Paris Club refund: Osun commits N5.1bn to salary, leave bonus, pension

Osun state governor, Mr Rauf Aregbesola
Osun state governor, Mr Rauf Aregbesola

Out of N6.3billion second tranche of Paris loan refund recently received from the federal government, Osun on Thursday announced that it has committed a sum of N5,131,680,567.59 for the payment of salary, arrears, leave bonus and pension to the workers and pensioners in the state and local government council.

The decision to expend N5.1billion on salary arrears, leave bonus and pension followed the recommendation service by the Comrade Hassan Sunmonu led Revenue Allocation Committee.

The Comrade Hassan Sunmonu appropriation committee which comprises labour leaders in the state recommended that the arrears of July 2015, balance of leave bonus of 2015 and July 2017 salary and pension entitlements be paid from the N6.3 Paris club refund.

According to a statement from the Osun State Commissioner for Information and Strategy, Mr Adelani Baderinwa, “government expresses satisfaction and gratitude to the Comrade Hassan Sunmonu committee which is responsible for the fair and just appropriation of accruable funds to every sector of the government without complaint from all critical and rationale stakeholders so far, and it is heartening that this contradicts the wrong assumption by some groups that it is the State Executive Council that appropriated the fund.”

The statement reads in part, “Government reiterates the fact that beneficiaries of the July 2015 arrears are level 8 and above workers of the state who constitute less than 35 per cent of the workforce while those on levels 1-7 have been receiving their salaries in full and up to date.”

“It is only a section of workers on grade level 12 and above who receive painfully 50 per cent of their gross salaries based on agreement between the government and the labour unions. Outside that category of workers on grade level 12 and above, no other receives half of his or her salaries and the workers in this category are just 20 per cent of the state’s workforce.”

“Officers on levels 8-10 receive 75 percent of their salaries while officers on levels 7 and below receive their full pay. Contrary to what the naysayers claim about Governor Rauf Aregbesola’s administration, all workers in the state have received their salaries up to June this year, according to the payment scheme and agreement. As we pay active workers, so we pay pensioners.”

“The only outstanding pay to pensioners is the gratuity and this is due to workers who choose not to participate in the Contributory Pension Scheme and therefore left service in 2011/2012.”

“It will be recalled that over N14bn was used to pay three months salaries and pensions in a week in December 2016 when the first tranche of the Paris club refund was released to the state. The Governor Rauf Aregbesola’s administration is committed to, and in practice, ensuring good welfare package to the state and local government workers.”


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