Governor Wike to borrow N10 billion to pay salaries

The Rivers State House of Assembly has given the state Governor, Nyeso  Wike, the go-ahead to take a N10 billion loan from the Federal Government.

The members of the House agreed to the governor’s request to apply for bailout funds from the Federal Government at a session yesterday.

Rivers had previously refused to take the bail out funds in 2015 choosing instead to manage the funds at its disposal but in a twist of events, Wike petitioned the House requesting for permission to take the bailout.

In his request, the governor said the funds will be used to pay workers’ salaries and pensions.

The governor noted that the N3.5bn the state got as monthly federal allocation was barely enough to cover its monthly financial needs such as workers’ salaries and pensions.

If approved, the N10bn bailout, according to Wike, will be received from the Central Bank of Nigeria.

“The purpose of this letter is to formally notify the state House of Assembly of our intention to apply for bailout from the Federal Government to meet our salaries and pensions obligations.

“Recall that last year, the President of the Federal Republic of Nigeria, His Excellency, Muhammadu Buhari, on the initiative of the National Economic Council, approved bailout to enable states to defray backlog of salaries to civil servants and pensioners.

“Although most of the states immediately applied and got the funds, Rivers State tried to go without recourse to this facility. However, with the continuous decline in allocation to the state from the Federation Account, fixed at N3.5bn only, it is now getting increasingly difficult for us to meet our salaries obligation to civil servants and pensioners.

“It has therefore become necessary and urgent for the Rivers State Government to also take advantage of the Federal Government bailout funds to enable us to meet our salaries obligations to civil servants and pensioners.

“Consequently, it is our intention to apply to the Central Bank of Nigeria for the sum of N10bn only from the Federal Government bailout funds on the same terms and conditions that were accorded to other states,” part of the governor’s letter read.

 

The Leader of the House, Martin Amaewhule, the Whip, Evans Bipi, and others lawmakers assented to the request after speaking in favour of the governor’s reasons for the application.

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