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IMF Reveals What FG Needs To Pay New Minimum Wage

Published

6 months ago

May 14, 2024.

Eko Hot Blog reports that the Federal Government may need to implement a supplementary budget to cover the proposed minimum wage increase for workers

This is because the negotiated amount may surpass the budgeted amount in the original 2024 budget.

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The International Monetary Fund gave this recommendation in its latest staff country report for Nigeria.

“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report stated.

It also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the apex bank’s Ways and Means.

The new minimum wage has been an ongoing matter between Organised Labour and the government since the beginning of this year to cushion the impacts of the harsh economy.

Recent reforms in Nigeria including the removal of fuel subsidy and the unification of the foreign exchange market have pushed the cost of living to newer levels.

The Nigerian Senate (Photo Credit Tope Brown)

While labour leaders demand N615,000 from N30,000 as salaries for lowest ranked workers, there are indications the tripartite committee may recommend N70,000 as the new minimum wage.

Further Reading

In the 2024 budget, the government allocated N6.48tn for personnel costs but the international lender posits that the amount may be insufficient.

The IMF further noted that the country’s budget deficit for 2024 is expected to surpass projections, owing to implicit subsidies for fuel and electricity, alongside rising interest expenses on debt.

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