How States Spent Their Bailout Funds… 16 states Yet To Disburse N57.6bn
The Independent Corrupt Practices and Other Related Offences Commission (ICPC), working in concert with the Nigeria Labour Congress, made good its resolve to monitor the bailout funds for the offset of salary arrears loaned to twenty seven states of the Federal Republic as approved by President Muhammadu Buhari
Following the conclusion of the monitoring exercise, the commission hereby wishes to issue, for public notice, the report of the exercise. The commission also will not hesitate to provide updates to this report where applicable.
It is important to note that the monitoring exercise report and probable updates are being released to the public by ICPC to foster understanding between workers and the state governments by providing a transparent process that eliminates information gaps that often lead to rumour-mongering. The Commission is convinced that this will promote a healthy atmosphere for interaction between the parties on the matter.
As part of the Federal Government’s effort to end the lingering crisis of unpaid worker’s salaries in most states of the federation, President Muhammadu Buhari approved a comprehensive relief package designed to salvage the situation through the Central Bank of (CBN)’s Special Intervention Fund which offered states soft loans solely for the purpose of paying the backlog of salaries.
Whereas the Central Bank of Nigeria (CBN) is yet to officially confirm this to the Commission, the twenty-seven benefiting states from the open sources are Abia, Adamawa, Bauchi, Bayelsa, Benue, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Katsina, Kogi, Kwara, Nasarawa, Niger, Ogun, Osun, Oyo, Plateau, Sokoto and Zamfara states.
Following strident allegations of diversion of these bailout funds and to avoid industrial unrest, ICPC, in collaboration with the Nigerian Labour Congress (NLC), decided to monitor the disbursement of the bailout funds in the 27 benefiting states. However; relying on available resources, we could only cover twenty-three states as follows:
Adamawa: Total debt value accrued from staff salaries and emoluments was N9,578,360,000.00. The state received N9,578,360,000.00 as bailout fund and disbursed N2,378,360,000.00 with a balance of N7,200,000.00. The reason for the slow process of off-setting the debt was not provided at the time of this report. However, the state claimed not to owe outstanding salaries as at September 2015.
Bauchi: Total debt value accruing from staff salaries and emoluments was N14,820,775,109.50. The state received N8,609,100,000.00 as bailout fund and disbursed N8,414, 088,383. 26 with a balance of N195,011,616.74. The state claimed not to owe salaries as at September 2015.
Benue: Total debt accruing from staff salaries and emoluments amounted to N12,503, 439,787.48 The state received N12,503,439,787.48 as bailout fund and disbursed N10,852,536,702.96 with a balance of N1,650,903,084.52 Analysis of the documents submitted revealed a double payment of N37,760,000.00 in favour of the office of the Deputy Governor. This double payment is presently being investigated.
Cross River State is yet to submit her actual debt profile. The state received N7,856,400,000.00 as bailout fund and disbursed N3,140,883,,040.77 with a balance of N4,715,516,959.23 However the state claimed not to have outstanding salaries to workers as at 19/11/2015.
Ekiti State’s total debt accrued from staff salaries and emolument of N3,000,266,146.64 The state received N9,604,340,000.00 as bailout fund and disbursed N9,213,816,252.55 with a balance of N390,613,747.56. The state owed one month salary as at 28th October, 2015.
Katsina State: Total debt value accrued from staff salaries and emoluments of N11,086,630,000.00 The state received N11,086,620,000.00 as bailout fund and disbursed N2,512,214,530.71 with a balance of N8,574,415,469.29. The state claimed to have cleared all outstanding salaries as at 18th February 2016.
Gombe State has a total value accrued from salaries and staff emolument of N9,222,432,872.67. A total sum of N11,000,000,000.00 was granted to the state as bailout and it disbursed N6,321,684,423.67 with a balance of N4,678,315,576.33. The state claimed it did not owe salaries as at September 2015.
Kogi State claimed no to have received bailout funds approved for the state by the Federal Government as at 8th August 2015.
Nasarawa State received N8,317,167,368.87 in two tranches of N3,956,047,519.60 and N4,361,119,848.27 as bailout fund and disbursed N3,956,047,519.60 with a balance of N4,361,119,848.27. The state claimed not to have paid local government workers’ salaries due to an on-going verification exercise.
Niger State received N4,396,810,000.00 as bailout fund and the entire amount was claimed to have been expended in offsetting salary debts.
Ondo State’s total debt value accrued from staff salaries and emoluments and was put at N23,151,324,517.39. The state received N9,443,053,226.92 as bailout fund and disbursed N7,905,484,176.60 with a balance of N1537,575,050.32. The state owes one month salary and several months arrears of gratuity (and) pension as at 30th September 2015.
