Senate uncovers N14bn unauthorized salary increase at NSPMC

The Nigerian Senate has revealed that the Board of Directors of the Nigerian Security Printing and Minting Company Plc (NSPMC) allegedly approved a N14 billion salary increase for its staff members without obtaining the necessary approval from the National Salaries, Incomes, and Wages Commission. This disclosure was made by Senator Ahmed Wadada, Chairman of the Senate Public Accounts Committee, during a session in Abuja, where the NSPMC’s management appeared to address the 2019 report from the Auditor-General of the Federation.

The Auditor-General’s report exposed that between 2016 and 2019, the NSPMC’s Board of Directors sanctioned the disbursement of N14 billion for salaries and allowances without the requisite approval from the salaries and wages regulatory body.

According to Article 3 of the NSIWC Act, 1990, the Commission is tasked with advising the Federal Government on national income policy, recommending the proportions of income growth allocated for general wage increases, informing the Federal Government about wage trends, and proposing guidelines for wage increases, among other responsibilities.

In a written submission, the Managing Director of NSPMC, Ahmed Halilu, initially argued that the company did not require approval from the salaries and wages regulatory body because it was registered under the Companies and Allied Matters Act. Nevertheless, Halilu later admitted before the Senate Committee on Public Accounts that it was erroneous not to seek approval from the NSIWC before implementing the new salary and allowance increase for the company.

Halilu further clarified, “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 work done by thousands of staff over this period.”

Members of the Senate committee expressed their disapproval of the unauthorized payments, underscoring that public funds had been expended without adhering to due process. Deputy Whip of the Senate, Senator Nwebonyi Onyeka, emphasized that government funds were spent without the necessary procedures and insisted that the misappropriated funds should be reimbursed.