Senate demands report on bailout to states

The Senate Committee on Banking, Insurance and Other Financial Institutions yesterday demanded the Central Bank of Nigeria (CBN) to provide a full report on the implementation of over N250 billion extended to states to offset salary arrears. President Muhammadu Buhari had extended bailout to states for payment of salaries arrears in excess of six months and applied for a soft loan to clear the backlog. The CBN worked out the over N250 billion in the form of soft loans to enable the states pay backlog of salaries.

That intervention failed to pull the states out of stress and the federal government considered a fresh N90 billion loan package for the states which hasn’t been implemented.

Chairman of the committee, Senator Rafiu Adebayo Ibrahim, who led his colleagues on oversight visit to CBN said the apex bank had briefed the committee on how the bailout was administered but the committee demanded for full report even though they were satisfied with CBN explanations.

“We discussed on the bailout and the CBN told us all that they have done. But we have requested for a detailed hard copy report about the bailout and the loan system. We are satisfied with the implementations” he said.

Speaking on the perceived lack of synergy between the monetary and fiscal authorities, the Senate committee said there was no so such rift between the two authorities.

“We discussed that but we don’t see any problem. I think it is a problem of perception. When a country is in this kind of situation, all of us are in a hurry to get out,” he said.