Oyo State Government is to access N14.16 billion loan from the Federal Government for the payment of salary.
The House of Assembly yesterday approved its request to access the loan, as contained in a letter sent by Governor Abiola Ajimobi.
At an emergency plenary presided over by Speaker Michael Adeyemo, it was agreed that the loan, which is spread across 12 months, will enable the state to get N1.39 billion monthly for the first three months and N1.11 billion for the following nine months.
The Speaker said the bailout fund, which would be given by the Federal Government in addition to the monthly allocation, was meant for the payment of workers’ salary.
The letter reads: “In view of the current fiscal situation of the state and acting on the advice of the National Executive Council (NEC) to state governments and governors, the Oyo State Government is to apply for funds from the budget support facility from the Federal Ministry of Finance in the sum of N14.16 billion. The facility will be made available in three tranches of N1.39 billion for the first three months, followed by N1.11 billion for another nine months.”
Adeyemo said it was time the state woke up and boosted its Internally Generated Revenue (IGR), to prevent reliance on bailout funds and allocations from the Federal Government.
He said the loan would also be committed to the payment of salary and pension.
The Speaker urged the Labour movement to see the government’s move as an act of goodwill to ensure industrial harmony.
Deputy Speaker Abdulwasi Musah and a lawmaker representing Atiba, Gbenga Oyekola, said the loan was only a short term measure, stressing the need for the state to boost its IGR.
They advocated a review of the percentage of allocation to states and local governments, saying there was a large concentration of funds at the federal level.
A member representing Ibadan North II, Olusegun Olaleye, who noted that the funds would be used for the payment of salaries and pensions, hoped that the present move would address the industrial crisis.
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