The House of Representatives has urged the Nigerian government to carry out a forensic audit of its staff to address the problem of ghost workers with a view to saving money and reducing the increasing wage bill.
The House also asked the government to embark on cost-cutting measures to reduce other non-debt recurrent expenditures in the nation’s budget.
This was a sequel to a motion by a member from Lagos State Hon Ademorin Kuye at plenary.
The lawmakers disclosed that the federal government personnel expenses, pensions and other non-debt recurrent expenditures have increased by 241% in 13 years from N2.4 trillion in 2011 to N8,27 trillion in 2023.
Mr Kuye stressed that the country’s revenue within the period received massive hits from debt servicing obligations, while the government has little or nothing left for the recurrent expenditures and has resorted to borrowing.
“The country’s revenue within the period received massive hits from debt servicing obligations, the government has little or nothing left for the recurrent expenditures and has resorted
to borrowing”.
“Also aware that the Debt servicing obligations gulped 97 percent of the total revenue of the N3.42 trillion generated in 2011, Nigeria expended N3.34 trillion on debt servicing, meaning all federal government’s salaries, overhead and Capital Expenditure was financed with loans and Central Bank of Nigerian support
“Informed that the country’s revenues of N3.42trillion in 2020, N4.39trillion in 2021 and N7trillion in 2022 could hardly fund the wage bill of N5.7trillion, N5.76trillion and N7.1 trillion in 2020, 2021 and 2022 respectively
” Worried that the Federal Government wage bill, pension obligations and other non-debt recurrent
expenditures continue to grow significantly, despite the marginal increases in revenues and apparent increases in debt servicing pressure, he said.
He noted that the country’s debt servicing obligations gulped 97 percent of the total revenue of the N3.42 trillion generated in 2011 with the government expending N3.34 trillion on debt servicing.
This according to him meant that all the Federal Government’s salaries, overhead and Capital Expenditure within the period were financed with loans and Central Bank of Nigerian support.
He expressed concern that the Federal Government wage bill, pension obligations and other non-debt recurrent expenditures have continued to grow significantly, despite the marginal increases in revenues and apparent increases in debt servicing pressure.
Kuye observed that despite the present administration’s economic restructuring policies, revenues cannot continue to pay salaries and other recurrent expenditures when there are still humongous debt servicing obligations to be taken care of.
” Worried that the sharp difference in the wage bill from N2.4 trillion in 2011 and N8.7 trillion in 2023 in a country of 113 million people living in multidimensional poverty is alarming and
unjustifiable
“The House is also concerned that despite the present administration’s economic restructuring policies, revenues cannot continue to pay salaries and other recurrent expenditures when there are still humongous debt servicing obligations to be taken care of”. He said
Contributing to the debate, a member from Katsina state Hon Sada Soli said that the motion is an indictment on the National Assembly because it has failed to carry out due diligence on the annual budget as enshrined in the Constitution.
He said that the parliament has not paid much attention to the personnel and overhead cost of the government as contained in the annual budget during the budget defence.
Hon Soli said that the leadership of the House should allow robust scrutiny of the overhead and personnel estimate in the 2024 budget that will soon be presented to the National Assembly by the president.
The House therefore mandated the Committee on Legislative Compliance to ensure implementation.
Dominica Nwabufo
