Following President Muhammadu Buhari’s order directing the Revenue
Mobilisation, Allocation and Fiscal Commission (RMAFC) to address public
outcry over huge salaries and allowances of members of the National
Assembly, the chairman of the commission, Elias Mbam, said on Tuesday
that Senators and members of the House of Representatives will earn less
than N1 million by the end of next month.
Speaking at the State House after Mr. Mbam made presentation on the
activities and challenges of the commission, President Buhari chided the
RMAFC for approving excessive remunerations for some political office
holders, and urged the commission to seek a proper interpretation of its
powers and address the public outcry against the unreasonably high
payments.
President Buhari also warned that severe sanctions will be visited on
any individual or organisation that violates the directive on the
payment of all national revenue into the Federation Account.
President Buhari spoke a week after PREMIUM TIMES published details
of the federal lawmakers’ salaries and allowances, a publication that
sparked widespread public anger against the lawmakers, with many calling
a drastic cut.
But in his response to reporters’ questions after meeting the
president, the RMAFC boss said the commission had been working on the
review of the salaries and allowances of the political office holders at National
Assembly, the State Assemblies and Local Governments, adding that the
review also covers the Judiciary.
Mr. Mbam said the review, which according to him is still going
through a process and expected to be ready by next month, is expected to
reflect the economic realities of the day occasioned by the drop in oil
prices. “We are currently reviewing the subsisting remuneration packages and
it is going to reflect the socio-economic realities of today. We expect
that before the end of next month, it will be ready. But it will go
through a process, it is not something that you will just say yes or
no,” he said.
According to Mr. Mbam, “no member of the National Assembly should
earn up to N1million per month” and that the Senators and Members of the
House of Representatives have no option but to abide by the
commission’s new wage formula. “They do not have a choice. We are guided by the constitution and we
are going to be guided by such laws that are provided for in the
constitution and the oath they swore to obey,” he said.
According to him, President Buhari advised that they use all
legitimate means to ensure that all public office holders’ emoluments
comply with those approved by the commission and “ensure that leakages
are blocked.”
As part of the challenges faced by the commission, Mr. Mbam said the
commission was not properly funded as it should be one of the agencies
of government that should have financial autonomy.
“The best way to do that is to include it as one of the agencies that will benefit from first line charge,” he said.
The second challenge, he said is lack of power of enforcement. He
therefore demanded a review of the Act establishing the commission so
that it can have power of enforcement and sanctions on any of the
defaulting MDAs.
Mr. Mbam said the review of of salaries and allowances had been on
since last year, noting that it had become imperative to conclude it
following the drop in oil prices and the financial constraint which had
degenerated to states been unable to pay salaries of staff.
“These are some of the issues that made the review necessary. It did
not start with this administration, we started the review as far back as
last year. It is not because of the present administration that we
commenced it,” he said.
The RMAFC is saddled with the responsibility of determining the
remuneration for political office holders, both elected and appointed,
from the national level to the local government level.
The pay packages of public office holders, particularly the salaries
and allowances of the National Assembly members, have been an issue of
serious concern among Nigerians.
Since 2010, the N150 billion annual allocations to the National
Assembly in the budget, which includes the salaries and allowances as
well as other perks, have remained a closely guarded secret, as their
details have always been hidden from the public.
PREMIUM TIMES had on August 18 published a report indicating that the
360 members of the House of Representatives gulp N6.58 billion from the
nation’s treasury in annual salaries and allowances, while the 109
Senators cost the nation N2.14 billion in similar emoluments.
Cumulatively, the country shells out a hefty N8.72 billion every year
in salaries and allowances to lawmakers in the two chambers of the
National Assembly.
However, the amount the Senators and Members of the House of
Representatives remit as tax appears insignificant as their income tax
is calculated as a function of their basic salaries alone.
Yet the allowances, which are non-taxed are about 870 percent (Senators) and 820 percent (Reps) of their basic salaries.
PREMIUM TIMES analyses of the lawmakers’ pay did however not include
the illegal but hefty quarterly allowances lawmakers pay themselves –
they call it office running cost.
The infographics below give graphic analyses of the lawmakers’ salaries and allowances:
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