The decision of the National Economic Council to inject economic lifeline into financially-handicapped states to the tune of N300 billion, elicited hope across the country, but the joy may have vanished into thin air as the unresolved crisis of unpaid salaries still linger. As part of its relief package, the Federal Government opened up a three-pronged assistance to the states. The second measure, which is a relief package that would end the workers’ plight nationwide, involved the granting of soft loans to 27 states, to be repaid at an interest rate of nine per cent over a 20-year period. In this report, New Telegraph correspondents report on the present situation in the concerned states and how the funds have been able to offset arrears of workers’ salaries
No reprieve for Imo workforce after N26.8bn bailout
Owing to the excruciating economic situation, Imo State has not been able to fulfil its financial obligation Consequently, the state sought and received N26.8 billion as bailout fund from the Federal Government. Not a few will agree that the financial crisis in Imo State is anything, but resolved.
The conditions for accessing the bailout fund specified a process of documentation which included the specification of the debt profile of the state in details reflecting what is owed to ministries, departments, agencies, arms of governments in the state down to the local government workforce.
The wage bill of every unit which government is unable to pay was reflected in the documentation and served as a pointer to how much every state really needed to offset its arrears of unpaid salaries in their ministries, departments, agencies and parastatals.
And of course the Federal Government relied on the estimates arrived at to determine how much bailout fund should be released to every state. After these estimates were reached and the bailout released, Governor Rochas Okorocha returned to the state and instead of commencing payment, initiated what he called Salary Adjustment Programme (SAP) in which he is reviewing the salaries of different parastatals with particular emphasis on the Ministries of health Judiciary and Agriculture.
So far, the governor had paid all other ministries except the three ministries due to disagreement in the reductions in their salaries as a result of the SAP. Of all the parastatals, departments and agencies, only the Imo Broadcasting Corporation (IBC), is known to have been fully paid.
Doctors in government service have not received their salaries for upwards of five months due to the slash in their salaries and they are threatening to down tools. Allowances such as call duty allowance, hazard allowance and rural posting allowance were all scrapped from the new salary regime. And this, the doctors have vowed to resist.
While the judicial workers had been on strike for similar reasons since early October, the magistrates recently raised the alarm that their salaries have been slashed by as much as 75 per cent and about seven different statutory allowances removed from their salaries.
The same thing is going on at the Imo State House of Assembly, which is a ghost town with workers having deserted the Assembly Complex due to unpaid salary arrears of seven months. Government House sources revealed that the workers rejected their salaries because it was also slashed.
Health and agricultural workers in the state are passing through similar travail with their allowances dropped and salaries slashed. The same thing to local government workers. Not even workers in the Imo Polytechnic, Umuagwo, have been fully paid. As at November 4, workers in the state polytechnic were still being owed salaries for September and October.
Also, the arrears of pension owed Imo pensioners are yet to be defrayed, with primary school teachers being owed up to 23 months. Owing to the discord over the said ‘salary adjustment’, the bailout fund may have achieved nothing in Imo as the parastatals which constitute the bulk of the workforce among the civil servants have largely not received their salaries yet.
However, as far as Okorocha is concerned, the state government is owing nobody. Those who are still unpaid, according to government, are those who either rejected their salaries or those that still have issues to clarify concerning their salaries. For now, the state government has reduced the number of ministries from 22 to 12.
Crisis not over in Ondo even with N14.8bn bailout
Despite the collection of N14.8 billion as bailout fund from the Federal Government, Ondo State is still owing its workers twomonth salary arrears. Although the government used the bailout fund to pay two-month salary arrears and deductions it owed the workers before the receipt of the fund, another round of debt had accumulated since the workers received the salary in August.
For now, the government is owing October salary without the inkling of when the salary will be paid. Governor Olusegun Mimiko blamed the development on the amount received from the federation account, which was not enough to pay salaries of workers not to talk of embarking on capital projects.
According to him, the government received N2.5 billion from the federation account while the salaries of workers at all levels is about N4 billion. But some of the workers raised the fears that the government did not use all the funds received as bailout to pay workers’ salaries as the government has embarked on some capital projects it had long abandoned.
For instance, it was after the receipt of the bailout fund that the government embarked on the rehabilitation of Alagbaka road which was abandoned many years ago. The government has also resumed work on Oba-Ile/ Airport road while the International Event Centre (Dome) which was long abandoned is nearing completion.
