The sixteen local government councils in Kwara State require N2.1billion monthly to meet their salary and pension obligations.
This is according to a document obtained by journalists from the State Joint Accounts Allocation Committee (JAAC).
The details emerged amidst expectations and agitations from certain quarters that the state government should bailout the councils due to a sustained drop in their allocation.
The documents revealed that Kwara local governments’ allocations have dropped from an average N2.7b monthly to N1.6b in May, leading to a N1.1b shortfall, despite receiving 10% of state tax revenue.
Meanwhile, the state government has maintained consistently that it is also faced with paucity of fund due to drop in federal allocation from N3.4b on average to N2.4b in May. This led to a N300m shortfall in the N2.7b that is required to pay salaries and pensions at state level.
Officials maintain that the state government usually augments the shortfall with internally generated revenues, which should ordinarily go towards funding infrastructure and other people-oriented projects.
The latest revelations indicated that only the federal government has the capacity to bailout the councils through a bailout, taking over the funding of basic education directly or increasing allocation to the LGs through a constitutional amendment.