Public wages and current economic realities

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HIGHLY vulnerable because of its dependence on oil and the biting coronavirus pandemic, governments at the national and sub-national tiers are struggling to meet their financial obligations, includ...

HIGHLY vulnerable because of its dependence on oil and the biting coronavirus pandemic, governments at the national and sub-national tiers are struggling to meet their financial obligations, including the payment of wages. Primarily, governments are finding it hard to pay workers’ monthly salaries because of the implementation of the N30,000 minimum wage adopted at the beginning of the year.

To keen observers, there is much more to the debacle than his explanation. Public finance administration in Nigeria is deeply flawed. The country’s revenue sources have deteriorated sharply over the past year, aggravated largely by the COVID-19 lockdown that stressed the global economy. Income from oil, Nigeria’s main source of revenue, declined by 60 per cent, the Minister of State for Petroleum Resources, Timipre Sylva, said.

To create a buoyant impression, the federal and state governments are plunging headlong into debt. From N20.37 trillion in September 2017, public debt snowballed to N26.21 trillion by September 2019 and N31 trillion in 2020, and is projected to hit N38.6 trillion by December 2021. The borrowing is principally to plug the deficit and fund recurrent expenditure. The naira is in a free fall, abetting inflation, which rose to 14.23 per cent – a 30-month high – in October.

 

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If FG is to succeed in managing our economy in such a way that we don't experience this economic depression a comparative wages at certain levels would've to be implemented such that Army, Navy & Air Force Generals, IGP, DGP, Comptrollers of Customs, Immigration, Prisons & Profs

Is Nigeria only for the Northern ? Is this a dictatorship or democracy?

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