Council workers, teachers groan in Delta after N10bn
Delta State government applied for N20.9 billion bailout to meet its financial obligations; payment of backlog of workers’ salaries, especially the seven-month arrears of council workers, offset pension arrears and meet some infrastructural challenges. The oil-rich state had accessed N10 billion from the fund.
“The bailout is supposed to come in two tranches. The one that has been received is that of the outstanding salaries of N10.9 billion. The state has settled outstanding salary liabilities with it. The state is also taking a look at how it can reduce the outstanding pension liabilities with the funds. But the N10 billion for infrastructure, we have not received,” Charles Aniagwu, the media aide to Governor Ifeanyi Okowa, told New Telegraph.
Before the bailout fund came, local government workers were being owed seven months. With the fund, workers including primary school teachers in the 25 councils were paid three months arrears, leaving the balance of four months. The arrears of workers’ salaries for the local governments have now risen to five months.
C’River’s N7.8bn goes for salaries
Cross River State government got N7.856 billion from the bailout fund. New Telegraph learnt that the money went into the payment of outstanding arrears of both local governments and some state workers. It was gathered that Governor Ben Ayade met three months unpaid arrears of local government workers and about sixmonth arrears of workers of the State University of Technology (CRUTECH). So, the bailout fund was used to offset the arrears.
Abia workers lament after N14.215bn
Abia State is one of the distressed states that got the Federal Government bailout fund to enable it offset the accumulated salary arrears of workers incurred by the immediate past administration. Governor Okezie Ikpeazu personally acknowledged the receipt of the bailout fund amounting to N14.215 billion during an interactive session with journalists last month.
The governor assured that all arrears of salaries of workers in the state including pensioners and local government staff would be cleared by the end of October. To realise the objective and deadline, a committee was set up to harmonise and ensure proper implementation of the payment. Surprisingly, two weeks into November, workers are still complaining of being owed salaries.
The clearing of the arrears is mired in confusion. While the government insists that the salaries have been released up to date to the various ministries, departments, agencies and councils, workers are still groaning under the weight of salary arrears. Investigation shows that some of the core ministries have been paid up to September with October still outstanding.
The pensioners who were owed between nine to 11 months have received only two months arrears just as council workers are still in arrears of three months. The uncoordinated biometric verification has compounded the issue as some legitimate council staff and primary school teachers have been omitted.
Again, the illegal deductions of the salaries of those even paid have raised the anger of the workers. Last week, workers of the Umuahia South Local Government Council embarked on a peaceful demonstration against what they called unbearable delay in the payment of the arrears and the unexplained deductions in the salary paid.
It was gathered that the government deducted 11 per cent from all the 17 local governments but after the demonstration they directed the councils to submit the shortfall with assurance of paying soon. A staff of one of the local government told New Telegraph that they are no longer talking about clearing of arrears but the complete payment of the August salary.
Primary school teachers from Ugwunagbo Local Government who have not been paid their salaries from June and were also omitted in the verification also marched through the streets of Umuahia to protest the treatment. However, the Chief Press Secretary to the Governor, Mr. Godwin Adindu, in a statement last week, assuaged the grievance of the workers. He said the money was with the auditor general of local governments while the salaries of other workers have been paid into the various receiving banks. But no one knows what to believe.
Life returns to Benue after N28bn package
Benue State has received her share of the long awaited bailout package. The state got N28.013 billion. Out of the bailout fund, N12.5 billion was for payment of arrears of salaries owed state workers, while the remaining N15.5 billion was earmarked to clear salary arrears owed local government employees and teachers.
The state accessed the money to cushion the hardship faced by the workers. Before payment started, Governor Samuel Ortom had directed the screening of all workers, a development that sparked off a protest by the organised labour unions made up of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Joint Public Service Negotiation Council (JPSNC), 1, 2 and 3 which threatened to shut down the state indefinitely if the payment is delayed.
The delay in payment of the salary arrears further triggeredoff pockets of protests in many local government areas of the state, with some aggrieved protesters and the main opposition party accusing the government of diverting N3 billion from the money to settle top All Progressives Congress (APC) politicians, an allegation the government had since dismissed as untrue. But sensing danger arising from the delay in payment and the threat by workers to proceed on indefinite strike, Governor Ortom swiftly directed an immediate commencement of payment which elicited jubilation from workers.
