In place of the release of Federation Accounts Allocation Committee (FAAC) allocations to the councils, the Edo State Government says it has borrowed N850 million to local government councils in the state to clear pay of council workers for December.
Even after the December 18, 2021, FAAC meeting in Abuja, state governor Godwin Obaseki stated he received a recommendation from the state’s minister of finance, which verified that the councils were yet to receive an allocation from the Federation Account.
He said this at the John Odigie-Oyegun staff training center in Benin City, Edo State’s capital, during an onboard session for his political appointees.
The governor said its prudent management of public resources, made it possible to settle salaries and pension of state workers since December 14 from its Internally Generated Revenue (IGR).
According to the Finance Ministry who were part of the virtual FAAC meeting of December 18, where N675.9billion was shared among the three tiers of government, Edo state local government authorities have not been able to access their funds thereby putting them in a financial crisis.
In view of this, however, the executive council agreed that the State Government advance the 18 local government councils in the state a bailout to enable them to clear the salary of their workers.
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