Benue to Borrow to Pay Salaries of Workers

Following the inability of the Benue State Government to meet
its financial obligations to workers in the state, it has announced
its intention to obtain loans from an undisclosed financial
institution to pay salaries of workers.

The Acting Governor, Mr. Benson Abounu, who made this disclosure
yesterday while addressing journalists after meeting with labour
leaders at the Government House, Makurdi, said already government
was talking with some financial institutions but said it was an
uphill task for the state.

He explained that to secure such loan, the state must get
clearance from the Ministry of Finance as well as Debt Management
Office (DMO).
“Government will do everything possible to clear all salaries of
workers. That is why we want to secure a loan from a financial
institution. We do not want to embark on half solution but full
one. The internally generated revenue (IGR) which range between
N250 million to N300 million is inadequate to augment with
federation allocation to pay salaries,” he complained.

Also, speaking the state Chairman, Nigeria Labour Congress
(NLC), Godwin Anya, expressed dissatisfaction with the outcome of
the meeting, adding that the Paris Club refund of N6.5 million that
was given to the state is insufficient to pay substantial months to
workers.

Anya however blamed the state government for being complacent
and nonchalant about workers’ salary, arguing that with the
declaration of emergency on salaries by Governor Samuel Ortom, it
was expected that government would have sourced for funds elsewhere
and augment with the Paris Club to clear many months salary.

The state government is owing over six months salaries to the
state civil servants while local government staff and teachers are
owed over nine months.

Following the inability of the Benue State Government to meet
its financial obligations to workers in the state, it has announced
its intention to obtain loans from an undisclosed financial
institution to pay salaries of workers.

The Acting Governor, Mr. Benson Abounu, who made this disclosure
yesterday while addressing journalists after meeting with labour
leaders at the Government House, Makurdi, said already government
was talking with some financial institutions but said it was an
uphill task for the state.

He explained that to secure such loan, the state must get
clearance from the Ministry of Finance as well as Debt Management
Office (DMO).
“Government will do everything possible to clear all salaries of
workers. That is why we want to secure a loan from a financial
institution. We do not want to embark on half solution but full
one. The internally generated revenue (IGR) which range between
N250 million to N300 million is inadequate to augment with
federation allocation to pay salaries,” he complained.

Also, speaking the state Chairman, Nigeria Labour Congress
(NLC), Godwin Anya, expressed dissatisfaction with the outcome of
the meeting, adding that the Paris Club refund of N6.5 million that
was given to the state is insufficient to pay substantial months to
workers.

Anya however blamed the state government for being complacent
and nonchalant about workers’ salary, arguing that with the
declaration of emergency on salaries by Governor Samuel Ortom, it
was expected that government would have sourced for funds elsewhere
and augment with the Paris Club to clear many months salary.

The state government is owing over six months salaries to the
state civil servants while local government staff and teachers are
owed over nine months.