TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

States bank on private-public projects as cash crunch bites harder

The Citizen by The Citizen
May 31 2021
in Governance
A A
0
States bank on private-public projects as cash crunch bites harder

Many state governments have embarked on the Private-Public Partnership (PPP) to finance capital projects that had the potential of yielding revenue.

The officials added that states that had yet to start the PPP, were also planning to embrace it to finance projects.

Many have started reducing their overhead costs as part of measures aimed at addressing the dwindling funds from the federation account.

However, state officials, who disclosed this in separate interviews on Sunday, ruled out sacking workers or slashing salaries in order to reduce the states’ wage bills.

They disclosed that no matter how tight the finances of their states were, governors would not contemplate sacking workers  because of the possible political backlash.

Recall that the Nigerian National Petroleum Corporation (NNPC), in a  letter dated April 26, 2021, informed  federal and state governments about its dwindling contribution to the federation account as a result of the bloated fuel subsidy.

The corporation also  indicated that it would not make any remittance for the April and May Federal Account Allocation Committee  after paying fuel subsidy from its revenue.

As a solution to the dwindling revenue, the Nigeria Governors’ Forum, at its meeting on May 20, called for immediate removal of fuel subsidy and suggested that the pump price of petrol should be  N385 per litre.

Despite the governors’ recommendation, the Group General Manager, Group Public Affairs Division of the NNPC, Kennie Obateru, last Monday ruled out the removal of fuel subsidy until  the conclusion of negotiations with the organised labour.

To compound the woes of the states, the Central Bank of  Nigeria Governor, Godwin Emefiele, after the CBN’s monetary policy committee meeting  in Abuja on Tuesday,  insisted that the bank  would start deducting budget support loans given to states.

At the National Economic Council meeting in April, the governors had  requested that the repayment of the loans borrowed from the CBN, which ought to start this month, be deferred.

On Sunday, a top official of the Nigeria Governors’ Forum, who confided in one of our correspondents, said, “Except for a governor like El-Rufai (of Kaduna State), who is courageous enough to take decisions without thinking about the political implications for himself or his party, no governor will contemplate laying off workers less than  two years to the 2023 elections.

“Recall that one of the major causes of Chief Bisi Akande’s failure to win second term in 2003 was the reform that he carried out in the civil service as well as the teaching service. Some teachers were laid off because of the relevance of their subjects. Some civil servants lost their jobs because their certificates were not genuine.

“Although the old man is a good manager of people and resources, he lost the 2003 election partly because of the reform, which was in the overall interest of the state.”

We’re financing projects through PPP, IGR – Bauchi

The Bauchi State Commissioner of Budget and Economic Planning, Dr Aminu Gamawa, in a text message sent to one of our correspondents, said the state government would not sack workers.

He,  however, said the state government would continue fishing out ghost workers in the payroll.

The commissioner stated, “The economies of Nigeria and Bauchi State are not in good shape. That is why some states are reducing their workers.  In Bauchi, we are approaching the problem in a creative manner.

“Instead of sacking  workers, we are focusing on ensuring that the payroll and the nominal roll of the state are sanitised to prevent fraud and corruption.  This will ensure that ghost workers and unproductive workers who are not adding value are fished out. This will enable the state to make some savings.

“We are also taking proactive and creative measures to increase our internally generated revenue.  This will provide the state with more resources to implement projects. Most of the projects that we are currently implementing in Bauchi are financed through the internally generated revenue and other creative ways like the private public partnership.

“We also believe that the role of the government is not to make people dependent on the government for handouts.  The role of the government is to create enabling environment for entrepreneurs and businesses to prosper, and create jobs, wealth and fight poverty.

“We will ensure that workers are paid their legitimate salaries on time, but we will also ensure that the government gets value for the money it is spending.”

On his part, the Enugu  State Commissioner for Information,  Mr Chidi Aroh, said the state was working hard to cut down overheads.

Aroh stated, “He (the state governor) is also working hard to see how he will cut overheads in the state.

“ I am sure in a couple of weeks or so we are going to come out with a new principle to cut down a lot of  overheads in the state because the economy is bad and government must take the primary responsibility of   providing security and welfare of the people.”

In Sokoto State, Governor Aminu Tambuwal also said the state government was not considering sacking workers.

He stated, , “Instead an agreement would be brokered, when the need arises, to source for funds, we  will  tax elected officials and political appointees.

“Such funds and taxes would be used  to pay the civil servants pending when the situation improves and the deductions made would be repaid.

“We give priority to prompt payment of salaries and pensions. The state government is doing its best in addressing the challenges of gratuity as well as other allowances to the workers.”

