How Directors of Nigerian Minting company approved N14bn salary hike without regulatory approval — Senate investigation
The Senate Public Accounts Committee has uncovered how the Board of Directors of the Nigerian Security Printing and Minting Company Plc (NSPMC) allegedly approved a N14bn salary increase for its staff members without obtaining the necessary approval from the National Salaries Wages, Incomes and Wages Commission.
The discovery was made during a session in the Red Chamber, where the management of NSPMC appeared before the committee to address the 2019 report of the Auditor-General of the Federation.
According to the report, spanning from 2016 to 2019, the NSPMC’s Board of Directors authorized a significant sum for salaries and allowances without adhering to the regulatory procedures set by the salaries and wages regulatory body.
The Auditor-General’s report highlighted this violation, emphasising that the NSPMC had not sought approval from the appropriate authority.
Under Article 3 of the NSIWC Act, 1990, the commission is mandated to advise the Federal Government on national income policy, recommend appropriate proportions of income growth for general wage increases, and inform the government about prevailing and emerging wage trends.
The commission is also responsible for proposing guidelines to restrict wage increases within certain parameters.
However, in a written submission, the Managing Director of NSPMC, Ahmed Halilu, argued that the company did not require approval from the salaries and wages regulatory body as it was registered under the Companies and Allied Matters Act.
This revelation has raised concerns about the transparency and accountability of the NSPMC’s operations.
The unauthorized salary increase not only violates established regulations but also questions the company’s adherence to proper governance practices.
The Senate Public Accounts Committee has vowed to thoroughly investigate the matter and hold those responsible accountable for their actions.
The NSPMC, a government-owned entity responsible for printing and minting currency notes and other security documents, plays a crucial role in maintaining the integrity of Nigeria’s financial system.
However, the managing director later admitted before the Senate Committee on Public Accounts that it was wrong not to seek approval from the NSIWC before implementing the new salaries and allowances increase for the company.
Halilu further said, “It has come to our notice that we must obtain approval before salaries increase. It is salaries paid over three years. On this ground, it was not misappropriated considering the volume of works done by thousands of staff over this period.”
