JAAC: Kwara LGs Share N574m, Teachers Get N1.138b for July, KWSG Explains Why Banks Make Deductions from LG Allocation

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A total of N574, 063, 603.18 is to be shared among the 16 local government councils in Kwara State for the payment of workers’ salaries for the month of July, 2017.
This amount includes the 10% of the State government’s Internally Generated Revenue (IGR) distributable for the month, representing N35, 096, 550.68.
The TIC Chairperson of Ilorin South local government, Hajia Funmi Salau disclosed this on Monday while addressing newsmen after the State Joint Accounts Allocation Committee (JAAC) meeting held in Ilorin.
According to her, the gross statutory allocation for the councils is N2, 158, 751, 253.97 and Value Added Tax (VAT) of N441, 407, 753.00. She said that N280million was deducted at source as repayment for the LGs previous borrowings from banks.
While giving a breakdown of the allocation distribution, Salau disclosed that a total of N1, 138, 967, 527.95 was appropriated for the payment of Basic Education teachers’ salary. This is against the N900million appropriated for the same purpose in June.
The Ilorin South Chairperson further revealed that N372, 035, 374.29 was allocated for the payment of local government pensioners’ arrears, as against the N127, 514, 337.88 they got last month.
She added that the sum of N264, 628, 152.28 will go towards offsetting the arrears owed traditional rulers, vigilantes and clean and green workers across the 16 local governments, as well as the running of the LGs.
Hajia Salau noted with the allocation distribution, all categories of workers in the LGs will start receiving their full month salary as from tomorrow.
in another development, The Kwara State government says the monthly deductions from the federal allocation accruing to the 16 local governments (LGs) in the State are for repayment of loans obtained by the LGs in 2015.
The explanation comes as the state government also affirmed that it has not received its share of the N1.6b approved by the Federal Government as flood intervention in 16 states.
Providing the clarification in a statement on Tuesday, the State Commissioner for Finance, Alhaji Demola Banu disclosed that the amount is repayment of a N4.8b loan facility the local councils secured in 2015 from three commercial banks to pay two months’ salary arrears owed their workers and pensioners.
He said the loan was in anticipation of a bailout fund from the federal government, which they eventually did not get.
The Commissioner further explained that the deductions are usually made at source by the creditor banks before remittance to the State Joint Accounts.
Also, the Commissioner said that the N1.6billion recently approved by the Acting President, Prof. Yemi Osinbajo was meant to be disbursed for victims of flood in 16 states of the federation, including Kwara State.
Banu, however, noted that the Federal Ministry of Finance was directed to release the money directly to the National Emergency Management Agency (NEMA) for onward direct disbursement to the victims in the affected states.
The Commissioner, therefore, emphasized that the fund was not released to the Kwara State government.
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