Edo lends N850m to LGAs to pay December salaries

The Edo government says it loaned N850 million to local government areas in the state to clear salaries of council workers for December, pending the release of federation accounts allocation committee (FAAC) allocations to the councils.

In a statement on Wednesday, Osarodion Ogie, secretary to the state government, said the state had settled salaries and pension of state workers since December 14 from its internally-generated revenue (IGR) owing to its prudent management of public resources.

”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,” he said.

”The government said the Edo State Governor, Mr. Godwin Obaseki, at an Executive Council (EXCO) on Wednesday approved the release of N850m to the councils to enable them clear their salary obligations for the month of December.

”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 N675.9bn 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 salary of their workers.”