TheCable

Most commercial banks operating in Ekiti have placed embargo on further granting of loans against salaries of workers in the state.

Quoting sources, NAN said granting of loans to workers was stopped more than two months ago.

The banks reportedly took the decision when it became apparent that those with old loans could no longer fulfill their monthly repayment obligations to their banks.

Some of the affected civil servants, who did not want to be named, said their applications to banks for top-up loan were declined while fresh applications were left unattended to.

A staff of one of the first generation banks told NAN that the embargo was from their corporate headquarters, adding that it did not target Ekiti alone but affected other states with record of backlog of unpaid salaries.

According to the bank source, those categorised as financially credible to obtain loan for now are federal workers, private individuals, traders, businessmen, contractors as well as artisans with records of fidelity.

Meanwhile, Ayodele Fayose, governor of the state, has appealed to members of the All Nigeria Confederation of Principals of Secondary Schools (ANCOPSS) in Ekiti to call off their two-week old strike.

Fayose, represented by his deputy, Olusola Kolapo, made the appeal at the 10th congress meeting of the organisation in Ado-Ekiti.

He charged the principals to show understanding in the face of present economic depression that have critically affected about 29 states of the federation.

He explained that the present economic challenges could not support the payment of three months’ salary being demanded by the workers.