The Adamawa State Government has secured the sum of 9.5 billion naira bailout loan for the payment of all outstanding salary liabilities, pension, leave transport grant and other claims for the year 2013, 2014 and 2015 for State, Local Governments, the Judiciary and House of Assembly.
Speaking to journalists at a press conference in Yola, the State Commissioner of Finance, Mamood Sali Yanusa said that the bailout fund was obtained from the Central Bank of Nigeria.
Before, the coming of the Mohammed Umar Jibrillaa-led administration on May 29, 2015, the issue of workers’ accumulated unpaid emoluments and allowances was a major challenge for the state government.
Arrears of gratuity amounting to over 9 billion naira for the state civil servants and 5.5 billion naira for Local Government workers were outstanding.
With the securing of 9 billion naira, Governor Mohammed Umaru Jibrilla directed the payment of all the outstanding salaries and allowances.
The instability of government where the state had three different administrations within a year and the problem of insurgency that engulfed the north east sub region affected the state and took its toll on its finances thereby leaving the State treasury almost empty.
This, according to the state government, has not been an easy ride.
The financial situation in Adamawa State replicates in most states of the Federation. This prompted President Muhammadu Buhari to conceive the bailout scheme to help states pay outstanding workers’ salaries and allowances.
The bailout offered by the federal government through the Central Bank are loans to be repaid within a tenor of 20 years at 9% interest per annum.
Governor Jibrilla, who was also at the press briefing was accompanied by his Deputy Governor, Martins Babale, the Secretary to the State Government, the Head of Service and some members of the state executive council.