FG to spend N3tn on new minimum wage, pensions, gratuities
According to Saturday Nigerianwatch, the federal government plans to spend N3 trillion on the new minimum wage as well as pension and gratuity payments.Atiku Bagudu, Minister of Budget and Economic Planning, announced this on Friday during a meeting with the Senate Committee on Appropriations, which is chaired by Olamilekan Adeola.
During the meeting, the minister presented the committee with the general concepts of the newly modified 2024 budget.
Recall that President Bola Tinubu approved a new minimum salary of N70,000 for Nigerian workers during a meeting with the leadership of the Nigeria Labour Congress and the Trade Union Congress on Thursday. The president also agreed to examine the national minimum wage law every three years.
The National Assembly, in both chambers, passed an N6.2 trillion amendment to the 2024 budget for first and second readings on Wednesday, bringing the total budget to N33.7 trillion.
Tinubu requested that N3.2 trillion from the Consolidated Revenue Fund be withdrawn for capital spending in a letter to the Senate, which was read in plenary by Senate President Godswill Akpabio. In addition, he asked another N3 trillion in additional recurrent expenditures for the fiscal year ending December 31, 2024.
For expedited consideration, the Senate accorded the demands filed as executive legislation first and second readings, and directed the Appropriations and Finance committees to infuse additional legislative inputs and report back within a week. In his lead argument on the Appropriation Amendment Bill, Senate Leader Opeyemi Bamidele stated that the amendment aimed to enable the issuance of N3.2 trillion for capital expenditure and N3 trillion for recurrent spending from the consolidated fund. He explained that this will help to fund capital infrastructure development, education, healthcare access, and public welfare programmes.
Senator Adamu Aliero backed the legislation, stressing the necessity to fund the expected minimum wage for employees. Senator Adams Oshiomhole underlined the importance of paying the staff costs resulting from the minimum wage modification. He emphasised that any rise in personnel spending must be legally supported to avoid budgetary shortages.
During Friday's discussion with the Senate Committee on Appropriations, the minister stated that the additional budget additions will be paid by an already reserved profit rather than borrowing.
Bagudu indicated that initiatives that would open up highways for investors and emergencies were prioritised, with other road work addressed in future batches. He cited the country's past underinvestment in infrastructure as a major cause of present issues, and praised President Tinubu for tackling the infrastructure deficit.
Bagudu stated that the Federal Executive Council will continue to authorise money for future road projects when finances become available. He offered a sectoral analysis of the N3.2 trillion for the Renewed Hope Infrastructure Projects, as well as the N3 trillion increase in the budget's recurrent component.
Senator Adeola verified the government's ability to fund the 2024 budget and asked for a full analysis of the N6.2 trillion approval.
This breakdown, due next week, will be debated by both chambers of the National Assembly. Senator Yemi Adaramodu, the Senate's spokesperson, confirmed that ministries, departments, and agencies will defend their budget allocations before the relevant Senate committees.
The recurring budget of N3 trillion will cover the minimum wage, pensions, and gratuities, while the capital component of N3.2 trillion would pay existing state and federal road projects such as coastal roads, the Sokoto-Badagry road, railway development, and dam irrigation.
On Friday night, the Nigeria Labour Congress claimed that accepting Tinubu's proposed N70,000 minimum wage was an act of solidarity.
The congress announced this in a statement issued at the conclusion of its National Executive Council meeting. The statement, issued by the NLC's National President, Joe Ajaero, reiterated that the NLC would continue to protect Nigerian workers' rights at any moment.
The statement read, "NEC-in-session concluded that this decision, though difficult and far from our initial demand, was made in the spirit of solidarity and sacrifice for the Nigerian masses to avoid a threatened further increase in petrol prices, which would inflict additional hardship on the already suffering masses.
"Once again, the NEC-in-session affirms the NLC's unwavering commitment to defending and advancing the rights of Nigerian workers and the Nigerian people at all times."
"It therefore calls on all Nigerians to unite in this cause and to hold our leaders accountable to the same standards of sacrifice and service."
N70,000 cannot support workers in Lagos, according to labour.
Also, the Lagos State Chapter of the Nigeria Labour Congress has urged the state government to take into account the state's unique circumstances when the new N70,000 minimum wage is implemented.
Mrs Funmi Sessi, the state chairman of the NLC, told the News Agency of Nigeria in Lagos on Friday that the N70,000 minimum salary agreed by President Bola Tinubu would not be sufficient to support state workers.
"We in Lagos State still need to negotiate with the government on topics like rent, transportation, and food. The government must examine our wages and include the 'Lagos factor'.
"We know that if Ogun, Oyo, Edo, and Ekiti pay the N70,000 required by law, Lagos, Kano, Rivers, and Abuja would always have a special component for their allowances.
"So, we utilise this medium to appeal to our loving and excellent Governor of Lagos State, Babajide Sanwo-Olu, who is always prepared to recognise the good work of workers and alleviate their pain.
"We want to convince the governor that the 'Lagos factor' should be considered for state workers. N70,000 is insufficient for workers residing in the state.
"We will, however, continue to engage and dialogue until what we feel will be best for the workers is achieved," according to her.
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