The Rivers State House of Assembly has given the state Governor, Nyesom Wike, the approval to take a N10bn bailout from the Federal Government.
Members of the House on Thursday agreed to the request of the governor to apply for bailout from the government at the centre.
The state government had refused to take bailout in the past, preferring to manage the funds at its disposal.
But Wike was said to have stated in his request to the House of Assembly that the bailout would be used to pay workers’ salaries and pensions.
The governor indicated that the N3.5bn the state was receiving as monthly federal allocation was not enough to address its monthly financial needs such as workers’ salaries and pensions.
The N10bn bailout, according to Wike, would be received from the Central Bank of Nigeria if approved.
“The purpose of this letter is to formally notify the state House of Assembly of our intention to apply for bailout from the Federal Government to meet our salaries and pensions obligations.
“Recall that last year, the President of the Federal Republic of Nigeria, His Excellency, Muhammadu Buhari, on the initiative of the National Economic Council, approved bailout to enable states to defray backlog of salaries to civil servants and pensioners.
“Although most of the states immediately applied and got the funds, Rivers State tried to go without recourse to this facility. However, with the continuous decline in allocation to the state from the Federation Account, fixed at N3.5bn only, it is now getting increasingly difficult for us to meet our salaries obligation to civil servants and pensioners.
“It has therefore become necessary and urgent for the Rivers State Government to also take advantage of the Federal Government bailout funds to enable us to meet our salaries obligations to civil servants and pensioners.
“Consequently, it is our intention to apply to the Central Bank of Nigeria for the sum of N10bn only from the Federal Government bailout funds on the same terms and conditions that were accorded to other states,” part of the governor’s letter read.
However, the Speaker of the House, Mr. Adams Dabotorudima, had earlier urged the lawmakers during the sitting that they should approve the governor’s request in order to encourage him (Wike) to achieve his goals.
The Speaker recalled that the state government never applied for or collected any bailout fund in the past, maintaining that the reduction in the monthly federal allocation accruing to the state made it inevitable.
The Leader of the House, Mr. Martin Amaewhule, the Whip, Mr. Evans Bipi, and others lawmakers endorsed the request after speaking in favour of the governor’s reasons for his application.
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