- Title: NIGERIA-STATE MONEY Buhari vows to restore Nigeria's financial "sanity"
- Date: 25th June 2015
- Summary: ABUJA, NIGERIA (FILE) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** VARIOUS OF FORMER NIGERIAN PRESIDENT GOODLUCK JONATHAN AND NIGERIAN PRESIDENT MUHAMMADY BUHARI DURING HANDOVER CEREMONY PRESIDENTIAL SEAL JONATHAN AND BUHARI SHAKING HANDS WITH GOVERNMENT OFFICIALS
- Embargoed: 10th July 2015 13:00
- Keywords:
- Location: Nigeria
- Country: Nigeria
- Topics: General
- Reuters ID: LVA29IDQA6KNGBAI517YP08Q8ARJ
- Aspect Ratio: 16:9
- Story Text: Nigeria's president has vowed to recover billions of dollars allegedly stolen by officials and restore financial "sanity", accusing previous governments in Africa's biggest economy of throwing the rulebooks "to the dogs".
Nigeria's 36 states are in debt to the tune of 658 billion naira ($3.3 billion) and governors say they need federal government support to offset a funding crisis.
Most of the states obtained loans from the domestic bond market and banks when oil prices were high to fund infrastructure projects, but the price of crude, Nigeria's main source of revenue, has since plunged leaving the government with funding challenges and unpaid salaries.
Analysts says the affluent lifestyle of the various state governors belies their cry for help.
"The lifestyle of the governors, the lifestyle of their children, of their families is not synonymous with what the workers are going through. So there is a deception here. Bogus and fat salaries in the name of security votes, in the name of estacodes are being collected by the governor and their cronies and their families and they plunge their states into poverty and misery and then turn around to be complaining. I don't think that Nigeria should give any sympathy to the governors. Wherever they have taken our money to, they should go and bring it and use it to pay salaries and use it to invest and use it to better the lives of their members," says lawyer and activist Ebun Adegboruwa.
Buhari, who took office last month after defeating incumbent Goodluck Jonathan in March elections, said the next three months would be challenging but vowed to recover billions stolen by government officials and plug leakages.
According to a statement released by the presidency, a committee headed by the vice president will look at how to use the Excess Crude Account (ECA) as a lifeline for states that owe salaries running into months and see what can be done immediately.
The naira currency has fallen sharply despite the central bank spending billions of dollars to try and prop it up.
Gross revenues distributable to the three tiers of government - federal, state and local - hit a five-year low in April due to frequent shutdowns of oil and export terminal pipelines and depressed crude prices.
Analysts say corruption is at the heart of the crisis.
"There is so much money in the hands of private individuals, this money should come out. The president should match his words with action by recovering all the loots of Abacha's family, of Jonathan's family, of any family that is guilty of taking the commonwealth of our people," says Adegboruwa.
Nigeria's corruption fatigued public want to see missing money recovered but also challenged state governments to find ways to boost their own revenues.
"Governors have not being proactive enough. If you look at our states, all around we have natural resources but it's been a thing that they are always running to the federal government to get funds and they are so used to that, and I want to say they are lazy because if they are not lazy, if they look around their states there should be things to develop to make money and its not every time you run to the federal government, the centre," said Toyin Osho, an IT specialist.
During campaigns, Buhari said he would focus on increasing the number of jobs for young people at a time of high youth unemployment, and that his administration would reinvest the money saved from cracking down on corruption into revamping education.
Details of Nigeria's economic and financial position are expected to be published within four weeks. - Copyright Holder: FILE REUTERS (CAN SELL)
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