IMF Advises FG On Supplementary Budget For Minimum Wage.

International Monetary Fund says Federal Government may need to raise a

supplementary budget to accommodate the proposed minimum wage

increase for workers.

This is because the negotiated amount may surpass the budgeted amount in

the original 2024 budget, adding 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 as well as the 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.

However, 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, while, in the 2024 budget,

the Government allocated N6.48 trillion for personnel costs but the

international lender posits that the amount may be insufficient.

The IMF also said, 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, while, the Minister of Finance, Wale Edun

said, the government planned to reduce the budget deficit from 6.1 per cent

in the 2023 budget to 3.8 per cent in the current appropriation.