revisiting the Buhari Bailouts

When the Buhari bailouts were first mooted, I was aghast.

Surly this was moral hazard, we were simply rewarding incompetent governors who cannot manage their balance sheets have racked up debts. This bailout is simply a federalization of incompetence, we have simply taken oil money to fund consumption, we have been doing it again and again, and wishing for a different outcome…insane

I mean not all governors were owing, some had even increased salaries, why should the FGN be in the business of bailing out states?

The bailouts proceeded, I gave some polite recommendations, tie these funds to capital expenditure, and make the governors domesticate FOI, biometric verification etc etc….

When on reads what Adamawa State did with its bailout, one is indeed sad, it was just wasted, as predicted…free federal cash wasted as usual.….

The Adamawa State Government says “The federal government never told any state what to do with its own share. Money was just given for states to go and solve their problems,”.

 Let me break down how Adamawa spent N3.8b Bailout fund, the state calls it a largesse that was shared to all the states,” 

1)      Sharing to Local Governments N1.2b

2)      Purchase of Fertilizer N1b

3)      Purchase of Chandeliers, Kitchen utensils, doors and windows, for Yola International Hotel N500m

4)      Prayers for security N200m

5)      Bullet proof cars for the Governor N95m

6)      Repairs of roads, purchase of maternity kits etc N305m

The Adamawa state says they were not selfish at all. That they have only bought two vehicles, which are bullet proof cars for the use of the governor.

The state says “If we were selfish, the SSG deserves three vehicles, Chief of Staff also deserves three, the deputy governor and his wives deserves vehicles, the governor’s wife deserves vehicles, so also all our lawmakers including the Speaker and other Principal officers.

The state in a message to her workers said, we honestly, do not expect the civil servants to be angry over this decision to expend this windfall the way we did. Adamawa had been trying in the area of payment of salaries. Adamawa state government reminded the workers that Plateau owes 8 months, Benue 10 months, but down here in Adamawa, it’s not all the civil servants that are being owed.

This is madness…….and I am being polite

We must learn that bailouts without responsibility don’t work. We should start to look at the USA where we copied this democracy from. Over there the states government must balance their budgets, annually.

We have simply wasted this NLNG funds on bullet proof cars and chandeliers….

We can do better, its our problem, we can fix it….