DGossip247 writes on the mixed reactions trailing President Muhammadu Buhari and Vice-President Yemi Osinbajo’s decision to slash their salaries by 50 per cent
The decision by President Muhammadu Buhari and Vice-President Yemi Osinbajo to cut their salaries by 50 per cent, have once more brought to the fore, the widening disconnect between Nigerians and their leaders. Unlike in other climes where citizens take their leaders for their words, no sooner than the Presidency announced the salary slash that criticisms from stakeholders, especially members of the opposition political parties and labour groups, ensued.
The Presidency, had through a statement by the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, on July 10, announced that Buhari and Osinbajo agreed to take only half of the salaries approved for them by the Revenue Mobilisation Allocation and Fiscal Commission (RMFAC).
The President’s current annual remuneration as approved by the commission is put at N14 million, but with the new development, Buhari will earn N7 million per year throughout his four-year tenure. The statement added that the decision had been conveyed to the Office of the Secretary to the Government of the Federation (SGF) by the Permanent Secretary of the State House, Mr. Nebolisa Emodi. “I write to forward the completed IPPIS registration form of Mr. President and to draw your kind attention to Mr. President’s directive that only 50 per cent of his salary be paid to him,” the statement quoted Emodi in the letter with reference number PRES/81/SGF/17. Shehu, who threw more light on the issue, said the president’s decision sends a clear message to Nigerians on the need to make sacrifices for the nation. “That voluntary action of the president is pregnant with meaning. It is a message of sacrifice for national development.
Since the president has done this for himself, he is expecting that others will join him in making sacrifices for their fatherland,” he said. President Buhari had earlier turned down an offer to procure five new armoured Mercedes Benz S-600 (V222) cars for his use. The cars, which total cost is put at about N400 million, were planned to be purchased by the State House.
Mixed grill
No doubt, the pay cut is not a government policy, but many have described it as a step in the right direction as government is suffused with incredible profligacy. However, there is a political school that believes that it is all about showmanship. To Prof. Oluremi Sonaiya, the 2015 presidential candidate of KOWA Party, “the country’s situation calls for rationality and even sacrifice, so the president’s decision to take a 50 per cent cut is a good development and other leaders should follow suit. We know that most of them are overpaid,” she added.
Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Mallam Auwal Rafsanjani, on his part, said the pay cut would have a lot of impact in encouraging prudence. He added that it would go a long way in blocking the leakages in government. However, the Nigeria Labour Congress (NLC) said it was imperative for the government to focus deeper on ways to rein in the cost of governance rather than the cosmetic announcement of slash in salaries by some public officers, which would not in any way improve the economy. Speaking through its Secretary- General, Peter Eson-Ozo, NLC said: “For some individuals to voluntarily decide to cut their salaries, I think it is cosmetic and I believe we should be more systematic than that.
“I think, to begin with, the law prescribes how salaries of public officers are fixed. If any public officer chooses to reduce his salary, he can donate it to charity or donate it to whomever.” Eson-Ozo noted that the labour movement had been clamouring for a reduction in the cost of governance, but it should not be by cutting of salaries. According to him, the bulk of what was driving governance cost was outside the prescribed salary. “It is clear that a pay cut that is neither backed by law nor initiated by the RMAFC, is bound to bungle up accounts.
If they do not accept it, how do those in charge of salary allocation handle the consequent balance?” he asked. The Labour Party (LP) described the decision as mere theatrics and playing to the gallery, adding that announcements such as that is an assault to the sensibilities and intellect of Nigerians. “If they expect to be cheered for taking a pay cut, they will be disappointed. Nigerians have matured and have grown beyond cheerleading leaders for less than stellar performances.” LP National Secretary, Kayode Ajulo said.
PDP: Pay cut not enough
The Peoples Democratic Party (PDP), which had been in power since 1999 until it was defeated during the last general elections, on its part, said the salary slash and rejection of official cars by the president and his vice are not enough to sway the expectations of Nigerians from the government. The party through its National Publicity Secretary, Olisa Metuh, added that President Buhari must strive to fulfil his electioneering promises as salary is a mere drop in the ocean of personal allowances and privileges that come to the president.
“PDP rejects the dramatisation of salary cut and rejection of official cars, all to gain cheap popularity and create an impression that the government is on course, when in the actual fact, the new administration has not been able to locate a bearing since its inauguration in May.
“While we appreciate the symbolic gesture by Mr. President in ‘cutting’ his N14 million annual basic salary by 50 per cent, it should be noted that Nigerians would not be wavered by the N7 million annual donation and rejection of official cars, and forget their expectations for the implementation of his long list of campaign promises for which he was elected into office,” Metuh said.
Cut allowances not salaries
Those who argued that allowances rather than salaries should be slashed, premised their argument on the fact that the take home pay of elected politicians, even if forfeited, would be too meagre to address the current financial problems confronting the country.
