National Telescope national telescope newspaper
By By Taiwo Niyi
The Federal Government plans to allocate N3 trillion for the new minimum wage and 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.
During the meeting, Bagudu outlined the general principles of the newly amended 2024 budget.
President Bola Tinubu recently approved a new minimum wage of N70,000 for Nigerian workers following discussions with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
The president also committed to reviewing the national minimum wage law every three years.
The National Assembly, in both chambers, has passed the first and second readings of an amendment to the 2024 budget, increasing its size to N33.7 trillion.
President Tinubu has also 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 therefore mandated its Committees on Appropriations and Finance to provide more legislative input and report back within a week.
Senate Leader Opeyemi Bamidele, in his debate on the Appropriation Amendment Bill, emphasised the need for funding capital infrastructure development, education, healthcare access, and public welfare initiatives.
Senators Adamu Aliero and Adams Oshiomhole supported the bills, highlighting the necessity of funding the new minimum wage and associated personnel costs.
Bagudu assured the committee that the new budget additions would be funded by reserved profits rather than loans.
He emphasised the importance of addressing the country’s infrastructure deficit and commended President Tinubu for his efforts.
The recurrent budget of N3 trillion will cover the new minimum wage, pensions, and gratuities, while the capital budget of N3.2 trillion will fund road projects, railway construction, and dam irrigation.
Senator Adeola affirmed the government’s capacity to finance the 2024 budget and requested a detailed breakdown of the N6.2 trillion approval.
The Nigeria Labour Congress (NLC) has accepted the N70,000 minimum wage proposed by President Tinubu as an act of solidarity.
In a statement, NLC President Joe Ajaero reaffirmed the union’s commitment to defending the rights of Nigerian workers.
However, the Lagos State Chapter of the NLC has urged the state government to consider the high cost of living in Lagos.
The state NLC chairperson, Mrs. Funmi Sessi, emphasised that N70,000 is insufficient for workers in Lagos and called for additional allowances to account for the “Lagos factor.”
The NLC in Lagos plans to continue negotiations with the state government to achieve a more sustainable wage for workers in the state.
