President Muhammadu Buhari may be take a loan to fund unpaid workers salaries and petrol subsidy.
The federal government should consider issuing bonds to raise the needed funds to settle salary arrears and clear outstanding fuel subsidy payments, the APC transition committee has recommended.
Although this is going to increase the debt burden of the federal government, the inherited salary and subsidy arrears are viewed by the committee as “short-term liabilities” which should be addressed by President Muhammadu Buhari to avoid “civil unrest”. Federal workers are owed over N400 billion in salary arrears while oil marketers are making claims in excess of N200 billion following a cut in the pump price of petrol as well as the devaluation of the naira before Buhari was inaugurated on May 29.
The Ahmed Joda-led transition committee, whose report is currently being studied by Buhari and is expected to influence his policies, advised the federal government to fully guarantee the bond issue — effectively placing the risk on Abuja rather than the states.
SOURCE : The Cable