Economic Crisis: FG Makes More Revelations On Stoppage Of Salaries


It was earlier reported that the Governor of Central Bank of Nigeria, Mr. Godwin Emefiele, had said that the Federal Government may not be able to pay its workers salaries from October due to current economic and financial challenges in the country. However, the Minister of Budget and National Planning, Udoma Udo Udoma, dismissed the media reports on Thursday.

The Minister stated this in Abuja while addressing State House correspondents after the monthly National Economic Council (NEC) meeting, presided over by Vice-President Yemi Osinbajo.

According to Mr. Udoma Udo Udoma, although the nation was facing serious economic crunch, the Federal Government would not cease to pay its workers salaries as when due, Daily Post reports.

See Also: FG To Stop Paying Salaries Of Workers By October Unless… – CBN

He said:

“We have paid all workers salaries, Federal Government has always been paying its workers salaries, and there is no risk whatsoever that there is going to be a situation where Federal Government will not pay salaries.

“Let me also say that we are about to have FAAC this month; there is actually an increase in the amount that is going to be available in FAAC.

“I will let the Minister of Finance to talk about the exact amount. There is an increase because of FIRS, our tax collection is going up.

“When I appeared before the Senate last week, I did inform Nigerians that indeed we are beginning to move up, our revenue situation is actually improving this month already.

“Our tax collection is already improving, there is no doubt that we are actually going through a difficult time but things are improving.”

FG Makes More Revelations On Stoppage Of Salaries

Speaking on the economic condition of the country, the minister admitted that the country was going through a difficult time, but dismissed the assertion that the economy is in recession.

Read More: Nigerians To Pay Tax On Petrol Products?

His words:

“Recession is basically when you have two quarters of negative growth. We had a first quarter of negative growth and we are still waiting to get all the figures for the second quarter which has just ended in June.

“The National Bureau of Statistics (NBS) will be giving us all the figures but if as we suspect the second quarter is also negative, then of course technically you could say that we are in recession if those figures turned out to be so.

“But even if we are not, the situation in the economy right now is one that of course we are addressing.’’

Meanwhile, speaking at the 18th Valedictory Service of Good Shepherds Schools, Ota, Ogun state on Thursday, July 21, Nigeria’s former president, Olusegun Obasanjo, said that the problems facing the country will not end until the urgent need to reform institutions in the country is fulfilled.