Date: 2016-04-24

The Kwara State Government says that the suspension of monthly deduction at source for states who got bailout funds from the Federal Government does not apply to local governments in the State.

According to a statement by the State Commissioner for Finance, Alhaji Demola Banu, the 16 local governments in the State were yet to access any bailout funds from the Central Bank of Nigeria and are therefore not eligible for the relief.

He said that it was only the State government that received a bailout fund of N4.3 billion last year, which was used to offset staff salaries and emoluments.

Banu further explained that the bailout loan attracts a monthly repayment of about N200m.

The Commissioner also noted that the N1.519 billion allocation received by the state for the month of April was lower than the N2.4 billion it spends on monthly worker's wages and overheads, adding that the April allocation is far lesser than N3.2 billion the State used to receive in the past.