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New Minimum Wage from April 1, 2024

In a significant announcement, the Federal Government has disclosed that a new minimum wage regime is slated to be implemented starting April 1, 2024. The current minimum wage of N30,000 is set to expire at the end of March 2024, according to the Minister of Information and National Orientation, Idris Mohammed.

The decision follows an analysis of the 2024–2026 Fiscal Framework budgets, revealing a projected expenditure of N24.66tn on salaries over the next three years. Notably, the government had previously agreed to a temporary measure of paying N35,000 to workers following the removal of the fuel subsidy in May 2023.

Despite this interim adjustment, organized labor has consistently advocated for a comprehensive review of the minimum wage in 2024. Negotiations between the Federal Government and the Joint National Public Service Negotiating Council are underway, adhering to the country’s labor law, which stipulates a minimum wage review every five years.

Nigeria Labour Congress National President, Joe Ajaero, emphasized, “It is open knowledge that the review of the national minimum wage is a matter of the law which is expected to happen in 2024.”

Minister Idris Mohammed clarified that the enhanced take-home pay is intended to replace the temporary measures put in place to alleviate economic hardship resulting from the fuel subsidy removal. He highlighted the ongoing constitution of a committee, involving labor representatives, to collaboratively address the wage issue.

Labor unions confirmed the commencement of negotiations, expressing optimism about the upcoming changes. A top official from the Nigeria Labour Congress stated, “By April 1, 2024, the current minimum wage will expire. We have all agreed to set up a national wage negotiation committee, and that the committee should comprise all parties.”

As the country anticipates these adjustments, an analysis of the 2024–2026 Fiscal Framework reveals that the Federal Government plans to allocate 29.18% of its total budgets for the next three years to salaries, overheads, and pensions, amounting to N24.66tn. This proportion underscores the government’s commitment to addressing personnel costs, which have been a significant component of its spending.

Wage
Wage

However, concerns have been raised about the fiscal deficit, projected to be N9.18tn in 2024. The government attributes this deficit to the proposed salary review, increased pension obligations, and higher debt service costs. Critics argue that such deficits may impact capital expenditure and hinder investments in critical infrastructure.

The debate on the 2024 budget is gaining momentum in both the House of Representatives and the Senate, with lawmakers emphasizing the need for careful scrutiny to ensure that Nigerians benefit substantially from the proposed allocations across various sectors. The Senate President, Godswill Akpabio, announced that the appropriation bill would undergo a second reading on Friday, further highlighting the urgency and importance of the budgetary considerations.

The looming changes in the minimum wage and the broader fiscal landscape will undoubtedly shape the economic trajectory of Nigeria in the coming years.

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