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

Senate orders arrest of terrorists flaunting cash on social media
Financial Crimes

Senate orders arrest of terrorists flaunting cash on social media

June 11 2026
BREAKING: FG bans ‘Dr’ prefix for honorary degree holders, flags fraud
Governance

FG approves guidelines to regulate honorary doctorate awards

June 11 2026
Tinubu swears in four Permanent Secretaries, INEC commissioner
Governance

Tinubu vows end to culture of abandoned projects

June 11 2026
Reps move to stop Army policy retiring SSCC, DSSC officers early
Governance

Reps move to stop Army policy retiring SSCC, DSSC officers early

June 10 2026
Nigeria’s foreign debt to hit $72.6bn in 2027
Governance

Nigeria’s foreign debt to hit $72.6bn in 2027

June 10 2026
Insecurity: Reps query defence spending, summon NSA, ministers
Governance

Insecurity: Reps query defence spending, summon NSA, ministers

June 10 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

Court grants indigenous status to Hausas born in Jos North

Court grants indigenous status to Hausas born in Jos North

by The Editor
June 11 2026
0

...

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

42-year-old Sheikh Dasuki emerges Chief Imam of Ilorin

by The Editor
June 11 2026
0

...

His Royal Majesty, Obi Ifechukwude Okonjo II: Progressive Monarch fighting for his people

His Royal Majesty, Obi Ifechukwude Okonjo II: Progressive Monarch fighting for his people

by The Editor
June 4 2026
0

...

Ondo LG shuts schools over security concerns

Ondo LG shuts schools over security concerns

by The Editor
June 2 2026
0

...

APPOINTMENTS

UK Prime Minister picks ex-army officer Dan Jarvis as new defence ministe

UK Prime Minister picks ex-army officer Dan Jarvis as new defence ministe

by The Editor
June 11 2026
0

...

NCC appoints Princess Oforitsenere Emiko as interim Chairman of the Digital Bridge Institute Governing Board

NCC appoints Princess Oforitsenere Emiko as interim Chairman of the Digital Bridge Institute Governing Board

by The Editor
June 9 2026
0

...

Pres. Tinubu swears in two new ministers

Pres. Tinubu swears in two new ministers

by The Editor
June 8 2026
0

...

Tinubu appoints Zainab Marwa into NDDC Board

Tinubu appoints Zainab Marwa into NDDC Board

by The Editor
June 4 2026
0

...

ODDITIES

Bus driver stabs transport officer to death in Calabar

Lady lures friend for boyfriend to kill, harvests body parts

by The Editor
June 9 2026
0

Oyo residents chant ‘Jagaban 2027’ slogan after receiving semovita

Oyo residents chant ‘Jagaban 2027’ slogan after receiving semovita

by The Editor
June 9 2026
0

Ibadan visitation: Nobody can stop me from going anywhere in Nigeria – Sheikh Gumi

Ibadan visitation: Nobody can stop me from going anywhere in Nigeria – Sheikh Gumi

by The Editor
June 9 2026
0

GLOBAL NEWS

Iran vows devastating response to Trump’s threat of seizing Kharg Island

Iran vows devastating response to Trump’s threat of seizing Kharg Island

by The Editor
June 11 2026
0

...

UK Defence Minister resigns with stinging rebuke of PM Starmer

UK Defence Minister resigns with stinging rebuke of PM Starmer

by The Editor
June 11 2026
0

...

Iran strikes 18 US military targets in two missile waves, Fifth Fleet in Bahrain hit by drones

Iran strikes 18 US military targets in two missile waves, Fifth Fleet in Bahrain hit by drones

by The Editor
June 11 2026
0

...

Greece to ban social media for under-15-year-olds

Canada moves to ban under-16s from social media

by The Editor
June 11 2026
0

...

UK Police hunt Nigerian man after prison escape

UK Police hunt Nigerian man after prison escape

by The Editor
June 10 2026
0

...

State of the States

Fubara orders fresh LG elections in Rivers State

Rivers State to shut down unapproved private schools

by The Editor
June 11 2026
0

...

Akwa Ibom Assembly passes motion to regulate dispatch services

Akwa Ibom Assembly passes motion to regulate dispatch services

by The Editor
June 10 2026
0

...

Kano screens 720 out of 3,000 couples for mass wedding

Kano screens 720 out of 3,000 couples for mass wedding

by The Editor
June 10 2026
0

...

Gov. Uzodimma declares Imo as haven for local, foreign investors

Gov. Uzodimma declares Imo as haven for local, foreign investors

by The Editor
June 9 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
State Police Bill passes second reading at Senate

State Police Bill passes second reading at Senate

June 11 2026
UK Prime Minister picks ex-army officer Dan Jarvis as new defence ministe

UK Prime Minister picks ex-army officer Dan Jarvis as new defence ministe

June 11 2026
Pres. Tinubu swears in two new ministers

Pres. Tinubu to address Nigerians on Democracy Day

June 11 2026
Iran vows devastating response to Trump’s threat of seizing Kharg Island

Iran vows devastating response to Trump’s threat of seizing Kharg Island

June 11 2026

EDITORIAL REVIEW

The reign of kidnappers – Thisday

The reign of kidnappers – Thisday

by The Editor
June 11 2026
0

Foreigners looting national assets intolerable – Punch

Foreigners looting national assets intolerable – Punch

by The Editor
June 10 2026
0

Violence deepens, Tinubu must act – Punch

by The Editor
June 9 2026
0

Nigerian workers deserve a living wage – Punch

Nigerian workers deserve a living wage – Punch

by The Editor
June 8 2026
0

Gospel Kinanee’s 18-year ordeal: Fix this broken justice system – Punch

Gospel Kinanee’s 18-year ordeal: Fix this broken justice system – Punch

by The Editor
June 7 2026
0

Opinion

Bandits attack mosque, kill 1, abduct 9 in Kaduna

When terrorism becomes the talk of town

by The Editor
June 9 2026
0

...

Of bandits and their informants/sponsors

Of bandits and their informants/sponsors

by The Editor
June 1 2026
0

...

Nigeria at critical juncture – Vanguard

Nigerian economy: The street is not smiling!

by The Editor
June 1 2026
0

...

Tinubu sticking to anti-masses policy, says Afenifere

As criminals seize Nigerian babies

by The Editor
May 31 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.