The federal government has informed striking members of the Academic Staff Union of Universities (ASUU) that it does not have enough resources to pay the N1.1 trillion revitalization fund balance, which is one of the union’s demands.
InsightnaijaTV reports that the Minister of Labour and Employment, Chris Ngige, made the submission during an interview on Thursday.
He went on to say that it was the government of former President Goodluck Jonathan, not the current administration, that made the initial promise to pay the N1.3 trillion in revitalization funds.
Ngige went on to say that when the promise was made, the government had more money and fuel prices were lower, but President Muhammadu Buhari’s administration does not have access to such funds.
Ngige went on to say that when the promise was made, the government had more money and fuel prices were lower, but President Muhammadu Buhari’s administration does not have access to such funds.
According to the Minister, this is why the Buhari administration told the union to allow a renegotiation of the agreement after some art payments were made by the Jonathan administration and the current administration out of the initial 1.3 trillion agreement, leaving a balance of 1.1 trillion, which is one of the factors responsible for the latest ASUU strike, which began on February 14, 2022.
Though Ngige agreed that government is a continuum, he urged ASUU to be realistic and understand the government’s current financial capability.
During an interview with Channels Television, Ngige stated that the federal government has promised to look into other ways to fund universities because current realities may make the revitalization agreement unviable.
“Government is a continuum. The N1.3 trillion you are talking about was promised by the Jonathan government. Oil was selling about $100 to $120 per barrel then and the revenue of the federation was rich,” he said.
“The agreement (referring to the agreement made by the current administration) says that ‘government is unable to pay this but to show commitment to the intentions of the revitalisation for which this N1.3 trillion was promised’.
“Mind you, it was promised by that administration and they promised to kickstart the payment — and they paid N200 billion which they borrowed from TETFUND. They did not take it from the federation account. That payment spiralled even into 2016 — to our regime.
“Government (current administration) said we don’t have the money to pay for it — this was the agreement in 2016 to 2017 — but we will find a way by which we can fund the universities and revitalise infrastructure.
“A committee was set up with ASUU as members. Government said ‘we are going to drop N25 billion for you to show you in good faith that we are not talking nonsense.’
“That one was dropped. Again, another money was paid last year because the committee couldn’t come up with anything that will generate funds. Government made it clear that we don’t have N1.1 trillion that is remaining.
“We don’t have it. It is in the agreement. The government did not say we are going to pay N1.1 trillion that is remaining. They said we don’t have this money and under the principle of capacity and ability to pay, let us renegotiate it because TETFUND is still there.
“Unless you want us to take money from TETFUND and deceive you like it was done in that period.”
