The Kwara State Governor, Alhaji Abdulfatah Ahmed has expressed optimism that the Central Bank of Nigeria (CBN) will soon release the N5 billion bailout loan for the payment of salary and pension arrears at the local government level in the state.
Speaking during a late-night meeting with state council officials of Nigeria Labour Congress (NLC), Trade Union Congress (TUC), Nigeria Union of Local Government Employees, Nigeria Union of Teachers (NUT) and Nigerian Union of Pensioners at Government House, Ilorin on Friday, Governor Ahmed said he has received assurances from the CBN that funds will be released shortly.
Governor Ahmed expressed concern about the hardship caused to local government workers and pensioners by the arrears which he attributed to continued drop in federal allocation. He commended the workers and pensioners for their patience and pledged to continue working to ensure that the funds are released without further delay.
He stressed that the N5 billion bailout loan, when received, will clear existing arrears at the sixteen local government councils across the state.
On the bailout promised by the Federal Government, Governor Ahmed said the state government received N4.3b to clear the two months’ arrears owed State civil servants. Alhaji Ahmed also explained that the Federal Government has restructured the state government’s N15b debt into a low-interest 20-year bond. He said the expected savings will enhance the state government’s capacity to meet its salary obligations and other responsibilities.
Governor Ahmed however emphasised that the only way for the state and local government councils to avoid salary crises in the future was to grow Internally Generated Revenue as that is the only way the state can survive its current economic challenges.
He therefore called on the people of Kwara State to support the newly established Kwara State Internal Revenue Service (KWIRS) to meet its revenue targets so that salary arrears at the state and local government levels will become a thing of the past.
On the issue of the state-owned media houses, Governor Ahmed said government was putting together a special package to turn around Radio Kwara, The Herald and Kwara Television so that they will generate revenue to cover their overheads and contribute to IGR.