Tinubu suggests increasing recurring expenditure by N3 trillion

President Bola Tinubu has proposed a N3 trillion increase to the recurrent expenditure of the 2024 budget, amid ongoing negotiations over the minimum wage.

In a letter sent to both chambers on Wednesday, President Tinubu is seeking a fresh N6.2 trillion supplementary budget, with N3.2 trillion proposed for capital and N3 trillion for recurrent expenditure.

The recurrent component of the budget is intended for the payment of salaries and overheads. If passed, the total recurrent component would increase to N11.77 trillion.

Although the government and organised labour have not yet agreed on a national minimum wage, the president is due to meet with labour leaders again.

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Last week, President Tinubu met with the leadership of the Nigerian Labour Congress, NLC, and the Trade Union Congress, TUC but no agreement was announced.

While the government and labour groups have not yet agreed on a sum, the budget proposal provides a glimpse into the government’s plans for the minimum wage. It is rare to see a major increase in recurrent expenditure in a supplementary budget, as such budgets typically target capital expenditure and other intervention funds rather than recurrent spending.