Source: esacademic.com

Source: esacademic.com

The Federal Government plans to begin paying its staff by the the 25th of every month under the direction of President Muhammadu Buhari, as stated by the Accountant General of the Federation, Mr. Ahmed Idris. He disclosed this in an interview with the News Agency of Nigeria in Abuja on Wednesday. He explained that the feasibility of this plan will be tested this month.

Another arrangement if approved, would ensure payment of the salaries before the monthly meeting of the Federal Accounts Allocation Committee. According to Idris, the salaries are usually paid after the FAAC meeting which allows the federal, state and local government share revenue accrued to the federation’s account. The Accountant General also waved off the speculation the the Treasury Single Account policy is responsible for the delay in the payments of salaries and linked the situation to the crash in global oil prices, which has negatively impacted the flow of income to the country.

He said, “Nigeria is practically making about 30 to 40 per cent of what it used to make by way of revenue from oil and that has affected inflow generally. These inflows are what the federal, state and local governments receive to service the economy. It is when we receive these resources and sit at the end of the month for FAAC that the resources are shared among the three tiers of government.’’

Stating the benefits of TSA, Idris said that more than N2.7 trillion had been realised under a single account domiciled at the Central Bank of Nigeria. Adding to this, he said that the cost of borrowing by government agencies had been reduced substantially in that the economy was already a beneficiary of the policy.

Concluding on the major statement about early payment of salaries, he said “there is a standing instruction of Mr. President to pay salary on or before 24 or 25 of every month and we will try as much as possible to comply and to abide by that. We are taking a step further to make a provision whereby we can accommodate salary payments even before FAAC. We will go to seek for necessary approval of our political masters to make sure that at least salary and other statutory payments are made even before FAAC. Because we can project how much they are and therefore we can prepare and hit the ground running to make them realisable and actualised. Even where we delay FAAC, we can still pay salary.’’

Author: Cerebral Lemon