By Emeka Anaeto, Economy Editor

LAGOS — Amidst the  weakened revenue inflow from federation account, the Debt Management Office of the Federation, DMO, has said that the recent bail-out funding to state governments was only a temporal solution to their debt crisis, warning that unless the governments change their fiscal strategies they would return to trouble.

The Federal Government had in the wake of President Muhammadu Buhari’s assumption of office in June this year ordered a special distribution of $2.1 billion (N440 billion) to the various states as well as additional special loan of between N250 billion and N300 billion to each states from the Central Bank of Nigeria, CBN.

DMO also created a loan restructuring for 23 highly indebted states owing 15 banks a total of N700 billion of which N575.5 billion was restructured by DMO between August and September 2015 to give relief to the states.

Director General of DMO, Dr Abraham Nwankwo, stated that there is still serious revenue gaps giving the continued decline in oil