The Rivers State Governor, Mr. Rotimi Amaechi, said on Thursday that the monthly federal allocation to the state had been cut by over 50 per cent following the dwindling oil prices.
Amaechi, revealed this during his New Year message broadcast.
He explained that his administration would continue to review its finances in order to cushion the negative impact the reduction had on the people.
Amaechi said, “We inherited a wage bill of about N2.5bn but we now pay almost N9.2bn every month. We do not regret the injection of needed manpower into the system especially in the health and education sectors for the sake of the future of this state, but our monthly allocation has dropped by over 50 per cent.
“Our administration has been faced with the battle of confronting the injustices that have been visited on our people. Besides the denial of economic opportunities, we have lost many of our assets. Our oil wells in Soku and Etche have been ceded to neighbouring states by the National Boundary Commission, with no plan to return them despite numerous evidences in our favour.
“We will continue to demand for our rights as a people because that is a debt that we owe you. With oil prices crashing below budgeted levels, the pressure on our finances is very high.
“Despite these, Rivers State is one of the few states in Nigeria that have paid salaries up to December 2014. We will continue to review our finances and the options before us so as to reduce the impact of these natural and man-made pains inflicted on our people,” Amaechi said.