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Federal Secretariat, Abuja EXCLUSIVE: Nigeria’s Economic Crisis: Governors advise FG to pay off civil servants above 50 years The governors also ask the government to raise taxes across board and levy anyone earning N30,000 and above monthly. By Oladeinde Olawoyin August 4, 2022 Reading Time: 3 mins read Nigerian governors have advised the federal government to offer federal civil servants who are older than 50 years a one-off retirement package to exit the service, as part of coordinated efforts to instill fiscal discipline and prevent the nation from imminent economic collapse. The governors made the proposal at a meeting with President Muhammadu Buhari in July, PREMIUM TIMES gathered from sources privy to details of the meeting. The proposal also urged the government to begin implementation of the updated Stephen Oronsaye Report, which suggested merger and shutdown of agencies and parastatals with duplicated or contested functions as a way to address bureaucratic inefficiency and reduce the cost of governance. Officials familiar with details of the meeting, who spoke to PREMIUM TIMES, explained that the governors were concerned about the deteriorating state of the economy and a proposal to restore fiscal discipline was presented to the federal government. The federal civil service employs just about 89,000 people but will spend about N4.1 trillion on personnel costs this year, from its N17 trillion budget for the entire country. It is not clear how many workers are above 50 years of age, or how much goes to them. The suggestion comes as indications emerge that the nation may be teetering towards the cliff of economic collapse. PREMIUM TIMES reported Wednesday that Nigeria’s external reserves amount to only $15 billion, well below the $36 billion balance on the gross external reserves claimed by the bank. With the nation spending N5.9 trillion on imports in the first quarter of the year, reserves of $15 billion would barely cover four months of import. Last week, details emerged that the balance in Nigeria’s Excess Crude Account had depleted significantly from $35.37m to $376,655, leaving the nation with no buffers to stabilize the economy and its currency. Yet another indication emerged recently that the nation was broke as debt service surpassed revenue. ⓘ According to details of the 2022 fiscal performance report for January through April, Nigeria’s total revenue stood at N1.63 trillion while debt servicing stood at N1.94 trillion, showing a variance of over N300 billion. TEXEM Advert ‘Fiscal Discipline’ As part of measures to restore fiscal discipline, the governors advised the federal government to reduce expenditure immediately by eliminating petrol subsidy and NNPC-funded projects, cap the Social Investment Programme (SIP) and National Poverty Reduction with Growth Strategy (NPRGS) budgets to N200 billion, eliminate extra-constitutional deductions from FAAC, and reduce SWV items for SDG and NASS Constituency projects. The governors also asked the government to reduce duplications (e.g. empowerment programmes) and waste, reduce 1% granted to NASENI to 0.2%, amend the Act in 2022 Finance Bill, reduce personnel costs of federal government MDAs, and expedite privatization of non-performing assets like the NDPHC power plants. Similarly, the governors urged that the 2023 – 2025 MTEF should reflect the suggestions and government’s commitment to restore fiscal discipline while the planned 22% increase in salaries in 2023 be reconsidered. They added that the fiscal deficit should be reduced to no more than 2% of GDP in 2023 – 2025. Foreign Exchange and Reserves To conserve foreign exchange and grow the reserves, the governors suggested that foreign trips by MDAs, including budgetary-independent agencies such as FIRS, NPA, NIMASA and NCC, be put on hold for at least one year. They also urged the Ministry of Foreign Affairs not to issue requests for Visas to foreign embassies for federal government officials and their families, unless express approval is granted by the presidency. READ ALSO: My govt has re-engineered Nigeria’s economy – Buhari They also suggested the movement from State Income Taxation to Consumption Taxation, adding that with the introduction of 3% Federal Income Tax, state-level PIT should be abolished. Similarly, they suggested that state Sales Taxes (flat rate of 10%) should be enacted for the 36 States and FCT, VAT levels increased to 10% with a timeline to raise it to between 15% and 20%, as well as re-introduction and passage of VAT into the Exclusive List. It was not clear whether all governors agreed with the position on VAT being moved to the exclusive list. To improve tax revenues, they suggested that the federal government should introduce a flat 3% Federal Personal Income Tax on all Nigerians earning more than N30,000 per month, adding that persons earning less than N30,000 per month whether employed or not, including farmers and traders, should pay a monthly FPIT of N100. Similarly, telecoms firms and NIMC should collaborate to ensure deduction of this from phone credit of individuals and linking to NIN and BVN. The governors also suggested centralization of the