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In Kwara Govt. says N5bn FG bailout loan for LG salaries

  • Published:
Adbulfatai Ahmed,  Kwara State Governor play

Adbulfatai Ahmed,  Kwara State Governor

(Dailytrust)

It will be recalled that Peoples Democratic Party had challenged Gov. Ahmed to justify the need to borrow the money.

Federal Government’s five billion naira bailout loan is meant for the payment of salary arrears and allowances to primary school teachers and local government workers.

This explanation is contained in a statement by Dr. Muideen Akorede, Senior Special Assistant on Media to Kwara State Governor in Ilorin on Sunday.

"The bailout loan is the cheapest and most efficient means of paying accumulated arrears of those workers.’’

It will be recalled that Peoples Democratic Party had challenged Gov. Ahmed to justify the need to borrow the money.

PDP spokesman, Chief Rex Olawoye, argued that the N3.5 billion federal allocation to the 16 local governments in June was enough to offset backlog of salaries.

However, Akorede said the federal allocations coming to the state were currently inadequate to meet salary, pension and gratuity obligations to the staff at state and local government levels.

The governor’s aide added that the N3.6billion combined June and July allocation to the 16 local government councils was inadequate to meet the current and outstanding salary and pension arrears, let alone development projects.

He added that as at July 2015, salary arrears for Local Government workers stood at N2. 012 billion, while salary arrears for primary school teachers stood at N2.143.

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