Paris Club refund: State uses fund to settle salary overdraft

Simon-Lalong1

The Plateau State government has imposed a curfew in three troubled Local government Areas (LGAs) of the state., Plateau State Governor

Simon Lalong, Plateau State Governor

The Plateau Government said on Thursday it used the N5.6 billion received as the second tranche of the Paris Club refund, to defray bank overdrafts it took to clear workers salaries.

Mrs Tamwakat Weli, the Commissioner of Finance, while briefing newsmen in Jos, said that 60.06 per cent of the sum, totalling N3.39 billion, was for the state government, while 39.94 per cent, totalling N2.25 billion went to the 17 Local Governments.

The commissioner recalled that the state government, in December 2016, borrowed N3.4 billion which it added to the first tranche of the Paris Club refund, to offset the workers’ salaries.

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“Since then, the government has relied on bank overdraft to pay workers and pensioners.

“The monthly wage bill is N2.25 billion; allocations from the federal purse and internally generated revenue cannot cover this,

“But, the government is mindful of its obligation to its workers and pensioners and is left with no option than to rely on bank overdraft to ensure that no one is owed,” she said.

The commissioner urged the people of Plateau to support government’s efforts by paying their taxes to boost Internally Generated Revenue.

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