Extend Pay Rise for Military to Other Security Agencies, Rewane Tells FG

Bismarck Rewane, Managing Director of Financial Derivatives Company (FDC), is calling on the Nigerian federal government to extend the recently approved salary increase for military personnel to other security agencies. Rewane argues that excluding agencies like the Nigeria Police Force and the Nigeria Security and Civil Defence Corps (NSCDC) could create significant distortions and negatively impact morale across the nation's security architecture.

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The knock-on effects will affect the rest of the public sector and the relativity factor for the private sector.

The approved wage review for the Nigerian Army includes an 80 percent increase for lower-ranking personnel, 50 percent for officers up to colonels, and 30 percent for higher-ranking officers, with an estimated total cost of N924 billion. While acknowledging the importance of improving military welfare, Rewane cautioned that this policy will have broader implications. He noted that the adjustment could affect wage relativities within the public sector and create pressure on private sector employers to review their compensation packages.

Furthermore, Rewane warned that implementing higher wages without a corresponding rise in productivity could exacerbate inflation. He estimates that the salary adjustment might contribute between two and three percentage points to existing inflationary pressures. "This will push wages higher without productivity. Inflation is bound to increase by a minimum of two to three per cent," he stated.

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This will push wages higher without productivity. Inflation is bound to increase by a minimum of two to three per cent.

Rewane stressed that fairness necessitates a compensating salary review for all other security agencies, including the Police and Civil Defence. However, he cautioned that such an expansion of the wage review would substantially increase recurrent expenditure across all government tiers. The economist also revealed that electronic payment transactions in Nigeria saw a 5.54 percent month-on-month increase in July, reaching N122.98 trillion, and projected a further rise to N126.7 trillion in August due to seasonal spending and increased adoption of digital payment channels.

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There must be a compensating review of all other security agencies and armed forces, including the Police and Civil Defence.