The Federal Government of Nigeria is set to allocate N7.76 trillion for salaries to federal workers and other non-debt recurrent costs in 2023. This financial commitment is based on data from the initial 2023 budget and the recently signed 2023 supplementary budget. The supplementary budget includes provisions for a wage reward for workers, among other expenses resulting from the removal of the fuel subsidy.
The Minister of Budget and Economic Planning, Abubakar Bagudu, highlighted key allocations in the supplementary budget, including N605 billion for national defense and security to sustain and accelerate gains in the sector. Additionally, N300 billion has been earmarked for the repair of bridges, including the Eko and Third Mainland bridges, and the construction, rehabilitation, and maintenance of roads nationwide. Notably, N210 billion will cover the payment of wage awards to federal workers.
The total budget for 2023, including the supplementary budget, is set to increase to N19.81 trillion. When debt servicing is excluded, the budget totals N13.26 trillion. Of the N7.76 trillion budgeted for recurrent expenditure, approximately N4.31 trillion (55.54%) will be allocated for salaries. The government has already spent N978.10 billion on salaries in the first three months of 2023, as reported in the 2023 Q1 implementation report.
Despite rising expenditure costs, the government has faced challenges due to falling revenues, particularly from declining oil production and a lack of economic diversification. The Accountant General of the Federation, Mrs. Oluwatoyin Madein, emphasized the need to address the revenue-generation challenges to meet the expectations of Nigerians in the current economic reality.
The revenue crisis in Nigeria has been a significant fiscal constraint, prompting the government to explore strategies for increasing revenue continuously. The government’s efforts to balance expenditures and revenues are crucial for sustaining economic stability and meeting the needs of the populace.