Ebonyi State governor, Dave Umahi, who holds this view, said he would not slash his salary because such measure was not the solution required to address the current economic doldrums being experienced in the country. “The major issue is to be honest to the people, it’s to deploy the resources God has given the people, don’t cheat them, don’t steal their money. What we take as political leaders, what is due to us is really very meagre. “I earn about N600, 000 a month; so if I cut it down to 50 per cent, that’s N300, 000.
That is not the kind of money the society is looking for. They are asking whatever is due to us, give it to us and I believe in that,” Umahi said. Former Oyo State governor, Senator Rashidi Ladoja, who described the decision as mere window dressing, said there are so many unknown bogus allowances not captured in the “so-called salary cuts.” He said: “I see some of the steps taken by our politicians as window dressing. If you say you cut the salaries of the Nation-al Assembly members, who knows how much they are earning? We only know what is written in the revenue allocation commission but we don’t know what their allowances are.
President, Vice President’s salaries/ allowances
According to information on RMFAC’s website, Buhari and Osinbajo are to earn annual basic salaries of N3, 514, 705 and N3, 031, 572.50 respectively. The president is also entitled to various regular allowances apart from his basic salary, such as; Hardship, 50 per cent of the basic salary – N1, 757, 350.50; consistency – 250 per cent, N8, 786, 762.50. Other regular allowances like motor vehicle fuelling and maintenance, special assistant, personal assistant, domestic staff, entertainment, utilities, security, newspapers and periodicals are to be provided by the government – not paid for. Allowances like accommodation, furniture, and duty tour allowance (per night), estacode (per night) and medical allowances are also to be provided as requested.
They are paid periodically, some monthly, a few once in four years. Duty Tour Allowance and estacode depend on travels. After adding up all the allowances, the president is supposed to earn N1, 171,568.33 monthly and N14, 058, 820.00 annually, while that of the vice president is N1, 010, 524.17 monthly and N12, 126,290 annually. A further breakdown down of allowances, shows the president’s severance gratuity is N10, 544, 115, that is 300 per cent of basic; he is entitled to a leave allowance of N351, 470. 50, (10 per cent of basic salary) and an optional motor vehicle loan of N14, 058, 820, at 400 per cent to be repaid before the expiration of the president’s tenure.
In addition to allowances like motor vehicle, feeding and maintenance, special assistant, personal assistant, domestic staff, entertainment utility, security, newspaper and periodicals; Osinbajo will also get Hardship, Consistency, Severance gratuity and leave allowance set at N1, 515, 786.25; N7, 578, 931.25; N9, 094, 717.50 and N303, 157.25 respectively. He will also receive a motor vehicle loan at 400 per cent of his basic salary which is N12, 126, 290; to be repaid at the expiration of his tenure.
Bogus overhead
Besides the salaries and allowances of the president and vice president, the Presidency, still enjoys a humongous budget. It would be recalled that the Goodluck Jonathan-led administration had made a provision of N348, 342, 741 as its proposal for honorarium and sitting allowance for the State House in the 2015 budget.
The breakdown of the expenditure on travel and transport showed that the president will be spending N1, 306, 834, 350 on local travels and transport and the sum of N621, 067, 913 on international travel. For food stuff/catering supplies, a provision of N142, 472, 537 was made for the office of the president.
The budget proposal included a provision of N131, 911, 315 for fuel and lubricants for the State House. The breakdown showed that plant/generator fuel will consume N35, 344, 855; motor vehicle fuel will consume N85, 843, 802 while cooking gas/fuel will consume N10, 102, 858.
Position of the law
RMAFC is statutorily empowered by Section 32 (d) of Part 1 of the Third Schedule of the Constitution to determine the remuneration appropriate for political office holders. They include the president, vice president, governors, deputy governors, ministers, commissioners, special advisers and legislators.
The last time RMAFC reviewed the salary structure was in 2007, following the salary structure review and associated allowances for the top federal public office holders earlier carried out by the National Salaries and Wages Commission, which took effect on May 1, 2000, during the Olusegun Obasanjo administration. Obasanjo’s basic annual salary as president was N2,586,000 per annum, while that of his vice, Atiku Abubakar was N1,938,000, the same as that of the then Chief Justice of Nigeria and the Senate President.
Against this backdrop, President Buhari cannot not force his ministers and aides to slash their salaries like he and his vice had done. The Presidency consented to this position, when it recently clarified that Buhari will not impose the decision on the yet to be appointed cabinet members.
“The decision taken by the President and Vice President was a voluntary thing. The decision is not a government policy, it is personal. You will observe that the president did not say they should issue a circular. “If he wants it to become a government policy, he will issue the directive through a proper channel.
He won’t make it compulsory, that is the position for now,” presidential spokesman, Shehu said. No doubt the president and his vice have taken the first step in reducing cost of governance by cutting their salaries by 50 per cent in line with current realities in the country, but such effort will make little impact in freeing needed funds for capital projects that will impact on the lives of the masses unless the cut is extended to their allowances and that of other public office holders, which constitute substantial part of their earnings.
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