Unpaid salaries: Governors meet on bailout for 18 bankrupt states

Troubled by the precarious financial situation of 18 out of the 36 states of the federation, the governors are meeting today in Abuja to propose a bail out scheme for the financially handicapped states. The governors are to brainstorm on possible solution to the several months of unpaid salaries in the technically bankrupt states among other issues, according to a statement issued yesterday by Director-General of the Governors’ Forum, Mr. Asishana Okauru The governors are said to be worried that if the situation in the affected states is allowed to linger, it may portend danger for the nation’s nascent democracy. The states that are financially down, it was learnt, if left on their own may not be able to address some of the very serious problems confronting them. The governors under the aegis of Nigeria Governors’ Forum, NGF, will examine issues relating to the Federal Accounts Allocation Committee, FAAC, the Excess Crude Accounts ( ECA) and Revenue Enhancement Scheme as it affects state revenue flow for states, according to items listed on the agenda of today’s meeting. The meeting will be presided over by NGF chairman and governor of Zamfara State, Abdullaziz Yari. Speaking to reporters in Abuja, Okauru disclosed that all the governors, including Olusegun Mimiko of Ondo, Seriake Dickson of Bayelsa, Emmanuel Udom of Akwa Ibom, Senator Ifeanyi Okowa of Delta, Senator Benedict Ayade of Cross River, Adams Oshiomhole of Edo State, Rauf Aregbesola of Osun, Abdullahi Umar Ganduje of Kano; Kashim Shettima of Borno and Abiola Ajimobi of Oyo State, were invited to the meeting. Workers in Oyo State whose strength has been put at over 30,000 have been lamenting their unpaid three-month salary arrears. As at last month, the Abiola Ajimobi led-administration was owing some of them three months while others, especially those in the state owned tertiary institutions are claiming that they only received salary in January this year. Last month workers in the state embarked on warning strike for about three weeks. Before the strike was suspended, the state branch of Nigeria Labour Congress led by Mr. Waheed Olojede and the state government signed a Memorandum of Understanding stating how the backlog of salary arrears would be paid. The Head of Service, Mr. Soji Eniade explained that instead of the monthly allocation of N5.2 billion from the federation account, it has come down to N2.6 billion. This, he said was largely responsible for the paucity of funds in the state. Speaking in an interview yesterday, Olojede agreed with the Head of Service that the shortfall in the state’s revenue was due to the cut in the monthly allocation from the federation account. He said knowing the incapability of the state government in the area of finance; the labour union was diplomatic in resolving the issue with the government. According to him, before the union came in, the government could not pay the salaries of workers at all and the union had to advise the government on how to pay the suffering workers. “As at that time, about 20,000 workers in the state were yet to be paid their salaries and when we came in, the government agreed to pay January salary. “Later, we made them to pay February. What remains now are deductions for the month of February and the government will pay that any moment from now”, he said. Olojede further explained that the government would pay the March salary any moment from now and it will then owe April and May.

source from– Vanguard.