House to investigate disbursement and utilization of FG’s bailout funds

The House of Representatives is set to investigate the disbursement and utilisation of bailout funds given to state governments in the country.



This resolution followed a motion raised by Rep. Sunday Karimi on allegations that some states are said to have collected these loans to pay workers’ salaries and diverted them to other purposes.

Lawmakers also queried the process through which the bailout was provided without the input of the national assembly.

Moving the motion, Rep. Karimi said that the need to investigate the disbursement and utilisation of the funds was geared toward ensuring the welfare of citizens in the affected states.

He explained that the Federal Government approved and disbursed N689.5 billion to 27 states in July, 2015, and gave N20 billion to Kogi four months ago.

The lawmaker expressed dismay that many of the beneficiary-states had failed to utilize the funds for payment of workers’ salaries and had continued to owe the workers.

He disclosed that reports had alleged that many state governments lodged the bailout funds in interest-bearing accounts and allowed their employees to continue to wallow in hunger and lack.

“States like Abia, Osun, Bayelsa, Benue, Ekiti, Kwara, Plateau, Oyo, Delta, Niger, Ogun, Nasarawa, Kogi, among others, are still owing workers’ salaries for several months.”

Contributing to the motion, House Leader, Femi Gbajabiamila, said that the intention of giving out the bailout funds was good, but that the application seemed to be wrongly done.

He said that in order to have transparency, the house should look into the matter and avoid same mistake in the bailout to be given soon.

An ad-hoc committee is to be set up to look into the terms and conditions for the disbursement and utilisation of the bailout funds.

The committee is also expected to ascertain the necessity for further disbursement as is being considered by the executive.

The committee is to report back in four weeks’ time.