Commentary: Need To Reduce The Jumbo Pay Of National Lawmakers

Written By: Prof Anthony Eze

The Chairman of The Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Mr. Elias Mbam, recently announced that the Commission would review the remuneration of political office holders to reflect the present economic realities in the country. Mr. Mbam, however, did not give details of the proposed review. Considering the bogus salaries and allowances of political office holders, the review is coming at the right time.

Recently too, the President of the Senate, Ahmad Lawan, was quoted as saying that the era of jumbo salaries for the national lawmakers under his leadership would soon be over. But how much the lawmakers in the country earn remains a matter of conjecture. It has been alleged that each senator receives ₦13.5 million monthly, while each member of the House of Representatives goes home with not less than ₦11.5million a month.

Section 84 (1-3) of the 1999 Constitution stipulates the remuneration and other entitlements of the National Assembly members as determined by the RMAFC.  Specifically, Section 84 (1) says, “There shall be paid to the holders of the offices…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 Mobilization Allocation and Fiscal Commission. Such remuneration, salaries and allowances shall be a charge upon the Consolidated Revenue Fund of the Federation”.

Therefore, this is the right time to carry out a detailed review of the emoluments paid to our lawmakers and other political office holders. Nigeria’s legislators are reported to be among the highest paid in Africa. For instance, a legislator in South African’s parliament earns one hundred and forty-seven thousand dollars (that is about ₦53m per annum or ₦4.4m per month, inclusive of all allowances). In Kenya, the total emolument of each lawmaker is $78, 000 per annum. There is no justification to continue to pay outrageous salaries and other pecks to the nation’s political office holders when the economy is wobbling and many Nigerians are living below the poverty level.

Therefore, to reduce the cost of governance, the salary of political office holders must be reviewed urgently. No doubt, a downward review of the emoluments of the lawmakers and other political office holders will release funds for other projects. The leadership of the National Assembly should cooperate with the RMFAC in the review process.

It is good that the view is also coming at the same time the RMFAC has given assurance to revisit the revenue sharing formula. An attempt to do this in 2014 was inconclusive. Under the extant formula, the federal gets 52.68 percent; states, 26.72 percent; local governments, 20.60 percent and derivation, 13 percent. Except there is a downward review of the emoluments of political office holders, the essence of public office might be lost.  This is why the call for part-time legislative duty is receiving public support across the country. President Muhammadu Buhari and the Vice President Yemi Osibanjo did the right thing in 2015 by voluntarily slashing their salaries by 50 percent. Other political office holders should emulate them.

While the new board of the revenue commission is working on the review of the emoluments of political office holders, it is also necessary for government to expand the productive base of the economy and more avenues for revenue generation.  The economy must grow far beyond the present two percent, if our democracy must grow.

The economy needs diversification in critical sectors. These should be prudent management of the financial resources available. It is therefore, expected that the RMFAC must substantially reduce the salaries of political office holders. This is one of the best ways to reduce the cost of governance.