Governor of the states of the federation have requested the federal government to give them bailout in the form of budget support.
The request was made during the National Economic Council meeting held in Abuja presided over by Vice President Yemi Osinbajo.
The Governor of Ebonyi State, Dave Umahi, who made this known while speaking with journalists explained that the bailout was to enable the states pay staff salary arrears.
Also, he explained that the request became necessary “especially when the amount that accrues to the states from the federation account is less than N600 billion.”
“We came to the understanding that every month, if the total shareable revenue in the federation account is less than N600billion, the minister of finance will give each state budget support,” the governor added.
“We concluded that in the last 12 months and that continued for the second year, states have done very well, some states have been able to pay their accumulated salary debts and then also increased their commitment to infrastructure and generation of revenue.
“However, from July, that was not paid and in the month of August, I think about seven states were paid because according to the minister, other states did not comply with the set down rules, the most outstanding of that was the non-remittance of VAT from the states.
“So those seven states have been paid but more states have complied but we requested that those states that have complied should be paid,” Umahi stated further.