The Federal Government has ruled out any possibility of providing bailout funds to banks to boost their operations, following the gale of job losses in the banking sector in the last two weeks.
A top government official said on Saturday that it would be wrong for the government to bail out the banks with pubic funds because all the other sectors of the economy were faced with one challenge or the other.
The official, who spoke on condition of anonymity as he was not permitted to comment officially on the matter, said if the government announced any bailout for the banking sector, all other sectors of the economy would start requesting for their own package.
According to him, the government does not have enough funds to finance its operations, therefore, bailing out any sector will further compound the current economic situation in the country.
The source said, “We all know that this government is seriously looking for money to finance its operations.
“So, can a government that is looking for money and that is also struggling to pay its workers’ salaries be able to provide a bailout for any sector? Where will such money come from? I can tell you that such is not currently feasible.”
The Special Adviser on Media to the Minister of Finance, Mr. Festus Akanbi, also said the option of a bailout for the banks was currently not on the agenda of the government.
“As we speak now, there is no plan to provide bailout funds for the banks. We are not considering such an option currently,” Akanbi simply said and declined further comments.
No fewer than 1,400 workers have been sacked in the last two weeks by banks in response to the challenges in the nation’s economy, which have led to most of the financial institutions to record declining profits.