EXCLUSIVE: How Deductions from Federal Allocation Affect Workers Salaries in Osun

By Olabode Abolaji

Despite different claims by the Osun State Government that it is not highly indebted as widely reported both in print, electronic or online media, recent figures have shown that monthly deductions from the Federal Account Allocation distribution for states in the Nigerian federation is the reason why it is unable to fulfill its fundamental obligations especially the payment of salaries.

From the figures released by the Federal Ministry of Finance for the Federal Account Allocation Committee (FAAC) allocation distribution to all the 36 States from January – March 2017, it shows that over 85% of the proper allocation in Osun goes to deductions from loans, bonds and other credit facilities obtained by the state.

Below is the Data

The List of States and Allocations from January to March 2017 (Deductions Inclusive)

To put the records straight, the figures obtained from @BudgITng with reference to how the FAAC decided at its meetings during the 1st quarter of 2017, Osun State got only #1.19 Billion from its expected #10 Billion, as about #7.22 Billion went to partly offset the huge debt burden of the state.

It states further here that what even comes to the state monthly is a figure less than #350 Million which cannot even cover the payment of salaries of political office holders talk less of covering those in the employ of the state government.

For all of these states with Osun Inclusive, the FAAC allocation stated here is only for states under the federation and not those of local governments.

This directly or indirectly means that monies for Local Government Areas come in without hindrance monthly.

As obtained from several credible platforms, the Local Government Allocation for states in some states double the normal allocation for some states which is paid directly into the state’s accounts and shared on the Directive of the Governor.

And with some several entitlements and bonuses from the Federal Government to Osun as an APC governed state monthly, the pertinent question on the lips of many of Osun Workers who spoke with this reporter is that Why have they been paid half salaries since July 2015 when the APC tookup governance at the centre?

Posers were also raised on the utilization of the 2015 Bailout and the first tranche of the Paris Club refund released on the order of President Muhammadu Buhari in November last year for the offset of salaries in states affected largely by the non-payment of salaries by state governments across the federation.

Also raised while speaking to this reporter is the issue of the local government allocation in Osun as to where and how these monies are spent when they come in monthly.