As part of the desperate measures to ease the problems of the financial crisis that has crippled state governments, stringent measures are being suggested. The NLNG tax of $1.6 billion has become a strong target.
As the Governors of the 36 states in Nigeria run out of ideas as regards resolving the financial crisis that has prevented them from paying the salaries of workers, they have dramatically turned to the tax proceeds of the Nigeria Liquefied Natural Gas (NLNG) to resolve the financial crisis facing them.
Over 20 states are currently unable to pay salaries as a result of a sharp fall in oil revenue.
“Instead of NLNG paying $1.6 billion to the federal government, we requested that it be paid to the federation account so that it could be shared amongst the three tiers of government, so that we can also get money to do one or two things,” Abdulazeez Yari, Governor of Zamfara state and chairman of the Nigerian Governors Forum, said at the end of a meeting with Buhari on Tuesday.
“We proposed to Mr. President that instead of being given bail out, that the funds for jobs and projects that were done by the states should be refunded by the federal government. If the affected states can get the refund, they can start paying salaries without bail out", the governor added.
Almost all the State Governors were fully represented at the meeting.