• Tuesday, June 18, 2024
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BusinessDay

Kano LGAs seek bailout from state government

Umar-Ganduje

As the financial quagmire rocking administration of local government councils across Nigeria bites harder, administrators of local government areas (LGAs) in Kano State are seeking bailout from the state government.

The bailout they are seeking is to enable them meet their salary obligations to workers of the councils, most of whom are being owed salary arrears.

In response to the prevailing situation in the councils, the state government has released N1.2 billion from the wallet of its internally generated revenue to the affected 44 LGAs in the state.

The move is to enable them augment their federal allocations, so that they can meet their salary obligation for the month of June to staff of the councils.

The state governor, Abdullahi Umar Ganduje said the move became imperative as the monthly allocation to the councils from the federation account was no longer sufficient for the councils to pay salaries, talk less of carrying out developmental obligations.

The governor said the only option left for states was for them to find out ways of boosting their internally generated revenue, in order to withstand the current economic realities.

He recalled that during the immediate past administration, the state government used to have a balance of N4 – N5 billion after paying salary monthly, pointing out that with the dwindling capital receipts from the Federal Government now, his government was compelled to look inwards in order to remain afloat.

To closely coordinate its earning and expenditure therefore, Governor Ganduje asserted that the Single Treasury Account was indispensable for his government, noting that although it would affect tertiary institutions in the state, it would not put them in a disadvantaged position.

“Whenever you collect your revenues, declare them. We will then release the money to you for your day-to-day activities,” the governor said.

The governor explained that although he inherited problems in the tertiary education sector, prominent among which was the issue of accreditation of courses, and the government would do its best to support the institutions to live up to their mandates.

He also dwelt on the rationale behind establishing the state Education Promotion Committees, which he said was to encourage community participation in the sector, pointing that N10 million had been released to each local government committee to facilitate renovation of primary schools.

“We shall evaluate the performance of the local government committees and make more money available to deserving committees as part of our effort to revitalise education,” the governor said.

Adeola Ajakaiye