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| Revolutionary Approach To Salaries, Allowances, And Fringe Benefit's Upward For Political, Public And Judicial Office Holders by Tizhe Yame Dzangri
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REVOLUTIONARY APPROACH TO SALARIES, ALLOWANCES, AND FRINGE BENEFITS’ UPWARD REVIEW FOR POLITCAL, PUBLIC AND JUDICIAL OFFICE HOLDERS The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) in pursuance of its Constitutional Role of Determining the Remuneration Appropriate for Political, Public and Judicial Office Holders as enshrined in the sections 70, 84, 111 and 124, as well as 32(d) of part one of the third schedule of the 1999 constitution of the Federal Republic of Nigeria, had in the year 2000 recommended the remuneration package for the office holders for the executive, legislature and judiciary at the Federal, State and Local Government Levels The recommendations of the commission for the Executive and the Judiciary were later passed into law by the National and State’s Houses of Assembly. The remuneration package came into effect on 29th May, 1999. From 1999 to this day, the country has witnessed some land mark changes in its economic life, such changing economic realities are monumental to the extent that the remuneration package has suffered a decline in real terms. Due to the changing economic realities, the desirability to review the package became even more compelling. While embarking on the review exercise, the commission recalled and dispensed; with a wide spectrum of issues that the maiden report of the remuneration package considered and resolved before it was determined and fixed. Since such issues or principles were carefully and adequately examined efforts in this review exercise, it considered wise, will centre on the guidelines already provided for the review of the package when the need arose. One of such issues dispensed with is the issue of international wage comparison. International wage comparisons are complex, because of differences in currencies and cost of living from one country to the other. In Nigeria for instance, salaries and allowances payable to the holders of public office at the Federal or the State Level, as the case may be are chargeable on the consolidated revenue of these tiers of Government. Besides, the comparison with other Countries especially, the United States of America, Canada, Britain, Gambia, South Africa or any other Country will be inappropriate, since the remuneration will be determined by the economic fortunes or developmental stage of that Country. It is considered safer not to reopen debates on such controversial issues in the present exercise. Having therefore accepted the 2000 report of the remuneration of political, public and judicial office holders, the reference point and a grund norm in which to base the current review exercise, the commission proceeded to adopt the guidelines provided therein for the review. The guidelines as contained in the 2000 report for any subsequent review of that package states as follows“consequently, commission shall where it deems necessary, undertake periodic adjustment of the remuneration package taking into consideration the state of the economy and the political development within the Country” it is noted that the guidelines did not specify a time-line neither which review should be undertaken. It is important to stress that in conducting the exercise, the commission had to rely on the provisions of the 1999 constitution together with the existing legal framemark for the remuneration package under review. The main provisions are presented below to provide necessary guide and for the avoidance of doubt. The constitutional and legal provisions and the relevant sections of the 1999 constitution which empower the commission to determine the remuneration of public and political office holders in Nigeria are quoted here under for cases of reference. Section 70 of the constitution says “A member of the senate or of the House of representatives shall review such salary and other allowances as the Revenue Mobilization Allocation and Fiscal Commission may determine” this section, read in conjunction with section 111 for state legislators clearly indicates that the commission is to determine the remuneration package of these officers directly. This is in consonance with natural justice rehereby the legislators are not expected to fix their own remuneration, salaries and allowances. It is also in contrast to the other two arms of Government, namely, the executive and the judiciary, whose remunerations are governed by the following sections of the constitution. Section 111 indicates that “A member of the House of Assembly shall receive such salary and other allowances as the Revenue Mobilization Allocation and Fiscal Commission may determine” Section 84 (1): “There