Legislators And Jumbo Salaries

Senate President and Deputy president Bukola Saraki and Ike Ekweremadu
Senate President and Deputy president Bukola Saraki and Ike Ekweremadu


Apart from the issue of oil subsidy, no other subject has enraged and infuriated Nigerians more than the issue of the Jumbo salaries and allowances of the members of the National Assembly.

Yet, in spite of the anger, the salaries and allowances are legal under the monetization policy of the government which was implemented in 2003.

It is the monetisation policy that enabled the former Senate President David Mark to buy so cheaply the official residence of the Senate President at Apo in Abuja – a house that should be a National heritage- and get away with it.

Ditto for the former Speaker of the House of Representatives, Dimeji Bankole, who bought the official residence of the Speaker also at Apo at giveaway price and got away with it.

If we talk about the jumbo salaries and allowances for the legislators, what about top civil servants who earn their jumbo salaries for life and the governors and former governors who also earn their jumbo salaries and entitlements for life.

Once we adopted the presidential system of government we cannot run away from its excesses. And also its shortcomings. The jumbo salaries and allowances of the members of the National Assembly and the security votes of the governors are also part of the excesses.

But, they must be curbed in the light of the dwindling fortunes of the Nigeria economy. Certainly, we cannot afford them.

What is Monetisation? Monetisation is the quantification in money terms of those fringe benefits which government used to provide for its workers as part of their conditions of service. Such benefits include residential accommodation, chauffeur-driven cars, residential furniture, utility services, etc.

This policy is also practiced in Ghana, Cameroun and other African countries but I understand that Ghana had stopped it in the last two months.

The proposal came from the Revenue Mobilisation, Allocation and Fiscal Commission. It was debated in the National Assembly and passed into law as the Certain Political, Public and Judicial office Holders (Salaries and Allowances etc) Act 2002.

Monetisation was clamoured for by civil servants, as conveyed in the Communiqué of the Re-orientation Workshop for Directorate Level Officers in the federal civil service read to the President, Olusegun Obasanjo on 14th January, 2002. The Organised Private Sector and a number of government agencies and parastatals have adopted Monetisation of benefits for quite some time now, e.g. CBN, NNPC, etc. I note also that the university system has its own list of monetised fringe benefits and allowances.

In order to ensure effective implementation of the policy, the Presidential Committee on the Monetization of Fringe Benefits in the Public Service of the Federation was set up by President Obasanjo on November 11, 2002 under the chairmanship of the then Secretary to the Government of the Federation, Chief Ufott Ekaette (CFR).

Following the submission of the committee’s Interim Report to President Olusegun Obasanjo and its subsequent adoption by government, a circular detailing the newly monetised fringe benefits and the modalities for their implementation was issued on 27th June, 2003, with 1st July, 2003 as the commencement date of the programme.

To sensitise the States on the implementation of the Programme, an interactive session was earlier organized on Tuesday 17th June, 2003 to enable the Head of Civil Service of the Federation to intimate Secretaries to State Governments (SSGs) and Head of Civil Service of the States (HCSS) in the 36 states of the federation with modalities for the implementation of the Monetisation policy.

Suffice it to say the states objected to the implementation, insisting that they could not afford it.

On November 27th 2003, Ekaette told members of the Faculty of Social Sciences, University of Lagos under the headship of Professor Lai Olurode that “Monetisation as a public policy reform must be appreciated in the context of other reforms each of which plays complementary roles with the new overarching economic development strategy of the Obasanjo Administration called NEEDS(National Economic Empowerment Development Strategy).”

The following was approved for members of the National Assembly as part of the Monetisation policy: (a) Housing Allowance-100% of Annual Basic Salary (b) Transport Allowance-350% of Annual Basic Salary (c) Utility Allowance-20% of Annual Basic Salary (d) Domestic Staff Allowance-75% of Annual Basic Salary (e) Entertainment Allowance- 10% of Annual Basic Salary (f) Constituency Allowance- 150% of Annual Basic Salary (g) Furniture Salary- 300% of Annual Basic Salary (h) Allowance for Employment of Special Assistant- Equivalent of 25% of Annual Basic Salary to be paid (i) Vehicle Maintenance and Fuelling- 30% of Annual Basic Salary (j) Recess Allowance- 10% of Annual Basic Salary (k) Severance Gratuity- 300% of Annual Basic Salary(to be paid once in a life time) after successful completion of tenure

