Taxes on N70,000 minimum wage becoming unbearable – SSANU laments

ABUJA –THE Senior Staff Association of Nigerian Universities, SSANU, has lamented that its members are passing through excruciating pains as a result of the alleged “humongous tax deductions”  on various goods and services.

The SSANU leadership lamented that these taxes are affecting their meagre salaries, especially the pay as you earn (PAYE) tax, the hike in Value Added Tax (VAT) and numerous unexplainable tariffs.

It has also decried the alleged payment of incomplete salaries and withholding third party deductions in the name of salary shortfalls, through the new payment platform, Government Integrated Financial Management Information System, GIFMIS in flagrant disobedience of financial regulations.

These among others were contained in a Communique issued at the end of its 50th Regular National Executive Council, NEC, meeting at the Federal University, Otuoke, Bayelsa State, and signed by the SSANU President, Comrade Mohamed Ibrahim.

SSANU said that the obnoxious taxes have drastically rendered the N70,000 minimum wage increase useless and of no effect.

He called on the Government of the day to work towards a worker friendly Tax Regime to ameliorate the hardship faced by workers.

According to the communique, “NEC noted with disappointment and excruciating pains the humongous tax on various goods and services. Some of these taxation are affecting our meagre salaries through the pay as you earn (PAYE) tax, the hike in Value Added Tax (VAT) and numerous unexplainable tariffs.

This has drastically rendered the Seventy (70) Thousand Naira minimum wage increase useless and of no effect.

NEC therefore calls on the Government of the day to work towards a worker friendly Tax Regime to ameliorate the hardship faced by our members.”

On the alleged inconsistencies in the GIFMIS payment platform, SSANU said it noted recorded cases of salary shortfalls and inconsistencies in payment of third-party deductions of various universities and Inter- University centres.

“Further enquiries unearth that, on migration to the GIFMIS Platform, some Universities have started shortchanging their Staff to by paying incomplete salaries and withholding third party deductions in the name of salary shortfalls, in flagrant disobedience of Financial Regulations,” it said.

The communique further said: “NEC-in-Session expresses displeasure over the continuous delay in the release of Fifty (50) Billion Naira for the payment of Earned and other allowances which was appropriated in the 2023 Supplementary Budget.

“NEC further frowns at the non-payment of the arrears of our twenty- five (25%) and Thirty five (35%) percent salary increment for Federal Universities, inter-Universities Centres and some State Universities.

“NEC unanimously resolves that Government should ensure that Fifty Billion Naira earlier appropriated should be recaptured in the 2025 budget, and our other pending allowances should be released without further delay.”

On the two months withheld salaries for their members, SSANU urgied the Federal Government to pay the balance two months still pending.

“We commend the President Bola Tinubu-led administration for paying

two (2) months out of the four (4) months withheld salaries of our members in Federal Universities and inter- University Centres.

NEC further noted that the two months arrears were paid without remitting third party payments such as Cooperative deductions, dues for professional associations and others.

“NEC appeals to the Federal Government through the Minister of Education, Dr. Morufu Olatunji Alausa, to as a matter of seriousness facilitate the payment of our remaining two (2) months salaries and the third party deductions, so as to guarantee industrial harmony in all Nigerian Universities and inter University Centres,”Ibrahim noted.

SSANU also deliberated on non payment of the minimum wage by some states, electricity crisis, security challenges among others.

“NEC in session also observed that some State Governments are yet to implement, not to talk of payment of the arrears of the last reviewed Minimum Wage. It therefore calls on all such State Governments to do the needful and bring workers in State Universities up to same pace with their counterparts in Federal Universities.

“We commend the effort of the Federal Government on the improved electricity supply, though at very exploitative and exorbitant rates. NEC observed that most Universities and inter- University centres are constantly running on generators because their overhead costs are unable to pay their electricity bills, thereby making it unconducive for Universities to operate optimally.

We observed with dismay the continuous deterioration of the security situation in the country with its attendant increase in cases of kidnapping for ransom and organ harvest, banditry farmers/herder clashes, armed robbery among others.

NEC in session strongly advised both the Federal and State Governments to be alive to their Constitutional Responsibilities of protecting lives and properties.

“We deliberated on the poor road network in the country and expressed dismay that the roads have turned into death traps for commuters. NEC appealed to both States and Federal Government to make intentional efforts to repair our roads and prioritize infrastructural development. The deplorable conditions of these roads have increased extortion of commuters by Nigerian security agencies and vigilante groups,” the communique stated.