Also, the Kogi State Government  said that it had no plan to either sack  workers or reduce salaries of its workforce.

The Commissioner for Information and Communication Strategy, Kingsley Fanwo told one of our correspondents on the telephone on Sunday that the state government was still committed to its agreement with the state organised labour.

PPP has taken Ekiti this far in development – Commissioner

In Ekiti State, the  Commissioner for Information, Mr Akinbowale Omole, said  private public participation in projects execution had produced a lot for the state in terms of development.

Omole, who said that Ekiti was resolute not to sack workers despite the present dwindling resources, said the state was, however, reviewing the financial situation with a view to determine the way forward.

He said, “We are doing the PPP already. There are some projects that the World Bank is financing. There are some that the European Union is financing. We are doing that already and that is why we have been able to go this far in our developmental feat in the state.

“We are still reviewing the financial situation that we are going through now, there is still no indication that it will continue for long period of time. We are still looking at it whether it will be a short-term problem or long term.

“If it is short term, I want to believe that we will still weather it. But if it extends too long, then we will sit back again and review the situation to see what will be done,” he said, while speaking on sustainability of the projects and as well meeting obligations to workers.

On efforts already taken by the state to address the situation, Omole said, “We run a serious government here and we set our priorities. There was a stakeholders’ meeting involving every stakeholder – the organised labour, the two state-owned universities, the political appointees and various groups that participate in revenue generation and share out of the revenue.

“We have looked at everything together and we have put some things before the stakeholders. The advice of various groups is coming in as per what the government should do in the circumstance and it is only a collation of these suggestions that will now determine the way forward. As I speak with you, we are still getting feedback from various groups,” the commissioner said.

We hope we won’t get to the level of retrenchment – Osun

Also, the Osun State Commissioner for Works, Remi Omowaiye, expressed hope that poor state of finances would not degenerate further and reach the level that the administration would consider sacking workers.

Omowaiye, who declared that because of repayment of loans taken by the previous administrations, the state received the least amount from the federation account.

He  further said the administration had been performing its statutory obligations because of the financial ingenuity of the governor.

When contacted, Osun State  Nigeria Labour Congress Chairman, Jacob Adekomi, simply replied, “When we get to the bridge, we know how to cross it. Our national headquarters usually take decision on such issues.”

PPP is at the heart of all we do – Ogun govt

The Ogun State Government said that it would not drop any capital project, neither would it sack works despite the dwindling allocation from the Federal Government .

The Chief Press Secretary to the governor, Kunle Somorin, who stated this in an interview with one of our correspondents on Sunday, said  the state government was creatively allocating resources to meet the developmental needs.

Somorin added that public private  partnership would be prioritised to ensure the needs were  met .

He said “The PPP is at the heart of all we do. No capital project will be dropped. We are creatively allocating resources to meet our developmental needs. Ogun won’t slash workers salaries.

“Ogun is solvent. We won’t sack for lack of funds. The people are the essence of governance. Anybody sacked must have undergone a fair and due process after committing  service infractions.”

Recall that there was a crisis in Kaduna State, two weeks ago, when workers embarked on a strike because of the decision of the state government to sack workers in order to improve its finances. – Punch.

Previous Post

Kidnappers abduct Nasarawa lawmaker

Next Post

FG plans more Sukuk bonds to fund projects

Related Posts

Student loans voluntary, not compulsory for tertiary students — NELFUND
Governance

Student loans voluntary, not compulsory for tertiary students — NELFUND

October 21 2026
NFF Crisis: Tinubu orders comprehensive reform of Nigerian football
Governance

Subsidy removal: I’ve no regret, we can’t go back to Egypt — Tinubu

October 20 2026
FAAC shares N2.09tr to FG, states, local councils as October revenue
Governance

FAAC shares N2.43tr among FG, states, LGs

October 16 2026
Akpabio hints at ‘political manoeuvers’ to calm aggrieved senators after primary upsets
Governance

Suicide bill: Akpabio defends remarks as psychiatrists demand apology

October 16 2026
Tinubu approves licences for 11 private universities
Governance

Tinubu transmits NDLEA, NSIB amendment bills to Senate

October 13 2026
Umahi defends Ondo Coastal Highway diversion
Governance

Umahi defends Ondo Coastal Highway diversion

October 12 2026
Next Post
FG to auction N150bn bonds

FG plans more Sukuk bonds to fund projects

FCT authorities demolish Fulani RUGA settlement near Abuja airport

FCT authorities demolish Fulani RUGA settlement near Abuja airport

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Ooni, Omisore mourn Afenifere leader Fasoranti

Ooni, Omisore mourn Afenifere leader Fasoranti

by The Editor
October 21 2026
0

...

