New Telegraph

FG To Increase Minimum Wage By April 2024

President Bola Ahmed Tinubu-led government has said 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.

The Federal Government through the Minister of Information and Communication, Idris Mohammed disclosed this on Friday, December 1 in a statement made available to New Telegraph.

According to the Minister, the new wage structure is part of ongoing negotiations with labour 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 the medium-term fiscal projections representing 29.18% of the proposed N84.5 trillion budget in the period.

With the economic downturn 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 the government plans to devote N8.49 trillion towards covering employee costs.

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Organized labour confirms that discussions are in place regarding new wage structures although the details remain unclear. The process is in line with the nation’s labour laws mandating minimum pay reviews after intervals of 5 years.

Nigeria’s workforce is currently pecked at about 1.5 million at the federal level. Concerns persist that huge civil service numbers coupled with weak productivity sustain high wage bills limiting infrastructure investments.

The World Bank has already emphasized that this year’s funds going into salaries and debt servicing exceed total national revenues, a development House of Assemblies have also criticized.

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