Osun State Workers Will Not Be Paid Their March Salaries


The Osun State government has announced that it will be unable to pay State workers their March salaries, resulting from shortage of federal allocation.

Osun state Governor Rauf Aregbesola, said the government will not be able to pay the State Secretariat’s electricity bills, let alone its N2.6bn wage bill, as it only received  N6.23m in funding for the month of March, which is far below the N56 million it received in September 2015.

March’s federal allocation represents a significant decline from February’s allocation of N1.677bn. Additionally, Osun State received N19.418m and N726.1m from the exchange rate gain and value added tax, bringing the total February allocation to N2.423bn.

According to the accountant-general of the federation, the state got a gross statutory allocation of N1.677 billion for February, slightly above the allocation for Ekiti, Ebonyi, Kwara and Bayelsa.

The total allocation for Osun was seen to be higher than Nasarawa, Kwara, Gombe, Ekiti and Ebonyi.

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The reason for Osun State’s insufficient funding comes from debt obligations amounting to over N2bn. With the removal of the N70.989 million, N945.881 million and N1.400 billion in external debt, Irrevocable Standing Payment Order (ISPO), and other debts, the state was left with a net allocation of N6.23 million.

With a wage bill of over N2.6 billion, the net allocation of N6.23 million would do next to nothing in the southwestern state with meagre internally generated revenue (IGR).

Every other state of the federation was granted a March allocation of at least N1bn, with Akwa Ibom, Delta, Lagos, and Rivers States topping the list with N8.557bn, N6.062 bn, N6.612 bn and N5.427bn, respectively.

Recall that in September last year, Gov Aregbesola had also lamented that the “Money coming from the Federation Account was dipped seri­ously and our hope for survival is in our hands; what our forefathers lived on was agriculture.”

In September, the state got N55.8 million. The money, the governor said could also not pay for the power supply by Ibadan Electricity Distribution Company (IBEDC) which is used at the state Secretariat monthly.

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