The Kaduna State Government has said that 93% of its earnings is expended on the payment of salaries of government workers in the state. This was disclosed against the background of the move by the government to right-size the state’s workforce.
The government further noted that there has been nothing left for the running of other aspects of governance once the salaries of workers are paid each month, a situation it said could no longer be allowed to continue if the welfare of the majority of residents in the state must not suffer.
According to it, the state has been receiving “from FAAC (the Federation Account Allocations Committee) since the middle of 2020, like most other sub-nationals, can barely pay salaries and overheads.”
The government further noted that “In November 2020, the KDSG had only N162.9m left after paying salaries. That month, Kaduna State got N4.83bn from FAAC and paid N4.66bn as wages.’’
In a statement titled “Why Kaduna is right-sizing its public service,’ which was released by Mr Muyiwa Adekeye, the Special Adviser to Governor Nasir El-Rufai on Media and Communication, the government further explained that with the call for increase in salary of government workers, the state government will further be under pressure as there is practically no funds left to take care of other important matters that should be of benefit to other residents of the state.
The government stated that “In the last six months, personnel costs have accounted for between 84.97% and 96.63% of FAAC transfers received by the Kaduna State Government. In March 2021, Kaduna State had only N321m left after settling personnel costs. In that month, the state got N4.819bn from FAAC and paid out N4.498bn, representing 93% of the money received.
“This does not include standing orders for overheads, funding security operations, running costs of schools and hospitals, and other overhead costs that the state has to bear for the machinery of government to run, for which the state government taps into the internally generated revenue earnings,’’ it stated.
In the view of the government, “the desire to pay more is a sentiment that must bow to the limits prescribed by the ability to pay.
“Therefore, the state government has no choice but to shed some weight and reduce the size of the public service. It is a painful but necessary step to take, for the sake of the majority of the people of this state.”