At the Benue State University, Makurdi, N885 million was released to cover the two months’ salary arrears owed staff as well as those at the College of Health Sciences and Teaching Hospital. Bursar of the University, Dr. Ephraim Aondoakaa Kwaghfan, acknowledged receipt of the mandate and said that it has since been dispensed to beneficiaries. With the bailout fund, life has returned to Benue. New Telegraph learnt that salaries have been paid up till September while only October is being awaited.
Niger free from financial stress after N4.3bn bailout
Niger State government collected N4.306 billion as bailout from the Federal Government. At the moment, the state is not owing workers. Governor Abubakar Sani Bello stated that the payment of salaries was not a problem to the government after it received the bailout. “The bailout has solved the financial crisis faced by the state,” he added.
Senior Special Assistant to the Governor on Media and Publicity, Jide Oruntinsin, told New Telegraph that the total amount accessed by the state was N4,396,810,000. Oruntinsin stated that: “Since we accessed the fund, payment of salaries was never a problem as the state is not owing.
Even the past administration did not for one day stop paying workers’ wages. “The bailout has eased the stress of the state’s recurrent expenditure and the situation on ground is positive expectation because the people and workers in the state believe in the government.” The state chairman, Nigeria Labour Congress (NLC), Alhaji Yahaya Ndako, told our correspondent that the bailout fund has rekindled the hopes of workers in the state.
Despite N26bn lifeline, Oyo State struggles
Before the bailout of N26.606 billion given to the Oyo State government to offset its backlog of workers’ salaries, the Abiola Ajimobi-led administration was owing five-month salary arrears spanning from May to August. Upon the receipt of the money, the backlog was paid up to August. Much as the workers were happy that September salary would also be paid, it however has not come till date.
Already, two months are still outstanding for the government to settle, but the rumour being peddled around the state is that the workers may not receive any other salary until January because the allocation and resources of the state cannot accommodate it. Nevertheless, despite the fact that four months’ salaries were cleared with the bailout, feedback from many workers in the state has been that the Federal Government’s assistance did not assuage their thirst at all. According to a secondary school teacher, who spoke on a condition of anonymity, things have continued to be hard for the workers in the state, more so that their hope of steady salary had been dashed since August.
“When we received salaries through the bailout, our agony was a bit relieved. We were able to pay our children’s school fees in institutions of learning; many of us who had borrowed money to take care of series of household needs got part of them settled, but now that the waiting game has returned, the suffering has started to stare us in the face again,” the hapless teacher lamented.
“There has never been a meeting with the state government to the effect that workers in the state may not be paid until next year January as being rumoured… We are looking forward to the state account being credited. That is the situation and we are hopeful such will be done soon,” the NLC Chairman, Waheed Olojede, told New Telegraph.
Amosun offset workers’ deductions with N18.9bn
In Ogun State, Governor Ibikunle Amosun seems to have successfully calmed frayed nerves among civil servants following the disbursement of the bailout funds approved for the state by the Federal Government. The state hitherto was among those states owing backlog of cooperative and other deductions from workers’ salaries.
However, the Amosun-led administration brought smiles back on the faces of workers when it received the sum of N18.9 billion and disbursed the fund accordingly to settle outstanding deductions. According to dependable sources, the Central Bank of Nigeria (CBN) gave N9.7 billion for state workers while the sum of N9.1 billion was disbursed to local government workers.
The funds were disbursed in October. Speaking with our correspondent, the state chairman of the Nigeria Union of Teachers (NUT), Comrade Dare Ilekoya, said the state government deserved commendation for its “judicious disbursement” of the bailout funds approved for the state.
Ilekoya, who is also the state NLC Vice Chairman, said the bailout funds were used to settle outstanding deductions from workers’ salaries from 2014 till date. He, however, disclosed that only two months deductions (May and July) have not been paid, saying notwithstanding the state fared better compared to others.
“The governor has settled all outstanding deductions from salaries from last year to date. But the deductions from May and July have not been paid. “When you compare notes with other states that have same predicament with us, I think Ogun State is better off,” he said.
But the chairman, Joint National Public Service Negotiating Council, Comrade Abiodun Olakanmi, disagreed. He said labour was “not 100 per cent satisfied” about the disbursement of the bailout funds. Olakanmi said: “As far as we are concerned, we are not 100 per cent satisfied about the way bailout was utilised.
The bailout was meant for arrears of salaries and all the arrears were calculated before it was applied for. But to our surprise, government only paid seven out of nine deductions while government also paid five out of seven check-off dues. “Last week, we wrote a letter to the state government requesting for the balance of two months.
