LIVE UPDATES
The International Monetary Fund (IMF) has said that the Federal Government might have to consider increasing the budget to accommodate the proposed minimum wage hike for workers, as the negotiated amount could exceed the allocated funds in the original 2024 budget.
The International Monetary Fund, in its most recent staff country report for Nigeria, stated that a supplementary budget may be necessary to cover the potential outcome of the current wage structure negotiations.
The government may have to consider increasing the limits on domestic and external borrowing to avoid relying on the central bank's Ways and Means for new borrowings.
The ongoing negotiation between Organised Labour and the government over the new minimum wage has been a response to the challenging economic conditions.
Labour leaders are pushing for a raise from N30,000 to N615,000 as the new minimum wage for the lowest ranked workers, but there are signs that the tripartite committee may propose N70,000 instead.
The 2024 budget allocates N6.48tn for personnel costs, but the international lender suggests that this amount may not be enough. The IMF also pointed out that the country's budget deficit for 2024 is likely to exceed projections due to implicit subsidies for fuel and electricity, as well as increasing interest expenses on debt.
