FEDERAL MINISTRY OF FINANCE

News Release. December 4, 2012

OKONJO-IWEALA DID NOT ADVOCATE MASS SACK IN THE CIVIL SERVICE

Yesterday, some media reports quoted the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala as being in support of mass sack in the civil service.

This statement is absolutely untrue. What the Minister actually said was effectively the opp
osite.

Specifically, she had stated that those canvassing for an increase in the capital budget and a concomitant reduction in recurrent expenditure should realise that the largest component of recurrent expenditure is personnel costs including salaries and wages.

That is why government is careful about the issue because behind those figures are human beings and families whom you cannot just throw away without considering the implications.

She explained that because of this fundamental issue, the government’s immediate strategy has focused on fighting waste and the ghost worker syndrome through mechanisms like biometrics.

Dr Okonjo-Iweala had also explained that implementing the Oronsaye Report on Civil Service Reforms which recommended that agencies performing the same functions be merged will have some effect on the capital-recurrent ratio but perhaps not as much as many Nigerians would like in the short term.

Paul C Nwabuikwu
Special Adviser to the Coordinating Minister for the Economy and and Minister of Finance