The Federal Government of Nigeria is set to allocate N3 trillion towards the implementation of the newly approved minimum wage and the payment of pensions and gratuities. This significant financial commitment was disclosed by the Minister of Budget and Economic Planning, Atiku Bagudu, during a recent meeting with the Senate Committee on Appropriations. The meeting, chaired by Olamilekan Adeola, focused on the general principles of the newly amended 2024 budget.
Following a crucial meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), President Bola Tinubu approved a new minimum wage of N70,000 for Nigerian workers. He also committed to reviewing the national minimum wage law every three years to ensure it remains adequate and relevant.
In light of this development, the National Assembly passed an amendment to the 2024 budget, increasing its size by N6.2 trillion, bringing the total budget to N33.7 trillion. The Senate President, Godswill Akpabio, announced President Tinubu’s request to withdraw 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’s swift action on the executive bills saw them pass first and second readings, with committees on Appropriations and Finance tasked to provide further legislative input. Senate Leader Opeyemi Bamidele highlighted that the N3.2 trillion allocation for capital expenditure would support infrastructure development, education, healthcare access, and public welfare initiatives. Similarly, the N3 trillion for recurrent expenditure will cater to the new minimum wage, pensions, and gratuities.
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Minister Bagudu assured that the budget additions would not rely on loans but on already reserved profits. Priorities will be given to projects that open up roads for investments and emergencies, addressing historical underinvestment in infrastructure. The minister commended President Tinubu for tackling the infrastructure deficit and promised continued funding for road projects as more funds become available.
Senator Adeola affirmed the government’s capacity to finance the 2024 budget, requesting a detailed breakdown of the N6.2 trillion approval. This breakdown will be debated by both chambers of the National Assembly, with ministries, departments, and agencies defending their budget allocations before the relevant Senate committees. The N3.2 trillion capital budget will augment existing road projects on state and federal routes, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation. The recurrent budget of N3 trillion will fund the new minimum wage, pensions, and gratuities.
The Nigeria Labour Congress (NLC) acknowledged the approval of the N70,000 minimum wage as an act of solidarity. In a statement by its National President, Joe Ajaero, the NLC expressed that the decision, although challenging, was made to avert a further hike in petrol prices, which would exacerbate the suffering of the masses.
The Lagos State Chapter of the NLC has urged the state government to consider the unique living conditions in Lagos when implementing the new minimum wage. The state chairman, Mrs. Funmi Sessi, highlighted the high costs of rent, transportation, and feeding in Lagos, suggesting the inclusion of a ‘Lagos factor’ in the wage structure. She appealed to Governor Babajide Sanwo-Olu to address these concerns, emphasizing that N70,000 is insufficient for workers in Lagos. The chapter remains committed to engaging with the government to ensure fair compensation for Lagos workers.
The Federal Government’s commitment to implementing the new minimum wage and addressing pension and gratuity payments marks a significant step towards improving the welfare of Nigerian workers. The ongoing budget amendments and legislative actions aim to support this initiative while addressing critical infrastructure needs across the country.
Source: Saturday PUNCH.
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