collection of all federal oil and non-oil taxes in one agency, the FIRS, while Customs, NPA, and others assess and issue demands. They suggested that the Federal Government improve crude oil and gas production, resolve lingering issues of ownership of gas in PSCs (eg Nnwa-Doro, OML 129) to help position Nigeria to take advantage of the gas needs in Europe, and provide incentives to expedite development of vandalism-resistant deep offshore fields like Bonga SW (Shell), Preweoi (Total), Zabazaba (ENI) and Owowo (Exxon). The governors equally advised the government to encourage (and pre-finance, if necessary) Dangote Refinery to early completion to reduce massive future outflows of foreign exchange. https://www.premiumtimesng.com/business/business-news/546829-exclusive-nigerias-economic-crisis-governors-advise-fg-to-pay-off-civil-servants-above-50-years.html Mynd44, seun, lalasticlala |
jumper524:Is this not a symptom of being bipolar? Well, either way, at his age, BAT should be at home enjoying his loot and playing with his grand children. The stamina to rule a country like Nigeria and bring Nigeria out of the mess we find ourselves in needs a man who his young enough to live years after his administration and let posterity judge his work. |
Nazgul:This statement is nothing but a failed attempt to white wash a failed government. A country where a professor earns 335k monthly as salary? Even with regular publications in journals both local and international? No provisions are made for research grants, so you do your research from your own pocket. Suffice it to say that Nigerian lecturers are one of the least paid in Africa. I wonder why ASUU is even fighting for revitalization funds. Let them continue giving lectures to 3000+ students in 500capacity halls, let students get to the point where they have to get lectures under trees, since they can't afford the luxury of paying millions to private universities. Let our laboratories remain obsolete and in the stone age while the world continues to advance technologically. Let just fight for their salaries and allowances which a few billions will take care of and leave the Nigerian students from poor homes to their fate. Are you happy now? |
Toks2008:I hate anything gum chewing, but when I started chewing nicotine gum to curb my smoking habit. I no come get choice, but it's the loud chewing now that I'm against. |
sukkot:I don't know how I missed this topic. Well, your display of ignorance is quite amazing I must say. Anyway, continue. Infact Nigerian universities should all be shut down, no need being taught by a group of "unlearned" intellectuals. |
Ademola47:Are you people forgetting that Obi left as governor of Anambra State in 2014. Years before the SARS issues especially SARS awkuzu matter came up? Or is this a case of selective amnesia? |
Igbo:Reno na real snake. |
naptu2:This political ashawo no dey shame sef? HABA!!! |
Masturbating almost daily for 12years? I'm in utter shock, seriously. It's not even about the food no more, change your mindset completely. Because with such long number of years, a relapse after stoppage will be bloody. Never ever go back to that filthy lifestyle again. Engage yourself in something, keep busy. Eat your normal food you'll replenish what you lost just don't relapse. The Lord is your strength. |
BluntTheApostle:I agree with you on this one, the purpose for which it was formed was very laudable. But the end result we see today from it's offshoots is terrible. Apologies for my wrong interpretation. |
aribisala0:Thank you for your analysis, but he never wished him dead. He asked if "his late brother was a cultist like him" which as I said earlier is distasteful and of course childish. But going after someone who this doesn't concern, come on, that's a low blow. Attack who attacked you not someone else. It's textbook tribalism, Prof. Wole Soyinka is national asset and pride to all black Africans no doubt, but twisting it this way is very wrong that's my point. NB: where's the hypocrisy there? I'm Igbo a thorough around Igboman, with royal blood flowing in my veins. But I cannot and can never support evil. My fiancee is not Igbo, best friend is a Yoruba Muslim from Oyo, my childhood friend jamiu is from Ogun, my business partners are from Benue, Kano, Bayelsa and Delta States, and yes spent my 1st formative 22years in igboland, but work has taken all over. So it pains me whenever I see people like us killing ourselves over tribal sentiments. I've dinned with most of these people you call top politicians. Believe me they don't care about religion or tribe, but they use it to tear us apart. Take it or leave it. There somethings I know about these people that will shake the average Nigerian to his/her bone marrow. So that's why I'm pained whenever I see us killing ourselves over absolutely nothing. |
aribisala0:Of course the individual he mentioned displayed a very high level of childishness no doubt in his comments, but I just wanted to address the tribalism that the person I mentioned exhibited in his comments. Nothing concerns Achebe in this whole debacle, but his name was mentioned. Address the issue not another person or group of people that it doesn't concern. That's my point. Even Prof. Wole Soyinka has never in all his speeches I'm aware of insulted or redeculed the Igbos, so why would he go down to that level? Tribalism has really eaten deep into this country and the politicians are reaping bountifully from it. We must outgrow this. Well, feel free to throw insults at me if you like, I just said my mind. |
