State workers and pensioners on Sunday lamented they were carrying the burden of a cash crunch in the country with many state governments failing to ensure regular payment of salaries, gratuities and other entitlements.
Labour leaders, who spoke separately with our correspondents in Ekiti, Benue, Ogun, Ondo, Rivers, Abia, Ondo, Edo and Kano states, noted that pensioners were worst hit by the failure of governors to perform their responsibilities.
Findings by our correspondents showed that deductions by the Nigerian National Petroleum Company Limited from the Federation Account Allocation Committee had continued to deplete the funds being shared by the three tiers of government at FAAC meetings.
The NNPC had explained that its deductions from FAAC were due to the humongous subsidy spending it shouldered. No FAAC remittance from NNPC in Q1, subsidy gulps N675.93bn – Reports
Since the beginning of the year, the NNPC has not been able to make remittances to the Federation Account due to its huge subsidy spending on petrol.
Figures obtained from the NNPC in Abuja showed that the oil firm spent N210.38bn, N219.78bn and N245.77bn as subsidies on petrol in January, February and March 2022 respectively, translating to N675.93bn during the three-month period. On Wednesday, FAAC shared N725.57bn among the three tiers of government, as allocation for March 2022.
But instead of contributing to what was shared, the NNPC informed FAAC that it would deduct or recover N671.88bn from April 2022 proceed due for sharing at the May 2022 FAAC meeting.
The NNPC described the N671.88bn as value shortfall it incurred as it remained the sole importer of petrol into Nigeria and had been subsidising the commodity using billions of naira monthly.
The N725.57bn shared by the three tiers of government was from statutory revenue of N521.16bn and Value Added Tax of N204.4bn. in most states, workers and pensioners were the ones bearing the brunt of subsidy deductions as states reneged on regular payment of salaries and gratuities.
Labour leaders in Benue State respectively lamented the plight of workers following the cash crunch affecting the state government.
Speaking to one of our correspondents on the phone, the state Chairman of the Nigeria Labour Congress, Godwin Anya, said that state and local government workers in the state were groaning due to staggered payment of salaries. He stated, “Workers in the state are owed 2017 salary arrears and the current payment of salaries is staggered.
“Local government workers in the state are owed nine months, primary school teachers are owed 10 months, while at the state level, it is five months. These are arrears for 2017.
“Some workers have not been paid since March. This year, the system is that they (the state government) pay some workers in a particular month and leave others.”
Also, the TUC Chairman, Gideon Akaa, said that the dwindling allocations had taken their toll on workers.
Akaa said, “What we have is staggered payment of salaries, apart from the arrears the state government owes state workers which are five months. As for leave bonus and other entitlements, I cannot say anything.”
Ganduje owes Kano retirees N25bn gratuities, death benefits, others
On its part, the Nigerian Union of Pensioners in Kano State says Governor Abdullahi Ganduje owes retirees N25bn. The state NUP Chairman, Salisu Gwale, in a telephone interview on Sunday with The PUNCH, said, “The amount we were owed was N26bn as of May last year (2021) but the government was able to pay only N1bn.”
He said government debts to the pensioners included gratuity, death benefits and pension arrears.
“I am currently in Saudi Arabia and I will use the opportunity to pray for God’s intervention in this issue as we have been making efforts to make the government pay the money but to no avail.” Abia workers, families passing through difficult times – NLC
The Abia State NLC Chairman, Uchenna Obigwe, also said that the dwindling economy was worsening the plight of the workers.
He said in Abia, “Civil servants are being owed. Where the government owes huge amounts are Abia State University Teaching Hospital and secondary school teachers.
“The Abia State Polytechnic and the state universal basic education board are also some of the places where the state government is owing heavily.
At this year’s Workers’ Day celebration, the union gave a breakdown of salaries the state owed workers. The NLC stated, “ABSUTH , 25 months; Abia Polytechnic, Aba , 24 months; ASUBEB – primary (one and half month) and LG workers, health authorities, two and half months. Workers and their families are passing through difficult times.” Abia workers, families passing through difficult times – NLC
The Abia State NLC Chairman, Uchenna Obigwe, also said that the dwindling economy was worsening the plight of the workers.
He said in Abia, “Civil servants are being owed. Where the government owes huge amounts are Abia State University Teaching Hospital and secondary school teachers.
“The Abia State Polytechnic and the state universal basic education board are also some of the places where the state government is owing heavily.
At this year’s Workers’ Day celebration, the union gave a breakdown of salaries the state owed workers. The NLC stated, “ABSUTH , 25 months; Abia Polytechnic, Aba , 24 months; ASUBEB – primary (one and half month) and LG workers, health authorities, two and half months. Workers and their families are passing through difficult times.”