FG budgets N160bn for minimum wage increase
A total sum of N160 billion has been proposed by President Muhammadu Buhari’s government to cater to the pending minimum wage increase.
Buhari submitted the 2019 budget before lawmakers in December.
The FG and Labour Union have been deliberating on the increase for months now, and it remains unclear if the Union’s demand for N30,000 wage would be granted.
State governors continue to insist payment of the sum was not feasible as many of them still struggle to pay the current wage of N18,000.
In the new budget which has an estimate of N8.83tn – N4.04tn for recurrent expenditure, N2.03tn for capital expenditure and N2.14tn for debt servicing, others – Buhari earmarked the N160bn sum for public wage adjustment and salary increases in the Ministries, Departments and Agencies of the government.
The sum is also projected to take care of arrears of promotion and severance benefits to civil servants.
The government proposed a sum of N5bn to cater to the payment of death benefits for civil servants and operatives of the Nigeria Police Force, while the sums of N121.6bn, N28.3bn, N7.4bn and N50bn have also been proposed to cater for military pensions, civilian pensions, police pensions and arrears of 33 per cent increase in pension rates respectively.
Former Presidents/Heads of State and Vice-Presidents entitlements will also cost the country a total sum of N2.3bn.
Senator Udo Udoma, the Minister of Budget and Planning had earlier said that the FG was making adjustments to ensure that the minimum wage increase would not increase the level of borrowing.
