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25042021 - B/Haram bandits almost succeeding in their mission CAN president warns

Vanguard Newspaper 25042021

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SUNDAY VANGUARD, APRIL 25, 2021, PAGE 9<br />

By Victor Ahiuma-Young<br />

Association of Senior Civil<br />

Servant of Nigeria, ASCSN,<br />

has warned governors<br />

contemplat<strong>in</strong>g to renege on the<br />

N30, 000 m<strong>in</strong>imum wage or<br />

accumulate arrears of salaries and<br />

other benefits to have a reth<strong>in</strong>k to<br />

avoid workers’ revolt.<br />

President of the ASCSN, Dr.<br />

Tommy Etim Okon, <strong>in</strong> a chat with<br />

Sunday Vanguard, warned that<br />

Organised Labour would not<br />

accept a situation where<br />

governors would compound<br />

workers’ woes <strong>in</strong> today’s<br />

economic situation.<br />

Okon spoke just as Kano State<br />

has reverted to N18, 000 m<strong>in</strong>imum<br />

wage and Kaduna is retrench<strong>in</strong>g<br />

several thousand employees on<br />

account of cash crunch.<br />

Analysts fear that other states under<br />

f<strong>in</strong>ancial pressure occasioned by<br />

dw<strong>in</strong>dl<strong>in</strong>g revenues may soon<br />

follow suit.<br />

“It is unfortunate that some<br />

governors are plott<strong>in</strong>g to<br />

renege on the N30, 000<br />

m<strong>in</strong>imum wage”,<br />

the union leader<br />

said. “This is<br />

sad because the<br />

governors that<br />

were elected by<br />

the poor people<br />

to protect <strong>their</strong><br />

•Okon<br />

<strong>in</strong>terest are the<br />

same people<br />

champion<strong>in</strong>g to<br />

cont<strong>in</strong>ually<br />

impoverish the<br />

poor masses.<br />

“We are<br />

talk<strong>in</strong>g about<br />

mere N30, 000 m<strong>in</strong>imum wage that would<br />

not be able to take anybody home consider<strong>in</strong>g<br />

the level of <strong>in</strong>flation, consider<strong>in</strong>g the level of<br />

taxation, high cost of utilities such as electricity<br />

tariff and fuel pump price that the government<br />

have cont<strong>in</strong>ued to <strong>in</strong>crease <strong>their</strong> prices and so<br />

on.<br />

“Yet, the governors do not see the reason to<br />

pay N30, 000 m<strong>in</strong>imum wage.<br />

“Some governors are even contemplat<strong>in</strong>g<br />

go<strong>in</strong>g back to the N18, 000 outlawed<br />

m<strong>in</strong>imum wage.<br />

“Leadership is not by force, if the governors<br />

are not capable of meet<strong>in</strong>g the demand of the<br />

workers, if they are not capable of pay<strong>in</strong>g the<br />

m<strong>in</strong>imum wage which they agreed to pay, and<br />

has been signed <strong>in</strong>to law by the President of<br />

the country, they should resign.<br />

“It is as simple as that. As Organised Labour,<br />

we will not take it. If the governors say they<br />

cannot pay, this is the best time for them to<br />

recall what happened dur<strong>in</strong>g the #End SARS<br />

protest.<br />

“If the governors reneged on the N30,000<br />

m<strong>in</strong>imum wage, that would cause a very<br />

serious misapplication of leadership<br />

pr<strong>in</strong>ciples.<br />

“We advise them to toe the path of honour,<br />

reth<strong>in</strong>k and stick with the N30, 000 m<strong>in</strong>imum<br />

wage. They should not force workers to revolt.<br />

Accumulation of salary<br />

arrears<br />

“In most cases, you look at misapplication<br />

<strong>in</strong> terms of management of resources. If<br />

government has taken workers as <strong>their</strong> priority,<br />

know<strong>in</strong>g very well that they are partners <strong>in</strong><br />

