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Friday, 01 December 2023 09:54

FG Announces Date to Begin Payment of New Minimum Wage - Plans N24.66trn On Salaries

The Federal Government has disclosed that a new national minimum wage structure will take effect from April 1, 2024 upon expiration of the current N30,000 monthly pay on March 31.

 

Minister of Information, Idris Mohammed announced that the new wage package is part of ongoing negotiations with labor unions to permanently replace temporary palliatives granted this year to cushion economic hardships from fuel subsidy removal.


The government projects spending N24.66 trillion on salaries, overheads and pensions over the next three years according to medium term fiscal projections – representing 29.18% of proposed N84.5 trillion budgets in the period.


With economic strains and anticipated wage increases, recurrent expenditure is expected to jump by 8.51% from N7.36 trillion in 2023 to N7.99 trillion in 2024. The figure will further rise moderately by 2026 when government plans to devote N8.49 trillion towards covering employee costs.

Organized labor confirms discussions have commenced regarding new wage structures although specifics remain unclear. The process is in line with the nation’s labor laws mandating minimum pay reviews after intervals of 5 years.

Nigeria currently maintains a workforce of about 1.5 million at federal level. Concerns persist that bloated civil service numbers coupled with weak productivity sustains high wage bills limiting infrastructure investments.

The World Bank already noted this year that funds going into salaries and debt servicing now exceed total national revenues – a development parliamentarians have also criticized.

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