Government begins effectuation of 25 per cent salary cut-off

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The Nigerian government, on Monday began the implementation
of the 25 per cent reduction in the basic salaries of the members of
the Federal Executive Council as promised. This reduction is to
reflect in the January take- home pay of the members of the
council.
The effectuation followed the earlier announcement by the
Predsident of the federation to slash basic salaries of the FEC by
25% in a bid to reduce the cost of governance in the wake of the
nationwide strike over total removal of fuel subsidy in the country.
Dr Yerima Ngama, the minister of state for finance confirmed the
implementation of the directive while briefing journalists shortlyt
after a monthly Federation Account Allocation Committee (FAAC)
meeting in Abuja on monday.
Ellaborating on the matter, Dr. Ngama said that “The process of
salary cut has begun and it is taking effect from this January. As a
matter of fact, the computation for the reduction of the 25 per cent
had already been done by the Accountant-General of the
Federation.”
At the meeting which lasted for about 3 hours, the committee
moved to ensure that civil servants got their salaries by January 20
as directed by the President. It shared N559.11bn, for the month of
December 2011, among the three tiers of government.
He further added that the amount excludes Value Added Tax (VAT)
of N57.1bn which was not shared earlier because of the
nationwide strike.