The Federal Government under President Bola Ahmed Tinubu has announced a new minimum wage to replace the current wage of N30,000 which is set to expire at the end of March, 2024.
This was revealed by the Minister of Information and National Orientation, Idris Mohammed during an interview with Punch News in Abuja.
With the recent removal of fuel subsidy by the current administration, President Tinubu has increased the minimum wage to N35,000, effective from April 1, 2024 having earmarked N24.66 trillion for 2024, 2025 and 2026 fiscal years.
From the allocation analysis of President Tinubu’s fiscal plan, over 29.18% of its total budgets for the next three years would go to salaries, overheads, and pensions. The allocated amount for these items totals N24.66tn, representing 29.18% of the N84.50tn budgeted for the same periods.
With the anticipated salary increases in 2024 amid challenging economic conditions, personnel costs are expected to rise by 8.51%, reaching N7.99tn in 2024. Subsequent increases are projected at 2.41% in 2025, totaling N8.18tn, and 3.77% in 2026, reaching N8.49tn. In contrast, capital expenditure is budgeted at N23.37tn, accounting for 27.65% of the total budget.