Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Kwara Govt. says N5bn FG bailout loan for LG salaries

23 August 2015, 18:21

Ilorin - 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 Governor 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.

"Total LG Pension arrears stood at N523.160 billion while arrears for LG’s Statutory Contribution to Kwara State University (KWASU) are N70.464 billion.

Also read: FG investigates Nigerian visa granted to wanted terrorist

"Outstanding payments for sundry services were put at N267.806," he said.

The aide expressed confidence that the loan will clear all outstanding arrears.

"It will also provide the local government councils with affordable repayments so that they will continue to meet future salary, pension and project obligations."

The statement pointed out that the State Government did not interfere with local government council funds.

It said all allocations due the local governments were released to the councils after statutory deductions for teachers’ salaries, pensions and gratuities, teaching service allowance, statutory contributions to KWASU, training, and sundry support services.

It said that bank charges and loan repayments of the local governments were deducted at source by banks.

It commended the House of Assembly for its speedy approval of governor’s request to convert the five billion naira arrears into a Federal Government bailout loan.

It expressed belief that the intervention would make salary and pension arrears at Local Councils an issue of the past.

"The government’s renewed revenue drive will augment any future shortfalls in allocations from the Federal Government," it added.

The statement called on the citizens and residents of the state to support the initiative of the state government for it to be successful.



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...