Considerable wage arrears in eighteen out of the
thirty-six states in Nigeria are related to their technical bankruptcy.
The state workers in Abia, Akwa Ibom, Bauchi, Benue, Cross River, Ekiti,
Imo, Jigawa, Kano, Katsina, Kogi, Ogun, Ondo, Osun, Oyo, Plateau,
Rivers and Zamfara haven’t seen their salaries for months due to
short-sighted borrowing policies of the state governments.
Weakening
naira, plunging oil prices and short-sighted borrowing policies of the
state governments led to the situation of technical bankruptcy in
eighteen out of the thirty-six states in Nigeria. The state governments,
who have to pay interests on previous bank loans, simply don’t have
enough money to pay salaries – and that’s why they take new loans,
worsening their own financial situation even more.
The inability of states to pay salaries is resulting from their heavy dependence on federal budget allocations while state governments themselves are unable to find source of internally generated revenue.
Oil revenues make up nearly 70% of Nigeria’s total revenue, so drastically falling oil prices result in reduction of allocations to the state governments from the federal budget.
Meanwhile, weakening naira increases the external debt of the states, making paying off external loans harder. And that’s a huge problem considering the fact that they make up 25% of the overall debt stock in those states.
Besides that, some state governors contribute to the problem, funding inappropriate expenses from the state budget instead of financing some capital projects which could contribute to their states’ economies.
Earlier the Federal Government advised banks not to give out new loans to those states that already experience difficulties in servicing their existing debts.
While Senator of Bayelsa East Ben Murray-Bruce set out the way of solution to the problem of unpaid salaries on his twitter account.
READ MORE: http://www.naij.com/461369-nigeria-is-half-bankrupt.html
.
Nigerians protest over unpaid salaries. Many state workers haven’t seen their money over 9 months
Photo: AFP
Photo: AFP
The inability of states to pay salaries is resulting from their heavy dependence on federal budget allocations while state governments themselves are unable to find source of internally generated revenue.
Oil revenues make up nearly 70% of Nigeria’s total revenue, so drastically falling oil prices result in reduction of allocations to the state governments from the federal budget.
Meanwhile, weakening naira increases the external debt of the states, making paying off external loans harder. And that’s a huge problem considering the fact that they make up 25% of the overall debt stock in those states.
Besides that, some state governors contribute to the problem, funding inappropriate expenses from the state budget instead of financing some capital projects which could contribute to their states’ economies.
Earlier the Federal Government advised banks not to give out new loans to those states that already experience difficulties in servicing their existing debts.
While Senator of Bayelsa East Ben Murray-Bruce set out the way of solution to the problem of unpaid salaries on his twitter account.
READ MORE: http://www.naij.com/461369-nigeria-is-half-bankrupt.html
President Muhammadu Buhari has assured that his administration will
give special attention to development of university education in the
country.
The president who spoke weekend at the 30th convocation ceremony of the University of Port Harcourt harped on the value of education in national development.
Represented by the Executive Secretary, Nigeria Universities Commission, Professor Julius Okojie the President said the federal government would support universities to improve learning, teaching and research facilities.
He recalled effort in the past by the federal government to
strengthen university education through the Tertiary Education Trust
Fund, TETFUND, adding that universities should also seek support of
corporate organizations, development partners to bridge the gap in
government funding.
He further tasked university authorities to give priority attention to security of lives and properties within their environment, adding that they should collaborate with host communities and security agencies in the this direction.
Earlier Vice Chancellor of the school Professor Joseph Ajienka told the graduands that their certificates and transcripts were ready for collection, noting that it was the first time it would happen in the history of the institution,
“For the first time, all certificates are ready.iAll your transcripts are ready for collection also for the first time. “, he said.
He also extended his sympathy to parents and friends of four students of the university who lost their lives in a mob attack at Alluu community, Ikwerre local government area some years back
Governor of Rivers state, Nyesom Wike congratulated the school for its 40th anniversary, assuring that his administration would always assist the university in areas of need.
Wike who was represented by his Deputy, Dr Mrs Ipalibo Banigo said his administration would focus on providing quality education in the state.
He said the government would re introduce boarding education in the state, noting that teachers and staff in schools would regularly be trained and retrained for their jobs
Chief Solomon Ogba, Chief Mrs Seinye Lulu Briggs and Ichie Nnaeto Orazulike were conferred with Honoris causa degrees.
Chancellor of the University, His Royal Highness, Major General Dr Mohammad Bashir rtd congratulated the graduands, urging them to remain good ambassadors of the school.
Meantime 50 graduands who benefitted from the yearly Agbami scholarship program of Chevron Nigeria limited for its host communities thanked the oil giant for the gesture
Three of them sponsored by the oil giant graduated I with first class honours,
Fadoyemi Tunji one of the first class graduates from Gas Engineering said the scholarship enabled him pay his fees promptly, adding that it contributed largely to his success. He graciously thanked the firm for the assistance.
- See more at: http://www.vanguardngr.com/2015/06/buhari-promises-quality-university-education/#sthash.q6qEWPW7.dpuf
The president who spoke weekend at the 30th convocation ceremony of the University of Port Harcourt harped on the value of education in national development.
Represented by the Executive Secretary, Nigeria Universities Commission, Professor Julius Okojie the President said the federal government would support universities to improve learning, teaching and research facilities.
Nigerian
President Mohammadu Buhari swears to an oath during his inauguration at
the Eagles Square in Abuja, on May 29, 2015. Buhari, 72, defeated
Goodluck Jonathan in March 28 elections — the first time in Nigeria’s
history that an opposition candidate had beaten a sitting president. AFP
He further tasked university authorities to give priority attention to security of lives and properties within their environment, adding that they should collaborate with host communities and security agencies in the this direction.
Earlier Vice Chancellor of the school Professor Joseph Ajienka told the graduands that their certificates and transcripts were ready for collection, noting that it was the first time it would happen in the history of the institution,
“For the first time, all certificates are ready.iAll your transcripts are ready for collection also for the first time. “, he said.
He also extended his sympathy to parents and friends of four students of the university who lost their lives in a mob attack at Alluu community, Ikwerre local government area some years back
Governor of Rivers state, Nyesom Wike congratulated the school for its 40th anniversary, assuring that his administration would always assist the university in areas of need.
Wike who was represented by his Deputy, Dr Mrs Ipalibo Banigo said his administration would focus on providing quality education in the state.
He said the government would re introduce boarding education in the state, noting that teachers and staff in schools would regularly be trained and retrained for their jobs
Chief Solomon Ogba, Chief Mrs Seinye Lulu Briggs and Ichie Nnaeto Orazulike were conferred with Honoris causa degrees.
Chancellor of the University, His Royal Highness, Major General Dr Mohammad Bashir rtd congratulated the graduands, urging them to remain good ambassadors of the school.
Meantime 50 graduands who benefitted from the yearly Agbami scholarship program of Chevron Nigeria limited for its host communities thanked the oil giant for the gesture
Three of them sponsored by the oil giant graduated I with first class honours,
Fadoyemi Tunji one of the first class graduates from Gas Engineering said the scholarship enabled him pay his fees promptly, adding that it contributed largely to his success. He graciously thanked the firm for the assistance.
- See more at: http://www.vanguardngr.com/2015/06/buhari-promises-quality-university-education/#sthash.q6qEWPW7.dpuf
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