Recession: Federal Government Moves To Slash Workers’ Salaries


A report by New Telegraph reveals that there are strong indications that the salary of Federal Government workers who earn unnecessarily high salaries may be reviewed. This according to the report, is in line with government’s renewed push to put a check on fleecing revenue by revenue generating agencies.

As a prove of government’s seriousness, evaluation and grading department officers of the National Salaries, Income and Wages Commission are presently on the field for the assignment. A top official at the commission who spoke to New Telegraph was quoted as saying:

“Our evaluation and grading officers are currently out there on the field for the purpose.

“In the past, we extended invitation to some of these agencies, of recent was the Nigerian National Petroleum Corporation (NNPC), but it never responded.

“The team out there is expected to return to the office this week and submit their report to the chairman, who will study it and make recommendations to the Federal government.”

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Mr. Williams B. Danbaki, the Public Relations Officer at the commission, also confirmed the recent development but  however, declined further clarifications.

Also, a top officer with the Finance Ministry in Abuja confirmed that representatives of the Wages Commission would be part of the fund recovery committee announced last week by the Minister of Finance, Mrs. Kemi Adeosun.

 FG To Slash Workers' Salaries
Recession: Federal Government Moves To Slash Workers’ Salaries

The officer who did not want his name in the print said the Federal Government was unhappy that some revenue generating agencies had been consuming 85 per cent of their revenue surplus as salary and overheads while they continuously declare operating losses in their statements of account.

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He said:

“The minister has decided to integrate the representatives of National Salaries, Income and Wages Commission in the committee headed by the Accountant General of the Federation to probe and recover unremitted revenue surplus in custody of MDAs.

“Recall that the issue of bogus salaries by some agencies such as Securities and Exchange Commission (SEC), NDIC, NIMASA, NPA, CBN, and very numerous other agencies came up at certain time in the era of previous governments and income and wages commission was to come up with an acceptable salary scale for these agencies, but the work was abandoned.

“The current reality and short-changing government of its enormous revenue by revenue generating agencies call for a revisit of salary template for agencies.”

Two weeks ago, the Fiscal Responsibility Commission raised the alarm that revenue generating agencies were short-changing government by declaring operating losses in their statements of account.

It was alleged by the commission that revenue agencies withheld operating surplus meant for transfer to the Consolidated Revenue Account and deployed same into funding over bloated salaries and overheads.

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Some of these Federal Government agencies have incurred huge expenses on  the following:

1. Overseas training and medicals

2. Expenses on behalf of supervisory ministries and/other organs of government involved in oversight or regulatory functions without appropriate approval

3. Payment of salaries and allowances to staff and board members, governing councils, and commissions, which are outside or above the amount approved by the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) and the National Salaries, Income and Wages Commission.

4. Donations

5. Sponsorships

6. Unfavourable contract signed for revenue collection by a third party.

7. Granting of staff loans that have not been repaid.

8. Sale and transfer of assets to board members, among others.

The Ministry stated that the overall effect of these practices is that operating surpluses of these agencies are lower than should be.