NewStats: 3,263,858 , 8,181,616 topics. Date: Sunday, 08 June 2025 at 09:49 AM 1u4x5

Nigeria’s Economic Crisis: Governors advise FG to pay off civil servants above 50 years

The governors also ask the government to raise taxes across board and levy anyone earning N30,000 and above monthly.

Nigerian governors have advised the federal government to offer federal civil servants who are older than 50 years a one-off retirement package to exit the service, as part of coordinated efforts to instill fiscal discipline and prevent the nation from imminent economic collapse.

The governors made the proposal at a meeting with President Muhammadu Buhari in July, TIMES gathered from sources privy to details of the meeting.

The proposal also urged the government to begin implementation of the updated Stephen Oronsaye Report, which suggested merger and shutdown of agencies and parastatals with duplicated or contested functions as a way to address bureaucratic inefficiency and reduce the cost of governance.

Officials familiar with details of the meeting, who spoke to TIMES, explained that the governors were concerned about the deteriorating state of the economy and a proposal to restore fiscal discipline was presented to the federal government.

The federal civil service employs just about 89,000 people but will spend about N4.1 trillion on personnel costs this year, from its N17 trillion budget for the entire country. It is not clear how many workers are above 50 years of age, or how much goes to them.

The suggestion comes as indications emerge that the nation may be teetering towards the cliff of economic collapse.

TIMES reported Wednesday that Nigeria’s external reserves amount to only $15 billion, well below the $36 billion balance on the gross external reserves claimed by the bank. With the nation spending N5.9 trillion on imports in the first quarter of the year, reserves of $15 billion would barely cover four months of import.

Last week, details emerged that the balance in Nigeria’s Excess Crude had depleted significantly from $35.37m to $376,655, leaving the nation with no buffers to stabilize the economy and its currency. Yet another indication emerged recently that the nation was broke as debt service sured revenue.

According to details of the 2022 fiscal performance report for January through April, Nigeria’s total revenue stood at N1.63 trillion while debt servicing stood at N1.94 trillion, showing a variance of over N300 billion.


‘Fiscal Discipline’

As part of measures to restore fiscal discipline, the governors advised the federal government to reduce expenditure immediately by eliminating petrol subsidy and NNPC-funded projects, cap the Social Investment Programme (SIP) and National Poverty Reduction with Growth Strategy (NPRGS) budgets to N200 billion, eliminate extra-constitutional deductions from FAAC, and reduce SWV items for SDG and NASS Constituency projects.

The governors also asked the government to reduce duplications (e.g. empowerment programmes) and waste, reduce 1% granted to NASENI to 0.2%, amend the Act in 2022 Finance Bill, reduce personnel costs of federal government MDAs, and expedite privatization of non-performing assets like the NDPHC power plants.

Similarly, the governors urged that the 2023 – 2025 MTEF should reflect the suggestions and government’s commitment to restore fiscal discipline while the planned 22% increase in salaries in 2023 be reconsidered. They added that the fiscal deficit should be reduced to no more than 2% of GDP in 2023 – 2025.

Foreign Exchange and Reserves
To conserve foreign exchange and grow the reserves, the governors suggested that foreign trips by MDAs, including budgetary-independent agencies such as FIRS, NPA, NIMASA and NCC, be put on hold for at least one year. They also urged the Ministry of Foreign Affairs not to issue requests for Visas to foreign embassies for federal government officials and their families, unless express approval is granted by the presidency.

They also suggested the movement from State Income Taxation to Consumption Taxation, adding that with the introduction of 3% Federal Income Tax, state-level PIT should be abolished. Similarly, they suggested that state Sales Taxes (flat rate of 10%) should be enacted for the 36 States and FCT, VAT levels increased to 10% with a timeline to raise it to between 15% and 20%, as well as re-introduction and age of VAT into the Exclusive List. It was not clear whether all governors agreed with the position on VAT being moved to the exclusive list.

To improve tax revenues, they suggested that the federal government should introduce a flat 3% Federal Personal Income Tax on all Nigerians earning more than N30,000 per month, adding that persons earning less than N30,000 per month whether employed or not, including farmers and traders, should pay a monthly FPIT of N100. Similarly, telecoms firms and NIMC should collaborate to ensure deduction of this from phone credit of individuals and linking to NIN and BVN.

The governors also suggested centralization of the collection of all federal oil and non-oil taxes in one agency, the FIRS, while Customs, NPA, and others assess and issue demands. They suggested that the Federal Government improve crude oil and gas production, resolve lingering issues of ownership of gas in PSCs (eg Nnwa-Doro, OML 129) to help position Nigeria to take advantage of the gas needs in Europe, and provide incentives to expedite development of vandalism-resistant deep offshore fields like Bonga SW (Shell), Preweoi (Total), Zabazaba (ENI) and Owowo (Exxon).

