The Buhari Bailout

Equally, he asked the Debt Management Office (DMO) and other stakeholders to renegotiate previous loans contracted by the debt-ridden states with a view to rescheduling them and relaxing the choking repayment terms, all in order to enable the governors pay the accumulated salaries and allowances of their workers. The N700 billion bailout of the various […]

Equally, he asked the Debt Management Office (DMO) and other stakeholders to renegotiate previous loans contracted by the debt-ridden states with a view to rescheduling them and relaxing the choking repayment terms, all in order to enable the governors pay the accumulated salaries and allowances of their workers. The N700 billion bailout of the various insolvent states of Nigeria should be seen for what it is: an attempt to stave off social explosion that may result from the antagonism of the country’s workers some of whom have not been paid their salaries and allowances since last year. There is no danger in using the country’s resources to pay workers their entitlements; there’s greater danger in continuing to owe workers for upward of six months for whatever reason. A country with 24% unemployment rate cannot afford to wait till eternity to pay those who are luckily and gainfully employed.
All the busy bodies that want to sue Buhari for not appointing ministers or for using the country’s money to bail out the states from the dire economic and financial straits they found themselves should have concentrated their energy on probing the genesis of the problem. It is true that many chief executives in the states have mismanaged and possibly even misappropriated the funds in their custody; it is also a fact that the collapse of crude oil prices has deprived Nigeria of significant amount of revenues, but it is also crystal clear that the Jonathan government has deliberately withheld some of the money due to the states on account of its own sinister designs. It is a known secret that Jonathan had on some occasions singled out the Peoples Democratic Party – controlled states for exclusive patronage, to the detriment of opposition states.
I perfectly understand the need to get the states to put their books in order, or to communicate the stern warning that serious punishment awaits those who would again misuse the bailout money. But to imagine that heavily indebted states which had sometimes been denied their due allocations by the previous government could come out of their dangerous financial conditions is to be naive.
Not availing states of money to settle their workers is to stoke a smouldering fire. Buhari has to treat the payment of workers’ entitlements as a priority, so as not to allow the industrial space to be stymied by workers discontent. The bail out of states by Buhari could, among other things, provide him additional space to squarely face the fight against Boko Haram.
Moreover, there are a few notables in this bailout; first of all, during his first stint as Head of State beginning from December 1983, Buhari had faced similar situation when the then National Party of Nigeria was so broke as a result of the profligate lifestyle of its leaders that it couldn’t pay workers. Only Buhari can solve that sort of problem; the likes of Jonathan could only create it.
Secondly, Buhari’s bailout is non-partisan; the facilities are extended to all governors, irrespective of their political party affiliation. One of the governors closest to Jonathan was the young Gabriel Suswam; the two had hopped in and out of plane together to visit so many places, including Jerusalem, yet workers in Benue State are some of the most dispossessed in this country as the man couldn’t pay them. Nor is the non-payment of salary only a problem for states, some of the federal workers are also being owed by their employers.
Thirdly, Buhari’s bailout has also demonstrated that he is a listening and compassionate leader. It will be inconceivable for someone to stay in Aso Villa Abuja and claim to be presiding over Nigeria when thousands of the country’s restless workers are being owed their entitlements for no fault of theirs. For all his shoelessness, Jonathan didn’t do anything to show solidarity with the poor people of this country. Once he changed class as a result of his political fortune, he didn’t give a damn again!
Moreover, the bulk of the bail out money came from the NLNG proceeds. We didn’t know where this money went during the Jonathan administration. The Jonathan government functionaries should cover their faces in shame for fostering such bankruptcy in the states and economic national collapse.
I have also heard people downplaying the significance of President Buhari and Vice President Yemi Osibanjo’s voluntary surrender of 50% of their salaries to the state. In a country where a few members of the elite are daily devising ways of cornering the country’s wealth instead of offering sacrifice, forfeiting half of one’s salary is a huge sacrifice. Buhari has realised the precarious economic and financial mess the country has been thrown into and seen the compelling need for sacrifice. He is therefore leading the sacrifice. This is leadership by example. Let those who think that giving up half of one’s salary is an inconsequential gesture follow suit. Even though Jonathan and Prime Minister Okonjo-Iweala had misled the country into this economic quandary, they never had the wisdom to forgo any of their entitlements. We are witnesses to the scandalous multi-billion Naira waivers given to shadowy companies and cronies which have left the country bleeding.
The N700 billion Buhari bailout may not make economic sense but it makes perfect common sense.