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Buhari 'Pay workers' salaries on 25th of every month,' President instructs AGF

According to the Accountant-General of the Federation (AGF), Mr Ahmed Idris, the payment will begin this month as an experitment.

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President Muhammadu Buhari has instructed the Accountant-General of the Federation (AGF), Mr. Ahmed Idris, to pay workers' salaries on the 25th of every month.

According to the Accountant-General of the Federation (AGF), Mr Ahmed Idris, the payment will begin this month as an experitment.

He disclosed this  in an interview with newsmen in Abuja on Wednesday, April 20.

Idris also noted that the government is working on a new arrangement, which, if approved, would ensure payment of the salaries before the monthly meeting of the Federal Accounts Allocation Committee (FAAC).

According to him, usually, salaries are paid after the FAAC meeting, where revenue accruing to the federation’s account are shared between the federal, state and local governments.

He said: “There is a standing instruction of Mr President to pay salary on or before 24 or 25 of every month and we will try as much as possible to comply and to abide by that.

“We are taking a step further to make a provision whereby we can accommodate salary payments even before FAAC.

“This is going to be given a test I believe by this month.

“We will go to seek for necessary approval of our political masters to make sure that at least salary and other statutory payments are made even before FAAC.

“Because we can project how much they are and therefore we can prepare and hit the ground running to make them realisable and actualised.

“Even where we delay FAAC, we can still pay salary.”

READ: Buhari says Nigeria has no business importing food

The AGF dismissed the insinuations that the cause of delay in the payment of salaries is due to the Treasury Single Account (TSA) policy, saying the crash in global oil prices, which affected the inflow of income to the country is responsible.

“Nigeria is practically making about 30 to 40 per cent of what it used to make by way of revenue from oil and that has affected inflow generally.

“These inflows are what the federal, state and local governments receive to service the economy. It is when we receive these resources and sit at the end of the month for FAAC that the resources are shared among the three tiers of government,” he said.

According to him, the TSA policy made possible for the government to realise N2.7 trillion under a single account domiciled at the Central Bank of Nigeria (CBN).

READ: ‘Buhari travelling to repair Nigeria’s reputation,’ Fashola says

He said that the cost of borrowing by government agencies has been reduced substantially and that the economy is already a benefiting from the policy, adding that the monies are stimulating the economy in a way that delivery of social goods, services and efficiency in government expenditure are being achieved.

“So I believe that they are already serving the purpose for which they are meant and they are within the economy,” he said.

He however dispelled the belief that the police would result to laying off of staff by deposit money banks, noting that the policy is not intended to disrupt the operations of those banks.

He urged commercial banks devise a new strategy on profit making without relying on government funds.

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