The All Progressive Congress (APC) transition committee has suggested that the federal government consider issuing bonds to raise the needed money to settle salary arrears and outstanding fuel subsidy payments The Cable reports.

The transition committee’s report which is currently being studied by President Buhari is expected to shape his policies.

The committee led by Mallam Ahmed Joda has advised the federal government to promise to issue the bond issue effectively placing the risk on the federal capital rather than the states.

Though this increases the debt burden of the federal government, the committee has viewed the inherited salary and subsidy arrears as “short-term liabilities” which should be addressed by the president to avoid “civil unrest”.

Federal workers are owed over N400 billion in outstanding salaries while that of oil marketers is in excess of N200 billion following a cut in the pump price of petrol as well as the devaluation of the naira.

As many as 20 states are currently unable to pay salaries mainly because of a drop in federally allocated revenue as a result of falling crude oil prices.

According to The Cable, the states are also to benefit from the bond issue to settle salary arrears. The transition committee said that in helping out the states from their economic hardship, “it is important that strict conditionalities be applied”.

These include, no increases in headcount while any borrowing remains in place, commitment to biometric capture and fully automated payroll management within 6-9 months, commitment to improvements in collection of internally generated revenue (IGR) and establishment of a mechanism to mitigate risk of diversion of funds.

The committee further advised the federal government to raise funds by blocking “leaks” in the system through the enforcement of the Fiscal Responsibility Act (FRA) across all ministries,
departments and agencies (MDAs).

However it is not certain if Buhari will implement the recommendations of the transition committee.

Meanwhile the Association of Senior Civil Servants of Nigeria (ASCSN) has vowed to wage war against the new administration of President Muhammadu Buhari if it decides to cut the salaries of civil servants in a bid to reduce the cost of governance.

Cc:lalasticlala

http://www.naij.com/467893-salary-and-subsidy-buhari-source-for-funds.html