Nigerian president plans pay cut for officials

ABUJA Feb 10 (Reuters) - Nigerian President Umaru Yar'Adua said on Tuesday he planned to slash the salaries and allowances of senior government officials as the global financial crunch takes a toll on Africa's top oil producer.

Yar'Adua made his plan known at a meeting with ministers and aides in the capital Abuja a day after resuming work following a 14-day leave, a presidential spokesman said in a statement.

"President Yar'Adua informed the gathering that in furtherance of efforts to come to terms with the realities of the ongoing global economic recession, he has initiated action on the drastic downward review of the salaries and allowances of all political office holders," the statement said.

The statement did not indicate the size of the planned cut.

The government agency that fixes wages and allowances for public officials in September approved a more than 100 percent pay rise for lawmakers, drawing public outcry in a country where most people live on less than $2 day.

The world's eighth biggest crude exporter has seen revenues decline sharply as global oil prices tumbled from a peak above $147 last July to around $40 on Tuesday. More than 80 percent of federal revenues come from the country's oil and gas sector.

Nigeria ranks among the most corrupt countries in the world, according anti-graft watchdogs. About 60 percent of its budget goes to payment of salaries of civil servants and politicians. Unions and lobby groups say a sizeable proportion of that amount goes to ghost workers. (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/ ) (Reporting by Felix Onuah; Writing by Tume Ahemba; Editing by Nick Tattersall and Angus MacSwan)