The Federal Government has announced that workers will receive a 40% salary increase starting from April.
According to reliable sources, the Federal Government is set to commence the payment of the proposed salary increment for civil servants by the end of April. However, there have been no indications of any changes to this plan at the moment.
The anticipated disbursement of funds is pending the final approval of President Muhammadu Buhari.
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Should the proposal be approved, it would signify that the hike will take effect approximately two months prior to the proposed June deadline for the elimination of petrol subsidy.
According to exclusive sources within the Federal Government, a new pay increase known as the consequential allowance is set to result in a 40% hike in the current salaries of government employees. This development was disclosed to The PUNCH in confidence by government officials.
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In an exclusive interview with The PUNCH, Olajide Oshundun, the Director of Press and Public Relations at the Ministry of Labour and Employment, disclosed that the Federal Government is set to commence the disbursement of the 40% salary increment by the end of April 2021. He further stated that the outstanding arrears for the months of January, February, and March will be settled at a later time.
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According to Oshundun, there is no confirmation yet on whether the proposal put forth by the government committee assigned with the responsibility has been approved by the President.
According to his statement, civil servants from level 1 to level 17 will receive a 40% increase in their consequential allowance salaries.
The current remuneration system is referred to as the consolidated public service salary structure, which encompasses both the basic salary and all associated allowances. According to sources, there will be a 40% increase in the current salary of public servants.
According to sources, payments are set to commence at the end of this month (April), with arrears for the months of January, February, and March to be paid at a later date. Starting from January 2023, there will be a salary increase. According to sources, a proposal has been submitted by a committee tasked with examining salary adjustments for civil servants. However, it is unclear whether the President has signed off on the proposal at this time.
In a recent announcement, the Minister of Labour and Employment, Chris Ngige, revealed that the Federal Government has given the green light for a salary increase for civil servants across the nation.
According to his statement, the pay increase has been incorporated into the 2023 budget and will become effective from January 1, 2023.
According to Ngige, the pay raise is a unique allowance for civil servants, taking into account the current economic situation. Its purpose is to alleviate the impact of inflation, increased cost of living, transportation fare hikes, and rising housing and electricity tariffs on government workers.
According to the report, Nigeria’s headline inflation has surged to 22.04% year-on-year in March, marking the highest rate since September 2005.
The National Bureau of Statistics has reported that the inflation rate has risen for the third consecutive time this year, with an increase of 0.13 per cent points in comparison to the February 2023 headline inflation rate. This information is based on the latest data from the bureau.
According to the National Bureau of Statistics (NBS), the rise in the cost of food and beverages has played a significant role in the overall inflation.
According to a report by the National Bureau of Statistics (NBS), the divisional level items that contributed to the increase in the headline index include food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, transport, furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurant and hotels, alcoholic beverage, tobacco and kola, recreation and culture, and communication. The report stated t
On Monday, the leaders of the organised labour criticised the proposed pay rise, stating that it was a paltry allowance that would not equate to a 40% hike in the salaries of workers.
In a recent telephone interview, Tommy Etim, the National Vice President of the Trade Union Congress, confirmed the government’s plans to increase allowances rather than salaries, as has been speculated in the media.
As per his statement, the increment in the allowance is a result of the unique circumstances that have emerged due to the elimination of fuel subsidy and inflation. The individual emphasised that the payment had not yet been received by civil servants.
According to his statement, he is aware of the government’s actions and has confirmed that the payments will commence in January. The recently introduced payment does not constitute a raise in the remuneration of employees. The allowance granted is of a unique nature and should not be misconstrued as a salary hike, in order to avoid any misinformation among the public. According to sources, the recent salary adjustment only applies to the basic salary and is not a universal increase. To avoid the market woman from perceiving a salary increase by the government, other components remain untouched. The current allowance is a result of the unique circumstances surrounding the removal of fuel subsidy and inflation. According to sources, it has been confirmed that an allowance should not be considered as a salary. As of now, it is not possible for me to provide an authoritative statement as no civil servant has reported receiving the payment until it reflects in their respective bank accounts.
The President of the Association of Senior Civil Servants of Nigeria, Etim, has urged the government to increase various allowances, including rent and transportation.
The request has been made to explore additional allowances, particularly those related to housing and transportation. The current socioeconomic indicators do not bode well for civil servants who are struggling to afford transportation costs, with some even spending their entire salary solely on transportation, let alone rent and other expenses. According to him, it is crucial for the government to consider that aspect as well.
The Nigerian Labour Congress has denied any knowledge of the proposed increment, stating that they have only heard of it as rumours.
According to the National Treasurer of the NLC, Hakeem Ambali, the union has not been engaged in any discussions regarding the matter.
According to him, the rumours are yet to be confirmed as there are established procedures for negotiating fringe benefits and workers’ entitlements, which is through collective bargaining. The negotiation process would involve three parties. Despite the current developments, the situation still appears to be a mere speculation. The Federal Government is yet to extend an invitation to the relevant labour union for negotiations and a mutually beneficial agreement.
According to labour representatives, any increase that is not supported by available and empirical data would not be acceptable. In order to reach a sound conclusion, it is imperative that we analyse the current economic and inflationary trends. According to the source, the initial course of action would be to return to the negotiating table.
In response to the government’s proposed plan, the union representative stated that their next course of action would be to persist in their efforts. During their acceptance speech, they emphasised the importance of negotiating with the Federal Government regarding minimum wage increment. The representative made it clear that any allowance that fails to consider the current economic situation would not be acceptable to the labour union.
