Here’s what we know about ‘114% salary increment’ and how salaries of politicians are determined

Amidst the rise in cost of living in Nigeria which many citizens believe President Bola Tinubu’s economic reforms may have further contributed to it, outrage has trailed reports that salaries of elected politicians, including the President, Vice President, governors, lawmakers, as well as judicial and public office holders, have been increased by over 100%.

“The commission, having considered that the consumer price index of some selected baskets of commodities has collectively grown by an average of 371% from 2008 to 2022, the current annual basic salary of all categories of political, public, and judicial office holders in the country is adjusted upward by 114 percent,” Rakiya Tanko-Ayuba, who was representing the chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), said on Tuesday, June 21, 2023, in Birnin Kebbi, during the presentation of the reviewed remuneration package of political and judicial office holders to the state Governor, Dr. Nasir Idris.

Dele Alake, Special Adviser to the President on Special Duties, Communications and Strategy, denied the report and described it as misinformation.

“We state without any equivocation that President Bola Tinubu has not approved any salary increase, and no such proposal has been brought before him for consideration,’’ he said.

Since assuming office on May 29, 2023, President Tinubu has made two strategic economic decisions that have generated mixed reactions from the public. His comment ‘fuel subsidy is gone’ during his inaugural speech caused the price of Premium Motor Spirit, known as petrol, to soar by over 100% and caused a hike in transportation across the country. On June 14, 2023, the Central Bank of Nigeria (CBN), in line with Tinubu’s promise to review the country’s monetary policy, announced the unification of all exchange rates in the country, thereby putting an end to the disparity between the official rate and the unofficial rate known as the parallel market rate.

However, these reforms, while they have been praised by some market experts and entrepreneurs, including Aliko Dangote, who lost $3.12 billion, according to the Bloomberg Billionaire Index (BBI) due to the naira float, ordinary Nigerians appear to be the hardest hit as many argue that the government failed to provide economic safety measures to cushion the effect of the reforms.

With reports of a proposed salary increment for public holders, we take a look at how salaries of elected politicians are reviewed:

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), established by Decree No. 49 of 1989 and later amended by Decree 98 of 1993 (now RMAFC Act CAP R7 LFN 2004) under Section 153(1) of the 1999 Constitution of the Federal Republic of Nigeria (As Amended), is one of the 14 Federal Executive bodies charged with reviewing the revenue allocation formula and fixing the salary of political office holders and public officers.

Section 32 (D) of Part 1 of the Third Schedule of the 1999 constitution states that RMAFC shall ‘determine the remuneration appropriate for political office holders, including the President, Vice-President, governors, Deputy Governors, Ministers, Commissioners, Special Advisers, Legislators, and the holders of the offices mentioned in sections 84 and 124 of this Constitution.’

While salaries of elected officials, including judicial officials, are determined by RMAFC, the increment needs the approval of the National Assembly.

Section 84 of the Constitution states:

“There shall be paid to the holders 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 Mobilisation Allocation and Fiscal Commission.”

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In 2022, Bello Shehu, Chairman of RMAFC, said that the last salary review of public office holders was in 2008, and an increment was long overdue. He alleged that the remuneration of most public office holders is subpar.

“The salaries of members of the House are even worse, but because they claim they are independent, they packaged all sorts of allowances. There is a need for that review.”

He added, “I have seen a magistrate who earns N150,000 a month. That is a magistrate, somebody who passes judgment. Ask around, it will shock you. They are all over Nigeria. They don’t have housing, they don’t have transportation, they have very difficult conditions of service.”

The announcement of the increment has sparked outrage among Nigerians, with Peter Obi, the Labour Party candidate during the 2023 Presidential election, describing the alleged move as inconsiderate to the suffering of millions of Nigerians.

“This is not the appropriate time for such a salary increment if it is necessary at all. We are living in a time when an average Nigerian is struggling with many harsh economic realities, and with over 130 million Nigerians now living in poverty. This is a moment when recent reform measures by the government have increased living costs astronomically.”

The increment proposal is coming despite the lame effort by the Federal Government to review the minimum wage, amidst requests by the Nigerian Labour Congress.