We’re committed to restoration of gratuity in public service – Apebo, ASCSN scribe

Comrade Joshua Apebo is the Secretary General of the Association of Senior Civil Servants of Nigeria (ASCSN). In this interview with UFOMBA UZUEGBU, he restates the union’s opposition to the stoppage of gratuity payment in the public service and vows to ensure its restoration. He speaks on other national issues.

Excerpts:

1. Sir, what have your experiences been like, in your present position? How would you describe your management style and how do you cope with the demands of your office?

There are obstacles and distractions in the performance of my duty. My management style is the contingency approach. I deal with issues depending on the situation/circumstance. In other words, I apply the doctrine of necessity. In order to cope with the demands of my office, I imbibe the spirit of tolerance, perseverance, and endurance, and above all, I am always focused on my mission.

2. What, in your opinion, are the strong selling points of your association?

One of the selling points of the Association is that we have been able to fulfil one of the core objects which is to represent wherever and whenever necessary the opinions of members of the Associations on matters directly or directly relating to terms and conditions of employment in the public services of the Federal and State Governments and also any other matter which is of common interest and benefit to the generality of members. Recently, we (Association) were able to secure approval of a Peculiar Allowance for staff on Consolidated Public Service Salary (CONPSS) and our members constitute a large percentage of the beneficiaries. 

I wish to use this opportunity to debunk the rumour that the Federal Government has approved a pay rise for civil servants. Federal Government did not approve any pay rise for the public service. What Government has done is to ensure the harmonisation of what agencies earn in the core civil service. Core civil servants on Consolidated Public Service Salary earn very low compared to what other agencies earn. 

The Federal Government bridged the gap by approval of the peculiar allowance. Other public servants in the Health and Tertiary Institutions have been enjoying allowances that are specific to their sectors. They have different salary structures so the 40% is just an allowance that is peculiar to the core civil servants who are on Consolidated Public Service Salary Structure. We also sponsor our members for local and foreign training to enable them to update their skills for efficient and effective service delivery.

3. We are on the threshold of the 10th National Assembly. What are your expectations for the incoming administration?

As a labour leader, the reactivation of Gratuity for public servants under the Pension Reform Act (2014) and the prescription of a living national minimum wage should be on the threshold of the 10th National Assembly. The incoming administration should tackle the issue of insecurity particularly Boko Haram, banditry, and kidnappings as well as separatist agitations in the country.

4. Ours is virtually a mono-product economy (crude oil). What, in concrete terms can be done to expand the income base of the Nigerian economy?

In order to effectively diversify the Nigerian economy, we need to shift our focus away from oil as it has proved to be ineffective in driving the economy and really invest in agriculture, tourism and technology. Agriculture is a key sector that will not only improve the economy but will provide food security and provide jobs for the teeming unemployed youths in the country. If properly developed, the Agricultural sector will not only provide jobs but will give Nigeria needed foreign exchange and feed the Nation.

Nigeria is blessed with beautiful landscapes, forest reserves, mountains, rocks, waterfalls, and other recreational centres. With our great cultural heritage and beautiful cultural festivals, tourism should be raking in more income for us. Places like Gurara Water Falls in Niger State, Yankare Game Reserve in Bauchi State, Olumo Rock in Abeokuta, Afi Mountain Wildlife Sanctuary in Cross River State, Ikogosi Warm Spring in Ekiti State and so on, if properly renovated and managed, would be raking in billions of Naira yearly.

According to research, the average income for a tech industry professional across the U.S. is $71,809. That’s roughly $20,000 more per year than the average American salary, which is $51,480 a year. Even those starting in the tech industry make an average of $53,000, still more than the average American salary. The Buhari Administration already created the Ministry of Communication Digital Economy to tap the revenues accruable from that sector but Nigeria needs to create a Tech-friendly environment if we really want to surpass the US standard.

One other way to expand the income base of Nigeria is that Government should adopt a single market-responsive exchange rate, refocusing the Central Bank on its mandate to reduce inflation and more importantly non-oil revenues where revenue-generating agencies of government are strengthening in order to block leakages from tax collection and accrue revenues are remitted to the public treasury.