shall be paid to the holder of the offices mentioned in this section such remuneration, salaries and allowances as may be prescribed by the National Assembly, but not exceeding the amount as shall have been determined by the Revenue Mobilization Allocation and Fiscal Commission”. In view of these quoted sections, consequent to the Remuneration Package for Political Public and Judicial Office Holders in Nigeria dated February 2007 and based on the report of the revised remuneration therein, the Executive Chairman had an addendum to the volume II specifically particularly. Concerning these officers which form an integral part of the volume II of the main revised report of the remuneration package for the legislature at the federal, state and local government levels. The addendum is predicated on the appeal made by legislators to the commission to reconsider their presentation on allowances and fringe benefits based on the exigencies of their offices. The commission, after due consultations and deliberations amended the revised package as it relates to the legislature. It was therefore submitted for necessary action by the National and State Assemblies. The commission acknowledged the following offices in the Federal legislative as provided in Section 9 of the National Assembly Service Commission Act 2000, wherein section 7 (8) stated that “the commission shall have power to pay its staff such remuneration as are approved by the National Assembly”. These officers are Clerk to the National Assembly, Deputy - clerk to the House of Representatives, clerk of the State Assembly, Deputy clerk of the State Assembly. The revenue commission has not earlier on in the main report provided for the salaries and allowances of these officials in keeping with the provision of the law establishing the National Assembly Commission quoted in the preceding paragraph. Therefore, the commission having reconsidered the enormous responsibilities and the retinue of staff attached to the offices of the senate president, the speaker of the House of representatives and the speakers of State Assemblies has determined that there is the need for the provision of Chiefs of Staff to these officers. The provision as a special case shall therefore be as follows, Chief of Staff to the Senate President. This officer shall be provided by the Nation Assembly Service Commission upon the recommendation of the Senate President. There shall be Chief of staff to the speaker, House of Representatives and this officer shall be provided by the National Assembly Service Commission upon the recommendation by the speaker of the House of Representatives. There shall be Chief of Staff to the speaker of State House of Assembly and this officer shall be provided by the State Assembly Service Commission upon the recommendation of the Speaker of the state Assembly. The President of the Senate and the Speaker of the House of Representatives shall have the power to appoint not more than five Special Advisers. These special Advisers shall enjoy salaries, allowances and fringe benefits, etc, applicable to Special Advisers to the president of the Federal Level, while at state Level the Speaker of the State House of Assembly shall appoint not more than three Special Advisers, who will earn the same remuneration as Special Advisers to the Governor. In recognition of the responsibilities of the offices of the Senate President, the speaker of the House of Representatives and the speakers of the State Assemblies, the Commission provided Special Assistant to these officers to be provided by the relevant Assembly Service Commission based upon the recommendations of the officer to be served. The attention of the Commission was also drawn to some disparities in the provision of Duty Tour Allowance and Estacode for legislators at the State Assembly level. Subsequently, the provision of these allowances shall be as follows. Any speaker of State Assembly would enjoy N20, 000.00 Duty Tour Allowance and $600.00 Estacode. The deputy speaker of the State Assembly would enjoy N17, 000.00 Duty Tour Allowance and $500.00 for Estacode and a member of State House Assembly is entitled to N150, 000.00, Duty Tour Allowance and $450.00 for estacode. The Commission in the addendum, signed by the Executive Chairman clarified other aspects of the package like House maintenance – this Allowance has been retained in the revised package at 5% of the annual basic salary for the purpose of maintaining the privately rented quarters of legislators at the Federal, State and Local Government Levels. The provision of constituency allowance in the revised package has been generally reviewed upwards. For members of the State Assembly, the allowance shall be 5% of the annual basic salary. The addendum reversed the provision of the payment of the salaries of legislative aides through the principals. This