Now October has joined it, making three months for both union dues and cooperative deductions.” But the governor’s Senior Special Assistant on Media, Mr. Adejuwon Soyinka, maintained that the state government is not owing its workers till date. “The governor has spoken about the issue of bailout and we have no problem with it. The state is not owing anybody salary at all. We are not in the same situation with other states,” Soyinka told New Telegraph.
Bailout to improve Jigawa economy
In Jigawa, the state government obtained N10 billion bailout. With workers’ salaries paid up to date, the fund was meant to improve the economy of the state. According to the state Commissioner for Finance, Alhaji Usman Kafin Hausa, the N10 billion got from the CBN was used to improve the economic activites of the state, especially completion of ongoing projects.
Adamawa settles workers with N7.2bn
Like other states, Adamawa got N7.2 billion from the bailout fund. The money is meant for the payment of outstanding arrears it owed civil servants including salaries, leave and transport grants. The state Commissioner for Finance and Budget, Mr. Mahmud Sali Yunusa, noted that a finance team had been constituted to work out modalities for payment of all outstanding salary arrears, pension, leave and transport grant for 2013, 2014 and 2015 and other staff claims at all levels in the state.
Still a long way for Kwara workers
Kwara received N5 billion as the first tranche of its bailout fund. The money was used to pay the outstanding salaries of core civil servants in the state. There was another N5 billion expected to be used in settling the salaries of local government workers, primary school teachers, local government pensioners as well as the statutory contribution of local governments in the state to the funding of Kwara State University (KWASU).
The second tranche has not been released but in October, the state’s House of Assembly approved a N5 billion concessionary loan from Sterling Bank to clear the salary arrears of staff of tertiary institutions and parastatals in the state. Another loan of N5.017 billion was approved by the lawmakers in September to pay local government staff and primary school teachers pending when the bailout fund would be released by the CBN to alleviate the sufferings of the affected workers especially during the Sallah festival.
Kwara has been able to clear the salary arrears of its core civil servants but not so for workers in the state-owned tertiary institutions and parastatals. Academic and non-academic staff in the Colleges of Education in Ilorin, Oro, Lafiagi as well as the College of Arabic and Islamic Legal Studies, Ilorin are currently on strike over unpaid salary running into arrears of six months.
Workers of the State Water Corporation are also on strike for similar reasons.Senior Special Assistant (Media) to the governor, Dr. Muideen Akorede, tied the inability to pay to dwindling revenue from federal allocation. He said: “The Kwara State Government urges the protesting workers to return to work while the government work out a solution to the difficulties experienced in the payment of subvention. These difficulties arose from the cut in FAAC allocation from N3.2 billion to N1.8 billion. Demonstrations and strikes will therefore not solve the problem.”
Enugu awaits N4.2bn
Enugu State is still trying to access the N4.207 billion it applied for from the CBN. The money is meant to clear pension arrears and salaries of staff of some parastatals. Civil servants in the state are not being owed. Governor Ifeanyi Ugwuanyi has promised to use the money strictly for what it is meant for. It was learnt that the immediate past administration of Sullivan Chime left gratuity and pension unpaid.
Council workers groan in Nasarawa
In Nasarrawa, the state civil servants have been paid up to date. But local government workers have continued to groan under non-settlement of three and half months arrears of their salaries despite the release of N8.3 billion bailout fund to the state. On October 19, the state government released the sum of N4.3 billion out of the N8.3 billion for local government councils in the state, to pay arrears of salaries of their workers.
After the release of the bailout fund, however, local government workers in the state are yet to receive their July, August, September and October salaries. Initially, the non-payment of council workers was as a result of inability to get fund. But with the bailout, the ongoing biometric exercise to identify ghost workers is delaying the payment. There are reports of high scale discrepancies uncovered in the exercise.
Not yet Uhuru in Osun after N34.9bn
In Osun State, the Federal Government has fulfilled its own part of the bailout deal as the state reportedly got N34.9 billion. Before the bailout, the state was owing eight months salaries. The Rauf Aregbesola-led administration paid full salary of December 2014 in June.
Half salaries were paid for January and February of 2015 in the middle of July with the balance paid up in October. The governor also paid full salaries for March, April and May in September. Presently, June salary has been settled and half was paid for the month of July. As at now, the government is owing three months: August, September, October and 50 per cent July. However, all the 2014 and 2015 workers bonus are still outstanding.
