The Edo State government has approved the release of N850 million loan to the 18 local government areas in the state to enable them clear their salary obligations for the month of December.
Osarodion Ogie, Secretary to the State Government, in a statement issued to journalists on Wednesday in Benin City, said the loan “is in lieu of the release of Federation Accounts Allocation Committee (FAAC) allocations to the councils.”
Ogie said the approved amount by Governor Godwin Obaseki at an Executive Council (EXCO) meeting was to relieve the financial difficulties of local government workers occasioned by the delay in the release of their FAAC allocation during the festive season.
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“Due to its prudent management of public resources, the state had settled salaries and pension of state workers since December 14 from its Internally Generated Revenue (IGR). However, local governments in the state have been unable to pay December salaries and pension to workers and pensioners due to delay in the release of their FAAC allocation.
“Recall that FAAC allocation is distributed between the Federal, State and Local Governments in the state after the monthly statutory FAAC meeting in the Federal Capital Territory (FCT), Abuja.
“However, since the virtual FAAC meeting of December 18, where N675.9 billion was shared among the three tiers of government, local governments in the state have been unable to access their funds thereby putting them in dire straits.
“Realizing, however, that local government workers would be hard hit by the delay during the festive season, the Edo State Government decided to advance the 18 local councils in the state a bailout to enable them clear the salaries of their workers,” the statement reads.
