The Federal Government is set to allocate N3 trillion for the implementation of a new minimum wage, as well as the payment of pensions and gratuities, according to the Minister of Budget and Economic Planning, Atiku Bagudu. This announcement was made during a meeting with the Senate Committee on Appropriations, chaired by Olamilekan Adeola, on Friday.
The newly amended 2024 budget, presented by Bagudu, includes a provision for the new minimum wage of N70,000 for Nigerian workers, approved by President Bola Tinubu after discussions with the Nigeria Labour Congress (NLC) and the Trade Union Congress. The budget also proposes a review of the national minimum wage law every three years.
The National Assembly recently amended the 2024 budget, increasing its size to N33.7 trillion. President Tinubu has requested the withdrawal of N3.2 trillion from the Consolidated Revenue Fund for capital expenditure and an additional N3 trillion for recurrent expenditure for the year ending December 31, 2024.
The Senate has expedited the consideration of these requests, mandating its committees on Appropriations and Finance to provide further legislative inputs. The amendment aims to authorize the issuance of funds for capital infrastructure development, education, healthcare access, and public welfare initiatives.
Senators Adamu Aliero and Adams Oshiomhole emphasized the necessity of funding the expected minimum wage adjustment and personnel costs. They stressed the importance of legal backing to prevent financial shortfalls.
During the Friday meeting, Minister Bagudu assured that the new budget additions would be funded by reserved profits rather than loans. He highlighted the government's commitment to addressing the country's infrastructure deficit and prioritized projects that would stimulate investments and address emergencies.
Bagudu provided a sectoral overview of the N3.2 trillion for the Renewed Hope Infrastructure Projects and the N3 trillion increase in the recurrent budget component. He assured that the Federal Executive Council would continue to approve funding for additional road projects as funds become available.
Senator Adeola confirmed the government's capacity to finance the 2024 budget and requested a detailed breakdown of the N6.2 trillion approval, which will be debated by both chambers of the National Assembly. Senate Spokesperson, Senator Yemi Adaramodu, stated that ministries, departments, and agencies would defend their budget allocations before the relevant Senate committees.
The N3 trillion recurrent budget will fund the minimum wage, pensions, and gratuities, while the N3.2 trillion capital component will support road projects, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation.
**NLC: Acceptance of N70,000 Minimum Wage is an Act of Solidarity**
The Nigeria Labour Congress (NLC) has described its acceptance of the N70,000 minimum wage proposed by President Tinubu as an act of solidarity. In a statement released after its National Executive Council meeting, NLC President Joe Ajaero emphasized the congress's commitment to defending the rights of Nigerian workers.
"Though challenging and far from our initial demand, this decision was made in the spirit of solidarity and sacrifice for the Nigerian masses to avert a further hike in the price of petrol," the statement read. "The NLC will continue to stand resolutely in its mission to defend and advance the rights of Nigerian workers and the Nigerian people."
**Lagos Labour Union Calls for Adjustments to Minimum Wage**
The Lagos State Chapter of the NLC has urged the state government to consider the unique living conditions in Lagos when implementing the new N70,000 minimum wage. State NLC Chairman Funmi Sessi highlighted the need for further negotiations on issues such as rent, transportation, and feeding, emphasizing that the current minimum wage is insufficient for workers in Lagos.
"We appeal to Governor Babajide Sanwo-Olu to consider the 'Lagos factor' in the wages of workers residing in the state," Sessi said. "We will continue to engage and dialogue until we achieve what is best for the workers."
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