BENUE state government has planned to obtain loan to offset the salary arrears owed all workers in the state.
The acting governor of Benue State, Engineer Benson Abounu disclosed this to newsmen on Tuesday after meeting with labour leaders.
Abounu explained that the state government is already making contact with some undisclosed financial institutions to obtain loan to offset the workers’ salaries.
According to him, “You all know that we declared state of emergency on salary in the state, this means that we have to look inward and take some steps to ensure that workers’ salaries are paid.”
“Government will do everything possible to clear all salaries of workers, which is why we want to secure a loan from a financial institution, we do not want to embark on half solution but full one.”
The acting governor however stated that the processes of securing the loan is cumbersome, “because the state must get clearance from the federal ministry of Finance as well as Debt Management Office, DMO”.
He stated that the internally generated revenue, IGR which ranges between 250 million naira and 300 million naira is inadequate to augment with federation allocation to pay salaries.
At the moment, the state workers are owed six months while local government workers are owed nine months’ salary arrears.
Abounu stated that the Paris Club Refund of N6.5 billion given to the state is insufficient to pay a month salary which he puts at N7.3billion and added that 80 per cent of the Paris Club would be channelled into salary.
“To show the seriousness of the state government, we are exceeding the threshold given by federal government to state governments to pay salary, instead of the 50 percent directed by federal government we are committing 80 per cent to workers’ salary.”
Also, speaking the State Chairman, Nigeria Labour Congress (NLC), Comrade Godwin Anya expressed dissatisfaction over the outcome of the meeting, averring that the Paris Club Refund of 6.5 billion naira that was given to the State is insufficient to pay substantial months to workers.
Anya however blamed the State government for being complacent and nonchalant about workers salary, arguing that with the declaration of emergency on Salaries by Governor Samuel Ortom, it is expected that government would have sourced for funds elsewhere and augment with the Paris Club to clear many months’ salary.