Atiku
warns banks over govt loans
By Segun Adeleye
Reporter, Abeokuta
Vice President Atiku Abubakar has warned
of the inflationary tendencies and other negative impacts of granting
liquidated loans by banks to state governments and federal agencies.
Such practices, he said, negate the
fiscal responsibility being preached by government.
Declaring open a three-day National
Council on Finance and Economic Development in Abeokuta on Wednesday, he
stressed that the practice also affects Nigeria’s international credit
worthiness.
Atiku, who spoke through Ogun State
Governor Gbenga Daniel, rationalised the inauguration of the Independent
Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes
Commission (EFCC) to help keep corruption at zero level.
His words: “Given the
country’s history of difficulties with fiscal discipline and the lack of
coordination and cooperation among the three tiers of government in this area,
there is the urgent need to put in place a device to avert an unmanageable
situation that may result in a serious fiscal crisis for the nation.
“Too often, the Federal Government
is dragged in to provide assistance in times of financial crisis to states and
even federal agencies, which can disrupt its own fiscal sustainability”.
He decried the increasing number of
irrevocable standing payment orders (ISPOS) placed with banks by some states
and federal agencies.
According to him, excessive and
unsustainable expenditures should be done away with at all the tiers of
government to ensure fiscal balance and sanity in the monetary system.
In line with this, Aso Rock has presented
a fiscal responsibility bill to the National Assembly that aims at improving
inter-governmental fiscal coordination for greater micro-economic stability,
promote fiscal prudence and sound financial management.
In her keynote address, Finance Minister
Ngozi Okonjo-Iwuela reiterated that the excess oil earnings in the past months
have not been spent.
It is only a directive from the
President, vice president and all the governors that could make the government
commence the spending process, she said.
