By Ishaya Ibrahim (Lagos),
Joe Ezuma (Port Harcourt),
Balogun Dada (Akure),
and Titus Oise (Benin)
Public and private sector workers in Nigeria are grappling simultaneously with non payment of salary, fuel shortage, electricity cuts, and rising dollar exchange rate.
Even when some are paid, escalating inflation has depleted household purchasing power. Thus, poverty levels have increased across the land.
TheNiche survey on the prices of household items found that a bag of rice now costs N14,000 up from N9,000 in May 2015. Groundnut oil jumped from N1,300 to N2,200 and a kilogramme of frozen fish from N400 to N600.
Workers’ wages remain the same, nonetheless, and many have not been paid for months.
The situation is so debilitating that workers seem bereft of the energy and resoluteness to react, partly because of high unemployment or possible misinterpretation of political meaning into their action.
Suffering in silence becomes the norm.
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have sent a proposal to the federal government demanding a rise in minimum wage from N18,000 to N56,000 per month.
The proposal was made last month.
A professor at the Federal University of Dutse, Jigawa State said he was paid half salary in March and has yet to receive April salary.
In an off-record discussion with TheNiche, he warned that if the hardship persists, only very few people would survive it.
States owing salaries
Osun State workers have lost count of the last time they collected full salary. Half salary is what the government can afford to pay, and yet it is irregular. They have jokingly nicknamed the half salary regime Hafsat.
Ondo civil servants, who are owed five months’ salaries, rejected the proposal of collecting half of their monthly wages.
The state government gave them two options – A, accept half salary which would enable the government pay up to date; or B, if you want full payment we will continue to owe you.
The workers opted for option B, insisting that they prefer full payment even if it means the government continues to owe them until the economy improves.
TheNiche learnt that this decision was reached at a meeting between the state government and the Joint Negotiating Council Chairman, Sunday Adeleye; Nigeria Union of Local Government Employees (NULGE) Chairman, Ayo Eniayewu; and a representative of state NLC Chairman, Bosede Daramola.
In Bayelsa, the government on Monday, April 25 held a long meeting with Labour leaders over unpaid salaries for five months.
Deputy Governor, John Jonah, made the last ditch effort to stave off Labour unrest when he led government officials – including Secretary to the State Government (SSG), Serena Dokubo-Spiff; Head of Service, Peter Singabele; Information Commissioner, Jonathan Obuepite; and Treasury Accounts Adviser, Timipre Seipolu – to meet with representatives of Labour unions.
Imo workers last collected salary in January, which was only 70 per cent of total pay, a reenactment of the Imo Formula designed by the military administration of Ike Nwachukwu in 1985 to wriggle out of a similar financial tight corner.
Kaduna workers are owed differently. Some have not been paid for three months, others for seven.
Fuel shortage and rising prices of foodstuff have worsened the plight of workers, making it difficult for many to report for work regularly because of high transport fares.
States not owing salaries
Rivers State government has been beating its chest for clearing the arrears of salaries and pensions and for being up to date in the payment of salaries.
Governor Nyesom Wike’s Chief Press Secretary, Simeon Nwakudu, told TheNiche that the administration rode to power on the popular will of the people and has therefore made governance people-centered.
‘‘The governor has concentrated on workers’ welfare, road maintenance and construction, as well as basic needs of water, food and shelter.
“He just flagged off a water project. You are in this state and cover it. Do I need to tell you what is going on?’’ Nwakudu said.
But the situation is a bit different at the local government level, where most workers have been gnashing their teeth for four months, alleging non payment of salary.
The Labour union in the state said those not paid may be those who have not furnished the government with their Bank Verification Number (BVN), and “when they provide BVN and still could not get their money, then they will move in.”
In Borno, civil servants who spoke to TheNiche said their salaries are paid regularly but high inflation diminishes their purchasing power.
Edo has also been up to date in the payment of salaries. But a governorship aspirant in the Peoples Democratic Party (PDP), Solomon Edebiri, said the welfare of Edo workers is poor.
He told the workers in a campaign rally that the only solution to the plight of workers allegedly enslaved by the state government – through non payment of salaries and pensions – is for them to embrace a Labour-conscious candidate in the vote in September.
Governors seek solution
The Nigerian Governors Forum (NGF) met on Wednesday, April 27 to lament the economic woes.
“We were elected on the platform of different parties to perform, not (just) to be paying salaries and now (we are) not even able to pay salaries. So the issue is very serious,” NGF Chairman and Zamfara State Governor, Abdulaziz Yari, lamented.
He pleaded with President Muhammadu Buhari to increase federal allocation to states and councils.
The current revenue formula gives the federal government 52 per cent, states 26.72 per cent, and councils 20.60 per cent.
In the new formula, which was first proposed in 2012, the governors asked for 42 per cent, federal government 35 per cent, and councils 23 per cent.
States also demanded 18 months’ moratorium on debt deductions from their allocations, and the remitting of ‘hanging funds’ owed by the federal government for projects executed in their domain.
This was apart from the N338 billion bailout given to them in September 2015 to pay salary arrears. However, the Independent Corrupt Practices and other related offences Commission (ICPC) has accused many of governors of diverting the funds.
Bail the private sector out, economist counsels FG
An economist and journalist, Pita Ochai, argued that bailouts to states would have made a huge impact on the economy if they were injected into the manufacturing sector.
He said the money given to states would have minimal impact on the economy because many employees would keep it idle in their bank accounts.
“But if it is given to the private sector, especially manufacturing, it would create thousands of job opportunities and reflate the economy,” he stressed.
Job losses mounting
Job losses have increased, especially in the financial services industry.
On Thursday, April 28, First Bank announced it would sack about 1,000 of its 8,000 workforce.
First Bank Chief Executive Officer (CEO), Adesola Adeduntan, told Bloomberg that the reason is because non-performing loans rose from 3.8 per cent a year ago to 22 per cent.
He said the bank would reduce lending to the oil and gas sector, currently at about 39 per cent of total loans, and focus more on blue chip companies in other sectors.
Esele proffers solution
Former Trade Union Congress (TUC) President, Peter Esele, now a governorship aspirant on the platform of the All Progressives Congress (APC) in Edo State, said for Nigeria to come out of the woods, the government must reform education and encourage investment in agriculture.
He stressed the need to focus on improving local production because “promoting local production is the catalyst for any economy to grow and thrive.”
Esele applauded Oshiomhole for contributing to the development of education in the state, but said more needs to be done to meet the high demand for quality education and to consolidate on the achievements of the outgoing administration.