HomeNEWSAbuja dashes hope of workers, can’t pay some MDAs 40% salary increase

Abuja dashes hope of workers, can’t pay some MDAs 40% salary increase

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Abuja dashes hope of workers while Tinubu eyes yacht to enjoy himself

By Jeph Ajobaju, Chief Copy Editor

Bola Tinubu has voted N5 billion in the supplementary budget to buy a Presidential Yacht to enjoy himself but word is out his promise of additional payment of  N35,000 to all federal workers for six months is hot air.

Much of the fund for the budget will be borrowed and Abuja simply does not have enough cash to pay all employees of ministries, departments, and agencies (MDAs) as planned when the President removed fuel subsidy on May 29.

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Tinubu on October 2 signed a memorandum of understanding (MoU) with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) that the government to pay N35,000 to each federal worker besides 40 per cent special salary increase to mitigate the effects of subsidy removal.

The government has reportedly paid some “treasury-funded staff” but others in most MDAs that collect allocations from the Consolidated Revenue Fund (CRF) are not likely to be paid because Nigeria is living on borrowed money.

The lack of cash to back up the promise has been communicated to government agencies and are told to source for funds and pay their workers, rather than expect funding from the Federation Account.

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Some MDAs asked to use IGR to pay workers

The National Incomes and Wages Commission (NIWC) wrote to the Chief of Staff to the President, Secretary to the Government of the Federation, Ministers and Heads of MDAs listing the category of workers to be paid and those to fend for themselves.

In the memo dated 19 October 12023 – referenced SWC.04/T/33 – the NIWC asked all MDAs on consolidated revenue not to expect government allocation to pay the salary award to their workers, per reporting by Vanguard.

Although most of them are not revenue generators, NIWC Chairman and Chief Executive Officer Ekpo Nta told them in the memo to use their “internally-generated revenue to pay their workers or rely on statutory allocation to pay same.”

“I refer to the Memorandum of Understanding reached between the government of Nigeria and the Nigeria Labour Congress, NLC, and the Trade Union Congress of Nigeria, TUC, on Monday, October 2, 2023, as a result arising from withdrawal of subsidy on the price of premium motor spirit and hereby convey the approval of the President and Commander Armed Forces of the Federal Republic of Nigeria for the grant of N35,000:00 only per month to all federal workers, with effect from September 1, 2023, pending when minimum wage is expected to have been signed into law,” the memo stated.

It explained implementation of the N35,000 per month wage award for all federal workers will be funded from the treasury.

But “non-treasury funded Federal Government agencies are to implement same from their internally generated revenue, IGR, or statutory allocations.

“Enquiries concerning this circular should be directed to the National Incomes and Wages Commission.”

Some of the affected workers expressed shock the NIWC could circumvent the decision of Tinubu to pay all workers from the till without discrimination between “treasury and non-treasury-funded” agencies.

“We strongly suspect that Mr. President has not been properly briefed by the NIWC on the implementation of his wage award and salary increment with the NLC and it is impossible for most of the MDAs excluded from Service Wide Vote payment to secure cash to pay their agitated workers,” an MDA Chief Executive Officer lamented.

Some workers’ unions have confronted heads of MDAs with threats to disrupt their operations if they are not paid as their counterparts in core ministries.

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