Peace returns to Edo councils
In Edo State, Governor Adams Oshiomhole has lived up to his promise of paying salary by 26th of every month. His administration is not owing state workers, except that some of the 18 local governments are owing six, eight and nine months of salary arrears to their workers.
The workers under the umbrella of the National Union of Local Government Employees (NULGE) for months took to the streets in protest with an appeal to the state government to prevail on the councils to fulfil their obligations to them. But with the approval of bailout fund for states, Edo got N3.167 billion.
Governor Oshiomhole took measures to stop all security votes and other allowances due to the council bosses until they settled all outstanding arrears of workers’ salaries. Those who took the governor’s directive for granted were booted out of office for alleged diversion of funds, inability to settle workers’ salaries and other allegations.
Edo State chairman of the Association of Local Governments of Nigeria (ALGON), Mrs. Itohan Osahon-Ogbeide, said “the bailout fund has been fruitful as it has helped to solve the backlog of salaries owed local government employees in the state.” For local government workers in the state, the bailout has brought succour.
No bailout for Kogi
Kogi State is yet to receive the N50 billion it applied for. Governor Idris Wada had accused both the CBN and APC of frustrating the state from benefitting from the fund. Council workers have been the worst hit as a result of the cash crunch in the state. They are being owed almost one year salary arrears. The state civil servants are only being owed October salary. T he November 21 governorship election might have informed the delay in the release of the fund to the PDP-led government.
Taraba workers await N9bn
Unlike other states that are presently reaping the fruits of the bailout fund, the reverse seems to be the case in Taraba State as there is no sign that the state government has received the Federal Government’s loan. The state House of Assembly had given assent to the government’s request to obtain over N9 billion from the Federal Government as bailout fund.
However, since the Assembly gave the approval, Governor Darius Ishaku had on several occasions made it clear that the state has not received any bailout. “As at last week, Taraba has not received the bailout fund,” Hassan Mijinyawa, the Press Secretary to the state’s governor, told New Telegraph.
The issue of non-payment of salary in the state is causing anxiety as workers have to stay for extra weeks before collecting salary of the previous month. Again, local government workers and teachers in the state are being owed arrears of over two months’ salaries.
Furthermore, lecturers of the state university as well as the members of the state’s chapter of the Judiciary Staff Union of Nigeria (JUSUN), who spent several months on industrial action before they called off the strike, also have high expectations on the bailout. Pensioners in the state are also agitating for their entitlements.
Ease for workers on the Plateau
Plateau State has been able to settle three out of five months’ salary arrears being owed state workers from the N5.357 billion bailout it got from the CBN. Only two months’ salaries of civil servants are being owed. Already, the state government had secured another N10 billion loan from banks to pay debts owed contractors.
Katsina pensioners await bailout
Katsina State got N3.304 billion as bailout. Although the state is not owing workers’, the money is meant to settle pension and gratuities. The state government has embarked on a verification exercise before the payment.
Ekiti gets N9.5bn bailout
Ekiti State got N9.5 billion from the bailout fund out of the N29.5 billion requested by the state and local governments. The state government had N8.6 billion approved out of the about N24 billion asked for, while the 16 local governments got N991 million out of the N5.6 billion it asked for.
From what the state government requested, the 2014 leave bonus and the September 2014 outstanding salaries were approved and subsequently paid by the state government. Currently, the state is owing its workers 2015 leave bonus, October 2015 salaries, while pensioners are owed three months’ pensions.
Ebonyi clears salary arrears
Ebonyi State like other states of the federation has received bailout fund from the Federal Government to clear workers’ salaries. The state got N4.6 billion. The amount was approved by the state House of Assembly during plenary following a letter written by Governor Dave Umahi seeking for its approval of the amount from the CBN. The money has been accessed since and workers’ salaries cleared with no worker in the state owed any month salary. Before the bailout came, the state owed workers three months.
Others
Some of the states have also benefitted from the bailout fund which they used to settle pension arrears and meet other financial obligations. Gombe got N16.459 billion, Sokoto benefited N10.093 billion from the intervention fund while Zamfara got N10.020 billion, Borno received N7.680 billion and Bauchi got N8.60 billion. Like Kogi, Bayelsa is yet to access the N1.285 billion it applied for to settle arrears of local government workers’ salaries.