Union rejects FG circular on 50 % funds remittance by self-funded govt. agencies

News Hub
3 Min Read

The Amalgamated Union of Public Corporations Civil Service Technical and Recreational Services Employees (AUPCTRE) has urged the Federal Government to reverse its Circular on policy 50 per cent revenue remittance and the recent Post No Debit placed on the accounts of self funded agencies.

In a statement signed by AUPCTRE’s General Secretary, Mr Sikiru Waheed, on Friday, the union said that the policy could spell doom for the country.

”The attention of the union has been drawn to a Circular with Reference No. FMFCME/OTHERS/IGR/CFR/21/2023 and dated 28th December, 2023.

”The Union calls for caution and advise that the implementation of this circular and the recent Post No Debit on the accounts of those agencies and parastatals be halted as it poses dire consequences on their operations and survival.

- Advertisement -
Ad imageAd image

”The union frowns particularly at item (ii) and (iii) of the circular on all partially and self funded Federal Government Agencies/Parastatals partially receiving or receiving no allocation from the Federal Government budget to remit 50 per cent of their gross Internally Generated Revenue (IGR) to the sub-recurrent account.

“If the policy is allowed, it portends serious danger to the survival of the agencies and parastatals, saddled with primary responsibilities of carrying out their mandates as enshrined in their establishment Acts,” it said.

The union said that in simple economic principle of funding, the more funds pumped into a business, the higher the return on investment.

The union said if the agencies’ funds were reduced, they might not even be able to meet up their targets for more money for the year.

“It is already affecting some very Important organisations such as Corporate Affairs Commission (CAC), and others under obligation to pay staff salaries and allowances, pension, gratuity and insurance policies.

”Payment of office rents, construction of new offices, purchase and maintenance of operational vehicles, payment for ancillary services to contracted companies and other capital projects from the 50 per cent of their revenue drive that will be retained, so also the recent Post No Debit.

“This is clearly impossible to achieve with that meager percentage, it will be grossly inadequate and will starve the effected organisations of funds to carry out their statutory functions effectively.

“The Union therefore, calls on the Federal Government to soften down on this policy as it may de-motivate workers from optimally performing their functions,” AUPCTRE said in the the statement.

Share this Article
Leave a comment