By Levinus Nwabughiogu
ABUJA-Minister of Finance, Mrs Kemi Adeosun on Wednesday in Abuja explained that the reason some federal government agencies and departments were witnessing delay in payment of their staff salaries was because such institutions had exhausted their allocation.
The Minister spoke while fielding questions from State House Correspondents at the end of the Federal Executive Council, FEC, meeting at the presidential Villa however said that efforts were being made to resolve the issue.
She said: “The issue of agencies that have not received their salaries, let me explain how the salary system works. All the agencies have an allocational IPPIS which is the salary platform. If, for example, an agency has a salary for the year of N12 billion, what we insist they should do is continue to pay until that N12billion is exhausted.
“Now what happens with the number of agencies is that the number of staff I had was more than the budgetary allocation.
“Instead of taking N1billion a month, it was taking N1.2billion or N1.3billion. So by the time it got to October, many agencies had exhausted their allocation.
“What we did in the virement we sent to the National Assembly which the National Assembly office approved listed all that agencies that had problems with their salaries and applied to National Assembly, we had to go back to the National Assembly to ask for an increase in the budgetary allocation of those agencies.
“We received that virement advise from the National Assembly on Monday this week. We are waiting to log it onto the system so that we can now pay those agencies. Basically, the system itself shut them down. That is the way the system has been configured. It’s a problem that used to happen every year and it’s something we are trying to correct.”