The Federal Government is set to allocate ₦3 trillion towards the new minimum wage, pensions, and gratuities, according to information obtained by Saturday PUNCH.
This announcement was made by the Minister of Budget and Economic Planning, Atiku Bagudu, during a meeting on Friday with the Senate Committee on Appropriations, chaired by Olamilekan Adeola. During the meeting, Bagudu outlined the principles of the newly amended 2024 budget.
Following discussions with the Nigeria Labour Congress and the Trade Union Congress, President Bola Tinubu approved a new minimum wage of ₦70,000 for Nigerian workers. He also committed to reviewing the national minimum wage law every three years.
Recently, the National Assembly advanced an amendment to the 2024 budget, increasing its size by ₦6.2 trillion to ₦33.7 trillion.
President Tinubu requested the withdrawal of ₦3.2 trillion from the Consolidated Revenue Fund for capital expenditure and an additional ₦3 trillion for recurrent expenditure for the fiscal year ending December 31, 2024.
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The Senate, in response, expedited the readings and referred the bills to the committees on Appropriations and Finance for further legislative input, with a report expected within a week.
Senate Leader Opeyemi Bamidele explained that the budget amendment aims to authorize ₦3.2 trillion for capital expenditure and ₦3 trillion for recurrent expenditure. This funding is intended to support capital infrastructure development, education, healthcare access, and public welfare initiatives.
Senators Adamu Aliero and Adams Oshiomhole emphasized the necessity of funding personnel costs related to the new minimum wage to avoid financial shortfalls.
During the Senate Committee meeting, Minister Bagudu clarified that the new budget additions would be financed through reserved profits rather than loans. He highlighted the prioritization of projects that foster investment and address emergencies, while other projects would be handled in subsequent phases.
Bagudu commended President Tinubu for tackling the infrastructure deficit and assured that funding for additional road projects would be approved as funds become available.
Senator Adeola expressed confidence in the government’s ability to finance the 2024 budget and requested a detailed breakdown of the ₦6.2 trillion allocation.
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This breakdown will be discussed by both chambers of the National Assembly next week, and ministries, departments, and agencies will defend their budget allocations before relevant Senate committees.
The ₦3 trillion recurrent budget will cover the new minimum wage, pensions, and gratuities, while the ₦3.2 trillion capital budget will enhance existing road projects, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation.