Ashiwaju.org learnt that the states will have to rely on internally generated revenue as against borrowing to pay their workers.
It was learnt that the states shunned the bank loans because the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had instructed banks not to grant credit facilities to them without her approval.
Some of the states have, however, adopted other strategies to shore up their revenue such as slashing the salaries and allowances of political office holders, if necessary and plugging loopholes in their revenue-generating drive.
The Kwara State Commissioner for Information, Mr. Tunji Moronfoye, confirmed to one of our correspondents that Okonjo-Iweala had, on three occasions, turned down the state government’s application seeking approval to borrow money from banks.
Moronfoye, however, said the state government would soon begin the extraction and exploration of mineral deposits in the state so as to meet its revenue demands.
He said, “The Federal Government has turned down our application for loan three times. We are shocked at this because we expect that the Federal Government should allow banks to take a decision.
He said, “The first step towards obtaining a loan anywhere in the world is your ability to repay. Some of the banks have accepted to give us loan because they have seen that we are solvent and that we do not owe money. We have paid the last bond we took since August 5, 2014. We do not owe any massive money, (except for) maybe overdraft here and there. We always pay at the end of the month. But the government did not allow the banks to lend us money.”
The Osun State Government also ruled out the possibility of borrowing from banks to pay salaries, as most of the workers were paid till October.
The media aide to the state governor, Mr. Semiu Okanlawon, told journalists that Governor Rauf Aregbesola had devised a means of paying the workers’ salaries for 2014 until he could no longer cope.
Okanlawon said, “It is interesting to know that members of the Nigerian Labour Congress and representatives of all trade unions recently submitted a report of their efforts aimed at seeking alternative sources of revenue for the state in the face of the dwindling revenues from the federation account.
“The workers are aware of the reality and the difficulties the government is facing due to the steady decline in the resources allocated to the state and based on this, they are working on their own to assist in working out ways of raising more money for the state government.”
Though the Ogun State Government does not owe workers, the government said it would be more creative and firm up strategies to improve its IGR, which is currently put at about N6bn.
The state Commissioner for Finance, Mrs. Kemi Adeosun, said, “The state has not owed salary since the inception of this administration in 2011. By the Grace of God as of December 30, 2014, we have paid all categories of workers.
“The state will not borrow, what we have to do is to be more creative with the IGR.”
The situation appears pathetic in Benue State as the government appealed to workers to exercise more patience over non-payment of their outstanding salaries.
The state Commissioner for Information, Mr. Justin Amase, told one of our correspondents that the non-payment of the workers’ salaries was being looked into by the government.
Amase appealed to the workers to exercise more patience, saying the state government had been working out modalities to arrest the situation.
Also, the Ondo State Government said it was not considering seeking bank loans to shore up its revenue, saying it put together a realistic budget for 2015.
The state Commissioner for Information, Mr. Kayode Akinmade, said although taking loans was not unusual for the government, it would be considered when it became absolutely necessary.