’s something that we will discuss with some of the governors concerned and WAEC so that we will be able to know how this thing should not happen because of the future of our children.”