The Senior Staff Association of Nigerian Universities (SSANU) has raised serious concerns over the escalating tax burden that is significantly diminishing the recently increased N70,000 minimum wage for university staff. The union highlighted that excessive deductions, particularly from the Pay As You Earn (PAYE) tax and the increased Value Added Tax (VAT), have rendered the wage hike ineffective, exacerbating the financial strain on its members.
In a communiqué issued after its 50th Regular National Executive Council (NEC) meeting at the Federal University, Otuoke, Bayelsa State, SSANU President Comrade Mohamed Ibrahim expressed deep dissatisfaction with the current tax regime. He emphasized that the substantial taxes on goods and services, coupled with unexplained tariffs, have nullified the benefits of the minimum wage increment. The union called on the government to implement a more worker-friendly tax system to alleviate the hardships faced by university staff.
Incomplete Salaries and Withheld Allowances
SSANU also decried the inconsistencies in salary payments attributed to the Government Integrated Financial Management Information System (GIFMIS) platform. The union reported cases where universities have been shortchanging staff by paying incomplete salaries and withholding third-party deductions under the guise of salary shortfalls, in direct violation of financial regulations.
Furthermore, the union expressed displeasure over the continuous delay in releasing the N50 billion earmarked for earned allowances, as appropriated in the 2023 Supplementary Budget. SSANU urged the government to recapture these funds in the 2025 budget and expedite the payment of all pending allowances to ensure industrial harmony within Nigerian universities.
Outstanding Withheld Salaries
While acknowledging the payment of two out of four months of withheld salaries, SSANU criticized the Federal Government's failure to remit third-party deductions, including cooperative contributions and dues for professional associations. The union appealed to the government to facilitate the immediate payment of the remaining two months' salaries and all outstanding deductions to maintain industrial peace in the university sector.
Call for State Compliance with Minimum Wage Implementation
The union also observed that some state governments have yet to implement the revised minimum wage, resulting in financial disparities between state and federal university staff. SSANU called on these state governments to promptly implement the new wage structure and pay the associated arrears to ensure equity among university workers nationwide.
Additional Concerns: Electricity Costs and Security
SSANU raised alarms over the high cost of electricity, which has compelled many universities to rely on generators due to inadequate funding for overhead costs. The union also condemned the exclusion of Bayelsa State from the national electricity grid, despite its economic significance, and urged the government and power investors to address this issue urgently.
Moreover, the union expressed deep concern over the deteriorating security situation in the country, citing an increase in kidnappings, banditry, and farmer-herder clashes. SSANU called on both federal and state governments to intensify efforts in securing lives and property to create a conducive environment for learning and research in universities.
Conclusion
The escalating tax burden, coupled with salary inconsistencies and delayed allowances, has significantly undermined the intended benefits of the N70,000 minimum wage increase for Nigerian university staff. SSANU's call for a more
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