Thursday, 2 July 2015

We won’t pay staff schools workers’ salaries again – FG


President, Senior Staff  Association of Nigerian Universities, Samson Ugwoke



The Federal Government has formally hands off the payment of salaries of teaching and non-academic workers of staff schools in institutions across the country.
The National Salaries, Incomes and Wages Commission specifically said government should not be responsible for the payment of their salaries because of its overbearing effect on the budget.
Part of the mandate of the commission includes monitoring the wage sector and advising the Federal Government on the fixing and regulation of workers’ salaries and other remuneration as well as the control of personnel costs.
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The announcement by the chairman of NSIWC, Chief Richard Egbule, during a press briefing on Wednesday in Abuja came on the heels of threat by the Senior Staff Association of Nigerian Universities to embark on strike if the Federal Government refused to fund the schools which were said to have been established by the institutions.
“I would like to appeal to staff unions not to distract the new government with unnecessary demands. The government has stopped payment of salaries of members of staff in the primary and secondary schools in these tertiary institutions and the decision is final,” he said.
He recalled that in an agreement signed between the Federal Government and SSANU in November 2009, it was clear that universities should bear the full capital and costs of both staff primary and secondary schools, while parents of pupils and students should bear the recurrent costs.
Egbule said that in the course of its inspection, the commission observed a trend in which government-owned institutions charge the funding of staff schools established by them to government treasury.
This, he said, contributed to the overbloating of the recurrent cost in government budget.
To correct the situation, the commission said a study it carried out in 2013 to ascertain the number of staff schools in the country revealed many disturbing trends.
“Fourty-eight did not have staff schools, 21 funded their staff schools from their internally generated revenue, while 51 funded theirs from federal treasury budget sources by hiding the staff lists of such schools as part of the institution’s authentic members of staff.
“In some instances, the staff salary of such schools was placed on the salary structure meant for tertiary educational institutions, which is higher in quantum than the Consolidated Public Service Salary Structure which has been costing the Federal Government about N4bn per annum,” Egbule stated.
The commission added that based on its findings, it issued a circular with reference number SWC/S/04S.446/T2/85 dated August 27, 2014” in which it stated that the policy was applicable to all staff schools meant for the children of the personnel of such institutions and other members of the public regardless of the nomenclature used.
The National President of SSANU, Samson Ugwoke, told had journalists in Abuja that the government’s decision would contravene an earlier agreement reached between government and relevant associations in 2009. The agreement, he said, was that government would continue with the funding of recurrent and capital expenditures of universities’ staff schools.
“An institution (the National Universities Commission), that is supposed to advise the government rightly is not doing so. We are calling on the government to do the needful and what is right. This is the last warning and you will not hear from us again until we take action because strike is imminent,” he threatened.
According to him, the schools were established by statues and therefore made provision for employment of relevant workers by the universities’ council.
Ugwoke had said government should not resort to distribution of directives through circulars and throw thousands of employees into the labour market.
He argued that the law should be changed before such a directive could be implemented.

Naira falls to 230, dollar supply dries up

Nigeria Naira Notes
These are definitely not interesting times for the nation’s economy, particularly the national currency, the naira, no thanks to the depleting reserves and the subsequent banning of importers of 41 items from the foreign exchange market by the Central Bank of Nigeria.
Barely 10 days after the CBN stopped forex sale to importers of rice, textile and 39 other items, the naira on Wednesday crashed to 230 against the United States dollar at the parallel market, down from 218 recorded on June 23 when the new forex rule was introduced.
The policy, which has pushed huge forex demand from the interbank (official) market to the parallel (black) market and the Bureau de Change retail segment, has led to artificial scarcity of dollar and other major foreign currencies as operators now hoard them in anticipation of higher prices.
The naira had fallen to 220, 223, 226.5 and 228 against the dollar in the past one week.
Black market and BDC operators, however, told our correspondent that serious dollar liquidity squeeze was already hitting the market and operators were no longer in possession of huge stock of forex to meet rising demands, especially from the importers of the banned items.
Using the CBN figures, analysts had estimated that about $5.7bn quarterly forex demand was being transferred from the official interbank market to the black market.
“The situation is getting critical now. There is serious dollar liquidity squeeze in the market now. The demand is overwhelming and both the black market and the BDC segment can no longer meet the demand,” a black market operator told our correspondent on Wednesday.
“The market is very volatile now as a result of the restrictions placed on about 41 items by the central bank. Most importers are now patronising the parallel market to source their dollars,” the head of a BDC, Mr. Harrison Owoh, told Reuters on Wednesday,.Meanwhile, the Association of Bureau De Change Operators has written to the CBN asking it to intervene in the dollar scarcity in the parallel market and the BDC segment to save the naira from crashing further.
In the letter, a copy of which was obtained by our correspondent, the association expressed its readiness to work with the CBN to stabilise the market.
The letter, signed by association’s President, Alhaji Aminu Gwadabe, and Executive Secretary, Uduma Cletus, advised the CBN to increase its weekly forex sale to the BDCs from $30,000 to $50,000.
The body also asked the central bank to reintroduce the autonomous market where it could sell about $100,000 to the operators.
Gwadabe told our correspondent that it was expedient for the CBN to increase its forex sale to the BDCs in order to stabilise the naira.
Some analysts believe the naira may hit 240 against the dollar in the coming days.
However, the naira traded at 198.95 to the dollar at the interbank market on Wednesday, according to Reuters.
The central bank had lowered its exchange rate peg to N196.95 to the dollar on Tuesday from N196.90 last week
Also, a trade of $735.74m went through on Nigeria’s interbank currency market at N198.45 on Wednesday, Thomson Reuters data showed.
Market sources said a foreign client had sold dollars to a bank in Nigeria. Total interbank market volumes stood at $1.12bn on Wednesday, far higher than typical trading sessions since the central bank introduced a naira peg in February.
Meanwhile, the CBN has reminded dealers and banks that their dollar cash sale for six items, including schools fees, insurance premium, basic travel allowance and monthly mortgage should not exceed $5,000.
In a new circular dated July 1, 2015, the CBN also warned banks not to sell forex to the importers of the 41 items that were banned from the forex market last week.

More pics of the young Boko Haram victim Osinbajo visited yesterday

 
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Singer Diamond Platnumz shares cute photo of his heavily pregnant girlfriend

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