Okonjo-Iweala says FG’s spending on salaries has quadrupled Reviewed by Momizat on . The Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iiweala on Tuesday called for caution with the rising wage bill of the public se The Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iiweala on Tuesday called for caution with the rising wage bill of the public se Rating:
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Okonjo-Iweala says FG’s spending on salaries has quadrupled

The Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iiweala on Tuesday called for caution with the rising wage bill of the public sector, noting that it could erode gains recorded for economic stability.

Addressing a forum of the organised private sector and Civil Society Organisations in Abuja on Tuesday, to deliberate on issues that will guide the preparation of the 2013 Budget, Dr Iweala said that the federal government is presently spending huge funds in the payment of personnel.

According to the Director-General of the Budget Office of the Federation, Dr Bright Okogu, the wage bill of the public sector, quadrupled from N443 billion to N1.659trillion between 2009-2012.

A situation which he says is not healthy for any nation craving for transformation.

Dr Okonjo-Iweala called for the reduction of Ministries, Departments and Agencies as stated in the Stephen Orasanye report, to check leakages needed to grow other sectors of the economy.

Further speaking, Dr Okogu also revealed that the share of personnel cost as percentage of aggregate expenditure increased from 27 per cent of the total federal government spending to 34 per cent in 2012.

While these government officials are canvassing a cut on spending to meet up with the challenges affecting the country, members of the private sector, led by the president, National Association of Small and Medium Entrepreneurs, Garba Gusau, advised that funds saved from such leakages be channelled into activities that would grow the businesses of entrepreneurs thereby creating jobs for the unemployed.

A similar recommendation was earlier made in the year by the Presidential Committee on the Rationalisation and Restructuring of Federal Government Parastatals, Commissions and Agencies in an 800 paged report which recommended the reduction of the nation’s Ministries, Departments and Agencies (MDAs) which are 541 in number, to 163.

The federal government was advised to scrap the nation’s anti-graft graft agencies, the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practice Commission (ICPC) and 375 other agencies citing inefficiency and replication of duties at a huge cost on the nation’s purse.

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  • Humane1

    Reasonable recommendation but how do we deal with the impending říše in unemployment status? Did you consider that?

  • http://twitter.com/Smith0195 same same

    Tell it to the birds, nice doublespeak!

  • http://www.facebook.com/people/Baba-Tunde/1585187471 Baba Tunde

    “Okonjo-Iweala warns on rising FG’s wage bill which has quadrupled in 3 years”…Wonder shall never end. What benefits did Nigerians gain from the additional cost incurred on wage bill? Madam Minister should give Nigerians more break down on the rising wage bill? How many new employees were employed that resulted in the rising wage bill? And, what % of the rising wage bill went into increase in salaries & allowances of politicians? How many ghost-workers on the federal government payroll? Nigeria is totally messed up. Imagine the National Assembly with about 500 members spending N65Billion per annum. And, Madam Minister is complaining about rising wage bill.

    • http://pulse.yahoo.com/_PYHAD3B6PO4LN6R7G5QCZQ3FEA Oseun

      We need to be grateful to Dr. IWeala for calling the attention of Nigerians to it! How many Finance minister that we have in time past has called the attention of Nigerians to this? 

    • http://pulse.yahoo.com/_PYHAD3B6PO4LN6R7G5QCZQ3FEA Oseun

      We need to be grateful to Dr. IWeala for calling the attention of Nigerians to it! How many Finance minister that we have in time past has called the attention of Nigerians to this? 

  • http://twitter.com/Smith0195 same same

    Nigeria Jaga Jaga! corruption is Nigeria`s fatest industry. Mismanagement, Jumbo salaries and allowances from local, state to federal govt. including multiple agencies/parastatals at all levels: local, state and federal govt.

  • http://pulse.yahoo.com/_CS2UNQJO3AONDPZD5WWQTLVRD4 Adeleye.OH

    Its a paradox.Where were you when Nigerian advised GEJ at inception of his administration to reduce or merge the ministries.What he could say was that,its constitutional.Jobs for boys.The guy is incompetent and myopic.Okonjo Iweala should resign if she cannot cope with rising bill.God would save us in this country

    • http://pulse.yahoo.com/_PYHAD3B6PO4LN6R7G5QCZQ3FEA Oseun

      Why should she resign? For speaking the truth? Get a life bro! 

  • http://profile.yahoo.com/KCFCIIC2ZIKS5Y5LPUK7JMK7TE Plasma

    So?

  • 9ija Man

    too much talk , always whining and doing nothing,Oronsaye has submitted his report but Adoke and his
    implementation report is nowhere to be found, even after the expiration of the deadline.but aren’t
    these absolute figure stats misleading as the aggregate expenditure has tripled and wage bill has
    almost “fourpled”. so Goverment is spending3 times more and doing less.

    So, why are they telling us?They are the ones that keep creating new committees and government agencies every other day.Those are known for swallowing money and producing NADA.The power is in your hands, do something instead of making empty statements

    SHe is a fast learner.She has learnt pretty fast how things are done in Nigeria. Next, she will start blaming some fictional cabals for all the money missing. And trust Nigerians, they will eat the shyt up real fast . . . after all, MIT and Harvard grads dont steal money.

  • 9ija Man

    since she paid off the debts, which she said will settle the economy of the country for years to come, the economical situation of the country has become worse and worse, we are getting into debt and i predict that the amount of debt will only increase, which begs the question, why did she pay off the debt? it was probably a bragging right but those monies we wasted on debt payment could’ve been used for the better of the country, the long term economic prospects do not look bright at all, everyone should be worried

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