Federal allocation: Kwara warns against impending financial crisis

Date: 2012-07-04

The Kwara State Commissioner for Finance Mr. Demola Banu has warned against impending financial crisis in many states of the federation over late release of federal allocations.

Banu who made the call in Ilorin while speaking to journalists said late release of federal allocation accruable to the state was causing delay in payment of workers.

The commissioner, who also called for pragmatic approach among the states of the federation on their Internally Generated Revenue (IGR) to bail themselves out and meet their financial obligations, added that recent crash in the price of oil in the world market, affected the delay in the transfer of federal allocation to the states of the federation.

He said: "Governor Abdulfatah Ahmad is very much concerned about welfare of Kwara workers. Workers' would be paid before the end of the month. What caused the delay in the delay in payment of workers' salary is the late transfer of allocation from the federation account.

"We usually hold FAAC meeting between 12 and 13 of every month, but we held this one between 18 and 19. We just received it today. We largely depend on what we get from federal allocation and we are even 33rd on the allocation ladder among other states of the federation. It is almost impossible to pay workers' salary without allocation."

Banu, who said the state could not continue to rely solely on allocation, added that Kwara state gets an average of N2.5 billion every month as its federal allocation, and spends about N2.2 billion on monthly workers' salary.

The commissioner, who said the present state government had improved its annual IGR base from N450 million to N750 million, added that the target of the government is to realise N1 billion every year to enable it meet all its financial obligations.

Source

 


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