is in consideration of the administrative constraints that may result from such a provision. Therefore, the payment of the emoluments of the legislative aides shall be made by the Assembly Service Commission both at the Federal and State Levels. Thus: the entitlement of such officers shall not be paid along with those of the legislator to whom the legislative aide reports to. I want to however mention from my own personal studies that liaison officers, personal private drivers, or some other sundry motley aides employed by the legislators manning the liaison offices in their constituencies, some other staff like personal security to guard their homes and houses or on the other hand some hungers – on engaged are to be paid from their pockets from his/her allowance. This is not part of the main remuneration report, revised or addendum, but a personal observation which some of the legislators have done from their constituency and have generated employment. I wish to say also that some of the legislators, elected whether at Federal, House of Representatives or Senate or State Assembly Members have utilised their allowances in sinking boreholes, roofing of Primary Schools, digging of wells, stipend scholarship, assistance and donation to charity organizations. The enhanced revolutionary salary review has helped in many ways and has permeated the broad sphere of life in Nigeria; especially as noted from the 2000 revised report. Now to the main report which is the thrust of his feature. Section 84 (3) of the constitution notes that “The remuneration and salaries payable to the holders of the said offices and their condition of service, other than their allowances shall not be altered to their disadvantage after their appointment”. Section 84 (4): The offices afore said are the offices of President, Vice– President, Chief Justice of Nigeria, Justice of the Supreme court President of the Court of Appeal, Justice of the court of Appeal, Chief Judge of Federal High Court, Chief Judge and Judge of the High Court of the Federal Capital Territory, Abuja, Chief Judge of a State, Judge of the High Court of a State, Grand Kadi and Kadi of the Sharia Court of Appeal of the Federal Capital Territory, Abuja, President and Judge of the Customary Court of Appeal of the Federal Capital Territory, Abuja, Grand Kadi and Kadi of the Sharia Court of Appeal of a State, President and Judge of the Customary Court of Appeal of a State, the Auditor – General of the Federation and the Chairman and Members of the following Executive Bodies namely, the Code of Conduct Bureau, the Federal Civil Service Commission, the Independent National Electoral Commission, the National Judicial Council, the Federal Judicial Commission, the Judicial Service Committee of the Federal Capital Territory, Abuja. The Federal Character Commission, the Code of Conduct Tribunal, the National Population Commission, the Revenue Mobilization, Allocation and Fiscal Commission and the Police Service Commission. Section 124 (1) directs that “There shall be paid to the holders of the offices mentioned in this section such remuneration and salaries as may be prescribed by a House of Assembly, but not exceeding the amount as shall have been determined by the Revenue Mobilization Allocation and Fiscal Commission. Section 124 (3) stipulates “The remuneration and salaries payable to the holders of the said offices and their conditions of service, other than allowances, shall not be altered to their disadvantage after their appointment”. In section 124 (4) “The offices afore said are the offices of Governor, Deputy-Governor, auditor-General for a State and Chairman and members of the following bodies, that is to say, the State Civil Service Commission, the State Independent Electoral Commission and the State Judicial Service Commission. Third schedule, part I section 32 (d): the Commission shall “Determine
the remuneration appropriate for political office Holders, including
President, Vice-President, Governors, Deputy-Governors, Ministers,
Commissioners, Special Advisers, Legislators, and the holders of the
offices mentioned in sections 84 and 124 of the constitution. Apart from
these constitutional provisions, there is also the Act of the National
Assembly which is the” certain political, public and judicial office
holders (salaries and allowance etc) Act of 2002” and the various laws
of the states, which give legal backing for the agencies covered in this
review. The provision of the Act, which also derived from the
constitution were deemed to have come into force on the 29th of May
1999. In addition to the agencies and commissions identified by the Act,
it also stipulated that such other commissions, as may be established by
any Act of the National Assembly shall benefit from the remuneration
package provided by the Revenue Mobilization Allocation and Fiscal Commission.
