Editorial
Bail-Out Funds: In Support Of Senate Probe
Worried by the near state of insolvency and financial bankruptcy of some states in the country, resulting to non-payment of workers salaries and pensioners’ entitlements, for a long time, the Federal Government in 2015 doled out N338 billion as bail-out funds to beneficiary states to enable them offset their indebtedness to workers and pensioners.
The N338 billion which was a part payment of N510 billion Budget Support Facility (BSF) to states was specifically tied to salaries and pensions and was granted to 27 out of 36 states of the federation to offset arrears of wages and allowances, as some of the beneficiary states owed workers between five to 12 months and several years of retirees’ allowances.
Ironically, some of the states that benefited from the Federal Government’s bail-out fund policy, diverted such funds for purposes other than what the funds were meant to achieve.
Furthermore, in 2016, the Federal Government again reeled out the second phase of the BSF, this time, a 12-month statutory loan designed to provide an immediate relief to states to meet their statutory financial obligations to their workers and retirees with a monthly disbursement of N50 billion in the first three months and N40 billion for the remaining nine months.
Similarly, in 2016, a 22-point Financial Reform Plan (FRP) which commenced in June of the same year introduced Biometric Payroll Programme aimed at ensuring an audited annual financial status and reduction of ghost workers. It also aimed at generating and enhancing internally generated revenue to salvage most states that were unable to meet up salaries and wages payment.
Despite all these measures, some states are still heavily indebted to workers and retirees. More worrisome and condemnable is the fact that some of the state governors still proclaim in the public that they are not owing their workers.
A research conducted by the Nigeria Labour Congress (NLC) and the Independent Corrupt Practices and other related offences Commission (ICPC) revealed that funds released by the Federal Government under its bail-out funds initiative were diverted by some governors for payment of contracts which they had interest.
It is against this backdrop that the Finance Minister, Kemi Adeosun engaged the services of eight reputable accounting firms to audit such funds by the beneficiary states and determine how such monies were utilised. Of course, she warned that defaulting states will no longer benefit from the scheme henceforth.
The Tide therefore endorses the Minister’s action and the probe by the Senate into how some state governors used the bail-out funds, despite the protest by the said governors over the legitimacy or otherwise of the Upper Chamber to institute such investigations into the affairs of the states, the second tier of government.
Our position is quite clear, especially taking into cognisance that the said funds came from federal coffers and the nation’s parliament has the statutory obligation under its over-eight functions of the legislature to know the use or misuse of federal funds.
It is, indeed, unacceptable that governors of the beneficiary states should embark on white elephant projects while their workers and pensioners die daily in abject poverty. Some of such projects do not have direct bearing on the citizenry and are used to siphon public funds for selfish considerations.
It is unimaginable for states like Osun, Nassarawa, Benue, Imo, among others that owe arrears of salaries and pensioners’ entitlements pride themselves all over the place when their workers languish in pains.
Such states should key into Governor Nyesom Wike’s policy of ensuring that workers are paid as at when due, yet his landmarks in projects execution are phenomenal, remarkable and legendary.
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A New Dawn For Rivers’ Workers
Workers in the Rivers State civil service have been eulogising Governor Siminalayi Fubara for delivering on his promise to implement a new minimum wage of N85,000, which was reflected in the salaries paid for November. This increase is N15,000 higher than the national minimum wage of N70,000. This represents not only an enhancement in the financial welfare of civil servants but also a recognition of their hard work and dedication to public service. The raise has been met with widespread jubilation among the workforce, who have long advocated for a better wage to cope with rising living costs and economic challenges.
As the news spread, offices filled with laughter and sigh of relief, as employees exchanged stories of how this financial boost would positively impact their families and dependants. The new minimum wage is not just a number; it symbolises the government’s commitment to improving the standards of living for civil servants and fostering a more equitable workforce. Many workers expressed their gratitude for the governor’s timely intervention, highlighting how important it is for public servants to feel valued and adequately renumerated.
