Paris Club Loans Refund: Osun To Spend N5.1bn To Pay Arrears Of Salaries, Pensions

The Governor of Osun, Ogbeni Rauf Aregbesola, has directed that a total of N5,131,680,567.59 be spent to offset arrears of salaries, pensions and leave allowances for workers in the state and local government.

Specifically, the payments are to offset the balances of payments of workers on Grade Levels 8-10 and Grade Levels 12 -17 who were being paid modulated salaries owing to the agreement reached between the Labour and government in 2015.
It would be recalled that workers on Grade Levels 1-7 had been on their full salaries since the commencement of the agreement on salary and pension formula.
The decision came on the heels of the receipt of a N6.3bn loans refunds from the Paris Club which the state got last week.

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A statement from the government signed by the Commissioner for Information Adelani Baderinwa explained that the decision was reached after meetings and consultations between representatives of government and labor.

“The Governor has approved a total sum of N5,131,680,567.49 for payment of arrears of salaries and pensions for both state and local government workers.
“The Government of Osun, as earlier announced, had received a sum of N6.3bn as the second tranche of the Paris Club loans refunds. On Wednesday, July 26, 2017, after a meeting of representatives of the Labour and Government at the Revenue Allocation Committee chaired by Labour veteran, Comrade Hassan Sunmonu, it was resolved that the amount be spent on payment of outstanding salaries and pensions arrears to workers and pensioners both at the state and local government levels who were affected by the modulated salary payment formula.

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“This decision is in tandem with our resolve to utilize every resource available to cushion the effects of the special period our country is in and as well ensure effective running of government,” the statement noted.

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