RSS

The Real Reason Why Nigerian States are Bankrupt and Can’t Pay Workers

15 Jun

According to Prof. Charles Soludo, most Nigerian states are bankrupt and can’t afford to pay their workers because they’ve signed away their future statutory allocations to contractors whom they owe, Vanguard says.As a result, payment to contractors and other debt instruments are deducted at source and have become first line charge on their lean resources.

He said after such deductions from allocation to the states, they are left with little or nothing to operate with. As a result, most of the states are not able to perform their statutory obligations. Instead of telling the people the simple truth, they keep complaining of lack of funds.

Also, the internally generated revenues of these states are also not enough to meet their obligations so they owe workers several months of unpaid salaries.

Most of these states go into further indebtedness through heavy borrowing and undertaking projects they have no financial capacity to carry, he added.

link

The Blog is recruiting new inks~ http://is.gd/WszGDm

 
Leave a comment

Posted by on June 15, 2015 in Opinion

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: