Nigeria’s Minister of Budget and Economic Planning, Atiku Bagudu, on Friday, disclosed that the Federal Government would spend N3 trillion on the new minimum wage as well on payment of pensions and gratuities.
The minister made the disclosure during a meeting with the Senate Committee on Appropriations chaired by Olamilekan Adeola, while presenting the general principles of the newly amended 2024 budget to the committee at the meeting.
During the meeting with the Committee, Bagudu highlighted that the new budget additions would not be funded by loans but by an already reserved profit.
He further 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.
He also stated that the country’s historical underinvestment in infrastructure was a root cause of recent problems and commended President Bola Tinubu for addressing the infrastructure deficit.
Bagudu told the Committee that 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.
Recall that the Nigeria Labour Congress (NLC) had on Thursday, accepted the N70,000 minimum wage proposed by Tinubu, saying it was an act of solidarity.
The union, in a statement signed by its National President, Joe Ajaero, at the end of its National Executive Council meeting, affirmed that the NLC would continue to defend the rights of Nigerian workers at all times.
“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.”