The Federal Government of Nigeria has announced plans to spend N3 trillion on the new minimum wage, pensions, and gratuities. This significant budget allocation was revealed by the Minister for Budget and Economic Planning, Atiku Bagudu, during a meeting with the Senate Committee on Appropriations on Friday.
Minister Bagudu outlined the key aspects of the recently amended 2024 budget to the committee, chaired by Senator Olamilekan Adeola. The amendment includes an increase of N6.2 trillion, raising the total budget to N33.7 trillion.
President Bola Tinubu approved a new minimum wage of N70,000 for Nigerian workers, following discussions with the Nigeria Labour Congress (NLC) and the Trade Union Congress. The President also committed to reviewing the national minimum wage law every three years.
In a formal request to the Senate, President Tinubu sought the withdrawal of N3.2 trillion from the Consolidated Revenue Fund for capital expenditure and an additional N3 trillion for recurrent expenditure for the fiscal year ending December 31, 2024.
The Senate promptly advanced these requests through first and second readings, assigning the committees on Appropriations and Finance to provide further legislative input.
During the debate on the Appropriation Amendment Bill, Senate Leader Opeyemi Bamidele emphasized that the funds would support critical infrastructure projects, education, healthcare, and public welfare initiatives.
Senator Adamu Aliero underscored the importance of financing the new minimum wage, while Senator Adams Oshiomhole highlighted the need to legally back the increase in personnel costs to prevent budget shortfalls.
Minister Bagudu assured that the additional budget would be financed through reserved profits rather than loans. He emphasized the prioritization of projects that foster investment opportunities and address emergency needs, with other projects to follow as funds permit. Bagudu praised President Tinubu’s efforts to mitigate the country’s infrastructure deficit, a long-standing issue due to historical underinvestment.
The Senate Committee on Appropriations, led by Senator Adeola, requested a detailed breakdown of the N6.2 trillion amendment, which is expected to be presented next week for further deliberation by both chambers of the National Assembly.
Senate Spokesperson, Senator Yemi Adaramodu, confirmed that ministries, departments, and agencies would defend their budget allocations before the Senate committees.
The new budget includes N3 trillion for recurrent expenditures such as the new minimum wage, pensions, and gratuities. The capital component of N3.2 trillion will fund various infrastructure projects, including road and railway construction and dam irrigation.
