Debt Payment Deferral Not A Bail Out For States – Adeosun

Kemi AdeosunThe Ministry of Finance on Friday clarified that Thursday’s debt repayment deferral is not a bail out to state governments.
The ministry in a statement said the deferral totaling 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 Minister of Finance, Kemi Adeosun, said.
She said all the states will receive the relief this month, adding that further deferrals will be subject to the agreement of a Fiscal Restructuring Plan to be prepared by each state with clear measurable objectives.
Adeosun stressed that the Finance Ministry 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”.