The following was approved under the monetization policy for federal civil servants (1) Accommodation, Grade level—01-06 ( 50% of Annual Basic Salary), Grade level— 07-17(60% of Annual Basic Salary and Grade level—15 & above( 75% of Annual Basic Salary. Transportation— Grade level 01-17(25% of Annual Basic Salary. Meal Subsidy— Grade level—01-06 (N 6,000.00), 07-10 (N 8,4000.00), 12-14(N 9,600.00), 15-17(N 10,800.00), Permanent Secretary (N 16,200.00). Utility, Grade level — 01-16 (15% of Annual Basic Salary), 17 & above (20% of Annual Basic Salary). Domestic Servant — Grade level 15(1 GL. 3 Step 8), 16-17( 2 GL 3 step 8), PS & above( 3 GL 3 step 8). Leave Grant — 01 & above (10% of Annual Basic Salary. Medical—01 & above (10% of Annual Basic Salary to be paid to NHIS). Furniture Allowance— Grade level–01-06(NIL), 17 & above (200% in 5 years, i.e. 40% of per annum). Vehicle loan— Grade level, 01-05 (100% of Annual Basic Salary),06-07(150% of Annual Basic Salary, 08& above(200% of Annual Basic Salary. Driver—Grade level—-17 & above (1GL.3 step 8).

The following was approved for the Chief Justice of Nigeria and judges of the Supreme Court under the monetization policy — (a) Accommodation, to be provided by the government (with an option to be paid 100% of Annual Basic Salary if opted to stay in personal house) (b) Furniture- to be provided by government (c) Medical Care- to be provided by government, including members of immediate family (d) Robe- to be provided by government (e) Transport- official cars to be assigned and maintained by Government (f) Security- to be provided (g) Utility- Bills to be settled by government (h) Domestic Staff – to be provided (i) Entertainment – to be catered for by government (j) Special Assistants- to be provided from within the civil service (k) Leave Allowance – 10% of Annual Basic Salary to be paid once in each calendar year (l) Hardship Allowance – 50% of Annual Basic Salary (m) Severance Gratuity – 300% of Annual Basic Salary (to be paid once in a life time) after successful completion of tenure (n) Retirement Benefits- Payable on the basis of Approved Scheme of Service

In spite of the objection by the states, the federal government went ahead and implemented this policy on October 1 2003 and that policy is still on till today.

The monetization policy was given legal teeth with passage and coming into effect of the Certain Political, Public and Judicial Office Holders (Salaries and Allowances etc) Act, 2002 which was extended by circular to cover all federal civil servants. The law took effect from 1st July, 2003 for the designated political, public and judicial office holders, while it was extended, with somewhat modified rates of benefits, to federal civil servants with effect from 1st October, 2003.

At the time of his departure from office in 2007, President Olusegun Obasanjo was shocked to find out the magnitude of the monetisation of the legislators and the jumbo salaries they were to earn.

He refused to sign the bill, leaving for President Umaru Yar’adua who signed it eventually in order to please the legislators. That’s where we are now. This issue cut across party lines in the National Assembly for they are all united on this.

The monetisation policy, a policy that was meant to solve problems, has now created more problems. It is like a monster now. The question now is, can we afford the monetization policy? The answer is NO. It will be unfair to talk about the jumbo salaries and allowances of legislators as a result of monetization policy in isolation, without talking about other public officers benefitting from this policy.

Cutting salaries by half as announced by President Muhammadu Buhari and his vice, Yemi Osinbajo, is a good step. I doubt whether members of the National Assembly will follow the President’s example no matter the pressure. In fact, they will tell the President that they have not come to Abuja merely to pass bills or endorse unworkable resolutions only.

As for these members of the National Assembly and other public officers benefitting from the monetization policy, national sacrifice has to wait.



    I believe that what the President should do is to call a meeting of the stakeholders including governors, legislators, Nigerian Labour Congress, NLC, Public commentators, religious leaders, market women and other bodies and insist that the government cannot sustain any longer the monetization policy of 2003.

    In the interim he should withdraw the circular on monetisation.

    If possible, he should ignite a National debate on the issue, after all he is our moral guide.

    Eric Teniola, former Editor of Punch and a former director at the presidency, stays in lagos.

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