BEVERLY HILLS, April 06, (THEWILL) – The Minister of Budget and National Planning, Senator Udoma Udoma, on Thursday disclosed that half of the projected revenue in the 2017 budget is for salaries and pensions, but that the funds to pay the entitlements are not available.
This was as the Speaker of the House of Representatives, Yakubu Dogara urged the Executive to ensure that all backlog of pension payments are made promptly, asserting that excuses will no longer be accepted for failure to do so.
Udoma had while fielding questions from the Rep members disclosed that the federal government have been making efforts to resolve issues relating to the welfare of workers and retirees.
The minister said the government would have to look for ways for creating funds to pay pension arrears, revealing that a committee has been set up to address the issues.
His words, “I ask for your understanding. In the 2017 budget, about half of our total projected revenues are for salaries and pensions but the resources are not there.
“Most of these categories are up to date, however there have been issues with reconciliation of the numbers.
“The president is extremely concerned about this. He has directed us to get to the bottom of this as quickly as possible and a committee headed by the minister of finance should meet with all the relevant agencies and reconcile numbers.”
On her part, the Minister of Finance, Mrs. Kemi Adeosun, said though the problem of appropriation may not be sorted out in a year, the issue of pensions must be addressed.
“This is a welcome initiative. The issue of pensions isn’t a money issue, it’s a people issue. This is not a federal government problem. There is also a problem in the states as most struggle with pension and gratuities.
“The law says that the pension can’t be consolidated before the holder of an RSA can access retirement fund. They cannot access funds until government accrued pension rights and if appropriation is less than what is accrued, then we have a problem.
“The big issue is under appropriation. I’m not sure it can be sorted out in one year, but it must be addressed,” the Finance minister said.
Speaking when both ministers were done briefing the lower chamber on efforts so far made to offset arrears owed to Nigerian pensioners, Dogara expressed confidence that President Muhammadu Buhari will resolve issues surrounding non-payment of pensions to retired federal civil servants.
He recalled that when the President promised to provide bailout funds to states for payment of backlog of salaries, he ensured that it was done.
According to the Speaker, “We will not accept any excuse that leaves part of this pension funds hanging.
“When the president made a commitment that he was going to release money for bailout to states so that they can pay backlog of salaries and pensions, it happened, even though we were in the midst of a very biting recession. Now the president has said this issue of pension must be solved.
“I don’t know where you got the money to bail out the states from, wherever you got the money from, that is where we are going to get the money to solve this problem. And for the ministers who are representatives of the president, I believe you won’t make him (Buhari) break his words because his words are cherished.
“I want to believe this will be the last intervention we will be having with regards to the issue of pensions in this country. That is my charge.
“The message the house will be sending to the president through the ministers is, when you meet him to brief him about this engagement, just tell him that we have taken his words to the bank and we believe that we will cash it.”
