N338b loans excite workers in Osun, Oyo, Kwara, Ekiti

CBN Headquarters, Abuja

Edo, Delta, Abia, others expectant

Workers in Kwara State  – one of the first states to enjoy the N338b Central Bank of Nigeria (CBN)-guranteed bailout loan – have started getting their backlog of salaries.

The payment began on Monday, with scores of excited civil servants queuing at banks in Ilorin, the state capital, to receive their salaries.

Twenty-seven states are to get the loans, which are to be disbursed by 14 banks.

But as at yesterday, many of the states were still fine-tuning the paperwork to enable them access the money.

Most of the states allayed workers’ fears that the cash could go into financing projects, leaving salaries unpaid. Officials promised that this would not be the case.

Labour leaders in Oyo State said yesterday that they had reached an agreement with Governor Abiola Ajimobi to use the N26.601b being expected to clear all salary arrears.

The state has four months outstanding salaries to pay workers in its employ on Grade Levels 1 to 12.  Senior officers on Grade Level 13 and above are hoping to receive five months salaries.

The government last month paid April salary to workers on Grade Levels 1 to 12.

The local Nigerian Labour Congress (NLC) Chairman Comrade Waheed Olojede, said labour leaders held a meeting with the governor where it was agreed that the fund would be spent on clearing outstanding salaries.

He said labour would continue to be on its guard to ensure that the funds are not diverted  to other purposes.

Olojede said: “We have been on guard in Oyo State. We read in The Nation yesterday (Monday)  about the sums of money approved for states. We were happy that Oyo State was among them. Immediately after reading the story, we sought an audience with Governor Ajimobi over it and he met all the labour leaders in the evening. The meeting was successful.

“The governor confirmed to us but informed us that the money was yet to be accessed due to the conditions yet to be met. He, however, promised that all the conditions would be met soon and the fund would be accessed.

“We also agreed that as soon as it is released, it should be spent on salaries of workers.”

Some of the conditions for accessing the loan include:

• resolutions of the State Executive Council authorising the borrowing;
• State House of Assembly consenting to the loan package; and
• issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment.

In Ekiti State, the government and labour disagreed on whether the state had accessed the loan or not.

Ekiti State Commissioner for Information, Youth and Sports, Lanre Ogunsuyi denied that the state  had received its own share.

Ogunsuyi, in a telephone chat, explained that the money was still domiciled in the Central Bank of Nigeria (CBN) and “every state is just applying for it now”.

He insisted that the money was not a bailout as believed in many quarters but the commonwealth of all the federating states in the country.

Ekiti State’s share is N9.604 billion.

NLC Chairman Ade Adesanmi could not be reached for comments, but Trade Union Congress (TUC) Chairman Kolawole Olaiya maintained that the government had received N9. 6 billion.

Olaiya, who spoke with our correspondent on telephone, urged the Fayose administration to ensure that the outstanding September 2014 salary, 2014  and 2015 leave bonuses are paid to workers.

The TUC boss praised the Buhari administration for the package, which he said to rescue states from insolvency, noting that it was good news to workers in Ekiti who expect the state government to do the “needful”.

He said: “The Federal Government is desirous to ease the burden on workers  and I don’t think anybody can hide under any guise to punish workers. The Federal Government meant well and I want to commend the Buhari administration for this bailout because the workers’ conditions are bad.

“The bailout has been paid (to Ekiti) and I want to rely on the facts published by The Nation on Monday. We have been hearing that Ekiti  had just received the money.

“It is just unfortunate that most of the labour leaders in Ekiti are not supposed to be in Labour. They are conniving with the present government to rob workers of their reward and they are contributing more to the plight of workers.

“They are not supposed to be labour leaders, they are usurpers. September salaries, 2014 leave bonus and 2015 leave bonus have remained unpaid.”

A leader of the TUC in Osun State, Comrade Akinyemi Olatunji, said there was no indication that the cash had come to the state.

Olatunji said ‎the labour unions were monitoring the release of the funds through their various national secretariats.

According to him, workers in the state had only collected half of their January and February salaries so far.

The state government said it was waiting for the N34.9 billion ‎allocated to Osun to drop into the state account after it had been approved by the Central Bank.

Former Commissioner for Information and Strategy, Sunday Akere said the payment of workers’ salaries would begin as soon as the funds drop into the state’s‎ account.

Akere, who disclosed that N9 billion of the N34.9 expected was for local government workers’ salary, said a staff audit was on, pending the receipt of the bailout.‎

Ondo State has not collected the N14.68b bailout.

Sources at the Government Secretariat, Alagbaka, Akure said the government was awaiting the funds.

A cross section of workers, who are being owed three months salaries arrears, said they were eager to hear  that the money had been accessed.

Christian Ita spokesman of the Cross River State Governor, said: “We are waiting for the money. We have not received it yet, but we are expecting it any moment from now. We are borrowing the money to pay back debts we owe. The state is not owing civil servants’ salaries and that is because we borrowed money to pay them. So right now, we need the bailout fund to pay the debts we owe.