The governors equally advised the government to encourage (and pre-finance, if necessary) Dangote Refinery to early completion to reduce massive future outflows of foreign exchange.

https://www.timesng.com/business/business-news/546829-exclusive-nigerias-economic-crisis-governors-advise-fg-to-pay-off-civil-servants-above-50-years.html

This is brilliant and a good idea to cut down the size of the work force

Im a Tinubu er but APC have failed. I know its only Peter Obi that can save this nation from total collapse.

Tinubu knows how to create wealth from Abundance, Peter Obi knows how to create wealth from lack. And Nigeria is in serious lack at the moment.

As for economics ill surrender tk Peter Obi.

Vulturereloaded:
Im a Tinubu er but APC have failed. I know its only Peter Obi that can save this nation from total collapse.

Obi er, you are ashamed to even Campaign for Obediot.

You're advising an 80 year old man to pay off 50-year-old civil servants? Where is the sense?

Water don garri finally. I wonder why Nigerians cant give these old thieves Sri lanka treatment.

Over bloated civil service.
Same with unnecessary political appointments.
We know what to do to reduce my xpenditure

Acidosis:



You're advising an 80 year old man to pay off 50-year-old civil servants? Where is the sense?

And the same deluded and ignorant APC government now has someone in his 80s planning to succeed the present government.

All governors above 50 years should go too

What a country

In all their suggestions, it baffles me to note that, the Governors never suggested a cut to their monthly security votes, their car allawances, wodrope allawances, furniture allowance, medical trip allowances & side chics allowances etc.
How more useless can these bunch of APC idiots be

Last week, details emerged that the balance in Nigeria’s Excess Crude had depleted significantly from $35.37m to $376,655, leaving the nation with no buffers to stabilize the economy and its currency. Yet another indication emerged recently that the nation was broke as debt service sured revenue.

Why??

Without improvement of the livelihood of the citizens.

In all of these, no suggestions of cutting down their salaries and allowances and that of the National Assembly since most of them will still port to Senate after being governors.

I weep for my country.

Nigerians get your PVCs ready let us change the narrative in 2023.

Realtalk20:
This is brilliant and a good idea to cut down the size of the work force

And what happens to the governors themselves?


The monthly security vote they pocket.

The pensions and huge entitlements they signed off for themselves.

Sai Buhari till 2056. Una never sre anything. Sheybi una don de package Agbado and Cassava baa, una go cry soon

Very controversial suggestions with far reaching implications.

Some of the suggestions like stopping foreign trips for public servants, privatizing underperforming federal assets, reducing the rent percentages of some agencies, merging some agencies carrying out duplicating or overlapping functions, centralization of revenue collection and pushing for increased oil and gas production are good and in the interest of the country.

Other suggestions such as paying off workers above 50 years, introduction of Federal-PIT, increase of VAT to 10% and 15%, introducing sales tax and putting VAT on exclusive list are inimical to the overall interest of Nigerians and in bad taste. It will cause more problem and further impoverish majority of Nigerians. The Labour crisis that will follow would be massive.

The old people are senseless because young people refused to take charge.

Wicked APC politicians, instead of cutting down on the bogus salaries of political appointees.

Meanwhile, most of the ex Governors are still receiving outrageous pension, cars and houses

CT

seunmsg:
Very controversial suggestions with far reaching implications.

Some of the suggestions like stopping foreign trips for public servants, privatizing underperforming federal assets, reducing the rent percentages of some agencies, merging some agencies carrying out duplicating or overlapping functions, centralization of revenue collection and pushing for increased oil and gas production are good and in the interest of the country.

Other suggestions such as paying off workers above 50 years, introduction of Federal-PIT, increase of VAT to 10% and 15%, introducing sales tax and putting VAT on exclusive list are inimical to the overall interest of Nigerians and in bad taste. It will cause more problem and further impoverish majority of Nigerians. The Labour crisis that will follow would be massive.

Kadoso Mutairu! Are you almost 50? This one wey fear de catch you.

And what happened to the governors themselves and the National Assembly with over bloated wages.

They are gradually coming down to OBI's plan of cutting cost of governance but would tell you not to vote OBI...

How do you intend to lay of staff above 50 years but looking to elect a president of 80 years, is something not mentally wrong.

Yougonna recommending an 80 year old man to pay off 50-year-old civil servants

Vulturereloaded:
Im a Tinubu er but APC have failed. I know its only Peter Obi that can save this nation from total collapse.

Brain-dead Animal! Who are those idiots gave birth to you? Your parents should be stoned on the face. Oponu!
We are discussing about the most important ways to safe the country from collapse, you were here talking about politics.
The recommendation is from all the 36 states governors ( regardless of the political party they belonged to. )
Eranko!

..

kingphilip:
Why??

Without improvement of the livelihood of the citizens.

In all of these, no suggestions of cutting down their salaries and allowances and that of the National Assembly since most of them will still port to Senate after being governors.

I weep for my country.

Nigerians get your PVCs ready let us change the narrative in 2023.

How? Are you voting in Chinese or someone from the moon? I laughed when I see you kids talking about getting PVC as if it's a ticket to heaven.

Start with yourselves

Life drama

Evil people.... I hope they start with themselves