The Oyo State Governor, Abiola Ajimobi, has blamed the Federal Government for the financial crisis facing most state governments in the country. He said the Federal Government’s decision to stop financial institutions from granting credit facilities to the state governments in spite of dwindling allocation to state governments had been hindering them from meeting their financial obligations to workers and contractors. The governor said this during the inauguration of the state Chief Judge, Justice Oladipo Abimbola, at the Executive Council Chambers of the Governor’s Office, in Ibadan on Monday.
For instance, he said allocations to the state from the Federation Account had been reduced by more than 40 per cent in the last seven months, thereby forcing the state to device ingenious ways of meeting its financial obligations.
“This is indeed a hard time for all of us in this country. Like other states, allocation to this state has been reduced by more than 40 per cent in the last seven months. In spite of this, the Federal Government directed financial institutions not to grant credit facilities to the states.
“This has painfully led to our inability to meet our obligations to contractors and workers. We have a monthly wage bill of about N5bn and we are receiving an average of N2.9bn monthly from the Federation Account, thus leaving a shortfall of N2.1bn.
“But, we have to look inwards by devising ingenious ways to ensure that workers do not suffer untoward hardship because of this. We have been striving to pay workers’ salaries as at when due in spite of the dwindling revenue,” he said.
The governor commended the judiciary for its exemplary conduct and understanding in the face of dwindling revenue allocations to the state.