Editorial
Bail-Out Funds: In Support Of Senate Probe
Worried by the near state of insolvency and financial bankruptcy of some states in the country, resulting to non-payment of workers salaries and pensioners’ entitlements, for a long time, the Federal Government in 2015 doled out N338 billion as bail-out funds to beneficiary states to enable them offset their indebtedness to workers and pensioners.
The N338 billion which was a part payment of N510 billion Budget Support Facility (BSF) to states was specifically tied to salaries and pensions and was granted to 27 out of 36 states of the federation to offset arrears of wages and allowances, as some of the beneficiary states owed workers between five to 12 months and several years of retirees’ allowances.
Ironically, some of the states that benefited from the Federal Government’s bail-out fund policy, diverted such funds for purposes other than what the funds were meant to achieve.
Furthermore, in 2016, the Federal Government again reeled out the second phase of the BSF, this time, a 12-month statutory loan designed to provide an immediate relief to states to meet their statutory financial obligations to their workers and retirees with a monthly disbursement of N50 billion in the first three months and N40 billion for the remaining nine months.
Similarly, in 2016, a 22-point Financial Reform Plan (FRP) which commenced in June of the same year introduced Biometric Payroll Programme aimed at ensuring an audited annual financial status and reduction of ghost workers. It also aimed at generating and enhancing internally generated revenue to salvage most states that were unable to meet up salaries and wages payment.
Despite all these measures, some states are still heavily indebted to workers and retirees. More worrisome and condemnable is the fact that some of the state governors still proclaim in the public that they are not owing their workers.
A research conducted by the Nigeria Labour Congress (NLC) and the Independent Corrupt Practices and other related offences Commission (ICPC) revealed that funds released by the Federal Government under its bail-out funds initiative were diverted by some governors for payment of contracts which they had interest.
It is against this backdrop that the Finance Minister, Kemi Adeosun engaged the services of eight reputable accounting firms to audit such funds by the beneficiary states and determine how such monies were utilised. Of course, she warned that defaulting states will no longer benefit from the scheme henceforth.
The Tide therefore endorses the Minister’s action and the probe by the Senate into how some state governors used the bail-out funds, despite the protest by the said governors over the legitimacy or otherwise of the Upper Chamber to institute such investigations into the affairs of the states, the second tier of government.
Our position is quite clear, especially taking into cognisance that the said funds came from federal coffers and the nation’s parliament has the statutory obligation under its over-eight functions of the legislature to know the use or misuse of federal funds.
It is, indeed, unacceptable that governors of the beneficiary states should embark on white elephant projects while their workers and pensioners die daily in abject poverty. Some of such projects do not have direct bearing on the citizenry and are used to siphon public funds for selfish considerations.
It is unimaginable for states like Osun, Nassarawa, Benue, Imo, among others that owe arrears of salaries and pensioners’ entitlements pride themselves all over the place when their workers languish in pains.
Such states should key into Governor Nyesom Wike’s policy of ensuring that workers are paid as at when due, yet his landmarks in projects execution are phenomenal, remarkable and legendary.
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
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