Economic activities have again picked up in Ondo State following the emancipated payment of two months salaries by the state government.
The payment which has received commendation and cheers from workers and traders is helping workers to unwind from their heavy financial obligations.
Reports across the state showed that the economic in the state is gradually giving way to economic boom as workers spend freely but cautiously.
Workers interviewed said the gesture took them unaware as it came when they least expected and praised the governor for the goodwill shown to them.
The Hope learnt government might have released about N10 billion to offset the workers unpaid salaries, an act which has earned accolades from the state chairman of the Nigeria Labour Congress (NLC), Comrade Sunday Adeleye who described Akeredolu as a workers friendly governor.
Adeleye lauded Akeredolu for the 2022 promotion exercise with cash-backing for workers in the state, even as he thanked him for fulfilling his promises to the people.
“We received it with a very good feeling. One thing I have discovered about the present Governor and government of Ondo State is that when they promise to do something, you can be rest assured that they will do it.
“If you remember very well the first working day of 2022, when we had a prayer meeting with Mr Governor, he openly told us that if he is going to borrow money to defray all the outstanding salaries that he is going to do it. Though I believed him but some of us didn’t believe him. I believe in him because when he came on board he met seven months of unpaid salaries and he cleared six out if it.
“Having paid two months salaries now, the implication again is that there are plans on ground which I’m very much aware of, to raise money and pay all our outstanding salaries of workers in Ondo state.
“Don’t forget too that we have gotten the 2022 promotion. I have gotten mine, and our promotion is cash-backed. Look at other states, for example our neighbouring state here, I’m very sorry to say, (name with held) did three promotions may be till 2020, and the promotions are not cash-backed. This simply means you will get your promotion letter and still remain where you are. What manner of promotion is that
“So, I want to thank the Governor of Ondo State for giving priority to the welfare of workers. The salaries came when we were not expecting it even though it is our right. I’m sure more are still coming in the few weeks This will further boost the economy of the state.
“In the last two weeks, government has injected over N10 billion salaries into the system and this will greatly improve the economy of the state. I believe out of the N10 billion, N8 billion will be spent within the economy of the state. People will go to markets to buy different things, and all that. You can imagine the multiplier effects of the salary payment and we appreciate Mr Governor for this”, the labour leader explained.
An Elder statesman and former Commissioner for Education in Ondo State, Chief Femi Aluko described the Ondo State government’s payment of state workers’ salary arrears as an improvement on what was obtainable in the past.
Similarly, Dr Edamisan Ikuemonisan from the Department of Agricultural Economics, Adekunle Ajasin University, Akungba-Akoko, said that the move by the State government would have some positive impacts on the economy.
He said: “If we are to estimate the transaction deficits plus the current debts of civil servants to traders of consumer goods alone, not to talk about other debt portfolios, you will realise the debt sum will be far more than N10 billion.”
Ikuemonisan noted that this payment of workers’ salary arrears would allow the civil servants to redeem their battered image as serial debtors by having enough cash to pay up their debts, which would in turn enable traders return to the market to re-stock and make more sales.
He also pointed out that those who previously could not buy their drugs, as and when due, would now be able to visit their pharmacists, and get their drugs, since health is wealth.
An associate Professor of Political science, Adekunle Ajasin University Akungba Akoko, Dr. Bayo Fasuwon in his opinion opined that the massive release of these funds is a good one for the economy as he stressed that it will help in boasting state’s investment.
The move of the state government in paying the outstanding salary areas of workers in the state is commendable as it will doubtlessly help in boosting investment.
“In addition, the release of funds in a State also allows for interstate economic relations, which is good for development, I am very sure that businesses in the state will thrive now and both workers and traders will be happy.”
A financial expert, Kareem Aminullah, in a chat with The Hope on Tuesday said the payment of the workers salary means the money will be injected into the state’s economy indirectly.
Aminullah posited, such monies will create a multiplier effect in the economic life of the state and the people.
According to him, when the workers get their salaries, they will be able to meet their basic and daily needs and by doing so, they will be injecting the money into the state’s economy.
Speaking in the same vein, a market woman, Mrs Monirat Ahmed, who expressed delight at the news of the payment of two months salaries to workers in the state, said it means traders will make more sales.
Monirat said all this while, traders have been experiencing a lull in their sales because of non payment of workers salary since they enjoy much patronage from workers.
A secondary school teacher, Mr. Babatunde Oyelowo described the payment of the two months salary within two weeks as a timely intervention which will help so many state workers settle outstanding bills, cater for their welfare and pump more money into circulation within the state, which will aid the overall development of the state.
Her words “to receive two months salaries during this period of inflation is very good and helpful. Workers will at least have something to take care of their most pressing problems. Traders who are struggling will sell more right now because there will be more money in circulation. Even schools will get more money now because parents will be able to pay their children’s outstanding tuition fees. Even though the two months salaries cannot solve our problems completely, they will at least help reduce our suffering and indebtedness. We are hopeful that another one will be paid soon to make things better.”
A trader, Mrs. Aina Oluwatosin described the payment of the two months salaries by the state government as bringing relief to traders like her who have been battling with slump in sales and inability to get money from debtors for sometime now due to the economic situation of the country and shortfall in workers’salaries.
A civil Servant, Mrs. Tope Aisida said civil servants were happy and elated as the salary came at a right time which serves as a big relief from their huge debts.
She said most civil servant have been looking forward to it, therefore appreciating the government for putting smiles on the faces of workers in the state.
Credit: The Hope Newspaper