There Is No Money Anywhere We Are Struggling To Pay Salaries– FG. The Federal Government of Nigeria has stated that there Is No Money Anywhere We Are Struggling To Pay Salaries. According to the Minister of Budget and National Planning, Atiku Bagudu, the Federal Government of Nigeria is facing enormous challenges and revenue deficit amid a growing population. The government struggles to pay salaries because “there is no money anywhere in the country.”
The growth rate is slow, and the population is fast-paced and increasing. Unemployment is surging amid high inflation.
The country’s economy is expected to grow at an average of 3.4% between 2023 and 2025, benefitting from the reforms undertaken and a recovery in agriculture and services.
The lack of job opportunities is at the core of high poverty levels, regional inequality, and social and political unrest.
Policymakers can help to deliver broadly shared wage growth through monetary and budgetary policy that prioritises full employment, raising the minimum wage, updating overtime rules, strengthening rights to collective bargaining, regularising undocumented workers, ending forced arbitration, securing workers’ access to sick leave and paid family leave, closing race and gender inequities, and awarding government contracts only to firms that adhere to wage, health, and safety laws.
“Government faces enormous challenges, especially now that it faces a revenue deficit. There is no money anywhere in the country; the government is just managing to pay salaries.
“The growth rate is very slow, and the population growth is fast-pacing and increasing. Unemployment is surging amid high inflation,” the minister said.
The Nigerian government is facing financial challenges due to several factors, as stated by the Minister:
Declining oil production: Nigeria’s economy heavily depends on oil exports, which account for over 90% of its foreign exchange earnings. However, oil production has been declining, leading to a reduction in revenue.
High fiscal deficit: Nigeria has consistently recorded a fiscal deficit, with government expenditure exceeding revenue for most years since 1980. The fiscal deficit has been blamed for much of the economic crisis that has beset the country.
Low tax revenue: Nigeria’s tax revenue is low due to low tax rates, administration inefficiencies, and poor tax collection systems.
Inflation: High inflation has taken a toll on households’ welfare and prices, with inflation rates reaching a two-decade high of 18.8% in 2022.
Unemployment: Nigeria’s unemployment rate is about 33%, and the lack of job opportunities is at the core of the high poverty levels, regional inequality, and social and political unrest.
Poor public financial management: Poor public financial management systems have contributed to the mismanagement of public funds, leading to corruption and wastage.
To address these challenges, the Nigerian government must diversify its economy, reduce corruption, increase tax revenue, and improve public financial management systems. There Is No Money Anywhere We Are Struggling To Pay Salaries– FG