Minimum Wage implementation depletes N4.79tr personnel budget
Over 69,800 federal civil servants may have a gloomy Christmas as delays in salary payments dampen their holiday celebrations.
With two days to Christmas, federal civil servants are unsure of their December salaries, leaving them at loss of how to deal with their Christmas needs.
The Guardian reports that most federal civil servants have encountered delays in receiving their October and November salaries with strong indication that it would affect the December salary.
Findings show that the delay in salary payments is caused by the depletion of the N4.79 trillion allocated for personnel expenses in the 2024 budget, largely due to the implementation of the new minimum wage.
Further findings revealed that 69,854 core civil servants receive their salaries through the Integrated Personnel and Payroll Information System (IPPIS). However, the Bureau of Public Service Reforms (BPSR) estimates that Nigeria’s federal workforce stands at 720,000. Further, data from IPPIS shows approximately 1,139,633 Federal Government employees across 696 Ministries, Departments and Agencies (MDAs).
A circular to Voice of Nigeria (VON) revealed that the delay in salary payment was also due to the government’s payment of the 40 per cent CONPSS Peculiar Allowance, which was not in the budget for the outgoing year.
The notice issued by the Director of Finance for the Director-General, Jack Odeh, on October 22, 2024, disclosed that personnel costs from October to December 2024 would be augmented from the Service Wide Vote.
The notice entitled ‘Notice of Delay in October 2024 Salary’ reads: “Consequent to the Federal Government’s implementation of the minimum wage in September 2024, and the non-inclusion of the 40 per cent CONPSS Peculiar Allowance in the 2024 budget, the Voice of Nigeria personnel budget has been exhausted.
“VON’s personnel cost from October to December 2024 will, therefore, have to be augmented from the Service Wide Vote. We regret to inform the staff and management that there will be a slight delay in the payment of salaries for October to December 2024. This is due to the ongoing process of augmentation, which requires necessary approvals from relevant authorities for VON and other MDAs involved.”
Investigations revealed that other affected MDAs include Raw Materials Research and Development Council (RMRDC), National Library of Nigeria;(NLN), Nigeria Security and Civil Defence Corps (NCDC) and National Lottery Regulatory Commission (NLRC).
The implication of federal servants not getting their salaries before Christmas can be severe. For many families, Christmas is a time for celebration and gifting, but without their salaries, federal workers may struggle to make ends meet. This can lead to a dull celebration, as many federal civil servants cannot afford to buy new clothes, cook special meals, or travel to visit loved ones.
In a chat with The Guardian, workers, who wished to remain anonymous, lamented the delay in salary payments while speaking with our correspondent.
They expressed frustration about the uncertainty surrounding their pay, typically expected at the end of each month.
Regretting that this development has left them worried about meeting their financial obligations, especially with the approaching holiday season, he added, “With Christmas just days away, there is growing uncertainty and concern among us, as there is no clear indication of when our salaries would drop. I was lucky to receive mine yesterday, others are yet to get,” a staff of NLRC told our correspondent.
According to pundits, the implications can be far-reaching and devastating, affecting not only their financial well-being but also their emotional and mental health.
Meanwhile, the Federal Government has clarified that contrary to reports of widespread impact, the issue affected fewer than 12 MDAs.
In a telephone interview with our correspondent, Director of Press at the Accountant-General’s office, Bawa Mokwa, maintained that the issue had been resolved, and that all salaries for the months of October and November had been paid.
Also reacting, the Trade Union Congress (TUC) urged the Federal Government to prioritise the timely payment of workers.
National Deputy President of TUC, Dr Tommy Okon said, “Workers need their salaries, which is their right, to enjoy the yuletide. That is what I expect government to do; so, they will be able to buy things for the children and family on time before the prices skyrocket.”
