The Federal Government plans to allocate ₦3 trillion for the new minimum wage and the payment of pensions and gratuities. This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a meeting with the Senate Committee on Appropriations, chaired by Olamilekan Adeola, on Friday.
Bagudu presented the general principles of the newly amended 2024 budget to the committee. Following a meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress, President Bola Tinubu approved a new minimum wage of ₦70,000 for Nigerian workers. The president also pledged to review the national minimum wage law every three years.
On Wednesday, the National Assembly passed for first and second readings an amendment of ₦6.2 trillion to the 2024 budget, increasing its total size to ₦33.7 trillion. In a letter to the Senate, President Tinubu sought the withdrawal of ₦3.2 trillion from the Consolidated Revenue Fund for capital expenditure and an additional ₦3 trillion for recurrent expenditure for the year ending December 31, 2024.
The Senate promptly gave the requests first and second readings and mandated its committees on Appropriations and Finance to inject more legislative inputs and report back within a week. Senate Leader Opeyemi Bamidele explained that the amendment aimed to authorize the issuance of ₦3.2 trillion for capital expenditure and ₦3 trillion for recurrent expenditure, funding capital infrastructure development, education, healthcare access, and public welfare initiatives.
Senator Adamu Aliero supported the bills, citing the need to fund the expected minimum wage for workers. Senator Adams Oshiomhole emphasized the necessity of funding personnel costs arising from the minimum wage adjustment, stressing the importance of legal backing to prevent financial shortfalls.
During the meeting with the Senate Committee on Appropriations, Bagudu noted that the new budget additions would be funded by already reserved profits, not loans. He highlighted the importance of prioritizing projects that open up roads for investments and emergencies, while other projects would be addressed in subsequent batches. He commended President Tinubu for addressing the infrastructure deficit and assured continued funding approval by the Federal Executive Council for other road projects as funds become available.
Senator Adeola affirmed the government’s capacity to finance the 2024 budget and requested a detailed breakdown of the ₦6.2 trillion approval. This breakdown, to be submitted next week, will be debated by both chambers of the National Assembly. Senate Spokesperson Yemi Adaramodu confirmed that ministries, departments, and agencies would defend their budget allocations before the relevant Senate committees.
The ₦3 trillion recurrent budget will fund the minimum wage, pensions, and gratuities, while the ₦3.2 trillion capital component will augment existing road projects on state and federal routes, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation.
NLC Accepts ₦70,000 Minimum Wage as Act of Solidarity
The Nigeria Labour Congress (NLC) stated on Friday night that its acceptance of the ₦70,000 minimum wage proposed by President Tinubu was an act of solidarity. In a statement released at the end of its National Executive Council meeting, NLC President Joe Ajaero affirmed the congress’s commitment to defending the rights of Nigerian workers.
The statement read, “NEC-in-session concluded that this decision, though challenging and far from our initial demand, was made in the spirit of solidarity and sacrifice for the Nigerian masses to avert a threatened further hike in the price of petrol, which would inflict more hardship on the already suffering masses.”
The NLC called on all Nigerians to unite in this cause and hold leaders accountable to the same standards of sacrifice and service.
Lagos NLC Calls for Higher Minimum Wage
The Lagos State Chapter of the NLC urged the state government to consider the peculiarities of Lagos when implementing the new ₦70,000 minimum wage. State Chairman Funmi Sessi stated that the minimum wage is insufficient for workers in Lagos due to high living costs.
“We, in Lagos State, still need to negotiate further with the government on issues such as rent, transportation, and feeding. The government needs to look critically at our wage and add the ‘Lagos factor,’” Sessi said.
She appealed to Governor Babajide Sanwo-Olu to consider the unique challenges faced by Lagos workers and adjust the minimum wage accordingly.
