Bolanle Akanji
Moderator
Hopes of quick resolution of the present face-off between the Federal Government and the Academic Staff Union of Universities were dashed on Tuesday as the Minister of Finance, Dr. Ngozi Okonjo-Iweala
expressed her doubt that the current strike action embarked on by the Academic Staff Union of Universities, ASUU, might be called off soon, as the federal government does not have enough to meet the union’s demands.
Okonjo-Iweala was speaking today in Minna at the annual National Council on Finance and Economic Development meeting, with the theme, “Restructuring Nigeria’s Finances”, where she revealed that the University lecturers were demanding N92billion in extra allowances. She made it clear that the FG cannot meet up with the stated amount, as it is trying to reduce the structure of public expenditure.
She said: “At present ASUU wants the government to pay N92 billion in extra allowances when resources are not there and when we are working to integrate past increases 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.”
Okonjo-Iweala also argued that if these demands are met, and “we continue to pay them salaries and allowances, we will not be able to provide infrastructure in the universities.”
The minister argued that when she assumed office “the share of recurrent expenditure in our total budgets had increased astronomically. “
“In fact recurrent expenditures accounted for about 77.2 per cent of the federal budget and we are now working to re-balance this ratio,” the minister added.
expressed her doubt that the current strike action embarked on by the Academic Staff Union of Universities, ASUU, might be called off soon, as the federal government does not have enough to meet the union’s demands.
Okonjo-Iweala was speaking today in Minna at the annual National Council on Finance and Economic Development meeting, with the theme, “Restructuring Nigeria’s Finances”, where she revealed that the University lecturers were demanding N92billion in extra allowances. She made it clear that the FG cannot meet up with the stated amount, as it is trying to reduce the structure of public expenditure.
She said: “At present ASUU wants the government to pay N92 billion in extra allowances when resources are not there and when we are working to integrate past increases 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.”
Okonjo-Iweala also argued that if these demands are met, and “we continue to pay them salaries and allowances, we will not be able to provide infrastructure in the universities.”
The minister argued that when she assumed office “the share of recurrent expenditure in our total budgets had increased astronomically. “
“In fact recurrent expenditures accounted for about 77.2 per cent of the federal budget and we are now working to re-balance this ratio,” the minister added.