Date: 2015-08-24

The Kwara State Governor, Alhaji Abdulfatah Ahmed, has described the Federal Government's bailout for debtor states as the cheapest and most efficient means of paying arrears of salaries and allowances of civil servants, teachers, other workers and local government employees across the country.

Ahmed, who was represented by his Senior Special Assistant on Media and Communication, Dr. Muyideen Akorede, spoke during an interactive session with journalists in Ilorin, the Kwara State capital on Sunday.

It will be recalled that the debts of 11 states had been converted to FG's bond. Ahmed said the N5bn loan the state government hoped to get from the FG's bailout package would clear all outstanding arrears of salaries of workers in the 16 local government councils in the state.

He added that it would also provide them with affordable repayment so that they could continue to meet future salary, pension and other obligations of the state. According to him, the loan also covers arrears of pensions and gratuities owed retired local government workers.

He said a breakdown of the N5bn liability showed that as at July 2015, the total salary arrears for LG workers was N2, 012, 999, 522.40, while salary arrears for primary school teachers stood at N2, 143, 414, 338.55. He said the total LG pension arrears stood at N523, 160, 259.38 while arrears for LGs' Statutory Contribution to Kwara State University was N70, 464, 259.89. He added that outstanding payments for sundry services was put at N267, 806, 538.40.

Ahmed said, "The N5bn loan, when received, will bring relief to local councils, their members of staff and retirees as federal allocations are currently inadequate to meet salary, pension and gratuity obligations at state and local government levels.

"It is clear that the N3.6bn combined June and July allocations to the 16 LG councils was inadequate to meet current and outstanding salary and pension arrears, not to talk of development projects."

It will be recalled that the state House of Assembly had granted approval to all the 16 LGs in the state to convert their outstanding salaries, pensions and gratuities which amounted to N5bn into bailout loan. The Speaker, Kwara State House of Assembly, Dr. Ali Ahmad, had stated that the approval of the legislature became imperative to enable the state's LGs to benefit under the FG's bailout arrangement

The speaker warned that the bailout should be strictly used for the intended purpose, adding that the House would not condole diversion of the loan for any developmental projects. He assured that relevant committees of the House would monitor its implementation to ensure strict compliance.

Meanwhile, the Kwara State chapter of the All Progressives Congress has declared its support for the N5bn bailout the Kwara State government intends to secure from the Federal Government. It said it would serve the best interest of the residents of Kwara State.