Governor Fubara’s decision is expected to reinforce morale within the civil service, fostering greater productivity and dedication among employees who contribute significantly to the state’s development. With the new wage in place, there is a renewed sense of optimism among civil servants, who now feel more empowered to serve the government and the citizens with greater enthusiasm and commitment.
The Governor had declared an increase in salaries for state workers, emphasising that this adjustment is not only a reflection of the government’s commitment to improving the welfare of its employees but also a strategic move fueled by the state’s enhanced Internally Generated Revenue (IGR). He assured workers that the financial backing for this increment is sustainable, stemming from the state’s focused efforts to bolster revenue through various initiatives, including tax reforms and enhanced efficiency in public service delivery.
Furthermore, the governor’s promise of funding the increment solely through increased IGR signifies a commitment to fiscal responsibility and transparency. It reassures the people that the government is proactively managing resources while investing in their future. As the state continues to explore opportunities for revenue enhancement, Fubara’s administration remains focused on ensuring that these initiatives translate into tangible benefits for the workforce, ultimately fostering a more motivated and dedicated public sector.
The decision by Fubara to be the first in Nigeria to implement the new national minimum wage is a commendable step that reflects a proactive approach to governance and an understanding of the pressing needs of the workforce. In an economy where many families struggle to make ends meet, especially in the face of rising living costs, this enterprise will improve the quality of life for workers and also set a precedent for other states to follow.
In recognising the various drives and support provided by Fubara’s government, it is necessary that the workers reciprocate by embodying a spirit of productivity and commitment to the current administration’s goals. They should align their daily operations with the administration’s objectives to enhance effectiveness and foster an environment of collaboration and trust. This reciprocal relationship can lead to innovative solutions and efficient service delivery, ultimately benefiting the state and strengthening public trust in government institutions.
Surprisingly, despite the political challenges the government has been navigating, alongside the myriad of ambitious projects it is embarking on, it has managed to raise funds to implement a minimum wage of N85,000 This achievement reflects a commendable level of resilience and resourcefulness within the government’s fiscal strategies. In a nation often marred by economic volatility and political discord, finding a way to sustain and even elevate the livelihoods of its employees is no small feat.
Workers in the state have truly found themselves in a remarkably advantageous position under this administration, especially when compared to the previous regime. The immediate past government’s blatant refusal to implement the minimum wage of N30,000 left many employees disheartened and struggling to meet their basic needs. What was even more disconcerting was the absence of meaningful negotiations with labour representatives, leaving workers feeling unheard and undervalued. In contrast, the present administration has prioritised dialogue and engagement with labour unions, recognising the importance of fair wage for workers’ contributions to the state’s economy.
With the current government’s commitment to improving wages and working conditions, it is clear that a major shift has taken place. This renewed focus on the welfare of workers empowers them and instils a sense of hope and optimism for the future, as they can now look forward to a more equitable and supportive work environment. Ultimately, the ongoing trajectory suggests a promising era for labour relations in the state, one where workers are valued and their rights upheld.
Siminalayi Fubara has consistently demonstrated his dedication to workers’ welfare since taking office in May last year. Unlike his predecessor, who left many employees feeling overlooked and unsupported, Fubara wasted no time in addressing the longstanding stagnation of promotions that had plagued the workforce for eight years. He took further steps towards financial justice by initiating the long-overdue payment of gratuities that were neglected during the last administration.
Similarly, we urge the governor to take another step forward by reviewing the stipends received by pensioners. The current pension amounts have become woefully inadequate, leaving many of them who dedicated their lives to public service struggling to make ends meet. These dedicated individuals who have contributed to the development of our dear state now find themselves in a precarious financial situation, receiving stipends that are alarmingly low and insufficient to cover basic living expenses. The rising cost of living has rendered their pensions nearly meaningless. Therefore, a comprehensive reevaluation of these stipends is a required measure to ensure that those who have served our state with honour can live their remaining years with dignity and security.
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