The Amalgamated Union of Public Corporations Civil Service Technical and Recreational Services Employees (AUPCTRE) has urged the Federal Government to reverse its Circular on Post No Debit policy on 50 per cent revenue remittance by self-funded agencies.
In a statement at the weekend signed by AUPCTRE General Secretary, Mr Sikiru Waheed, the union warned that the policy could spell doom for the country.
It stated: “The attention of the Union has been drawn to a Circular with Reference No. FMFCME/OTHERS/IGR/CFR/21/2023 and dated 28th December, 2023.”
Consequently, the union called for cautions and advised that the implementation of the circular in the government agencies and parastatals poses dire consequences on their operations and survival.
“The union frowns particularly at item (ii) and (iii) of the circular on all partially and self funded Federal Government Agencies/Parastatals partially receiving or receiving no allocation from the Federal Government budget 50 per cent of their gross Internally Generated Revenue(IGR) to the sub-recurrent account.
“If the policy is allowed, it portends serious danger to the survival of the agencies and parastatals who were saddle with primary responsibilities of carrying out their mandates as enshrined in their establishment Acts,” it noted.
The union also said that in simple economic principle of funding, the more funds pumped into a business, the higher the return on investment.
The union said if agencies funds are reduced, they may not even be able to meet up their targets for more money for the year.
“It is already affecting some very Important organizations such as Corporate Affairs Commission (CAC) like others are under obligation to pay staff salaries and allowances, pension, gratuity and insurance policies, payment of office rents, construction of new offices, purchase and maintenance of operational vehicles, payment for ancillary services to contracted companies and other capital projects from the 50 per cent of their revenue drive that will be retained.
“This is clearly impossible to achieve with that meager percentage, it will be grossly inadequate and will starve the effected organisations of funds to carry out their statutory functions effectively.
“The Union, therefore, calls on the Federal Government to soften down on this policy as it may de-motivate workers from optimally performing their functions,” the statement concluded.