FG To Begin Payment Of Salaries By 25th Of Every Month –

The Accountant-General of the Federation
(AGF), Mr Ahmed Idris, says the Federal
Government plans to begins payment of
staff salaries by the 25th of every month,
as directed by President Muhammadu
Buhari.
Idris, who disclosed this in an interview
with the News Agency of Nigeria (NAN) in
Abuja on Wednesday, said “this is going to
be given a test, I believe, by this month’’.
The AGF also said that the government was
working on a new arrangement, which, if
approved, would ensure payment of the
salaries before the monthly meeting of the
Federal Accounts Allocation Committee
(FAAC).
According to him, usually, salaries are paid
after the FAAC meeting, where revenue
accruing to the federation’s account are
shared between the federal, state and
local governments.
“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.
“This is going to be given a test I believe
by this month.
“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.’’
Idris dispelled the widely held belief that
the Treasury Single Account (TSA) policy is
responsible for the delay in the payment
of salaries and attributed the situation to
the crash in global oil prices, which has
affected the inflow of income to the
country.
“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.’’
Citing 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.
He also said that the cost of borrowing by
government agencies had been reduced
substantially and that the economy was
already a beneficiary of the policy.
“The monies are stimulating the economy in
a way that delivery of social goods,
services and efficiency in government
expenditure are being achieved.
“So I believe that they are already serving
the purpose for which they are meant and
they are within the economy.’’
He said he was optimistic having seen the
benefits of the TSA policy to the Federal
Government, states governments would key
into it.
Idris said that any insinuations that the
policy would lead to laying off of staff by
deposit money banks was unfounded as the
policy was not intended to disrupt the
operations of those banks.
He, therefore, advised commercial banks to
re-strategise on how to make profit
without relying on government funds.
“I think banks need to really focus
themselves and re-direct themselves to
face traditional banking business and not
rely heavily on public resources.