5. How would you assess the economic policy of President Muhammadu Buhari’s administration in the areas of ;

1. Sanitisation of public institutions
2. Fiscal restraint
3. Respect for the budget process
4. Poverty alleviation
5. Others

Fiscal restraint:

The International Monetary Fund (IMF) said Nigeria almost emptied its treasury on debt servicing in 2022. The Federal Inland Revenue said it collected N10 trillion in revenue in 2022, with a 2023 budget expenditure of N21.83 trillion pegged on deficits of N11.34 trillion.

The incoming Government must learn from the mistakes of the Buhari Government by borrowing against assets, not income. This was what the likes of Brazil and India did that attracted Foreign Direct Investment into their countries. Also, the incoming Government should borrow against assets not income and focus on equity financing rather than debt to grow the economy. The current government continued borrowing such that towards the end of the administration, debt cost rose as high as the revenue. It is threatening the fiscal outlook of the country that by the time you pay interest on them, you would not have anything left.

Respect for the budget process:

According to the report, Nigeria spent eighty per cent of its revenue paying debts in the first eleven months of last year. The outgoing administration of President Muhammadu Buhari allocated 5.2 trillion naira ($11.3 billion) to servicing debt between January and November of last year while generating income of only 6.5 trillion naira in the period. The government in its 2023 budget pledges to boost collection and bring down debt payment to 60% of revenue but it is hard to say that the goal is achievable, especially with the government’s commitment to continue the petrol subsidy. When a government is run with an expenditure that almost doubles its revenue and with more than 90% of the deficit-financed by local borrowing, the scorecard is far below average.

Poverty Alleviation:

Well, the Buhari government introduced several poverty alleviation programs such as National Social Investment Programme (NSIP), Government Enterprise and Empowerment Programme (GEEP), Conditional Cash Transfer (CCT) and so on but then, but the 2022 Multidimensional Poverty Index survey reveal that 63% of persons living within Nigeria (133 million people) are multidimensionality poor. This shows that the incoming government has a lot to do correctly if they are determined to lift the masses out of poverty.

6. Federal Government’s debt has crossed the N41 trillion mark. What is the implication to our fledgling economy? How can the incoming administration curb this seemingly unregulated borrowing by state governments?

The Debt Management Office (DMO) has revealed that the outgoing administration led by President Muhammadu Buhari will be leaving a total debt of 46 trillion for the next administration. In the last eight years of the President Buhari administration, Nigeria’s debt profile had grown from N12.6 trillion in 2015 to over N46 trillion in 2023. Despite the huge debt burden the incoming administration is about to incur, the situation has continued to raise fiscal worries, especially as the International Monetary Fund (IMF) said that Nigeria almost emptied its treasury on debt servicing in 2022. The Implication is that the incoming administration will first be distracted by the realities of this challenge. We hope they will be ready.

On how the incoming administration could curb this seemingly unregulated borrowing by state governments:

The incoming government needs to seek loan renegotiation, as it is the practice internationally. They should ensure that urgent measures are implemented to increase revenue and cut waste. Also, revenue-generating agencies of government should be properly audited with a view to producing better performance and surpassing set targets. Issues like subsidy removal and palliative must be well spelt out while also focusing on sectors like agriculture and tourism as well as empowering our large youth population.

7. What is your take on the N30,000 minimum wage, yet to be implemented by some state governments?

The N30,000 minimum wage was signed into law by President Buhari in April 2019 and as we speak, some governors are still struggling to do the needful. This is rather painful and disappointing. What can N30,000 even buy in today’s market? When you factor in necessities such as feeding, housing, healthcare, and school fees, you wonder if the minimum wage can even cater for it. The most painful part is that the same governors who have refused to pay this meagre amount enjoy the best healthcare (home and abroad), food, houses, cars, and all sort, basically on taxpayers’ money. I want to use this opportunity to appeal to their conscience to put themselves in the shoes of a family of five feeding on a salary less than the approved minimum wage. I hope it makes them sleep better at night knowing full well that innocent children go to bed hungry because they fail to do the needful. I just hope!

8. Recently, the IMF called on the Federal Government to increase taxes to be able to shore up its revenue and discontinue excess borrowing. What’s your take on this?

I disagree with the IMF that the Federal Government should increase taxes. Such a recommendation, if carried out, will further deepen the woes of the already impoverished citizens of Nigeria. Rather than increasing taxes, we should be talking about a sizeable reduction in government costs. Also, waivers granted to the big boys in the country should be greatly curbed. We need to also ensure that those who are ripe enough to pay tax actually pay it. To do this, we need to invest in proper record keeping of businesses and persons who earn a living in the country.