In a startling revelation, the Nigerian Senate unveiled a significant financial discrepancy on Monday, as it came to light that the Board of Directors of the Nigerian Security Printing and Minting Company (NSPMC) allegedly authorized a N14 billion salary increase for all its staff members without obtaining the requisite approval from the National Salaries Wages, Incomes, and Wages Commission.
The revelation occurred during a session in the Red Chamber in Abuja when the management of NSPMC appeared before the Senate Public Accounts Committee, headed by Senator Ahmed Wadada, to address concerns regarding the 2019 report of the Auditor-General of the Federation.
The Auditor-General’s report exposed a troubling pattern of financial mismanagement at NSPMC, where between 2016 and 2019, the Board of Directors unilaterally sanctioned a staggering N14 billion allocation for salaries and allowances without the necessary consent from the salaries and wages regulatory body.
The NSIWC Act of 1990, as outlined in Article 3, mandates the commission to provide counsel to the Federal Government on national income policy, recommend income growth proportions for general wage increases, report on wage trends, and propose guidelines for wage increments, among other responsibilities.
In defense of these actions, the Managing Director of NSPMC, Ahmed Halilu, initially contended that the company was not obligated to seek approval from the salaries and wages regulatory body because it was registered under the Companies and Allied Matters Act.
However, during his testimony before the Senate Committee on Public Accounts, Halilu subsequently admitted that it was indeed a lapse not to obtain approval from the National Salaries Wages, Incomes, and Wages Commission prior to implementing the salary and allowance adjustments.
Halilu further explained, “It has come to our notice that we must obtain approval before implementing salary increases. These salaries were paid over a three-year period. It should be noted that this was not a case of misappropriation, considering the substantial work performed by thousands of staff during this period.”
The unlawful payment of the salary increase left nearly all members of the Senate committee dissatisfied, as they pointed out that public funds had been expended without following due process. The Deputy Whip of the Senate, Senator Nwebonyi Onyeka, emphasized that government money had been disbursed without adhering to the necessary procedures, and he called for the misappropriated funds to be refunded.
