Official Salary Structure Of Local Government Chairman In Nigeria: Average Pay Per Month

Local government administration is the grassroots of governance in Nigeria, comprising 774 local councils spread across the country. The individuals who occupy the office of the local government chairman are elected or appointed to oversee the administration, infrastructure development, and basic services within these local jurisdictions. While the position is seen as a vital link between the state government and the people, many are unaware of the remuneration associated with this role.

Breakdown of the Official Salary Structure

According to the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the salary structure of a local government chairman in Nigeria includes several components, such as a basic salary, allowances, and other benefits. The overall remuneration package is substantial when compared to the average income of Nigerian citizens.

1. Basic Salary

The annual basic salary of a local government chairman is ₦908,312, which translates to approximately ₦75,692 per month. This figure might seem modest when compared to higher-ranking political offices like governors or federal legislators, but it represents only a fraction of the full compensation package.

2. Allowances

The bulk of a local government chairman’s earnings comes from various allowances, which are calculated as a percentage of the basic salary. These allowances cover a wide range of expenses, making the total take-home significantly higher than the basic salary.

• Furniture Allowance: This is paid once every four years and is 150% of the annual basic salary. A chairman is entitled to ₦1,362,468 for furniture expenses.
• Leave Allowance: The chairman receives a leave allowance, which is 10% of the annual basic salary, amounting to ₦90,831.
• Vehicle Loan: Chairmen are also entitled to a vehicle loan worth ₦3,633,248, which is 400% of the annual basic salary. This loan helps them acquire official vehicles, essential for carrying out their duties.
• Severance Gratuity: At the end of their tenure, local government chairmen receive a severance gratuity amounting to ₦2,724,936, which is 300% of their annual basic salary.

These allowances, particularly the furniture and vehicle loans, significantly enhance the chairman’s standard of living while in office.

3. Other Perks and Benefits

Local government chairmen also enjoy other perks, which include accommodations, official cars, and domestic staff. These benefits are provided by the government, ensuring that the chairman can focus on his duties without worrying about personal expenses.

• Medical Expenses: Although not fixed, chairmen are entitled to medical allowances for themselves and their families. In some cases, these include overseas medical treatments.
• Duty Tour Allowance (DTA): Chairmen receive ₦20,000 per night for domestic trips. For foreign trips, they are entitled to $450 per night as an estacode allowance.

Total Earnings

When all the allowances and perks are combined, the total annual earnings of a local government chairman can be as high as ₦5,994,659, which is more than five times the basic salary. This translates to an average monthly pay of approximately ₦499,555, excluding additional benefits like accommodations and medical care.

Comparison with Other Political Offices

When compared to other political offices, local government chairmen earn significantly less than state governors or federal lawmakers. For instance, a state governor in Nigeria earns an annual salary of ₦11.5 million, while federal legislators receive salaries and allowances totaling up to ₦12.7 million annually. However, the pay for chairmen is still much higher than the average income of Nigerian workers, whose minimum wage is currently set at ₦30,000 per month.

Criticism of the Salary Structure

The salary structure of local government chairmen has been a topic of controversy in Nigeria, especially considering the country’s economic challenges. Civil society organizations have criticized the high remuneration packages of political office holders, arguing that these salaries are disproportionate to the average income of the Nigerian populace. Groups like the Socio-Economic Rights and Accountability Project (SERAP) have called for a reduction in these salaries to reduce the cost of governance.

Many critics argue that local government chairmen often lack the required accountability in managing their jurisdictions, and their substantial earnings are not reflective of the level of development in many local councils. Despite the hefty salary and allowances, many local governments struggle with providing basic services like water, electricity, and infrastructure. This has led to calls for a review of the salary structure and better monitoring of local government administration.

Conclusion

The official salary of local government chairmen in Nigeria may seem moderate at first glance, but when all allowances and perks are taken into account, it becomes clear that the position is well-remunerated. With a total package that can exceed ₦5 million annually, chairmen enjoy financial benefits that are far above the national average, positioning the role as one of the most lucrative in grassroots governance.

While their earnings are substantial, there are growing calls for a downward review of these salaries to better align with the economic realities of the country. As the debate continues, it remains essential for local government chairmen to use their position to serve the people effectively and ensure that their local councils experience real development.