These provisions provide the necessary guide in our identification and 2005-N68.00, 2006-N91.00. The increase in percentage from 1999 to 2006 is 540%. Kerosene per liter in 1999 – N19.00, 2000-N29.00, 2001-N41.00, 2002-N49.00, 2003-N52.00, 2004-N61.00, 2005-N67.00, 2006-N52.00. The percentage increase from 1999 to 2006 is 270%. Looking at the foods and beverages price movement during the same period are as follows. A bag of rice in 1999 N3,100.00,2000-N3500.00.2001-N3, 800.00,2002-N4, 300.00,2003-N5000.00, 2004-N5,100.00.2005-N5,700.00,2006-N7, 200.00. The percentage risen is 200%. Similarly a bag of Semovita in 1999 was N400.00, 2000 – N400.00; 2001 – N450.00, 2002 – N700.00, 2003 – N700-.00, 2004 – N800.00; 2005 – N –900.00, 2006 – N950.00 The percentage increase from 1999 to 2006 of this is 237%. A bag of sugar in 2002 was N3,200.00; 2006 – N5, 600.00. The percentage price increase has been 255%. A bag of salt, Macaroni, Maltina, Five Alive, Chivita, Swan water (75cl) Coke (35cl) within same period 1999 to 2006 witnessed such spiral rise in price movement and there was percentage increase respectively of 200%, 270%, 150% 375% 225%, 300% 200%! The Newspapers and Magazines were more graphic as ThisDay, The Punch, Guardian, Daily Trust, Business-day, Leadership, the Source Weekly Magazine, the Insider Weekly Magazine, Tell Magazine, The Week Magazine, News-World Magazine from various publications witnessed 250% 200%, 250%, 333%, 215%, 250%, 250%, 250%, 250%, and 215% and 215% respectively. Today at the tail end of 2007 This Day is N150.00; The Punch is N100.00, Guardian is N 150.00 Daily Trust – N 100.00, Business Day is N150, Leadership is N100.00 The Source is N200.00, Insider is N200.00, Tell is N200.00 by the provision of the Revenue Mobilization Allocation and Fiscal Commission but as of 8th December 2007, Tell Magazine is N300.00, the Week is N200 and News world is N250.00. Other reasons called for the current review of the remuneration package are the correct placement of some categories of office holders that were either omitted or wrongly placed in the old package. They introduced new allowance that were not included in the old package; the need to provide a clearly defined implementation guideline for the package; the need for a living wage to ensure honesty and dignity of the office holders and the need to comply with the provisions of sections 84 (3) and 124 (3) of the 1999 constitution, which state that “the remuneration and salaries payable to the office holders and their conditions of service, other than allowances, shall be altered to new disadvantage after their appointment. The Review process of the commission was to embark upon wide consultations to obtain inputs from the stakeholders, as part of the review of the remuneration package for political, public and judicial office holders. The method adopted was to undertake nation wide interactive
visits to stakeholders at the Federal, State and Local
Government Levels. What the Commission sought to achieve was
to harmonise the inputs from the stakeholders in order to
arrive at a credible package that would be fair, just and
generally acceptable. Therefore as an integrated part of the
review exercise, interactive sessions were held with
stakeholders at all the levels and arms of government, except
for the federal executive, on whose behalf a comprehensive
memorandum was sent to the commission from the Secretary to
the Government of the Federation. Those the commission had
interactive session with were: - Further more, an objective approach to this review exercise was to tie the review to the economic change in the country. What this entailed was an evaluation of the effect of inflation in the real income of the political, public and judicial office holders over time. Once, the evaluation was undertaken and completed; the result was then used in adjusting the eroding of effects of inflation. Whatever approach that was adopted to arrive at the remuneration package for the political, public and judicial office holders, the result must seek to satisfy the twin objectives of ensuring that these category of workers deserve a remuneration package that will enable them maintain the same standard of living (if not improve upon), which the original package provided them. In other words, the remuneration package must be such that will enable them live an honest life spiced with dignity. Thus, the review exercise was guided by the 2000 report on the remuneration package and the existing laws(s). The views of the stakeholders harnessed during the various interactive
sessions at the federal, state and local government levels were also
considered in the review of the remuneration package. With their
approach, two things were achieved namely, increase in the salary for
the political, public and judicial office holders and the restoration of
the eroded purchasing power resulting from the effect of inflation. From
the following, the commission arrived at the new basic salaries and
allowances for the executive and the judicial as you have just read. The
report classified political, public and judicial office holders as
elective, non-elective, tenured and non-tenured. These and more are some
of the methods charted by the Revenue Mobilization Allocation and Fiscal
Commission in its fair approach for new basic salaries and allowances to
the esteemed officers of our nation. In the subsequent analysis by the
author, we will look at other rudimentary factors that culminated in the revised remuneration package.
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