Thursday, May 17, 2007

Abolition of Jumbo Pay

The Federal Government yesterday after it rose from Federal Executive Council meeting abolished the jumbo pay enjoy by some of its agencies and parastatals like CBN, NNPC, BPE, NCC etc warning that they are not henceforth allow to approve jumbo pay for its staff. It has therefore directed the secretary to the government of the federation (SGF) to issue out a circular to all the establishments concerned for immediate compliance with the government directive.
It is not however clear whether the existing salary scale will still be maintained or they will be revert back to be at par with other Ministries.
If this directive see the light of the day, it means the banking sector, telecommunication sector and other sectors affected by the above directives will be hit with mass exodus of staff, as it is evident that the parastatals would not be able to compete with the demand of best hands in the job market. In the Telecommunication and banking sector for instance, poaching of good hands will be the order of the day. Big companies who are already paying jumbo salaries like Globacom, MTN, Celtel are poised down to poach some highly trained and best hands of NCC, while big banks like UBA, First Bank, Union bank etc are also going to start poaching some best hands in CBN.
Also, those parastatals involved would not be in position to hire good hands since those they are regulating would be paying better salaries than them. It is certainly not good for government parastatals that are regulatory body like CBN, NCC, NNPC as those they are regulating could afford to poach their staff at any slightest opportunity, while such staff so poached would carry the knowledge of regulatory to such establishment. It certainly wont work, and if it does, it would be counter productive.
Ever ponder that we are going to start to witness the scenarios that do always play out in the Ministries in the Government agencies and parastatals that the above directive will directly affects. The era of corporate discharge of duties by this parastatals is beginning to come to an end. 100% devotion to duty as the case is presently with this agencies/parastals will fade away while the mentality and attitude of 'civil servant' will set in.


Omodudu said...

Why do we always make this fire fighter changes. There is no vision behind this cahnges. Decisions are made in isolation regardless of the shrot term and long term costs of those changes. We keep scrapping and forming new goverment agencies. I think all of this lead to more wastes.

Omodudu said...

Do you recall the pay increase of the late 90's where high school teachers got a 200% raise in some cases. Do you recall the influx of beat up opel cars which ended up clogging the roads.

Felix Adebayo said...

I don't this is a good idea. Nigerian professionals have come to see NNPC, CBN, NCC, BPE, etc, as government parastatals where they can work and still enjoy comfortable pays like their counterparts in the private sectors. Abolishing jumbo pays for these parastatals will be reducing them to the levels of common government establishments in Nigeria.