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Subsidy: Zulum Approves N2bn Loan To Borno Workers

Allocates 30 buses to ease workers' transportation  | Directs payment of promotional benefits

by Francis Okoye
2 years ago
in News
Zulum
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To cushion the effects of fuel subsidy removal, Governor Babagana Umara Zulum, on Tuesday, presented a cheque of N2bn to the Nigerian Labour Congress (NLC) in Borno State for disbursement of interest-free loans to eligible workers with repayment period of 24 months.

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The presentation took place after a meeting between the governor and officials of the NLC led by its chairman in the State, Comrade Yusuf Inuwa.

The meeting took place at the council chambers of the Government House in Maiduguri, the state capital.

Zulum asked the NLC to finalise talks with state’s Ministry of Finance to determine category of workers to be entitled to the loans as well as the loan recovery modalities through monthly deductions of not more than one-third of salaries.

The governor also announced 100% increase in monthly releases for the payment of backlog of gratuities.

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The payment was increased from N100million monthly, which equals N1.2billion annually to N200 million monthly, which will now amount to N2.4billion.

The gratuities were lumped sums paid to workers who retire from public service, even as they become entitled to monthly pensions.

For many years, retired workers in Borno State were owed gratuities for which Governor Zulum has released about N20billion to drastically reduce the backlog even though more workers retire every year, making more of them to be owed gratuities.

Although many were owed gratuities, Governor Zulum has since introduced a policy of automatic migration of retired workers from salaries to pensions. Before the policy, it took retired workers months to complete documentation before getting monthly pension while they wait for gratuities, which takes longer waiting time.

Also, as part of the outcome of his meeting with the NLC, Governor Zulum on Tuesday in Maiduguri announced the allocation of 30 buses to be dedicated to conveying workers in the metropolis at subsidized fares.

The buses are to be managed by the Borno Express Transport Corporation but to be deployed at pick-up points along major routes to move workers to the Musa Usman State Secretariat in the morning and return them by evening from the secretariat to where they were picked up in the morning.

Still as part of the outcome of his meeting with the organised labour, Governor Zulum has directed the state’s Ministry of Finance to clear backlogs of promotional benefits owed workers whose names were omitted during earlier payments.

The workers were those still being owed 2016, 2017 and 2018 promotional benefits after their names were omitted during payments approved by Governor Zulum in 2019.

Zulum directed that workers owed 2019 and 2020 promotional benefits should all be paid while those owed from 2021 to date were to be paid based on the outcome of a recent promotional examination which they participated in.

Before Governor Zulum’s pronouncemente, chairman of the NLC in the State, Comrade Yusuf Inuwa, had tabled some demands, most of which the governor approved.

The NLC chairman said the NLC demanded loans for workers who may want to practise agricultural and other businesses or acquire some assets.

He also said the NLC demanded allocation of buses and clearing of promotional benefits.

Inuwa also said the organised labour demanded increase in the monthly allocation for payment of pensions.

The NLC chairman later thanked Governor Zulum for meeting most of their demands, hoping that the labour will continue to engage the government for more demands to be addressed for the welfare of workers at the state and local government levels.


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