FCTA releases N1.6bn bailout to area councils

Federal Capital Territory Administration (FCTA) on Wednesday gave the mandate for the release of the sum of N1,679,825,308.1 bailout to the six Area Councils in the Federal Capital Territory for the payment of two months salaries owed their workers.

Breakdown of the bailout showed that the sum of N251,120,125.32 is for Kwali Area Council, N289,724,550 is for Bwari Area Council; N267,724,550 is for Abaji Area Council; N295,708,856.60 is for Kuje Area Council; N262,559,501.26 is for Gwagwalada Area Council while N312,987,740.12 is for Abuja Municipal Area Council (AMAC).

National Assembly had penultimate week approved the savings made from various sub-heads to enable the administration alleviate the sufferings of thousands of Area Councils’ workers.

Muhammad Bello, FCT minister who disclosed this at a press briefing, however explained that the money would be deducted from the 10% of the internally generated revenue (IGR) statutorily due to the Councils.

He also warned chairmen of the Area Councils to ensure that the bailout fund released to the Councils is used to off-set the two months salary arrears owed the Area Councils’ workers.

He also warned the Area Council chairmen not to use the funds for the forthcoming election, rather urged them to justify the confidence reposed in them by the electorates by paying the outstanding salaries.

The minister also emphasised the need for prudence utilisation of internally generated revenue from various Area Councils, statutory allocations from the federal allocations and 10% IGR from the FCT revenue, stressing that the available funds accrued to the Area Councils cannot meet their financial obligations considering the current socio-economic and financial crisis.

Also speaking at the occasion, the FCT Permanent Secretary, Babatope Ajakaiye noted that the FCT Administration has been able to give this bailout because of its strict fiscal management and therefore admonished the Area Councils to imbibe discipline in funds management.

Meanwhile, the leadership of National Union of Local Government Employees (NULGE) alleged that the industrial action, which commenced on 29th February 2916, was declared following the non-payment of salaries, misappropriation of pension and money accrued into the workers’ co-operative account.

Tanko Shamdazhi, NULGE chairman, FCT chapter, who applauded the gesture of the administration, however explained that the workers would not suspend the strike until money hits the accounts of all the workers.

In his remarks, Babatope Ajakaiye, FCT Permanent Secretary urged the Councils to cut down on their unnecessary expenditure; stressing that the era of frivolities are gone forever.

He warned that the bailout must be used strictly for the payment of staff salaries as stated in the agreement between the FCT administration and the Area Councils.

Ajakaiye further revealed that due process and necessary legal steps were followed in the approval and subsequent release of the bailout funds.

While applauding the intervention of the FCT administration, Micah Jiba, AMAC chairman, assured that the funds would be deployed judiciously.