Over 32 States May Find It Difficult To Pay Salary After COVID-19

A governance and coverage knowledgeable, Dr. Tunji Ogunyemi, has mentioned about 32 states might discover it tough to pay salaries in post-Covid-19 period.

He mentioned that there was a risk of an extra downward evaluate of the already reviewed Federal Government’s funds, going by current happenings globally.

 

The financial historian-cum-lawyer, and who can also be the performing head, Department of History, Faculty of Arts, Obafemi Awolowo University (OAU), Ile-Ife, urged the Osun State Government to satisfy Labour leaders to revisit the Comrade Hassan Sunmonu-led committee’s template, saying the state could be negatively impacted by the worldwide financial downturn occasioned by Covid-19.

Ogunyemi, who spoke on a well-liked radio programme:  ‘Frank Talk’, in Osogbo, mentioned: “The Federal Government can intentionally create cash by printing more cash that is probably not backed by productiveness, to pay its employees.

“But no state can try this. Already, states are slicing their budgets considerably due to the drop within the federal allocation. What they are going to be sharing in June is half of what they shared in January. Only about 4 states can handle to outlive marginally.

“The alternative the civil servants have now could be that no state can say go house, I’m not paying. But states can determine to pay slashed salaries as a result of one can’t applicable and reprobate on the identical time. So, the state can solely pay from what it has. If it has nothing, what’s going to it pay?

“We are in dire straits. Some states comparable to Kaduna, Delta, Plateau, Taraba, Gombe, amongst others are slashing salaries.

“Although it’s slightly very tough to advise beleaguered Governor Oyetola as a result of I do know there can be plenty of calculations in his head now, to which there are few solutions, the recommendation should be primarily based on the muse of the challenges Osun is dealing with.

“Osun pays three quarters of its earnings into recurrent, salaries, wages and overheads, together with liabilities owed the pensioners. Osun additionally has a background of owing a major debt each domestically and externally going in direction of the realm of N200billion.

“From that background, coupled with 30 native governments with large civil servants, one would slightly advise Comrade Sunmonu, chairman of the Committee of Government and Labour, to share some views with the governor by calling on the civil servants to know the reality concerning the monetary standing of the state.

“Politicking ought to finish right here. Some professionals will be referred to as to that sort of assembly, particularly consultants in public finance and banking to let the reality be informed on the standing of Osun.

“When an earnings is way, far much less to expenditure, and there’s no additional capability to generate extra, it implies that the state should start to cut back wasteful expenditure.

“So, authorities should pursue the concept of land expenses, lower down if not droop capital expenditure to pave the way in which for the upkeep of minimal providers of presidency.

“Also, for the state to remain afloat, individuals should put together for the influence. They should assist authorities and present patriotism in view of the socio-economic actuality.

“Reality is staring us within the face and for the clouds to clear; it would take 5 years or extra.”

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