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FG unable to fulfill ASUU’s N284bn demand because of recession

FG unable to fulfill ASUU’s N284bn demand because of recession

The Federal Government has said on Wednesday it was only able to fulfill seven out of the eight demands of the Academic Staff Union of Universities (ASUU), as it could not meet the union’s demand for allowances worth 284bn because of the present economic state of the country.

ASUU had embarked on a week-long warning strike last Wednesday due to the FG’s refusal to implement previous agreements, but fresh negotiations with the FG and National Assembly have calmed tensions between the parties.

The Minister of Labour and Employment, Dr. Chris Ngige has however said there was no way the government could pay the huge allowance the union is demanding because there is no money.

Ngige reportedly said this while fielding questions from State House correspondents at the end of a Federal Executive Council meeting presided over by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja.

“The other aspect of it is the earned allowance. The earned allowance is the only one that is not sorted out now because everybody knows and agrees that we are in a recession,” he said.

“If we are in a recession and you are asking us to pay you N284bn, nobody will pay it because the money is not there.

“So, they (ASUU) agreed and the National Assembly also agreed, but the government offered them some amount pending when we finish auditing of the first tranche of money that has been given to them in that same area of earned allowances.

“That tranche of money that they collected is being audited, but the auditing process is very slow because some people for some strange reasons are not allowing auditing to take place. So, a time frame has been fixed of six months within which the auditing will be done.

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“Within those six months, government has offered something that they will be paying on a monthly basis and ASUU has also made a counter proposal to government so both parties have gone back to their principals.

“ASUU has a principal which is the national executive body and government has come  back to look at our finances viz-a-viz with the National Assembly which will appropriate that particular fund because for 2016, there is nothing in the budget for it. It will be done and appropriated as at when due.”

Ngige said ASUU was expected to return to the negotiating table with its counter proposal.

The country has been experiencing a major recession since the beginning of the year.

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