progress, the issue of unpaid wages and<br />

accumulation of salary arrears would not<br />

occur <strong>in</strong> the first <strong>in</strong>stance.<br />

“If a government honestly accumulates<br />

debts especially wages and other benefits, at<br />

the end of it, if such government starts pay<strong>in</strong>g,<br />

we will know that the government is mak<strong>in</strong>g<br />

frantic effort to pay.<br />

“But there are some who deliberately<br />

accumulate debts. They do not want to pay<br />

Too late to stop pay<strong>in</strong>g<br />

N30, 000 m<strong>in</strong>imum wage,<br />

workers warn govs<br />

• ‘Govs who can’t pay should resign’<br />

because they are not accountable and because<br />

government is seen as a cont<strong>in</strong>uum, so when<br />

they leave office, the next government will<br />

<strong>in</strong>herit the debt.<br />

“It is sad. They do not have any moral<br />

justification to have gotten to the level of<br />

accumulat<strong>in</strong>g these debts because it is the<br />

workers that are suffer<strong>in</strong>g.<br />

“A s<strong>in</strong>gle worker has a responsibility of a<br />

m<strong>in</strong>imum of five persons to take care<br />

of. In the African context<br />

where we have the<br />

issue of extended<br />

family system, the<br />

governors should<br />

know that workers<br />

should not be a<br />

slave and<br />

overstretched<br />

further. These are<br />

th<strong>in</strong>gs that can<br />

provoke people to<br />

revolt.<br />

Cha<strong>in</strong> of<br />

political<br />

aides<br />

“This is the application of management<br />

ethics we talk about. Those aides are<br />

redundant. They do not have anyth<strong>in</strong>g useful<br />

to do. Why not lay them off and concentrate<br />

on those who are implement<strong>in</strong>g the policies<br />

of government? “The aides are just political<br />

settlements. They are not useful to the system.<br />

Why do you engage them?<br />

“These are people perpetuat<strong>in</strong>g evil <strong>in</strong> the<br />

economy because they do not understand the<br />

work<strong>in</strong>g dynamics of adm<strong>in</strong>istration, they are<br />

just be<strong>in</strong>g political.<br />

“So, why not disengage them and<br />

concentrate on the workers that are useful to<br />

the system?<br />

“Each time we talk, they say why are you<br />

prob<strong>in</strong>g and look<strong>in</strong>g at security vote. Security<br />

vote can pay huge number of workers and<br />

you will be at peace.<br />

“What is happen<strong>in</strong>g today is from the family<br />

because if the family is unsettled, there is bound<br />

to be <strong>in</strong>security. Because they do not know the<br />

next l<strong>in</strong>e of action, they are look<strong>in</strong>g forward<br />

to surviv<strong>in</strong>g. “Unfortunately, the governor is<br />

busy engag<strong>in</strong>g political aides after political<br />

aides.<br />

“There are governors with well over 2, 000<br />

political aides. What are they do<strong>in</strong>g? If you<br />

th<strong>in</strong>k that the aides are important, and you<br />

are pay<strong>in</strong>g them not less than N150, 000<br />

monthly, and a worker is look<strong>in</strong>g for just N30,<br />

000, and you say you can’t pay, it is immoral.<br />

“One of your aides earn<strong>in</strong>g N150, 000, that<br />

money can pay about five workers. Yet, you<br />

say the N30, 000 is too much. Don’t you have<br />

conscience? Let us be fair for once.<br />

“Don’t forget that we go to the same market,<br />

our children have to pay school fees and other<br />

utilities <strong>in</strong>clud<strong>in</strong>g hospital bills.<br />

“Most governors have never taken the pa<strong>in</strong>s<br />

to look at the educational aspect of it because<br />

there is no free education. The worker will<br />

pay WAEC, NECO and others. “Sometimes,<br />

one th<strong>in</strong>ks whether these governors are liv<strong>in</strong>g<br />

<strong>in</strong> the moon. If they are operat<strong>in</strong>g under this<br />

economy, they should know that N30, 000 is<br />

noth<strong>in</strong>g <strong>in</strong> this economic reality.<br />

No money to pay<br />

“How can the governors say they do not have<br />

money to pay just N30, 000 m<strong>in</strong>imum wage?<br />

We do not believe such fabulous story.<br />

“We know they have money. Probably, what<br />

they mean is that they not have enough money<br />

for frivolities and the expensive lifestyles they<br />

are used to.<br />

“The workers that you are deny<strong>in</strong>g <strong>their</strong><br />

rights are the same workers <strong>in</strong> the system and<br />

they know you have money.<br />

“Are they not the ones implement<strong>in</strong>g the<br />

policies, don’t they know when you come to<br />

take money? Are the workers not the same<br />

people who know how money disappears <strong>in</strong><br />

form of capital flight?<br />

“So, you cannot tell workers that there is no<br />

money to pay.<br />

“The workers cut across all strata. They<br />

know the movement of money <strong>in</strong> the system.<br />

“The governor’s driver is a worker. The cook<br />

is a worker. The gateman is a worker. The<br />

gardener is a worker. They know when you<br />

move your girlfriends and women friends here<br />

and there, what you buy, what you give out<br />

and so on. You cannot say there is no money to<br />

'Govs should explore AfCFTA platform, SMEs, rationalise cost, prune workforce’<br />

Cont<strong>in</strong>ued from page 8<br />

readily take care of expenditure. The<br />

perennial shortage of revenue amidst<br />

escalat<strong>in</strong>g needs for public services leads<br />

government to over trade. All tiers of<br />

government are currently bedeviled by this<br />

malaise. To survive, state governments need<br />

to rationalise costs and boost revenue.<br />

“All options to ensure fiscal consolidation<br />

should cover all areas of leakages and<br />

overburden and f<strong>in</strong>ally at this critical time<br />

of suppressed revenue generation,<br />

expenditures should be tailored to areas of<br />

greatest need.”<br />

F<strong>in</strong>ancial crisis gett<strong>in</strong>g<br />

worse daily —Analyst<br />

Also, Head of Investment and Research<br />

at Fidelity Securities Limited, Victor<br />

Chiazor, said: “Go<strong>in</strong>g by the year 2020<br />

report for <strong>in</strong>ternally generated revenue by<br />

the states and FCT released by the National<br />

Bureau of Statistics, NBS, we can see clearly<br />

that the f<strong>in</strong>ancial crisis across the states<br />

seems to be gett<strong>in</strong>g worse by the day.<br />

“Hav<strong>in</strong>g reported that just three states<br />

have above five percent Internally<br />

Generated Revenue, IGR, contribution to<br />

revenue while 14 states have below one<br />

percent IGR contribution to revenue, it is<br />

clear that <strong>almost</strong> all the states are be<strong>in</strong>g<br />

