The Federal Government has announced plans to spend N3 trillion on the new minimum wage, pensions, and gratuities. This revelation was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a meeting with the Senate Committee on Appropriations.
President Bola Tinubu had earlier approved a new minimum wage of N70,000 for Nigerian workers after a meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). The president also pledged to review the national minimum wage law every three years.
To this end, the National Assembly has passed an amendment to the 2024 budget, increasing the budget size to N33.7 trillion. President Tinubu sought the withdrawal of N3.2 trillion from the Consolidated Revenue Fund for capital expenditure and another N3 trillion for additional recurrent expenditure.
The recurrent budget of N3 trillion will fund the new minimum wage, pensions, and gratuities, while the capital component of N3.2 trillion will be used for infrastructure projects, including road construction, railway projects, and dam irrigation.
The Nigeria Labour Congress (NLC) has stated that its acceptance of the N70,000 minimum wage was an act of solidarity to avert a further hike in the price of petrol, which would have caused more hardship for the masses.
