Kwara Allocation For February Drops By Over ₦1bn, LGs Need Extra ₦500m To Pay Salary


Allocation from the federation account to the Kwara State Government for February 2022 dropped by at least N1bn, compared to what was received for January 2022, according to official figures seen from the State Ministry of Finance at the weekend.

The figures are statutory allocation (SRA) of N1,461,502,690.52 (gross); deductions for loans N1,282,211,227.90; SRA N179,291,462.62 (net); VAT of N1,777,653,699.81; Ex. Gain Difference of N28,280,056.55; and Other non Mineral Revenue N610,326,854.94.


That put the total inflow to the state at N2,595,552,073.92. Compared to allocation for January, the figure is lower by N1,095,981,954.3. The drop is traced to NNPC’s non-remittance to FAAC for the month.

The low allocation also hit the local governments which got a total inflow of N2,363,963,799.91. That is N701,539,177.68 lower to the January allocation to the 16 local government areas of Kwara State.

The breakdowns of the LGA allocations are: SRA (Gross) N963,960,091.81; Deductions N28,076,507.53; SRA (Net) N935,883,584.28; VAT N1,007,819,369.28; Ex. Gain Diff.: N18,610,823.48; and Other Non-Mineral Revenue N401,650,022.87.

An official at the State Ministry of Finance said the drop in the allocation has left both the state and local government in a fix in meeting its monthly obligations, especially 100% salary payment following the implementation of the consequential adjustment of the minimum wage.

The official, who craved anonymity because he has no authority to speak to the media, said the state government has a deficit of N1,066,633,697.12 to meet its February salary and other monthly commitments such as allocations to MDAs and monthly subventions to some tertiary institutions in the state.

Quoting official figures, he put the state’s February salary obligation at no less than N3,155,047,328.20, allocations to the MDAs at N368,632,018.25, and subventions to tertiary institutions at N138,506,424.59.

“What this means is that, going by what we got from Abuja this month, the state needs at least N1,066,633,697.12 more to pay 100% salary and its other obligations. For local governments, they need roughly N500m more to pay salary 100% this month. Their savings can’t even meet the gap, especially with the new minimum wage,” he said.


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