Following the shortfall in statutory allocation from the federation account, the Nasarawa State government says it has secured a N500million loan to pay local government salaries for February.
This was disclosed by the state commissioner for local government, Mohammed Danazumi, on Monday during a press briefing at the Government House, Lafia.
Mr. Danazumi said the decision to secure the loan followed the over N500million shortfall in the February 2015 allocations.
He said the situation was compounded by the non-release of the SURE-P funds since December 2014 which was hitherto used in augmenting shortfalls of local government salaries.
“On account of the downturn in the global price of oil, statutory allocation to states and local governments further dropped, while no releases were made in respect of SURE-P since December, 2014,” he explained.
Mr. Danazumi said the decision to obtain a loan was reached after a stakeholders meeting comprising the Nigeria Union of Teachers, Nigeria Union of Local Government Employees, and three other unions.
“The committee agreed that the banks be approached for temporary overdraft (TOD) to augment the shortfall to enable the payment of February, 2015 salaries of local government employees,” Mr. Danzumi said.
He added that the state government needed N2.2billion to pay all categories of local councils, Development Areas employees including primary school teachers in the state.
“Sadly, only the sum of N1,665, 548, 782.13 was received from the federation account as allocation to the thirteen local government areas of the state,” he said. “This implies a shortfall of N522, 319, 973.96 in wage bill for February, 2015,”
He assured state and local government civil servants in the state that every worker would be paid their salaries before the end of the week.