Debt Payment Relief Is For Workers’ Salaries – Minister Of Finance
SAN FRANCISCO, April 22 (THEWILL) – The Ministry of Finance has warned State Governments that the debt repayment relief given by President Muhammadu Buhari on Thursday is not a bail out.
The ministry in a statement, released on Friday, said the deferral, which totals N10.9 billion is to ensure that the states are in a better position to meet their salary obligations to workers.
“We are not able to guarantee that all states will be able to meet their salary obligations, as each state's situation is dependent on its own cost profile and other obligations it may have. But this initiative is to improve their position to do so,” the statement read.
“All the states will receive the relief this month, but further deferrals will be subject to the agreement of a Fiscal Restructuring Plan to be prepared by each state with clear measurable objectives.”
The ministry stressed that it is keen to ensure that the programme of financial discipline being driven by the federal government “is replicated in all tiers of government, including elimination of payroll fraud and increased spending efficiencies in overhead.”
Story by David Opurah