Minister defends King’s College concession, cites infrastructure decay

Minister defends King’s College concession, cites infrastructure decay

by The Editor
September 16 2026
0

...

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

APPOINTMENTS

CJN swears in 68 new SANs

CJN swears in 68 new SANs

by The Editor
October 12 2026
0

...

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

Enugu governor names Nollywood’s Eucharia Anunobi, Rachael Okonkwo aides

by The Editor
September 23 2026
0

...

Gov. Yahaya swears in 19 new Gombe permanent secretaries

Gov. Yahaya swears in 19 new Gombe permanent secretaries

by The Editor
September 11 2026
0

...

Niger State governor appoints six commissioners-designate, four aides

Niger State governor appoints six commissioners-designate, four aides

by The Editor
September 8 2026
0

...

ODDITIES

Indian man assaults truck drivers in Lagos

Indian man assaults truck drivers in Lagos

by The Editor
October 13 2026
0

US engineer caught on camera poisoning colleague’s water bottle

US engineer caught on camera poisoning colleague’s water bottle

by The Editor
October 12 2026
0

Newly-wed pastor steps back from ministry after apologising over past affairs

Newly-wed pastor steps back from ministry after apologising over past affairs

by The Editor
October 6 2026
0

GLOBAL NEWS

Nigeria assesses risk as Ebola kills three in Guinea

Ebola: US issues health advisory to citizens in Nigeria

by The Editor
October 21 2026
0

...

Court finds Kenyan cult leader guilty over 191 starvation deaths

Court finds Kenyan cult leader guilty over 191 starvation deaths

by The Editor
October 20 2026
0

...

Nigeria: Pope Leo XIV urges release of abductees from terrorists’ den

Pope Leo’s lung surgery successful — Vatican

by The Editor
October 13 2026
0

...

Child Soldiers: US threatens to cut military aid to Nigeria

Child Soldiers: US threatens to cut military aid to Nigeria

by The Editor
October 13 2026
0

...

Saudi Arabia threatens ‘serious response’ after Houthi airport attacks

Saudi Arabia threatens ‘serious response’ after Houthi airport attacks

by The Editor
October 13 2026
0

...

State of the States

Gombe confirms cholera outbreak, treats 74 patients

Gombe confirms cholera outbreak, treats 74 patients

by The Editor
October 21 2026
0

...

Ogun pensioners demand gratuities, pension increases

Ogun pensioners demand gratuities, pension increases

by The Editor
October 9 2026
0

...

Enugu Air opens international route to Cameroon, begins Enugu-Douala service

by The Editor
September 25 2026
0

...

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

I won’t be a godfather; Abia voters will pick my successor, says Gov. Otti

by The Editor
September 17 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Imo Kidnap Suspects: IWA, COSEYL, IPOB claim vindication

Imo Kidnap Suspects: IWA, COSEYL, IPOB claim vindication

October 21 2026
Nigeria’s vote-buying scourge – Punch

Nigeria’s vote-buying scourge – Punch

October 21 2026
2027 Presidency: Makinde promises tax breaks, reaffirms claim on unremitted ₦250bn fund

2027 Presidency: Makinde promises tax breaks, reaffirms claim on unremitted ₦250bn fund

October 21 2026
Sowore seeks approval to inaugurate AAC campaign council in Aso Villa

Sowore seeks approval to inaugurate AAC campaign council in Aso Villa

October 21 2026

EDITORIAL REVIEW

Nigeria’s vote-buying scourge – Punch

Nigeria’s vote-buying scourge – Punch

by The Editor
October 21 2026
0

Perils of LG Electoral Commission – Punch

Yes, voters, not courts, must decide elections – Punch

by The Editor
October 20 2026
0

Tariff hike: Electricity workers lock out minister, issue 14-day ultimatum

Don’t involve civil servants in politics – Punch

by The Editor
October 16 2026
0

Kano, Sokoto, others spend N53.2bn on scholarships abroad

Kano, Borno spreading tyranny – Punch

by The Editor
October 13 2026
0

2027: Wike, APC governors clash over Rainbow Coalition

Why are governors getting worse?

by The Editor
October 13 2026
0

Opinion

2027: Wike, APC governors clash over Rainbow Coalition

Why are governors getting worse?

by The Editor
October 13 2026
0

...

As we celebrate the girl-child, let us not forget the boy-child

As we celebrate the girl-child, let us not forget the boy-child

by The Editor
October 12 2026
0

...

Candidate Sowore: Revolution, Marijuana and other stories

Candidate Sowore: Revolution, Marijuana and other stories

by The Editor
September 25 2026
0

...

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.