Following 50 per cent drop in revenue, inflation and the high cost of living, the Federal Government has commenced the review of the Remuneration Act which will affect what the president, vice president, governors, and others will earn.
The review will also affect the remunerations of other political officeholders including the ministers, the National Assembly members and the judiciary.
Speaking exclusively to Daily Sun at the weekend, Chairman of Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Elias Mbam, said the review is undergoing a process to determine whether it will be reviewed upward or downward.
He, however, noted that given the harsh realities on ground, the 2008 Remuneration Act must be reviewed.
“The commission is not insensitive to the realities on ground. There is a drop in the oil price, there is a general economic downward trend. Many states are even finding it difficult to pay salaries. In view of this situation, the commission has commenced the review of the remuneration of the present Act of 2008 and by the time we conclude, we will make public our position with regard to the new Remuneration Act,” he said.
Mbam said the commission will consider other things in tandem with what is happening in other parts of the world.
“The thing is that we are not working in isolation of other parts of the world. We are also looking at what is obtainable elsewhere. What is being paid in the private sector. What type of work do you do? What are the risks? Does the work require the allowance that you are earning? What are the shortcomings of the present Remuneration Act? What is the rate of inflation? So, it is not something you just say, increase or decrease. But certainly, there will be some changes,” he emphasized.
On the time-frame of the new remuneration law, the chairman said it should come up with a new proposal before the end of the third quarter.
“It is before the end of September because when we come out with our new proposal, it will still go through the National Assembly for the executive arm of the government. But for the legislators, our determined emolument is final. When we conclude, whatever we decide for the legislators is final. But that of the executive will still go through legislative process. But whatever they will decide finally will not be more than what the commission decided,” Mbam noted..
At the moment, the President earns N3.51 million per year, Vice President (N3.03 million), Minister (N2.02 million), Minister of State (N1.95 million) and Special Adviser (N1.94 million), Governor (N2.22 million), Deputy Governor (N2.11 million), and Commissioners