Would you like to receive notifications on latest updates of the following headlines?

IMF Advises Nigeria  on Supplementary Budget for the Minimum Wage

POSTED ON May 14, 2024 •   BUSINESS & ECONOMY      BY Abiodun Saheed Omodara
Minister for Budget and Economic Planning, Atiku Bagudu l Credit: @KBStGovt l Source: X

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.

READ ALSO
IMF Commends FIRS for Reforms, Pledges Continued Support
BY Abiodun Saheed Omodara July 10, 2025 0

The International Monetary Fund has expressed its support for the ongoing reforms at the Federal Inl...

READ ALSO
FG Urges Judiciary to Strengthen Capital Market for Economic Growth
BY Abiodun Saheed Omodara July 8, 2025 0

The Federal Government has called on the judiciary to take a proactive role in strengthening the cap...

READ ALSO
Reinventing Nigeria’s Fiscal Framework: A Call for Unity and Responsibility
BY Abiodun Saheed Omodara July 8, 2025 0

President Bola Tinubu has emphasized his government's dedication to allocating sufficient resources...

READ ALSO
CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance
BY Abiodun Saheed Omodara July 8, 2025 0

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of it...

READ ALSO
Two Men Charged in CBEX Investment Scheme Remain in Custody
BY Abiodun Saheed Omodara July 8, 2025 0

A Federal High Court in Abuja has placed two businessmen, Aweruso Otorudo and Chukwuebuka Ehirim, in...

READ ALSO
Nigerian States Accumulate N417.7 Billion in Domestic Debt Amid Rising FAAC Revenue
BY Abiodun Saheed Omodara July 7, 2025 0

At least 10 Nigerian states have cumulatively increased their domestic debt by N417.7 billion from t...

READ ALSO
Tinubu Pledges to Eliminate Bureaucratic Hurdles in Agriculture During Bilateral Talks with Brazil
BY Abiodun Saheed Omodara July 6, 2025 0

President Bola Tinubu expressed his commitment on Saturday to his Brazilian counterpart, Luiz Inacio...

READ ALSO
Nigerian Investors Launch $5 Billion Cooperative Trust Fund to Empower MSMEs
BY Abiodun Saheed Omodara July 6, 2025 0

A coalition of Nigerian investors has introduced a Cooperative Trust Fund valued at $5 billion, aime...

OUR CHANNELS:

Ex-D’Tigers coach Brown sets goals for new job
BY Abiodun Saheed Omodara July 9, 2025 0

The former head coach of the Nigerian men's national basketball team, D'Tigers,Mike Brown,has s...


U.S. Reduces Visa Duration for Nigerians to Three Months
BY Abiodun Saheed Omodara July 10, 2025 0

The U.S. Department of State has changed its five-year visa policy for Nigerians applying for non-im...


JAMB Sets 2024 Cut-Off Marks for Tertiary Institutions
BY Abiodun Saheed Omodara July 10, 2025 0

The Joint Admissions Matriculation Board announced the admission cut-off marks for universities, pol...


Federal Government Launches Exclusive Passport Office for Senior Officials
BY Abiodun Saheed Omodara July 10, 2025 0

ABUJA, Nigeria - The federal government on Tuesday, inaugurated a new passport front office in Abuja...


African Democratic Congress Claims Government Coercion to Weaken Opposition Coalition
BY Abiodun Saheed Omodara July 9, 2025 0

The African Democratic Congress (ADC) has accused President Bola Tinubu’s administration of ta...


FG Urges Judiciary to Strengthen Capital Market for Economic Growth
BY Abiodun Saheed Omodara July 9, 2025 0

The Federal Government has called on the judiciary to take a proactive role in strengthening the cap...


Reinventing Nigeria’s Fiscal Framework: A Call for Unity and Responsibility
BY Abiodun Saheed Omodara July 10, 2025 0

President Bola Tinubu has emphasized his government's dedication to allocating sufficient resources...


CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance
BY Abiodun Saheed Omodara July 8, 2025 0

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of it...


Nigeria Faces Teacher Shortage: Over 31 Million Learners Rely on Just 915,913 Educators
BY Abiodun Saheed Omodara July 9, 2025 0

According to data from the Universal Basic Education, only 915,913 teachers are available for at lea...


Tinubu Calls for Equitable Global Framework at BRICS Summit
BY Abiodun Saheed Omodara July 10, 2025 0

President Bola Tinubu has advocated for a more equitable global framework regarding climate action,...


More Articles

Load more...

Menu