Osun State received N34,988,990,000.00 bailout fund N18,677,244,582.20 was disbursed leaving a balance of N16,311,765,418 billion as at November 2015 the Commission is verifying allegation that osun state public servants have only been paid salaries up to July 2015.–
Ogun State received N180,916,208,664.86 as bailout fund. The state claimed to have expended the entire sum of salary arrears and did not owe worker as at 9th October, 2015.
Plateau State’s total debt value accrued from staff salaries and emoluments of N5,090,251,996,39. The state received N5,357,570,000.00 as bailout fund and disbursed N5,330,589,061.15 with a balance of N26,980,938.85. The state owes two months salaries as at 30th September, 2015.
Sokoto State’s total debt value accrued from staff salaries and emolument including pension, severance and gratuity of N3,488,11.165.77. The state was granted N10,093,370,000.00 as bailout fund and was yet to disburse as at the 19thOctober, 2015.
Kwara State received the sum of N4,320,950,000.00 as bailout fund and disbursed N4,291,087,985.08 for staff salaries and emoluments with a balance of N29,862,014.92 The state claimed to have cleared all outstanding salaries as at 20th October 2015.
Bayelsa State applied for the sum of N1,285,000,000.00 and had concluded disbursement formalities. But the central bank of Nigeria was yet to release the said fund to the state as at 18th December 2015.
Imo State applied for and received bailout funds of N26,806,430,000.00 from the Central Bank of Nigeria, which was domiciled in two commercial banks, namely Fidelity and Zenith Bank. In the course of analysis, it was discovered that some transfers were made into certain Imo State Government accounts, which are not related to salaries and emoluments as follows:
i N2 billion into a Government House account
ii N2 billion into an Imo State project account
iii N2 billion transferred to a micro finance bank
iv A management fee of N21,017,810.00 was paid into an unspecified account.
Zamfara State requested for the sum of N32,512,495,183.27 bailout funds and received the sum of N10,020,052,964.51 After careful analysis of the document provided and interaction with the Nigerian labour leaders in Zamfara State by ICPC staff, it was revealed that the state was not owing civil servants and pensioners any arrears as at the time the Federal Government released the bailout funds.
The state government, in order to utilise the funds, made overture to the Zamfara State House of Assembly requesting to the funds to settle some liabilities amounting to N10,020, 751,072.98 as follows:
*Outstanding payment to 14 LGS of the state: N4,262,560,629.85
* Outstanding payment of fertilizer for 2014 farming season N3,056,300,000.00
* Outstanding certificate for construction of Bungudu Nahuche Kyabarawa Road 22.6km N265,256,342.76
* Outstanding certificate of Hostel Block at Abdu Gusau Polytechnic, T/Mafara N55,000,000.00
* Payment of outstanding cost of vehicle supplied to state N19,430,000.00
* Outstanding certificate of construction work at K/Namoda Juma’at Mosque N20,479,109.39
* Outstanding certificate of Contraction work at Emir’s Palace Gusau: N6,020,000.00
* Share of 14 local government coucil’s bailout N2,035,705,000.00.
The Zamfara State House of Assembly passed a resolution for the utilization of the funds on the above items, which was communicated in the Secretary to the State Government vide letter ZMHA/LEG/089/V.1/13 dated 31st August 2015.
Enugu State has a total debt value accruing from salaries and emolument of N13,764,622,725.38 and N23,279,099,157.58 as domestic debt. The State was granted N10,174,238,681.49 as bailout fund as at 16th November 2015. Analysis of the documents submitted revealed that the state disbursed N5,967,238,681.19 from the bailout fund to settle domestic debts and claimed that funds for the payments of state salaries and emoluments was not yet assessed.
Oyo State’s total debt value accruing from staff salaries and emoluments is N26,606,944,831.03. The state was granted N26,606,944,831.03 as bailout fund and disbursed N25,495,295,292,422.63 with a balance of N1,111,652,408.40. The state owes four-month salaries as at 7th April, 2016.
Delta State has a total debt value accruing from staff salaries and emoluments of N36,417,217,601.53 The state was granted N10,936,799,299.36 as bailout fund and disbursed N8,129,888,279.86 with a balance of N2,806,911,019.50. However, the state claimed not to owe salaries as at 24th November 2015.
Kebbi State’s total debt value accruing from staff salaries and emoluments is N8,778,594,714.78. The state received N7,080,000,000.00 as bailout fund and disbursed N2,617,152,577.20 with a balance of N4,463,975,420.27. The state claimed to have cleared all outstanding arrears on salaries as at September 2015.
The report indicates findings at the dates indicated above for each state. Subsequent changes may have taken place thereafter, which the various states and Nigerian Labour Congress are at liberty to bring to our notice for verification and further comments as the need arises.
This report is published to assist all parties eliminate unsubstantiated allegations and promote peaceful negotiations and understanding in the management of government processes.
This report comes under ICPC prevention mandate and states are welcomes to use this initiative.
ICPC Hqtrs, Abuja