Ogun Provides N700m Bail Out Fund For 20 Local Governments To Pay Salary.. Says N3.5b Allocation From FG Not Adequate - EDU-BIZNEWS


Friday, March 4, 2022

Ogun Provides N700m Bail Out Fund For 20 Local Governments To Pay Salary.. Says N3.5b Allocation From FG Not Adequate

Ogun State Government is to provide N700million bailout fund to its 20 Local Governments, to enable them  pay salary to workers for the month of February, following the shortfall in the allocation from the Federation Account for the month 

The State Government has described as grossly inadequate, the statutory monthly allocation  released to the    Local Governments (LGs) from the Federal Government in the recent time, which ranges between N3billion and N3.6billion  

But the State Commissioner for Local Government and Chieftaincy Affairs, Hon. Afolabi Afuape  during the February Joint Account Allocation Committee meeting held at the Obas Complex,  Oke-Mosan, Abeokuta, assured that the State Governmen would ensure prompt payment of the first line charges to all the 20 councils of the State.

Afuape stated that the shortfall of about N700m, which was the highest in few months notwithstanding, expressed the readiness of Governor Dapo Abiodun  to bail out the councils, on the amount needed to balance the net statutory payments for the month, so that the shortfall would have less effect on them.

The Commissioner explained that against people's assumption that State government was fiddling with the Local Government fund from the Federal Government Allocation, the Governor had always approved bailout and grants to the LGs for execution of projects at the grassroots, whenever there were shortfalls.

“Though fund to Local Government from Federal Allocation for sometimes now is between N3b and N3.6b, which has not been enough for gross payments for the statutory funding of LGs, but for the magnanimity of the Governor, who has been providing financial support to augment the allocation”, Afuape stated.

In his presentation, Commissioner for Finance and Economic Adviser to the Governor, Mr. Dapo Okubadejo, represented by the Director of Inspectorate and Monitoring in the Ministry of Finance, Mr. Kolapo Ilori, said the total amount from Federal allocation for February was N2,862,885,950.71, while the first line charges for the same month stood at N4,164,885,774.13, with a gross deficit of N1,301,999,823.42.

Okubadejo noted that a sum of N647,061,476.74 which represents Pay As You Earn (PAYE), Contributory Pension, Five percent Bond on Pension and Cooperative and Loans were yet to be paid, out of the total gross deficit, saying government needs to augment with N654,938,346.68 for payment of the first-line charges, which include; primary school teachers and Local Government staff salaries, Pensions, fund to traditional councils, and other statutory payments.

Contributing, the Permanent Secretary, Ministry of Local Government and Chieftaincy Affairs, Mr. Kolawole Fagbohun, said the funds for Local Governments were paid directly into their respective accounts after being approved at the JAAC meeting, while the Local Government takes full charge of disbursement, against the insinuations on diversion of council's fund to the account of the Ministry.


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