Regular payment of salary as a catalyst for economic stimulus in A/Ibom

Akwa Ibom is often regarded as a civil service state with a growing private sector economy that is not yet big enough to compete with that of other states of the federation that are more industrialised.

But this notion is fast changing with the coming on stream of many cottage industries set up by the state government in partnership with some investors.

However, before the private sector begins to play an important role in the economy, one factor that appears to have aided the stimulating of the local economy has been the regular payment of salary and pensions to workers in Akwa Ibom State,

In no small measure, it seems to have contributed to the availability of liquid cash needed for day-to-day transactions and by so doing provided a strong peg for business activities to grow. Imagine an economy that is dependent on the civil service that salaries would not be paid on time.

“Without the payment of salaries and pension to stimulate the economy of our purely civil service state, where would we have been?’’ Ekereobong Akpan, the head of civil service has asked.

For instance, before the end of April this year, workers on the state civil service employ had already received alerts for their salaries and it was pleasant surprise to many as their pay day had come sooner than expected.

According to some workers at the Idongesit Nkanga Secretariat Complex, along Abak Road in Uyo, where most of the government ministries are located, the early salary payment has assisted them in paying the fees of their children in schools without much hassle.

In addition, it is observed that the prompt payment of salary has also helped in meeting other basic financial needs of the workers including rent payment and buying of food items.

Reacting to the early payment of the April salary to government workers, the Charles Udoh, commissioner for information and strategy, said Governor Emmanuel’s knowledge of financial management and commitment towards workers’ welfare have been the driving force of the state government’s economic policy.

He said by making funds available to pay workers even when their counterparts in the federal civil had not been paid is commendable.

The commissioner therefore, urged workers to reciprocate the government’s gesture by contributing their quota towards the overall development of the state through effective performance and maximum productivity. He maintains that the state government would continue to pay attention to the welfare of workers.

While the just concluded Workers’ Day celebrations held on May 1 worldwide presented another opportunity for the State Government to bring to the open its relationship with workers, it also afforded the opportunity to gauge the reaction of the organised labour in the state.

It was also a day for the workers to take a second look at how they have fared in the last one year, what have been their gains, whether their take home pay can take them and also renew their commitment to the dignity of labour as well as looking for better days ahead.

Apart from the march past that took place in the various state capitals and in Abuja attended by governors and in the case of workers in Abuja by the vice president, the workers have had to deal with various contentious issues including retrenchment, poor remuneration, nonpayment of salary and retirement benefits as well as unemployment and inflation.

This was re-echoed by the management of Champion Breweries, a privately-run firm that produces beer and non-alcoholic beverages In Uyo as it noted with dismay the impact of epileptic power supply, double taxation and the high rate of inflation in the country which it said had hit the company hard.

For the Nigerian worker, the last few years seem to have been the worst in terms of the number of jobs losses recorded, limited opportunities for labour mobility, the closure of many factories in the country as a result of many factors including unfriendly policies and lack of employment opportunities for thousands of school leavers and even university graduates.

Coupled with the operating environment in the country particularly the inability of the government to provide interrupted power supply despite repeated assurances as well as multiple taxes and the high rate of inflation in the country were major drawbacks to achieving high productivity by the workers.

For instance, the Transmission Company of Nigeria (TCN) recently commissioned some power projects in Akwa Ibom State apparently to improve electricity supply but this seems to be a difficult task to be achieved.

As a result of the challenging business environment in the country with many workers being retrenched, this has had a ripple effect on the economy and no state of the federation appeared spared in the worsening unemployment situation in the country.

In fact, some states are even unable to pay their workers at the end of each month. Indeed, there are reports that some states of the federation owe their workers for upward of six months.

One of the governors was recently quoted as saying that owing workers their monthly salary is better than retrenchment. In this case, the governor appeared to have forgotten that a director in one of the states in the country was said to have committed suicide after he was owed more than six months.

However, in spite of the numerous challenges that may have tended to strain the relationship between labour and state governments with the nonpayment of salary being the leading cause of friction, Akwa Ibom government seems to have escaped this trap. It has been able to promptly meet its obligations to workers including those who had since retired from service.

Similarly, the establishment of industries in the state being facilitated by the state government will help to create jobs for the youth; it is also seen as a move that would provide a steady income to a good number of the workers.

Ufot Ebong, special adviser to the governor on technical matters and due process as well as being in charge of Akwa Ibom Employment and Enterprise Scheme (AKEES), a franchise behind the establishment of many factories in the state, described the motivation behind government’s industrialisation drive as a way of changing the mindset of the people.

According to him, the establishment of the cottage industries was a preparation for the big industrial factories that would be coming soon in the state while the factories would have created a platform for the workers to acquire the experience and the required work ethics

For Governor Udom Emmanuel, a former banker who sees himself as a professional in politics and not a professional politician, the state government would always ensure that the interest of workers is given priority attention while acknowledging that his administration has been able to meet “almost 80 percent of the requests” made by workers.

He said the state government had paid all pension arrears to date with efforts being made to clear all outstanding gratuities.

“Let me also say that I have put mechanism in place, so we are already working on affordable housing for workers. I have enjoyed a very cordial work and harmonious labour movement in this state. I must thank all of you for making that possible.

“We have made tremendous progress; in the little that is remaining, we will make every effort to make sure we clear them as soon as possible,” he said.

For Ekereobong Akpan, the state government has extended the frontiers of progress and development by working with the workers and promptly settling their entitlements, noting that without salaries and pensions, the economy would be grounded.

Beyond this, in demonstration of the state government’s sincere concern for workers, on assumption of office in 2015, the governor had directed the payment of backlog of gratuities for local government retirees from 2001 to 2011.

Today, the governor is still keeping the pace in this direction. The payment of salary arrears to those employed in 2014 to serve in the previous administration is ongoing.

To cap it all, the 2015 and 2016 promotion of 9,986 officers has been released. Since the governor came on board, he has released the promotion of over 20,000 workers and he has also provided affordable housing for public servants.

As the state government continues to meet its obligations to workers by paying their salaries in time, this has not failed to attract the attention of the state branch of the Nigerian Labour Congress.

Of course, if the reverse has been the case, the workers would have been on an endless industrial action. But for Etim Ukpong, chairman of the NLC in Akwa Ibom State, it has never been so good.

Without the payment of salary to civil servants in a civil service-dependent economy, it would have been tough to stimulate economic activities. What the state government has done has indeed served as a catalyst to boost economic growth in the state.

ANIEFIOK UDONQUAK, Uyo

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