The President Bola Tinubu-led Federal Government will 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 wage 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Tinubu requested that N3.2 trillion from the Consolidated Revenue Fund be withdrawn for capital spending in a letter to the Senate, which was read in plenary by Senate President Godswill Akpabio.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 for 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.
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.
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 will pay for existing state and federal road projects such as coastal roads, the Sokoto-Badagry road, railway development, and dam irrigation.
