N165 billion monthly salaries of federal civil servants not sustainable – Adeosun

The Minister of Finance, Kemi Adeosun, said on Thursday in Lagos that the N165 billion monthly salaries to federal civil servants was over-bloated and could no longer be sustained by government.

The minister spoke at a meeting with Newspaper Proprietors Association of Nigeria (NPAN) hosted by her counterpart in the Ministry of Information and Culture, Lai Mohammed.

Adeosun, who was speaking on the economy reform agenda of the government, said that the N165 billion being paid to federal civil servants monthly represented 40 per cent of the total spending of government.

She said the figure was too high and the government was pursuing aggressive measures to detect and prosecute ghost workers and other saboteurs in the system.

“We spend 165 billion every month on salaries and when I came in there was no checking.

“Now, we have created a unit assigned with the sole responsibility of checking the salaries and catching those behind the over bloated salaries,’’ she said.

Adeosun said that the Integrated Payroll and Personnel Information System (IPPIS) introduced by the previous administration was faulty and sabotaged by the element benefitting from the salary fraud.

She said that many Federal Government establishments including the Police were yet to be captured in the system.

According to her, it is shocking that the Nigerian Railway Corporation which was not fully functioning still had 10,000 workers in its payroll serviced by government.

The minister assured that government would correct the anomalies in the payroll system and weed out all ghost workers in the service.

Adeosun said that the fiscal focus of the administration was to ensure an economic growth that would be measured on job creation and productive sectors.

“The economy is not measured by how many private jet we have but how many jobs we create.

“People must be productive for the economy to grow.

“We have been a consumer economy, but we want to be productive and stop buying everything from abroad.

“We have been borrowing to pay salaries for years and that has to stop because it is not sustainable.

“Last year, we spent N64 billion on travelling and only N90 billion on roads. Travelling does not grow the economy and this must also stop,’’ she said.

The minister said that the compound GDP of the country had been growing negatively in the last 10 years and the administration was working to correct the trend.

She assured that the administration would be the most discipline government the country has ever had in terms of fiscal accountability and responsibility.

Also speaking at the meeting, the Minister of Agriculture, Audu Ogbeh, said government would reposition the agricultural sector to become the mainstay of the economy.

“The ministry will give policy direction and coordination to make farming attractive and for people to practice it as business.

SOURCE: Premiumtimes

Nigerian Senate passes 2016 budget

The Senate has passed the N6.08 trillion budget for 2016, with an unprecedented reduction in the budget’s total.

President Muhammadu Buhari presented a N6.08 trillion proposal in December 2015.

The Senate passed N6,060,677,358,227 trillion budget after considering its conference report on the budget.

It was the first time since 1999 that the National Assembly would approve a figure lower than proposed by the executive, John Enoh, who heads the senate finance committee, said.

He said that reflected the “mood of the country and the world” and showed “discipline” of the part of the National Assembly.

Presenting a report on the budget, Danjuma Goje, Chairman senate committee on appropriation, said that the budget was “full of controversy”, but that the senate would not want to delay its passage by adding more controversies to it.

He said that there were lapses in the budget, but that the committee had to work around them. He said that the delay in the passage of the budget had already been given a political hue, hence Nigerians would blame the legislature for any further delay.

President Muhammadu Buhari presented a record N6.07 trillion budget in December but asked for its withdrawal a month later to make changes after a further drop in oil prices.

The total budget has not changed but the deficit has risen to 3 trillion naira ($15 billion) from 2.2 trillion.

The senate, based on the recommendation of the committee, adopted $38 per barrel crude oil benchmark for the budget, as proposed by the federal government. It also adopted a foreign exchange rate of N197 per dollar as proposed by the government.

The senate, however, reduced the total budget sum from N6.07trn to N6.06trn: N351bn for statutory transfers, N1.4trn for debt service, N2.6trn for recurrent expenditure, and N1.5trn as capital expenditure.

Also, the upper legislative chamber observed that the budget was not presented in time to the national assembly, which effected its passage.

It urged the federal government to submit the budget subsequently in strict compliance with the Fiscal Policy Act, and advised that there should be proper consultation between the budget office and the ministries, departments and agencies.

The senate also asked the government to diversify its revenue base, and to shore up capital expenditure and reduce recurrent expenditure.

Nigeria has held talks with the World Bank and has looked at borrowing from the African Development Bank and China Exim Bank to plug the budget gap as oil trades around $30 a barrel, down from over $100 in 2014.
SHORT BREAK DOWN OF 2016 BUDGET
Power, housing and works………. #433.4b
Transportation………………. ‪#‎202b‬
Interior……………… #53.1b
Special intervention programs………‪#‎300b‬
Defence…………. #137.6b
Education…….. #369.6b
Health…….#221.7b

SOURCE: Lensng