P
PressRoom
Guest
Nigerian economy isn't speaking well, especially with the inability of state governors to pay their workforce. This has resulted in series of protests from labour unions all over the country. The Federal Government again has promised to bail out states from this mess, still majority of the states are unable to meet certain conditions set out to access this bail out fund. This of course is worrisome considering that the progress of any nation lies in the productivity of its workforce.
Below are 7 reasons why Nigerian state governors find it difficult to pay the salaries of their workers.
1. Niger Delta Militants: The recent blow-ups of oil facilities in the oil-rich Delta region by militants has resulted in dwindling revenue for states in the region, causing a significant drop in the Federal Government monthly revenue, as well as crude oil production in the country.
2. Welfare Programmes: Nigerian states will always find it difficult to pay its workforce when they bite more than chew with social programmes that have no economic returns on the states. State programmes should be based on feasibility studies, and aimed at boosting the economic capacity of the state.
3. Ghost Workers: Ghost-working service has been around for a long while in Nigerian states. It's one of the major setbacks in Nigerian Civil Service. In 2015, investigations revealed that the Federal Government and 10 other states lost over N538bn to thousands of ghost workers in the last five years. Of the amount, the Federal Government paid N220bn to 103,000 ghost workers between September 2013 and May 2015. Recently, some states also uncovered numerous ghost workers that constitute more than half of its workforce.
4. Large Size of Government: This is a common practice in Nigerian politics with government officials having numerous personal assistants and aides. Even these Personal Assistants have special assistants, while the burden is on state government for their salaries. Running a large government is is excessive, and has a terrible effect on the state.
5. Low IGR: The sustainability of a state depends on how the level of its Internally Generated Revenues. Some Nigerian governors do no have a clear-cut plan for IGR in their states. According to an investigation by the Economic Confidential, Fifteen (15) States may go bankrupt as their Internally Generated Revenues (IGR) in 2015 were far below 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016. The report provides shocking discovery that indicates that 15 states may go bankrupt and may not stay afloat outside the Federal Account Allocation due to lack of foresight in revenue generation drive coupled with arm-chair governance.
6. Frequent Travels: This is not to say Nigerian governors should “sit-at-home” in their states, but Nigerian governors, usually with large entourage that include close aides and family members, spend fortune from their cash-strapped treasuries on first class airlines tickets, luxury hotels, estacodes, among others. A recent investigation by Daily Trust revealed that about 25 governors have travelled abroad at an average of 10 times in the quest for investors since May 29 when they came to office.
7. State Sponsorship of Pilgrimages: Religion is a personal affair. States will always find it difficult to pay its workforce when they shoulder the sponsorship of holy pilgrimages. Government functionaries who wish to go on holy pilgrimages should do so at their personal costs not with state funds.
Amid these problems, some parts of Nigerian states are clamouring for independent states.
Below are 7 reasons why Nigerian state governors find it difficult to pay the salaries of their workers.
1. Niger Delta Militants: The recent blow-ups of oil facilities in the oil-rich Delta region by militants has resulted in dwindling revenue for states in the region, causing a significant drop in the Federal Government monthly revenue, as well as crude oil production in the country.
2. Welfare Programmes: Nigerian states will always find it difficult to pay its workforce when they bite more than chew with social programmes that have no economic returns on the states. State programmes should be based on feasibility studies, and aimed at boosting the economic capacity of the state.
3. Ghost Workers: Ghost-working service has been around for a long while in Nigerian states. It's one of the major setbacks in Nigerian Civil Service. In 2015, investigations revealed that the Federal Government and 10 other states lost over N538bn to thousands of ghost workers in the last five years. Of the amount, the Federal Government paid N220bn to 103,000 ghost workers between September 2013 and May 2015. Recently, some states also uncovered numerous ghost workers that constitute more than half of its workforce.
4. Large Size of Government: This is a common practice in Nigerian politics with government officials having numerous personal assistants and aides. Even these Personal Assistants have special assistants, while the burden is on state government for their salaries. Running a large government is is excessive, and has a terrible effect on the state.
5. Low IGR: The sustainability of a state depends on how the level of its Internally Generated Revenues. Some Nigerian governors do no have a clear-cut plan for IGR in their states. According to an investigation by the Economic Confidential, Fifteen (15) States may go bankrupt as their Internally Generated Revenues (IGR) in 2015 were far below 10% of their Federation Account Allocations (FAA) in one year from June 2015 to May 2016. The report provides shocking discovery that indicates that 15 states may go bankrupt and may not stay afloat outside the Federal Account Allocation due to lack of foresight in revenue generation drive coupled with arm-chair governance.
6. Frequent Travels: This is not to say Nigerian governors should “sit-at-home” in their states, but Nigerian governors, usually with large entourage that include close aides and family members, spend fortune from their cash-strapped treasuries on first class airlines tickets, luxury hotels, estacodes, among others. A recent investigation by Daily Trust revealed that about 25 governors have travelled abroad at an average of 10 times in the quest for investors since May 29 when they came to office.
7. State Sponsorship of Pilgrimages: Religion is a personal affair. States will always find it difficult to pay its workforce when they shoulder the sponsorship of holy pilgrimages. Government functionaries who wish to go on holy pilgrimages should do so at their personal costs not with state funds.
Amid these problems, some parts of Nigerian states are clamouring for independent states.