GOVERNORS WERE WARNED TO SAVE FOR RAINY DAYS - PETER OBI.

The former governor of Anambra state and president of the Securities and Exchange Commission (SEC), Peter Obi, has revealed that governors were warned about saving for the rainy day by the Dr. Ngozi Okonjo-Iweala, former minister of finance. 

According to Post Nigeria, Obi further revealed that the governors were advised to eschew fiscal irresponsibility which was a bane to economic development.

In a recent interview with journalists, Obi explained the the recent bail out approved for states from the Nigeria Liquefied Natural Gas Company, dividends by President Muhammadu Buhari and the rationale behind the creation of the Excess Crude Account, as well as the Sovereign Wealth Fund.

Obi further said, Okonjo-Iweala was persistent in advancing for the cause of saving for the rainy day, during her time in office, where she was also the coordinating minister of economy

He said, “I have read newspaper reports that it is ironic that she spoke of a rainy day when it was already pouring.

“I personally remain indebted to her because it was from her persistent preaching on the need to save in the Sovereign National Wealth Fund that made me incorporate savings in foreign currency that is why one third of the money we left on leaving office was in foreign currency, $156 million(N25 billion at that time).

“With interest now it would be about $170 million and with the current rate it is almost N40 billion.”

Many states in the country are owing their workers  salary for many months which has led to untold hardship for civil servants across the country.

According to Obi, the bailout given to the states would help them restructure their debts, but he insisted that the bailout should be followed with a clause which would make the states to manage their resources well.

“I have said severally that there is nothing wrong with bail-out or restructuring of debts, but I insist that such relief must be with conditions to instill fiscal discipline; else we make it a bad habit.

“A debtor must live and behave like one.

“So as a nation, whenever there is a need for a bail-out, be it for a states, banks or another sector we must ensure that such bail-outs do not allow the same irresponsibility that brought about its occurrence,” he concluded.

Meanwhile, Anambra state governor, Willie Obiano, has hinted at the weekend that the All Progressives Grand Alliance will welcome Obi, who is his predecessor, if he decides to return to the party.