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FG may slash workers’ salaries to reduce governance cost – Finance Minister

May 5, 2021 No Comments

The Federal Government has proposed salary cuts for workers as a way of reducing the high cost of governance in the country.

Minister of Finance, Budget and National Planning Zainab Ahmed, said the FG was working to reduce the high cost of governance by doing away with unnecessary expenditures.

Disclosing this at the policy dialogue on corruption and cost of governance in Nigeria organised by the Independent Corrupt Practices and Other Related Offences Commission in Abuja on Tuesday, she said President Muhammadu Buhari, has directed the National Salaries, Incomes and Wages Commission to review the salaries of civil servants as well as the number of federal agencies.

Ahmed urged all government agencies to come together to trim the cost amid the country’s dwindling revenue.

She said the government also intends to remove some superfluous items from the budget in order to cut the cost of governance in the country.

She stated, “We still see government expenditure increase to a terrain twice higher than our revenue. The nation’s budgets are filled every year with projects that are recycled over and over again and are also not necessary.

“Mr President has directed that the salaries committee that I chair, work together with the Head of Service and other members of the committee to review the government payrolls in terms of stepping down on cost.’’

The minister said that government will also review the number of government agencies in terms of their mandates, adding that the government will consider merging two agencies with the same mandate.

The Director-General of the Budget Office, Ben Akabueze disclosed that the cost of governance under the President Muhammadu Buhari administration has risen sharply from N3.61 trillion in 2015 to N5.26trn in 2018 and N7.91trn in 2020.

Akabueze noted that recurrent spending accounted for more than 75 per cent of actual Ministries, Departments and Agencies’ expenditure between 2011 and 2020.

The DG stated, “There have been persistent calls for reduction of governance cost in Nigeria in view of the impact on governmental fiscal situation. The current system is clearly unsustainable; hence this national dialogue on corruption and the cost of governance in Nigeria is very timely.

‘’Cost of governance has generally been on the rise; actual MDA recurrent spending rose sharply from N3.61trn in 2015 to N5.26trn in 2018 and N7.91trn in 2020. This excludes the costs of government-owned enterprises and transfers to the National Assembly, National Assembly and the National Judicial Council.

Recurrent spending accounted for more than 75 per cent of actual MDA expenditures between 2011 and 2020. Personnel costs accounted for 40 per cent of actual recurrent spending in 2020 while overhead is just three per cent.’’

Speaking further, the DG said in 2016, personnel cost was N1.88trn but it is now over N3trn, accounting for 31 per cent and 63 per cent of total spending and retained revenue, respectively in 2020.

He compared the United States federal budget where he said general administration cost, including personnel and overhead, was less than 10 per cent of the budget.

In his remarks, the ICPC Chairman, Prof Bolaji Owasanoye, SAN, identified payroll padding and the phenomenon of ghost workers and abuse of recruitment as areas of concern in governance cost, noting that the ICPC findings from health and medical institutions indicate that many agencies still engage in unapproved recruitment without obtaining the consent of all relevant organs of government.

Politics

Kogi varsity workers begin three-day warning strike

February 20, 2021 No Comments

Members of the Senior Staff Association of Nigerian Universities, (SSANU), Federal University Lokoja, Kogi State, on Tuesday, commenced a three-day warning strike.

The peaceful protest by the Kogi varsity workers is a notice to the Federal Government due to its failure to implement the eight-point Memorandum of Understanding entered into by the parties.

In a statement by chairman of the Kogi University workers, SSANU/Joint Action Committee, Uche Onyedi, the members threatened a complete shutdown of the institution.

It read, “You recall that the JAC of NASU and SSANU had a 14-days warning strike which started from midnight of 4th of October and ended on 12 midnight 18th of October, 2020.

“As a result of the warning strike by NASU/SSANU, an eight-point MoU was signed by JAC of SSANU and NASU on one hand, other stakeholders of the Federal Government on the other hand, at the instance of the Federal Ministry of LaLolbour and Employment, Abuja, on the 20th of October, 2020, in which a committee was constituted to look at our demands with a view to mapping out ways of solving them.

Very unfortunately, the Federal Government reneged on its promises to implement the agreements contained in the MoU.
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“You are aware that there are glaring inconsistencies in the IPPIS payment platform, non-payment of allowances, non-payment of arrears of minimum wage consequential adjustments, delay in renegotiation of the 3009 agreements, very poor funding of state-owned universities, lack of visitation panels to universities for a very long time, non-payment of retirement benefits.

“We are asking the Federal Government to as a matter of urgency implement the MoU now, to avoid closing down the university for another year.”

Business

Chevron Nigeria to sack 25% of workforce

October 2, 2020 1 Comment

Chevron Nigeria Limited has said it will slash its workforce by 25 per cent as it is reviewing its manpower requirements in the light of the changing business environment.

CNL disclosed this on Friday in a statement entitled ‘Chevron Nigeria Limited reviews workforce in accordance with business exigencies’.

The oil major said it would continue to evaluate opportunities to improve capital efficiency and reduce operating costs.

CNL’s General Manager Policy, Government and Public Affairs, Esimaje Brikinn, said, “The aim is to have a business that is competitive and have an appropriately sized organisation with improved processes.

This will increase efficiency and effectiveness, retain value, reduce cost, and generate more revenue for the Federal Government of Nigeria.”

According to him, the new organisational structures will, unfortunately, require approximately 25 per cent reduction in the work force across the various levels of the organisation.

“It is important to note that all our employees will retain their employment until the reorganisation process is completed,” Brikinn said.

He said there were no plans to migrate Nigerian jobs outside the country.

He said, “We have prospects for our company in Nigeria; however, we must make the necessary adjustments in light of the prevailing business climate; and we need everyone’s support to get through these tough times stronger, more efficient and more profitable, in order to sustain the business.

We are actively engaging our workforce to ensure they understand why this is being done. We will continue to consistently engage all relevant stakeholders, including the leadership of the employee unions as we continue this process of business optimisation.”