It appears that the commitment to pay an additional N35,000 wage to federal workers within Ministries, Departments & Agencies (MDAs) for six months seems to be facing some financial difficulties.
Findings revealed that the government lacks the necessary funds to fulfill its initial announcement when it removed the subsidy on premium motor spirit (petrol) in May 2023, according to Vanguard report.
Back in October this year, Bola Tinubu signed a memorandum of understanding (MoU) with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), agreeing to provide N35,000 to each federal government worker. This move was in addition to a 40% special salary increase aimed at mitigating the impacts of the subsidy removal.
While this announcement was well-received by the workers, the National Incomes and Wages Commission (NIWC) has conveyed that the federal government does not possess the necessary funds to cover all categories of its employees.
Consequently, government agencies have been directed to source their own funds to pay their workers rather than relying on the federation account.
This directive particularly affects federal departments and agencies that draw their allocations from the consolidated revenue funds.
Instead of receiving direct payment from the government, these agencies are expected to internally source funds to fulfill the N35,000 wage award and the 40% special salary increase. This directive has left many agencies frustrated, as their employees prepare to demand payment, similar to their counterparts in ministries.
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The NIWC’s memo, dated October 19, 2023, referenced as SWC.04/T/33, instructs all MDAs funded from non-treasury sources not to expect government allocations to cover the wage award.
The memo further suggests that these agencies should utilize their internally generated revenue (IGR) or rely on statutory allocations to make the payments.
While the government’s decision is causing confusion and concern among these agencies, they assert that they lack the resources to fulfill these payment obligations.
Many workers’ unions have already confronted the heads of these agencies with threats of disrupting their operations if they do not receive prompt payment, mirroring the actions of their counterparts in core federal ministries.