Nasarawa State Takes 1.5bln Loan To Pay Workers
Nasarawa state government wants to pay its workers before Christmas and it has no other option that to take a loan.
It is not the entire salary that would be paid, but it said its decision to source for funds before a federal allocation meeting was a sign that it was responsible.
The government says it has secured a 1.5 billion Naira loan from a commercial bank to pay local government workers’ December salary.
The state’s Commissioner for Local Government and Chieftaincy Affairs, Mr Haruna Osegba, announced the decision on Monday during the state’s Joint Account Allocation Committee (JAAC) meeting in Lafia.
According to him, the decision to secure the loan ahead of the Federation Account Allocation Committee (FAAC) meeting was to enable local government workers to get their salaries before the Christmas and new year festivities.
He explained that local government workers in the state would still be paid between 65 and 85% of their salaries due to paucity of funds.
He added that “as responsible government, we decided to source for funds before the allocation meeting to pay local government workers before the yuletide.
“However, the management of local councils would have to wait for allocation before they receive their overhead as it was not economically wise to borrow for overhead".
Osegba said the ministry had worked out all necessary documentation for workers to start receiving salaries from Tuesday, December 19.
The state’s JAAC had also borrowed 1.8 billion Naira to pay local government workers’ salary in November when the commissioner cited delay in FAAC meeting for the decision.
Few weeks ago, President Muhammadu Buhari approved the disbursement of a third trench of the Paris Club refund to state governments to enable them pay their workers before Christmas.
But that approval appears to have suffered a setback last week when a consultant filed a law suit demanding that his percentage must be paid.
That lawsuit may hinder some state workers from getting their salaries before Christmas.