Salaries: Oyo Assembly approves N14.2bn FG bailout application
(Nigeria) The Oyo State House of Assembly on Tuesday approved the state government’s application for a N14.2 billion bailout fund from the Federal Government.
Approval was given at an emergency plenary session of the Assembly
in Ibadan, Oyo State.
Speaker of the House, Mr Michael Adeyemo, said that the
bailout, in addition to the monthly allocation, was strictly meant for the
payment of workers’ salaries.
Adeyemo said that the legislature’s approval was part of the
conditions spelt out by the Federal Government to states facing severe
financial difficulties.
He said that from the bailout fund, N1.39 billion would be
paid monthly for the first three months, while N1.11 billion would be paid
monthly in the subsequent nine months.
Adeyemo said that the state government was expected to pay
back the fund with nine per cent interest accrued over a period of one year.
The speaker, however, said that the Federal Government had
given the beneficiary states one year suspension before the commencement of the
loan repayment.
“The Federal Government has restricted state governments
from getting loan facilities from commercial banks partly due to its high
interest rates. It decided to provide the bailout in form of a loan.
“The repayment will not start until after a year moratorium
by which time, hopefully, the state would have become economically viable,” he
said.
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