In the heart of Nigeria’s Federal Capital Territory, Abuja, a sense of unease has descended upon numerous workers grappling with a sudden reduction in their October salaries and allowances. This austerity measure comes amidst the prevailing inflation and broader economic challenges haunting the nation.
SaharaReporters has learned that the Federal Capital Territory Administration (FCTA) initiated these salary cuts, citing an exhaustion of its budget and personnel cost allocation. A letter from the Joint Union Actions Committee validates this sobering action.
Dated October 27 and jointly signed by JUAC President, Muyideen Oluwakorede, and Secretary, Enojo Sunday, the letter conveyed the distressing news to FCTA FCDA staff: “This is to inform the entire staff of FCTA FCDA that management met with JUAC earlier this week and has informed JUAC to sensitise all staff of its inability to pay the salary of all FCTA staff in the month of October 2023.”
The letter explains that the situation arose because the FCTA’s budget for personnel costs had been depleted due to various unforeseen expenses, including the payment of a 40% peculiar allowance to staff, the disbursement of hazard allowances in certain DSAs, and various unbudgeted allowances. In response, JUAC proposed a temporary resolution to address the issue.
JUAC insisted that the October 2023 salaries be paid without the peculiar allowance, in line with the current personnel cost allocation’s capacity. Additionally, they recommended that a virement be initiated between October and November 2023 to reallocate funds from other budget lines, bolstering the personnel cost allocation to facilitate the full payment of salaries for November.
However, for many affected workers, this pay cut has dealt a significant blow to their morale. They have attributed the reduction to the Minister of FCT, Nyesom Wike, and contend that it has plunged them further into financial distress, particularly considering the escalating costs of essential commodities nationwide.
A disgruntled worker pointed out, “Minister Wike failed to consider the economic hardships afflicting the nation. Instead of augmenting the N35,000 minimum wage, which was previously agreed upon by the president, he decided to cut down the October salaries of workers, citing a lack of funds.”
He added, “Most of us are burdened by mounting debts, constantly juggling debt payments with the necessity of purchasing essential goods on credit. The rising costs of transportation and a dwindling purchasing power, caused by the persistent depreciation of the Naira in the foreign exchange market, have exacerbated the situation. Even the meager incomes we receive have now been further reduced by the Minister.”
Another worker lamented, “Our spirits are at an all-time low. The Minister’s actions have only exacerbated our suffering, slashing our salaries at a time when the prices of nearly all commodities have skyrocketed.”