The Federal Government of Nigeria under the leadership of President Muhammadu Buhari has implemented a harsh economic policy by increasing the income tax popularly known as Pay As You Earned (PAYE) in Nigeria. However, at the time of filing this report, the percentage at which it was secretly increased is yet to be officially revealed.
The increase in the PAYE was effected a few days after the Federal Government disbursed N6.25 billion for the establishment of cattle ranches in local government areas affected by banditry in Kastina state, the state of President Buhari.
According to the internal memos currently in circulation at government institutions, the increase in the tax of workers takes effect from the month of August.
The authorities of the University of Ilorin Teaching Hospital (UITH) and Federal Medical Centre, Birnin Kudu condemned federal government for not officially informing the workers before reducing their unsustainable salaries.
In a memo with a reference no. FMC/BKD/ADM/79/VOL.11, signed by Rabiu Usman and dated August 31, 2022, the Management of the medical institution expressed concern over the lingering financial hardship the tax increase might have caused the staff.
The memo, originated from Head, Finance and Account and directed to all staff was captioned, “Increase in Pay As You Earned (PAYE) Tax Deduction”.
Also, a memo titled “Sudden Increase in Paye Deduction” and signed by the Deputy Director, Finance and Accounts, Oladipo A. A. with Ref No UITHMB/FIN/1099/V.1/160, bearing the same content with that of FMC Birnin Kudu was addressed to all the staff.
The two paragraph memo dated August 29, 2022 reads:
“All staff under IPPIS must have noticed reduction in their August 2022 salary. This is as a result of increase in the rate of Pay As You Earned (PAYE) deduction even without prior notice to the management.
The Management wish to express its concern on the financial hardship it might have caused the staff.”
