Niger Governor seeks House’s approval to borrow N2.5bn to pay Salaries’

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Niger Governor seeks House’s approval to borrow N2.5bn to pay Salaries’

Olabode Adaramola

Niger State Governor, Alh Abubakar Sani Bello has requested for the approval of the state House of Assembly to obtain N2.5billion loan from a new generation bank to enable the government meets up with the payment of October, 2016 salaries of the state civil servants.

The Speaker of the State House of Assembly, Ahmed Marafa Guni disclosed this at the plenary of the Assembly last Thursday when he read the letters from the governor to that effect.

According to the Speaker, “the House has received the request for a standby overdraft loan of N2.5 Billion from Zenith Bank Plc, for the purpose of bridging, to ensure timely payment of Salaries of State government employees, as well as subvention to Parastatals Agencies and institutions that operate outside the payroll not later than 25th day of each month”.

The speaker however did not say whether the loan from the commercial Bank will be a continuous one in view of the dwindling revenue from the Federation Allocation Account Committee (FAAC) and the drop in the internally generated revenue (IGR)) of the state.

Nationalwire gathered that this is the third time that the governor  is approaching the state Legislators for approval for loan from commercial Bank in the last five months to pay workers salaries.

It was further learnt that the house had earlier granted an approval to the state government to access a loan of N1.8billion from a commercial Bank to enable it settle the arrears of salaries of local government which it claimed,was inherited from previous administration of Dr. Muazu Baangida Aliyu.

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The house also in addition to this, granted approval to the Governor to access N4.6billion bail out offer by the federal government to enable it settle salaries arrears even though the Governor did not inherit arrears of salary from his predecessor.

The Speaker told the House that the loan facility has the interest of 18%, with a monthly Clean up cycle from proceeds of federation Account Allocation Committee (FAAC) remittances, and it is in Compliance with relevant Sections of Nigerian Constitution as amended in seeking the House resolution.

The House has also considered another request from the Executive to Solicit for Central Bank of Nigeria’s Micro and Small/Medium Enterprises Development Funds Facility, to boast the socio-economic activities of the state in that sector.

The Speaker therefore appealed to the House members to ensure Speedy Consideration of the request before them, in order to augment and solve the perennial delay in the payment of workers Salaries and stimulate the Socio-economic development of the beneficiaries

 

 

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