Halved FG Allocation: How has Oyo State fared? | NUGGETS

* As part of measures deployed by the FG to pull through effects of the recession in 2016, allocations to the states were slashed into half.
* As a result, Oyo state received 2.3 billion Naira instead of the normal 5.6 billion Naira.
So, how has Oyo state fared so far till date?

1. WORKERS’ SALARIES
* Before the slash, the monthly wage bill asides monies for pensioners and political appointees hovered around 5 billion Naira.
* With a 2.3 billion deficit in FAAC, the Oyo state have so far done the following to mitigate the effects of the slash and still pay salaries:
a. Boost IGR
b. Commit 100% of Federal Allocation to payment of salaries.
c. Deployed 72% of Paris Refund to augment workers’ salary payment.
d. Diversify economy.
e. Engage in Public-Private-Partnerships to shed burden of governance and development on government purse.
* Thus, so far, these moves have ensured that only 2 months of workers’ salaries are owed.
* This is somewhat commendable when compared to the number of months owed workers in some other states.
* And thankfully, a rise in last month’s allocation from the FG in the region of 4.9 billion naira, gives an assurance that all outstanding wages will be cleared soonest.

2. PROJECTS
* The Oyo State government has engaged in strong and multiple Public Private Partnerships to sustain the developmental projects across the state.
* These developmental projects cut across:
a. Education - e.g, Technical University
b. Infrastructure - e.g, Ibadan Circular road, expansion and reconstruction ongoing across the state.
c. Agriculture - Milk Collection Centre in Saki
d. Health - 50 Billion Naira Endowment Fund

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