N-power Stipends and Worker’ Salaries in jeopardy as oil price tumbles low
N-power Stipends and Workers’ Salaries in jeopardy as oil price tumbles low: The Group Managing Director of Nigerian National Petroleum Corporation, has warned all Nigerians to prepare for the worst as the nation is under intense financial hardship and economic trouble, meaning that, states and even the Federal government may find it hard to pay salaries and stipends
Already, tension has started brewing within the Federation Accounts Allocation Committee (FAAC) whose members could not agree on Wednesday over the amount presented for sharing
Lately the Federal Government has cut down the 2020 budget by one (1) Trillion naira, due to low oil price, currently sold for $30 per barrel, and may even sell less as the coronavirus intensified her onslaught.
As of Friday, the brent crude is sold for less than $27 per barrel, giving the 2020 budget plan a catastrophic blow on the jaw, tumbling all time low again
The covid-19 pandemic had made the world economy slow down, while some weak and developing economies are experiencing total shutdown, many African country be enter recession in no distance time
The Nigeria Economy is no different; the government has closed the borders to contain the spread of the deadly corona virus, thus; dwindling or reducing the revenue coming from the border country
As we speak, the glut in the oil market will make oil sold for even less than $30 in the coming days, the pandemic and lack of corporation from OPEC and Russia may plunk the situation even more
Npower Stipends and Workers Salaries in jeopardy as oil price tumbles low
The Nigerian Economy is heavily reliant on oil, more than 95% of the 2020 budget was based on the oil bench mark of $60, now that oil is sold for $30/b, it will be very difficult to for any reasonable and decent minded government to throw “plantain chips” to any recurrent expenditure that will not yield fruit
According to CBN “27 states owed workers and pensioners salaries and entitlements ranging from one to 36 months . A 2017 survey showed that many states defaulted in the payments of pensions and gratuities, with Imo, Taraba and Niger states owing pensioners two to three years in entitlements. see https://myeduproject.com.ng/npower-n-teach-fg-ordered-closure-of-secondary-primary-schools
Kogi, Abia, Benue, Oyo, Ekiti and Ondo states had not paid their workers’ salaries in 2017, owing at least four months’ salary. Lagos and Rivers, however, did not owe any salary arrears.”
The issue of minimum wage has been thrown under the carpet for now, as many states are gasping for financial survival.
Last week, the governor of the economic-Finance minister has said, bringing new npower volunteers in to the Npower program is suspended for now, due to the covid-19 pandemic and the massive slash of the 2020 budget
The Minister of Finance and economic experts at the just concluded NEC meeting warned of another recession. If care is not taken, we may find ourselves in a difficult situation, where paying of worker’s salaries would become a stressful and painful. See https://myeduproject.com.ng/npower-hope-rekindled-as-rep-moves-for-permanency-of-all-volunteers
In an interview with daily trust, Hajiya Sadiya Umar Farouq, the Ministry of Humanitarian Affairs, Disaster Management and Social Development made it known that the budget in her ministry was reduced to half, making it pretty difficult to work as minister
Given the above analyses and close observation, if the federal government find it hard to salaries, npower volunteers may suffer more, as Npower programme is a political programme.
That is, it is not in the constitution like the NYSC mandatory one year programme. Meaning, if the government becomes financially stretched and incapable of financing it, “the plantain chips might be withdrawn from the monkey”.