Governance in Times of Economic Adversity: Let’s Reason With Captain Idris Wada by Abu Mike

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When the news broke out that Kogi State Government was negotiating to pay 60% of salaries to its workers on grade levels 07 and above as well as to political appointees, it no doubt came as a surprise to many who were not following revenues accruing to the nation in the last one year from oil that is usually shared to States at the end of the month.

Similarly, the news of the pay cut was shocking to many considering the economic realities and cost of living that has actually gone up.  Many who see the proposal as unacceptable hinged their arguments on the view that what the government is presently paying as salaries is even hardly enough to take workers home, wondered the hardship the cut will cause.

Kogi State is one amongst States that earns least on the income index from statutory allocation, yet among States that is among highest paid to its civil service.

Until the coming of the Capt. Idris Wada’s administration, the State receives an average monthly allocation of between N5.7 billion to sometimes N10 billion when excess crude or ecological fund is paid to the State Government.

The N18,000 minimum wage came into being under the administration of Alhaji Ibrahim Idris.

While other States failed in its full implementation, some States only accepted to pay sum ranging from N12,000 to N15,000.

Obviously owing to pressure from the labour and without cognizance of raining days, the State Government bowed to pressure and went ahead to implement relativity to the workers, a decision that increased salaries by 53% across board and few months later implemented N18,000 minimum wage across board.

It would be recalled that the Federal Government in its implementation graduated the payment of the N18,000 minimum wage. Workers on grade levels 01 to 06 had the N18,000 minimum wage fully implemented. But others got about N900 as the addition on their salary.

The singular bold and magnanimous action of then Gov. Ibrahim Idris,thus put the wage bill of the State Government with a work force closing 22,000 at N3.2 billion including the salaries of appointees.

The immediate past administration only succeeded in paying the relativity and implemented minimum wage in December of 2011 and left office in January 2012.

The burden to continue with the payment was therefore shifted on the administration of Capt. Idris Wada who since his assumption to office in January 2012, receives average monthly allocation ranging from N3.5 to N4. Billion.

Since the assumption to office, the present administration  received ecological funds only once. The Ecological funds receives is the money that is presently deployed to the building of embankment along Kabawa shoreline. The project when completed will not only protect the area against flood when ever it occurs, it will also sanitize and beautify the area from filth and stench that is associated with the area.

Averagely and since 2012, following the fall in allocation, the State Government is usually left with about N100m to N400m as monies for overhead after payment of salaries.

One thing you cannot but take away from the present administration is that it has made payment of salaries and allowances a priority. Today, the administration has even paid off gratuity of workers that retired from service since 1999 when the State was created till 2007 as at time of going to press. So also is its prompt payment of pension.

The slash in salaries is therefore occasioned by the down turn on government’s revenue following the fall in crude oil price in the international market which has thus compounded the predicaments of workers. Over 22 States now struggle to pay wages. Workers in State’s as Osun, Abia, Benue, Ogun, Ondo, Plateau, Rivers, Oyo and others for instance, are being owed several months of unpaid salaries. Surprisingly, most of the States with issues of unpaid salaries for upwards of seven months don’t even pay as high as what Kogi State pays.

The State Government’s inability to pay full salaries in April having kept faith with the regular payment of workers salaries is a commitment that Capt Wada has kept since 2012 without defaulting, shows that he has always made the collective welfare of workers a priority in the past three years.

Amidst the excruciating living and working conditions of the Nigerian worker and the economic adversity of present day governance, Capt. Idris Wada acknowledges and recognizes the need for the celebration of the selfless contribution of the workers to State and National development.

While the Labour Union usually have a task to gain the trust of their members through effective collective bargaining, protecting the interest of their members but the need for understanding, dialogue, sacrifice on how to get over the present problem can however not be over emphasized.

With the present challenge of shortfall likely not to abate quickly, it therefore makes more meaning for the workers to be involved now in decision making.

The involvement of the workers in dialogue on what should be paid to them will guarantee that they are part of a transparent decision of whatever is paid, after all they are a major critical stakeholder that the ruling elite and the masses need to survive.

While there is the need to re-invigorate the internal generating capacity of the State in line with new realities, introducing new taxes now will however not bring in quick result, it takes process and time.

The new thinking to diversify the revenue base on the State to meet present demand has therefore become apt.

Within the last three years, from an IGR of N150 million, Capt. Wada has shot it up to N500 million. Worrisome about this increase is that 80% of the sum comes from Pay As You Earn tax. The need to therefore look outward into other areas like Lagos State that earns N8 billion  monthly from the
Federation account, with a salary wage bill of  N6 billion, yet earns N23 billion from its IGR, enables it meet the challenges of infrastructural and other developments cannot be over stated.

Kogi State Government, under Capt. Idris Wada has no doubt worked hard on providing the enabling environment for workers to be well sheltered, expand their energy and skills, through motivation and training.

Similarly, furniture, car loans amongst others that will make the Kogi worker find meaning in working for the government has remained the present administration’s priority.

According to Abdulraman Abubakar, Senator elect to represent Kogi East (APC), blamed the cut on dwindling allocation and poor IGR, described the April allocation as one that was too bad; called for the workers understanding and commended the government for striving hard to improve its IGR.

In the words of Emma Egwu, also member elect, to represent Idah Federal Constituency, said with the drop in allocation, there was nothing the Government could do, insisted on a vigorous drive on the State’s IGR.

Also Hon. Dino Melaye, equally, called for a reduction in the salaries of State and National Assembly members, said the present times calls for sacrifices, such that a cut in salaries would allow for developmental projects.

From the recent visit of the APC Governor’s and Governor’s elect to General Mohammadu Buhari, President Elect, it was stated that the drop in revenue, according to Gov Rochas Okorocha who spoke on behalf of the group, said the state’s would witness more down slide in revenue for a long time to come until when oil prices rebound dramatically or other resources that can yield quick cash on a sustainable basis are discovered.

The times certainly call for sober reflection on the part of all stakeholders.  The planed slash in pay cut has no doubt thrown up several options; Reduce work force in a country where unemployment is an issue; continue to borrow to pay workers salary, a decision many described as not too a wise economic decision.

Lastly, accept the pay cut with the hope that if things normalize government can then go back to payments of the normal salaries. Certainly things will get better as it cannot remain this bad.

The need for sincere discussion, understanding, give and take by all the parties is therefore what is needed from the Labour, workers and Government, after all, the State and its people are important in the survival game.

For the State to move forward therefore, it would not be a bad decision if we begin to reason with Capt.

Wada to pay from what is available rather than live in a situation where nothing may be guaranteed.

Abu is the Chief Press Secretary to Kogi State Deputy Governor.


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