Edo borrows LG’s N850m to pay their December salary in lieu of the FAAC receipt

The government of Edo state announced that it would loan councilors 850 million to local counties in December.

Because of its prudent use of public funds, the state had been paying government employees’ salaries and pensions from its internal income (IGR) since December 14. However, the state’s local governments were unable to pay the December salaries and pension to employees and retirees due to the delay in releasing their FAAC grants.

In a statement by State Secretary Osarodion Ogie on Wednesday, it said:
Edo State Governor Godwin Obaseki approved the release of N850 million to the councils at a meeting of the Executive Board on Wednesday to allow them to meet their December salary commitments.

Remember that after the monthly FAAC legal meeting in the Federal Capital Territory (FCT), Abuja, the FAAC grants are distributed among the state, state, and local governments.

However, since the virtual FAAC meeting on December 18, when N675.9 billion was split between the three levels of government, the state’s local governments have been unable to access their funds, which left them in dire straits.

However, realizing that local government workers would be hit hard by the Christmas delay delay, the Edo state government decided to send a bailout to the state’s 18 councilors so they can unblock their workers’ salaries.

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About Natalee Broderick

Natalee Broderick

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