The Federal Government has announced plans to spend N3 trillion on the new minimum wage, pensions, and gratuities. This was disclosed by the Minister of Budget and Economic Planning, Atiku Bagudu, during a meeting with the Senate Committee on Appropriations.
The new minimum wage of N70,000 was approved by President Bola Tinubu after a meeting with the leadership of the Nigeria Labour Congress and the Trade Union Congress. The president also pledged to review the national minimum wage law every three years.
The N3 trillion will be used to fund the minimum wage, pensions, and gratuities, as well as augment existing road projects on state and federal routes, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation.
The Senate Committee on Appropriations has been mandated to inject more legislative inputs and report back within a week. The committee has also requested a detailed breakdown of the N6.2tn approval, which will be debated by both chambers of the National Assembly.
The Nigeria Labour Congress has accepted the new minimum wage, describing it as an act of solidarity and sacrifice for the Nigerian masses. However, the Lagos State Chapter of the NLC has urged the state government to consider the peculiarities of the state when implementing the new minimum wage, as N70,000 may not be sustainable for workers in the state.
According to the Minister, the new budget additions will not be funded by loans but by an already reserved profit. He explained that priorities were given to projects that would open up roads for investments and emergencies, while other road projects would be addressed in subsequent batches.
Senator Adamu Aliero supported the bills, citing the need to fund the expected minimum wage for workers. Senator Adams Oshiomhole emphasised the necessity of funding the personnel costs arising from the minimum wage adjustment.
The recurrent budget of N3tn will fund the minimum wage, pensions, and gratuities, while the capital component of N3.2tn will augment existing road projects on state and federal routes, including coastal roads, the Sokoto-Badagry road, railway construction, and dam irrigation.
The Lagos State Chapter of the NLC has urged the state government to consider the peculiarities of the state when implementing the new minimum wage, as N70,000 may not be sustainable for workers in the state.
The NLC has accepted the new minimum wage, describing it as an act of solidarity and sacrifice for the Nigerian masses. The congress made this known in a statement released at the end of its National Executive Council meeting.
The statement, which was signed by the National President of the NLC, Joe Ajaero, affirmed that the NLC would continue to defend the rights of Nigerian workers at all times.
The statement read, “NEC-in-session concluded that this decision, though challenging and far from our initial demand, was made in the spirit of solidarity and sacrifice for the Nigerian masses to avert a threatened further hike in the price of petrol, which would inflict more hardship on the already suffering masses.
“Once again, NEC-in-session restates the commitment of the NLC to continue standing resolutely in its mission to defend and advance 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.”
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