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Bailout fund: Osun, Bayelsa, ors in trouble as FG deducts N32b

Two states amongst others are already licking the wounds of bad governance as FG deducts N32b from allocations accruable to states from FAAC in the April

Two states amongst others are already licking the wounds of bad governance as the federal government deducted N32 billion from allocations accruable to states from the Federation Account in the month of April 2016.

The deductions were the bailout funds given them by the federal government, as well as different loans they incurred.

Currently, Osun state is worst hit as its allocation for the month of April 2016 totaling N2.030 billion was wiped away.

Osun was hit with a deduction of N2.391 billion leaving a deficit of N361 million to be paid in the subsequent month.

According to sources, the deduction represents some 117.8 percent of the total allocation due the state from the federation account.

This means that Osun state had nothing to take home for the month of April, 2016.

The state government was seen straggling up any means to stay afloat and keep the state from going under.

Osun State is followed in the mind boggling deduction conundrum by 

Another state seen fighting for survival is Bayelsa state.

Bayelsa was hit with a deduction of N3.207 billion out of an allocation of N4.812 billion for the month of April, 2016 representing 66.66 percent of the total allocation.

Others states not spared from the conundrum are: 

1. Cross River state with a total deduction of N1.405 billion, 

2. Ogun state: N1.185 billion, 

3. Plateau State: N1.248 billion and,

4. Ekiti State: N1.067 billion.

The entire deductions represent 63.46 percent, 57.20 percent, 56.52 percent and 55.33 percent respectively within the period under review.

From the investigation, not less than N3.078 billion of the total amount was deducted for bail-out funds granted the states by the Federal Government. 

At least eight states had no deductions on bail-out funds for the month of April 2016. 

They are: 

– Akwa Ibom State

– Anambra State

– Jigawa State

– Kogi State

– Lagos State

– Rivers State

– Yobe and State

– Federal Capital Territory.

These did not collect the bail-out funds from the federal government or appropriate time for the deduction have not fallen due and are yet to commence.

Elombah.com gathered that the deductions from the states also include deduction from Excess Crude account, debts on AMCON loan and Commercial Agric Credit Scheme.

Others are: Bond Issuance Programme, Contractual obligation, Refund/Payment arrears of derivation and foreign loans.

The rest are: special intervention/flood management project, the national Fadama project and reconstruction of commercial bank loans into FGN bonds apart from bail-out funds.

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