The 16 Local Government Areas in Kwara State owe their workers and pensioners N5bn.

The Punch correspondent gathered on Wednesday that this was contained in a message of the state Governor, Alhaji Abdulfatah Ahmed, to the Speaker, Kwara State House of Assembly, Dr. Ali Ahmad, which was read on the floor of the Assembly in Ilorin.

Ahmed had, in his message, said the debt profile of all states and local governments, especially on salaries, pension and gratuity, had been submitted to the Federal Government.

Ahmad on Wednesday said the Assembly had granted approval to all the 16 LGs in the state to convert their outstanding salaries, pension and gratuity, which amounted to N5,017,844,699.62 into bailout loan. He stated that the approval of the legislature became imperative to enable the state LGs to benefit under the bailout arrangement of the Federal Government.

The Speaker warned that the bailout loan should be strictly used for the intended purpose, adding that the House would not condone the diversion of the loan for any developmental projects. Ahmad pledged that relevant committees of the House would monitor its implementation to ensure strict compliance.

The Leader of the House, Mr. Hassan Oyeleke, had, while leading other members in the debate, said the request was necessitated by the inability of the councils to pay their outstanding salaries, pension and gratuity. He added that the loan, which according to him, is repayable within 20 years, has a single digit interest rate of nine per cent.

Meanwhile, the state governor has said his administration’s new revenue drive will generate funds for new development projects, stimulate the economy and create jobs in view of dwindling federal allocation and the need to improve on the welfare of citizens on a sustainable basis.

He spoke during an interaction with community leaders in Ilorin on Wednesday.

The governor said his administration planned to create new infrastructure to enhance the welfare of the people, stimulate commerce and attract fresh investments that would create an economic environment for job creation.