Resolutions at the August edition of the Economy Review Committee meeting

August 30, 2021

This release is an update on the ongoing measures adopted to mitigate the impact of COVID-19 pandemic on the state’s finances, the shortfall in Federation Accounts Allocation Committee (FAAC) and internally-generated revenue (IGR), and to ensure that government meets its obligations.

The Government of Ekiti State wishes to inform the general public about some far-reaching decisions that were taken at the August edition of the Economic Review Committee meeting. Sequel to the agreement with the leadership of the Organised Labour in June 2021, an Economic Review Committee (ERC) was designed to meet monthly (five days after Federation Accounts Allocation Committee release) and keep Labour abreast of the financial position of the state and actions to be taken.

At the ERC meeting, the Honourable Commissioner for Finance and Economic Development, Mr. Akin Oyebode presented the detailed analysis of the FAAC received for the month of August 2021. The analysis showed that due to other obligations such as payment of Counterpart Fund for water projects, payment of outstanding judgement debts, and other urgent commitments of Government, which require over Four Hundred Million Naira (N400,000,000.00) only, the net received from FAAC could not accommodate the state’s proposed expenditure for the month of August 2021.

After exhaustive deliberations at the meeting, the state government reached the following resolutions:

Restoration of the Consequential Adjustment of the Minimum Wage for officers on grade levels 7 and 8 which was hitherto put on hold due to shortfall in revenue from FAAC occasioned by the COVID-19 pandemic to be implemented in August, while the arrears will be paid in September, 2021;

Restoration of Consequential Adjustment of the Minimum Wage of officers on Grade levels 9 to 12 which was hitherto put on hold due to shortfall in revenue from FAAC occasioned by the COVID-19 pandemic to be implemented in the month of September, 2021;

Payment of 100% Subvention to Ekiti State University Teaching Hospital has been restored;

Subvention to Ekiti State University, Ado-Ekiti (EKSU) and Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti (BOUESTI) has increased from 50% to 60% and will be reviewed upwards in the month of September 2021;

25% reduction in the salary of all political office holders, including Permanent Secretaries and Executive Secretaries is still in place.

The state government commends the labour leaders for their sacrifice and understanding, and the good people of Ekiti State for their cooperation with government to navigate through this period of financial challenges.

The welfare of workers in Ekiti state remains our priority, and the administration of Governor Kayode Fayemi has no plan to downsize the workforce or retrench any worker as a result of financial challenges facing the state.

Hon. Akin Omole

Honourable Commissioner

Ministry of Information and Values Orientation

Last modified: September 6, 2021

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