naijaguy1234:Why on Earth do you have to be tribal with everything? He never compared Soyinka with Achebe, he never spoke out of tune of being Igbo, Hausa, Ijaw, Ughrobo or even Yoruba. Why are you this insecure? Is Wole Soyinka not one of the founding fathers of Pyrates Confraternity? Which was a cult group that gave birth to the hydra-headed monster destroying the youths of today? Agreed, they probably didn't mean for it to play out this way, but it did. Even though they've stopped recruiting undergraduates, which ends the cultism narrative, but what's done is done. So please stop this tribalism nonsense and face reality. HABA!!! |
Candidlady:Woman, you can practice your lesbianism in peace and stop this toxicity you display on every thread against men. Yes you hate men, I get it. Some of us also have terrible experiences against women, but it didn't turn us gay nor did it make us women haters. Enough of this. |
Honlucas:Oga, go and disband it now, when public universities go the way of public primary and secondary schools, and the masses can no longer afford university education because of the high cost of private universities, then your eye go clear. Ungrateful human being, if it was because of just the welfare universities would have been opened a long time ago, but ASUU leadership decided to fight for better facilities, well equiped labs through the revitalization fund for ungrateful people like you. Have you even done your research to find out that Nigerian university lecturers are one of the best in the world and one of the lowest paid in Africa? To hell with you and your likes, I'm leaving this accursed country to where my services will be appreciated. |
[quote author= post=113682582][/quote]My eye dey pain me? Abi what did I just read? |
DarlingtonC:Thanks so much for opening this thread, I'm about opening a business over here in Warri. I got advice from different people to buy a dyna truck for deliveries, but I was hesitant because it really didn't give me the kind of publicity I needed for my business. Now something like this is exactly what I was looking for, (I don't know why the old model J5 was a no for my kind of branding). Thanks so much for this, this is it. Modified I hope this vehicle doesn't give issues, make I no turn weekly osusu for mechanic. |
lilfresh96:This man was in charge of privatization under obj and he oversaw it to the end. But quick question, how has the public institutions he privatized helped the nation? Rather the rich kept getting richer and the masses have to continually be robbed by excessive over pricing of commodities and essential services. Truth be told complete privatization of assets can't work in Nigeria. For example look at the local content law. Our fellow Nigerian brothers who are now literally in control of the oil and gas industry have reduced oil and gas jobs to the level of road side receptionist. Please if this is his main agenda, it's dead on arrival. |
Nemere2020:That's it I'm done with this country. BTW, since you guys can't read the bold handwriting on the wall and have small sense. Continue bashing yourselves, be you Igbo, Yoruba, Ijaw, Ughrobo, iteshkiri, Ikwerre, Efik, Ogoja, Kwale, no matter the tribe you are in the South the joke is on all of us. |
Who no go no go know. Forget the hype people, shun cultism. Men, great men have gone over the most flimsy excuses you can ever think of. Turn to Jesus Christ for salvation, believe me, "after the game, both the King and the Pawn return to the same box." |
DukeOfNigeria:And so Nigeria dirty politics begins. These vampires/cabals running this country to the grave will definitely not give up until Peter Obi's aspiration to raise this country from the trenches and from their vice like holds ends in the mud. May God save us |
PrinceOfLagos:Yeah A pretty dumb, ugly on the inside, bed turding witch that's what she is. |
NwaEzefuNaMba:This old news nah, since March 2022. |
YeyeGbami:Brotherly, you took the words out of my mouth. What kind of expensive concoction is that? Shuuu!!! |
ShadowWalker00:This statement of yours stood out for me. The same Jonathan your party faithfuls are all on there knees begging to come and contest. The delusion is legendary. ![]() |
I'm currently regretting that number 4. I really messed up on that one, my child would have been on it's way to the university now. |
farem:What is going on here? Ahhh!!! So it has gotten to the point where someone is assassinated, the dead body mutilated, so everybody will blame it on ritualists? God save this generation. Kai!!! |
Biodun556:Haaaa!!! This matter still dey ground? Ok na. |
God1000:And our Nigerian politicians are saints? |
Soldier ‘Working With Boko Haram Fighters’ Commits Suicide In Yobehttps://dailytrust.com/soldier-working-with-boko-haram-fighters-commits-suicide-in-yobe
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