Home News Oyo Assembly Approves N14.2bn FG Bailout for Salary Payment

Oyo Assembly Approves N14.2bn FG Bailout for Salary Payment

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Governor Abiola Ajimobi of Oyo State (second left), the Speaker of the state House of Assembly, Mrs. Monsurat Sunmonu (second right), the General Officer Commanding, 2 Mechanized Division of the Nigerian Army, Ibadan, Major-Gen. Ahmed Jibrin (left) and the representative of the Olubadan of Ibadanland, Chief Eddy Oyewole (right) at the 2013 Remembrance Day at the Remebrance Arcade, Government House, Ibadan on Wednesday. PHOTO: OYO GOVERNMENT HOUSE.

By Adeola Oladele, Ibadan
  
The Oyo State House of Assembly has approved the application of the state government to the Federal Government for a N14.16 billion bailout fund.

The approval came up at an emergency plenary session of the Assembly on Tuesday, presided over by the Speaker, Hon. Michael Adeyemo.

The speaker opined that the bailout, which would be given by the Federal Government in addition to the monthly allocation, was strictly meant for the payment of workers’ salary in the state.

Adeyemo said the approval of the legislature was one of the conditions spelt out by the Federal Government to states facing severe financial difficulties.

He said from the bailout fund totalling N14.16billion, a sum of  N1.39 billion would be paid monthly for the first three months,
while N1.11 billion would be paid monthly in the subsequent nine months.

The speaker said bailout fund would be paid back to the Federal Government by the state with nine per cent accrued over a period of one year.

He said, however, that  the Federal Government had given a year suspension before the commencement of the loan payment.

In his words: “Federal Government has restricted states from getting loan facilities from commercial banks partly due to its high interest rates. The government then decided to provide the bailout in form of a loan.

“The repayment will not start until after a year moratorium by which time, hopefully, the state would have become economically viable,” he noted.

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