“Since Governor Ben Ayade came on board, he has made sure salaries are paid on  time, so the state needs to pay back those loans. the Federal allocation when it comes is less than what we need to pay salaries.  So, even when it comes, we are in deficit.”

The N1.28 billion share of Bayelsa State from the CBN-backed loans is meant for cash-strapped workers in the eight local government areas.

Governor Seriake Dickson has been paying salaries of civil servants and pensions despite the dwindling revenue from the Federation Account.

But the chairmen of the eight local government areas are owing arrears of workers’ salaries.

A principal officer of a local government area, who spoke in confidence, said the governor promised to get the loans for the local governments.

He said: “There has been crisis in the local government areas over inability of the chairmen to pay salaries. The chairmen even appeared on the floor of the House of Assembly to explain the reasons for their financial crisis.

“But the governor, who was not happy with the plight of the workers, promised to secure the CBN bailout loans for the local government employees. We are happy the money has come. He is a worker-friendly governor and that is why we are supporting him”.

Chief Press Secretary to the Governor, Mr. Daniel Iworiso-Markson, confirmed that the money was meant for local government workers.

“It is meant for local government because they are the ones owing salaries”, he said.

The N14,152 billion bailout loan the Abia State is expecting will be spent on settling

outstanding staff salaries, emoluments and entitlements to pensioners.

The remaining, if any, will be used to provide infrastructure.

The Chief Press Secretary (CPS) to governor, Mr. Godwin Adindu, said the fund had not been accessed though there were indications that the disbursement will soon start.

Adindu said: “The state’s economy will stabilise once the salaries are paid and it will cushion the effects of hardship being experienced by workers.”

Abia State labour union chairman Comrade Uchenna Ebigwe said the fund should be spent to pay outstanding salaries, pensioners and other emoluments of workers.

Ebonyi State government said it had not got the money.

Commissioner for Finance Dennis Ekumankama said the ministry was still processing it.

He said: “As I’m talking to you now, I am in Abuja, trying to process the fund for the state”

He, however, declined comment on the modalities for the fund’s disbursement.

The State House of Assembly has given the government approval to take the loan –

N4.6 billion loan.

The workers are owed two months salary arrears (July and August).

But the government has refused to pay the workers with the salary table used by the last administration.

The table with about 50 per cent increase in the salary of the workers was implemented by the last administration following a strike.

Umahi, then the PDP candidate, encouraged the NLC to continue with the strike and promised them 100 per cent increment it he won.

But Umahi, who paid the June salary with the new structure, has vowed to revert to the old salary structure from July.

The governor told a PDP stakeholders meeting at the party’s secretariat in Abakaliki that after paying the 50 per cent increment in their salaries for June, the state had a balance of only N35 million.

According to him, he will pay the 50 per cent increment only when the economy improves.

He said: “After paying June salaries, we were left with 35 million naira; I will not pay the demand of workers for increment in salaries but will increase their pay only when the economy improves. They fought for us so much but they should not be gods to us. It is not that there is money and we have refused to pay.”

But the NLC chairman disputed the governor’s claim.

He said the state government, after paying workers, will have enough money for projects.

“If the government does not pay us with the 50 per cent increment, it will not be acceptable to us,” he said.

Delta State is expecting N10.036 billion, which will be spent on salaries.

The Chief Press Secretary to Governor Ifeanyi Okowa said the funds will soon be received.

Although Delta State is not owing salaries, it is owing over N15 billion in arrears of pension

The N3.167 billion bailout loan will be used by the Edo State  government to pay local government workers.

Only three council chairmen, Abdulmalik Afegbua (Etsako East), Joseph Ikpea (Esan Southeast) and Jimoh Ijegbai (Owan East), have paid salaries.

The other 15 are owing workers between five to 10 months’ salaries.

Members of the National Union of Local Government Employee (NULGE) embarked on several weeks of protest over the unpaid salaries until Governor Adams Oshiomhole ordered the council bosses to forfeit their security votes and allowances to pay salaries.

Commissioner for Information and Orientation, Mr. Louis Odion confirmed that the loan will enable the defaulting local government areas pay their workers’ salaries.

There are indications that Plateau State Government is yet to cash the bailout loan.

The government is expecting N5.7 billion.

NLC chairman Comrade Jibrin Bancir said: “The state government has always told us they have not received their own share. When the shares accrued to all the state were published on Monday, I called the accountant general of the state and he told me he was on his way to the CBN in Abuja to process it.

“Not withstanding, the state government has cleared four of the seven months arrears inherited from the last administration. The government has always carried us along on the cash flow and financial challenges.

“Governor Lalong may not have fulfilled his promise of paying the salary arrears twice in a month, but he has demonstrated a high level of transparency in the financial management of state resources and we appreciate his financial challenges.”

Apart from the seven months’ salary arrears, there is also unpaid pension of state and local government retirees.

Local government workers are also being owed two months’ arrears of salaries. Local government teachers are being owed one month salary.