27 states face bankruptcy

Sun News

28 October 2011

27 states face bankruptcy

•Abia, A’Ibom, Anambra, Jigawa healthy

•Senators urge merger of states

From the Senate came the gloomy news yesterday that the financial accounts of 27 states are in the red as some of them have been declared either “distressed” or “gloomy.” Only Abia, Akwa Ibom, Anambra and Jigawa states were given a clean bill of health. The six states that are in financial distress are: Kano, Sokoto, Niger, Zamfara, Katsina and Osun.

Those deemed critical are: Ekiti, Plateau, Benue, Edo, Borno, Adamawa, Cross River, Enugu, Taraba, Ogun, Kogi, Yobe, Ebonyi, Ondo and Kaduna.

In the unhealthy cadre are: Oyo, Bauchi, Bayelsa, Nasarawa, Gombe and Rivers while Imo, Kwara, Lagos, Kebbi and Delta were given the ‘tolerable’ tag. The data was sourced from the Nigerian Governors’ Forum (NGF) Labour Policy Report, 2011 as contained in a motion titled: Looming danger of bankruptcy in states: The need for fiscal evaluation, sponsored by Senator Olubunmi Adetunmbi (ACN, Ekiti North).

To forestall the looming catastrophe, the Senate advised the Federal Government to expeditiously review the revenue sharing formula in favour of states and local governments.