- More turbulent periods await Nigeria after the Covid-19 crisis
- About 32 states may find it difficult to pay salaries of workers after the pandemic
- An economy expert has now cautioned against lavish spending and playing politics with the scourge
With Nigeria currently plunged into economic crisis due to the outbreak of coronavirus, an economy expert has predicted that 32 out of the 36 states of the federation may find it difficult to pay salaries after the pandemic.
The prediction was made by governance and policy expert, Tunji Ogunyemi, who further stressed that there may be a likely further downward review of the 2020 appropriation bill.
Ogunyemi added that tough times are waiting ahead as Covid-19 crisis may push the country down the knee of global economic downturn, The Nation reports.
Legit.ng gathers that Ogunyemi, a lawyer and historian, is the acting head of the department of history, Obafemi Awolowo University, Ile-Ife Osun state.
Speaking on a radio station programme "Frank Talk", the pedagogue said that unlike the federal government, the state cannot print money deliberately to pay workers' salaries.
Ogunyemi further emphasised that with the cut down in the budget, states will be receiving in June half of the allocation they got from the federal government in January.
He said that only four states including Lagos and Rivers can survive the cut in allocation, adding that some states such as Kaduna, Delta, Plateau, Taraba, Gombe and others may result to slashing salaries of workers.
"Politicking should end here. Some professionals can be called to that kind of meeting, especially experts in public finance and banking to let the truth be told on the status of Osun.
“When an income is far, far less to expenditure, and there is no extra capacity to generate more, it means that the state must begin to reduce wasteful expenditure," Ogunyemi further remarked.
Earlier, Legit.ng reported that President Muhammadu Buhari has solicited for the approval of $5.5 billion loans to finance the revised 2020 appropriation bill in a way that will enable the accommodation of some priority projects.
The information of the loan was contained in a letter directed to the House of Representatives by the president on Thursday, May 28.
According to the president, the funds will be used for the federal government’s priority projects and will also be channelled toward the fight against Covid-19 pandemic.
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