New minimum wage covered in additional N6.2trn budget funding — Minister

The Minister of Budget and National Planning, Atiku Bagudu, says the N3 trillion recurrent component of the additional funding in the 2024 budget is to cater for the new minimum wage.

Mr Bagudu stated this on Monday while appearing before the House of Representatives Committee on Appropriations to defend the N6.2 trillion proposed additional funding in the budget.

PREMIUM TIMES reported that President Bola Tinubu requested the National Assembly to amend the budget by adding N6.2 trillion.

On Wednesday, the House passed the bill for a second reading and referred it to the House Committee on Appropriations for further legislative action.

President Tinubu, on Thursday, approved N70,000 as the new minimum wage, subject to parliamentary approval.

Providing an overview of the budget, Mr Bagudu noted that the proposed minimum wage has been captured in the bill with the N3 trillion recurrent expenditure, adding that the president will soon send the bill to the National Assembly.

He also disclosed that the N3.2 trillion capital expenditure component is allocated to the Renewed Hope Infrastructure Fund.

He said the government will use part of the funds to provide counterpart funding for major projects like the Lagos-Calabar and railway projects.

“Some of the projects proposed in the budget include Lagos-Calabar, the 1,000 km Sokoto-Badagry road projects, as well as the rail project for which the Chinese government has provided 85 per cent funding, while the federal government is yet to provide the 15 per cent counterpart finance,” he said.

He explained that the proposed N3.2 trillion was “intended to provide equity contributions or counterpart contributions for federal government projects designated as priority projects, as well as critical projects which needed more appropriation so that they will not suffer neglect.”

Mr Bagudu further disclosed that N530 billion is allocated for major rail projects in the country, adding that N522 billion was provided for water, irrigation, and dam projects.

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In his opening address, the Chairperson of the Committee, Abubakar Bichi, tasked the minister to give details of the Appropriation Bill, including the N3.2 trillion capital expenditure increase and N3 trillion recurrent expenditure.

Mr Bichi said there was a need for Nigerians to be adequately informed of the details of the proposed N6.2 trillion budget, which is in addition to the N28.7 trillion Appropriation Act approved for the 2024 fiscal year.