Nigeria to slash federal worker’s wages as cost saving measures
Nigeria is working toward slashing the wages of its federal works as part of measures to cut down on the high cost of governance in the country.
According to the Minister of Finance, Zainab Ahmed, the federal government was working to reduce the high cost of governance by doing away with unnecessary expenditures.
Speaking at a policy dialogue on corruption and cost of governance in Nigeria organised by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the minister 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.
“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 stated.
She 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 had warned that the structure of government expenditure has risen under the present administration to N7.91 trillion in 2020 from N3.61 trillion in 2015.
Personnel costs accounted for 40 per cent of actual recurrent spending in 2020 while overhead is just three per cent.’’
Akabueze said the current trend of spending more money on running the government than on building new infrastructure is unsustainable.
He said recurrent spending, allocated towards salaries and running costs, has accounted for more than 75 percent of the public budget every year since 2011.