Subsidy: Zulum gives NLC N2bn for workers’ loan, raises gratuity

INDEPENDENT

Governor Babagana Umara Zulum, in a bid to cushion the effects of fuel subsi­dy removal, on Tuesday pre­sented a cheque of N2 billion to the Nigerian Labour Con­gress, NLC, in Borno State for disbursement of interest-free loans to eligible workers with repayment period of 24 months.

The presentation took place after a meeting between the Governor and officials of the NLC led by the labour’s chairman in Borno State, Comrade Yusuf Inuwa.

The meeting took place at the council chambers of the Government House in Maidu­guri. Zulum asked the NLC to complete talks with the state’s ministry of finance to determine the category of workers to be entitled to the loans as well the loan recovery through monthly deductions of not more than one third of salaries.

The Governor also an­nounced a 100% increase in monthly releases for payment of gratuities’ backlog. The payment was increased from N100 million monthly which equals N1.2 billion annually to N200 million monthly which will amount to N2.4 billion.

The gratuities are lump sums paid to workers who retired from service, even as they become entitled to monthly pensions.

For many years, retired workers in Borno State are owed gratuities for which Governor Zulum has released about N20 billion to drastical­ly reduce the backlog even though more workers retire every year, making more of them owed gratuities.

Although many are 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 a monthly pension while they wait for gratuities which takes longer waiting time.

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