The Federal Government of Nigeria has announced that a new minimum wage regime will come into effect on April 1, 2024.
The current minimum wage of N30,000 is set to expire at the end of March 2024.
The Minister of Information and National Orientation, Idris Mohammed, disclosed this during in an interview on Thursday in Abuja.
After the removal of the fuel subsidy on May 29, 2023, President Bola Tinubu had agreed to pay N35,000 to each government worker to mitigate the impact of the subsidy removal.
However, organized labor insisted that the N35,000 wage award was temporary, and the minimum wage should be reviewed in 2024.
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Negotiations between the Federal Government’s team and the Joint National Public Service Negotiating Council have commenced, with the expectation that the minimum wage will be reviewed every five years as per the country’s labor law.
The Nigeria Labour Congress National President, Joe Ajaero, confirmed that talks had started, emphasizing that the new minimum wage would take effect next year.
As the government anticipates increased salary expenses amid economic challenges, an analysis of the 2024–2026 Fiscal Framework budgets indicates that the Federal Government plans to spend N24.66tn on salaries, overheads, and pensions.
This represents 29.18% of the total budgets for the three years.
While the new minimum wage aims to address economic challenges and replace temporary palliative measures, concerns about the government’s fiscal deficit, personnel costs, and spending priorities persist.
The government has been urged to streamline its operations, address over-bloated salaries, and explore Public Private Partnership arrangements to finance critical infrastructure.
The budget debate in both the House of Representatives and the Senate reflects discussions on fiscal challenges, insecurity, economic expansion, and the need for collaborative efforts between the federal and state governments.
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