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The Accountant-General of the Federation, AGF, Ahmed Idris, says the
federal government plans to begin payment of staff salaries by the 25th
of every month as directed by President Muhammadu Buhari.
Mr. 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 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, salaries are usually paid after the FAAC meeting,
where revenue accruing to the federation’s account is shared among 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 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 when we delay FAAC, we can still pay salary,” he said.
Mr. Idris dispelled the widely held belief that the Treasury Single
Account (TSA) policy was responsible for the delay in the payment of
salaries and attributed the situation to the crash in global oil prices,
which 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,’’ he said.
Citing the benefits of TSA, Mr. Idris said more than N2.7 trillion
had been realised under a single account domiciled at the Central Bank
of Nigeria.
He also said 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 said he was optimistic having seen the benefits of the TSA policy
to the Federal Government, states governments would key into it.
Mr. Idris said 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.
“They should be more strategic and focused and I believe that they will be better for it,” he said.
The TSA policy was introduced in September 2015 to ensure that government’s resources are centralised in a single account.
It was introduced to block leakages in the system to ensure
transparency and efficiency in the management of government resources.
(NAN)
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