Federal Capital Territory Administration (FCTA) on Wednesday gave the mandate for the release of the sum of N1,679,825,308.1 bailout to the six Area Councils in the Federal Capital Territory for the payment of two months salaries owed their workers.
Breakdown of the bailout showed that the sum of N251,120,125.32 is for Kwali Area Council, N289,724,550 is for Bwari Area Council; N267,724,550 is for Abaji Area Council; N295,708,856.60 is for Kuje Area Council; N262,559,501.26 is for Gwagwalada Area Council while N312,987,740.12 is for Abuja Municipal Area Council (AMAC).
National Assembly had penultimate week approved the savings made from various sub-heads to enable the administration alleviate the sufferings of thousands of Area Councils’ workers.
Muhammad Bello, FCT minister who disclosed this at a press briefing, however explained that the money would be deducted from the 10% of the internally generated revenue (IGR) statutorily due to the Councils.
He adviced chairmen of the Area Councils to ensure that the bailout fund released to the Councils is used to off-set the two months salary arrears owed the Area Councils’ workers.
The minister also emphasised the need for prudence utilisation of internally generated revenue from various Area Councils, statutory allocations from the federal allocations and 10% IGR from the FCT revenue, stressing that the available funds accrued to the Area Councils cannot meet their financial obligations considering the current socio-economic and financial crisis.
Also speaking at the occasion, the FCT Permanent Secretary, Babatope Ajakaiye noted that the FCT Administration has been able to give this bailout because of its strict fiscal management and therefore admonished the Area Councils to imbibe discipline in funds management.