run by federal government. They will run<br />

<strong>in</strong>to a deep crisis if those allocations stop<br />

or are reduced by government.”<br />

Structures and policies<br />

Consequently, Chiazor said: “As a matter<br />

of urgency, many states will have to reduce<br />

the cost of governance to enable them to<br />

release capital for other viable projects.<br />

Structures and policies that would expand<br />

its tax net as well as capture most of its<br />

<strong>in</strong>formal sector would need to be<br />

implemented while leakages need to be<br />

closed.<br />

“States would also need to create<br />

<strong>in</strong>centives to attract <strong>in</strong>vestors as most<br />

<strong>in</strong>vestors may not be open to <strong>in</strong>vest<strong>in</strong>g <strong>in</strong><br />

most of these states except these <strong>in</strong>centives<br />

are strong enough to move them. The option<br />

of wage reduction may not be widely<br />

accepted but may be necessary if the<br />

revenue profile of the states fails to improve.<br />

But that will also hurt the populace as more<br />

people are likely to fall further below the<br />

poverty l<strong>in</strong>e.”<br />

Reduce unnecessary<br />

expenditure —Kurfi<br />

Manag<strong>in</strong>g Director, APT Securities<br />

Limited, Mallam Garba Kurfi, said: “There<br />

is a need for state governments to reduce<br />

unnecessary expenditure, take value for<br />

money spend and <strong>in</strong>crease sources of<br />

revenue. There is a need for them to reduce<br />

costs of runn<strong>in</strong>g government.”<br />

“There is also the need to address<br />

<strong>in</strong>flation, especially now that it is more than<br />

18 percent before reduc<strong>in</strong>g wages.”<br />

Workforce must be reduced<br />

— Obiaraeri<br />

An <strong>in</strong>vestment banker and forensic<br />

auditor, Dr. Nnaemeka Obiaraeri,<br />

suggested the overhaul<strong>in</strong>g of the country’s<br />

fiscal, governance, political and<br />

constitutional architecture as a solution to<br />

the f<strong>in</strong>ancial crisis fac<strong>in</strong>g the federal and<br />

state governments.<br />

He told Sunday Vanguard that for states<br />

to survive, the public workforce must be<br />

pruned down to such a level that <strong>their</strong><br />

overall costs would not be more than 20<br />

percent of total revenue.<br />

The forensic auditor said: “Nigeria may<br />

end up nett<strong>in</strong>g <strong>in</strong> about N6.79trillion from<br />

crude oil sales <strong>in</strong> 2021. However, just like<br />

<strong>in</strong> 2019 and 2020, what may end up gett<strong>in</strong>g<br />

<strong>in</strong>to the federation account to be shared by<br />

the three tiers of government may not be<br />

more than N2.5trillion. The extra<br />

N4.2trillion will, as usual, be frittered away.<br />

“We can only end the madness by totally<br />

deregulat<strong>in</strong>g the downstream oil and gas<br />

sector.<br />

“To worsen Nigeria’s current decayed<br />

fiscal condition, those <strong>in</strong> power - the<br />

President, 36 governors and members of the<br />

national and state assemblies have refused<br />

to restructure Nigeria. They refuse to move<br />

63 out of the 68 items <strong>in</strong> the Exclusive List<br />

of the 1999 constitution to the Residual List.<br />

Such would have allowed devolution of<br />

power and resource control to engender<br />

production and healthy competitions<br />

amongst the constituent units that make up<br />

Nigeria.<br />

Poverty<br />

“With the extreme poverty <strong>in</strong> the country,<br />

heightened <strong>in</strong>security/breakdown of law<br />

and order <strong>in</strong> the land and monstrous<br />

corruption at all levels of government, the<br />

only th<strong>in</strong>g that can save Nigeria from be<strong>in</strong>g<br />

formally stamped <strong>in</strong>to the league of failed<br />

and dis<strong>in</strong>tegrated states, is for us to overhaul<br />

the fiscal, governance, political and<br />

constitutional architecture of the country.<br />

“Do<strong>in</strong>g this will help us to have a lean<br />

public sector workforce, part-time public<br />

office holders, and lean government<br />

overhead. This will allow us to unlock longterm<br />

private sector and global <strong>in</strong>vestments<br />

<strong>in</strong> the country.<br />

“Anyth<strong>in</strong>g short of the above<br />

recommendations will only spell doom for<br />

the cont<strong>in</strong>ued existence of Nigeria as one<br />

country. Nigeria is comatose. No life<br />

support mach<strong>in</strong>e can save her except we go<br />

back to the 1960 constitutional and fiscal<br />

framework.’’

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