The 36 states of the federation are owing commercial banks in the country over N685bn.
This was disclosed by Vice President Yemi Osinbajo in Kano on Saturday.
He said the situation made the Federal Government to assist the states with the bailout fund since the development had hindered them from meeting most of their obligations.
Osibanjo said the Buhari-led administration operates under zero tolerance for corruption and insisted that the era, where looting public fund unite politicians was over.
The Vice-President, who spoke at a ceremony in honour of President Muhammadu Buhari’s Senior Special Assistant on Media and Publicity, Garba Shehu, defended the bailout policy, arguing that it was not the first time the Federal Government took such a step.
According to him, the Federal Government will also pursue to a logical conclusion the implementation of a social welfare policy designed to alleviate poverty and ensure even distribution of the dividends of democracy to the masses.
Osinbajo, who praised Shehu for his consistency and dedication to the journalism profession, added that his honesty, simplicity and integrity continually endear him to his associates and co-workers.
He noted that the Buhari-led administration would not condone corruption, insisting that the era where looting of public funds united politicians was over.
In the same vein, Osibanjo said the Federal Government would support plans to cater for persons displaced by insurgency in the northern part of the country.
The Vice-President, who assessed the living conditions of the 100 children adopted by the Kano State Government, expressed satisfaction with the condition of the children currently being educated and rehabilitated through the state Ministries of Education and Women Affairs.
Describing the Kano method as a model, Osibanjo pledged that the Federal Government would complement efforts of the state government.
According to him, the Federal Government will not relent in its efforts to assist victims of insurgency and it had constituted a Presidential Fund Initiative for victims headed by a former minister of Defence, Gen. Theophilus Danjuma.
He added that, among other things, the initiative would fashion out ways of assisting the victims in the provision of education and basic infrastructure while also resettling them.
Osinbajo said, “I am excited to see great things you (Governor Abdullahi Ganduje) and your government are doing. What you are doing in the state shows that the coming generation will be well taken care of. These children have gone through trauma, but with this treatment, it will not affect their future because these children can be presidents and architects tomorrow.”