Presidency, PDP Engage in War of Words Over Buhari's Bailout Fund

Strategic Insights -

The Presidency and the Peoples Democratic Party (PDP) are at odds over the source of the bailout funds released by President Muhammadu Buhari to states to enable them pay their workers' salaries. The Presidency has described as false the PDP's claim that the funds came from savings made by the Goodluck Jonathan administration, while the PDP insists that the funds were saved by the Jonathan administration and handed over to the Buhari administration. The controversy has led to a war of words between the two parties, with each accusing the other of spreading falsehoods.

Key Takeaways:

  • The Presidency has rejected the PDP's claim that the bailout funds came from savings made by the Goodluck Jonathan administration, describing it as false and deliberately intended to mislead the public.
  • The PDP insists that the funds were saved by the Jonathan administration and handed over to the Buhari administration, citing the $2.1 billion Liquefied Natural Gas (LNG) component of the bailout fund as evidence.
  • The Presidency has denied that the funds were from the Excess Crude Account, saying that the $2.1 billion LNG component was paid into the Federation Account in June 2015 and confirmed by the Central Bank of Nigeria's statement to the federal government on July 7, 2015.
  • The PDP has accused the Presidency of attempting to hide the truth about the nation's finances, saying that the issuance of the bailout fund with funds from the LNG proceeds and the Excess Crude Account (ECA) has exposed the fact that the PDP administration actually left behind huge sums of money.
  • The PDP has called on President Buhari to apologize to his predecessor, President Goodluck Jonathan, for attempting to undermine his legacy, and has urged the APC to be honest in its dealings and realize that its actions have created unnecessary controversy.

Statistics:

  • N700 billion: The amount released by President Buhari as bailout fund to states.
  • $2.1 billion: The amount of Liquefied Natural Gas (LNG) component of the bailout fund, which the PDP claims was saved by the Jonathan administration.
  • $5.6 billion: The amount of LNG dividend, which the PDP claims was left behind by the Jonathan administration.
  • 29th May: The handover date of President Goodluck Jonathan.
  • 7th July 2015: The date on which the Central Bank of Nigeria confirmed the payment of $2.1 billion LNG component into the Federation Account.

Sources:

  • This Day: "Presidency, PDP Engage in War of Words Over Buhari's Bailout Fund"
  • AllAfrica Global Media: "PDP Says Buhari's Bailout Fund Was Saved by Jonathan Administration"
  • This Day: "Labour Party Accuses Buhari of Setting Bad Precedence with Bailout Fund"