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| Dr. Ngozi Okonjo-Iweala |
The union is insisting that the Federal Government should release the requested N92b in extra allowance into it's possession, but Nigeria's Finance Minister, Dr. Ngozi Okonjo-Iweala said yesterday that Government has no such cash to spare.
At the yearly National Council on Finance and Economic Development (NACOFED) with the theme: "Restructuring Nigeria's Finances". the minister explained that the demand by ASUU was coming when government was making efforts at reducing the structure of public expenditures.
"At present, ASUU wants the government to pay N92b in extra allowances when resources are not there and when we are working to integrate past increase in pensions. We need to make choices in this country as we are getting to the stage where recurrent expenditures take the bulk of our resources and people get paid but can do no work."
"If the demands of the university lecturers are met and we continue to pay them salaries and allowances, we will not be able to provide infrastructure in the universities", Finance Minister said.
The minister maintained that when she resumed office, "the share of recurrent expenditure in our total budgets had increased astronomically".
"In fact, recurrent expenditures accounted for about 77.2 percent of the federal budjet and we are now working to re-balance this ration," She argued.
She further said that Nigeria is still suffering from the effects of the 2010 increase in wages and then asked, "Do we want to get to a stage in this country that all the money we earn is used to pay salaries and allowances?"
Dr. Ngozi Okonjo-Iweala however argued that Nigeria's over dependence on crude oil has led to the decay of non-oil tax revenue, noting that in 1970 non-oil taxes accounted for 74 percent of Nigeria's revenue, but by 2012 it had declined to only 30 percent of governments revenues.
"Many states and local governments are also dependent on minthly revenue alocation from the central government. On average, only 11 percent of sub-national revenue was obtained from internally generated sources.
"In fact in August 2006 when I left office, we had a total of $17.3bn, comprised $3.5bn in foreign debt and $13.8bn in domestic debt.
"By 2011 when I returned to office, the total debt stood at $47.9bn and the domestic debt had grown to about $42.3bn." The minister said.
The minister, however, said the Federal Government had taken proactive steps to revamp the country's economy, adding that these measures had started yielding fruitful dividends in direct capital investment in Nigeria and establishment of industries and agro-based firms.
The Federal Government committee on the NEEDS assessment report in Nigerian Universities led by Benue State Governor, Gabriel Suswam in a long meeting with ASUU yesterday declared that an agreement have been reached to inject N100 billion for provision of infrastructure in 61 universities.
Based on the agreement therefore, the major issue now is the N92 billion earned allowances which Governor Suswam assured would be dealt with on Monday next week in another meeting with ASUU.
"I am confident that very soon the students will resume. As a leader in this country, I am worried about the strike, Mr President (Goodluck Jonathan) is absolutely worried and everybody is concerned that the students should not stay at home more than necessary," Governor Suswam said.
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