Commissioner for Information Hon, Kayode Akinmade
The Ondo State Government has denied receiving a bailout from the Federal government to pay outstanding workers salary, explaining however, that it only received N2.2b accrued to it from taxes, being part of June allocation from the Federation account.
It put its monthly wage bill at about N4b.
At a joint media briefing addressed by the state’s Commissioner for Information Hon, Kayode Akinmade and his Finance counterpart, Chief Yele Ogundipe in Akure on Friday, the government mentioned that the bailout proposal presented to the President at a recent meeting by state governors was yet to bear fruit as modalities on it were still being worked out.
Making clarifications on the issue, the Finance Commissioner said following the meeting with President Muhamadu Buhari by the state governors over the lingering issue of default in payment of salary and other contractual obligation, one of the things that was decided on was that the Federal Government would find a way to bail out the states in terms of loan and the fund in the excess crude account could also be considered for sharing, submitting however that nothing concrete had been done in that regards.
“I can tell you that so far, no concrete action has been taken in that direction, notwithstanding the fact that all across the nation and in particular in Ondo, most people have read in the newspapers and heard that the Federal government distributed over N720b to assist the states in the payment of salaries on Monday”, he explained.
Putting a lie to the claim, the Finance Commissioner explained that nothing of such happened at the said meeting.
“I was present at the Monday meeting and I can confirm to you that what happened was that the taxes paid by the Nigeria Liquefied Natural Gas (NLNG) was distributed among the three tiers of government in proportion of the revenue allocation formulae ” he submitted.
Explaining further, the Finance Commissioner explained that what was distributed was N359b and less 4% collection taxes due to the Federal Inland Revenue Service as against the N720b claim.
“The net figure distributed across ,he further mentioned, was N344.99b out of which the Federal government got 52.68 % amounting to about N152b. The states got 26%, which amounted to 92 b for the 36 states and the Federal Capital , Abuja, while the Local governments got 20%, which amounted to N71b.
In particular, the Finance Commissioner further stated that, Ondo State got only N2.2b and the Local government got N1.6b bringing the state’s total package to N3.8b.
“But in Ondo State, the government does not interfere with the allocation and distribution of fund by the local governments, so what actually came to us as a state, was N2.2b and our salary bill in a month is N4b, so this is not a bailout that the President meant. This is not the bailout that our people are looking forward to. This is just part of the money that should have been shared with our allocation figures in June that was not shared ” he submitted.