Federal Government Borrows N600bn Annually to Pay Salaries - SGF Makes Interesting Revelation

 

Babachir Lawal

The Federal Government has disclosed that it borrows internally over N600 billion on average each year to pay salaries of its workforce.

According to the government, many states may not be able to pay salaries in the next three to four months, if things continue the way they are. 

Secretary to the Government of the Federation, SGF, Mr. Babachir Lawal, disclosed this yesterday in Jos, where he represented President Muhammadu Buhari at the opening ceremony of the 63rd General Church Council meeting of the Evangelical Church Winning All, ECWA.

He urged all faith-based organizations and traditional institutions to sensitize the citizenry on the need to exercise patience in the hardship  currently being experienced by all, stressing that though this administration inherited a country robbed almost to the last penny, it would be revived within a short time. 

The SGF lamented that the present administration inherited an ailing economy that must be nurtured for sometime before it stabilized and assured citizens that with the desired cooperation, the country would come out of the challenges and assume its rightful place as the most populous black nation. 

His words: “N600 billion is on the average FG borrows. If you look at monies coming from the Federation allocations, even for the states, Federal government sometimes get N130 billion and sometimes if lucky, N200 billion and we have an expenditure profile of roughly N800 and N900 billion. Naturally, you need to augment sources from everywhere and from wherever you can find it.

“There are so many avenues, I’m talking about local borrowings, not international. There are ways and means to raise the money, because the monies coming from the Federal allocation is not enough and the figures are not fixed, they vary from month to month, it depends on what is able to get into the treasury and our own share of it. Just like the states and you remember that there was a time Osun state got N55 million in a month from the Federation allocation and the state has a salary bill of over N4 billion in a month, so the problems are too many.

“This government came into power at the very brink of the collapse of our nation, which had over the years been riddled by corruption, insurgency, youth unemployment and economic meltdown. Some stolen funds have been recovered from the corrupt public office holders and negotiations are ongoing with the host countries where those funds were lodged to repatriate our common wealth."