Thursday, 2 July 2015


...“We were not even informed of the fact that this money was paid, and each time we ask[ed] the then Hon. Minister of Finance and Coordinating Minister of the Economy what was happening with the proceeds from the NLNG, no explanation was ever offered--whether in black and white, or in oral [statements]. There are several other federal agencies that made huge sums of money which were illegally and unilaterally spent by the Federal Government, without being allowed to flow into the federation account.

“So when you draw up a budget on the basis of anticipated revenue and there is such a sharp drop in revenue arising from diversion and there is also [a] drop in price, obviously something will have to give.

“The federal finances are even worst hit. Over the past 9 months under the past government, [the] Federal Government could not pay salaries from her legitimate income. What she has been doing which States could not do; was to borrow, using the CBN through various instruments termed security, etc and basically drawing down the pension funds because they are the ones who have liquidity to patronize the bond market.

“So if we were to be able to stop the Federal Government from borrowing to pay salaries, the Federal Government would have defaulted in payment of salaries much earlier than [the] States and the number of months the Federal Government would have been owing would be worse than the worst state in the federation.

“Just look at the budget of the Federal Government over the past four years and you will see the level of deficit finances that was built into the budget. So in trying to understand the financial crisis, you shouldn’t limit yourself to those who can pay. Even those who purport to pay, look at their source of funding [for] the payment. If you do, you will find out that the Federal Government frees itself to borrow quite recklessly, reckless in the sense that no serious manager goes month after month to borrow for the payment of salaries.

“I speak on my honor that the Federal Government is just as broke and that they are borrowing using CBN instruments in trillions of naira to pay salaries.


No comments:

Post a Comment