Additional N6.2 Trillion Budget To Include New Minimum Wage, Says Minister Bagudu

The Minister of Budget and National Planning Atiku Bagudu said on Monday that N3 trillion of the additional funding in the 2024 budget was allocated for the new minimum wage, while defending the N6.2 trillion extra budget funding to the House of Representatives Committee on Appropriations.

President Bola Tinubu has asked the National Assembly to add N6.2 trillion to the budget, Premium Times reported. The House last week approved the bill for a second reading and sent it to the House Committee on Appropriations for further review.

Bagudu explained that the N3 trillion recurrent component of the budget was allocated for the new minimum wage, adding that the president will soon submit the bill to the National Assembly. He also revealed that N3.2 trillion of the budget was set aside for the Renewed Hope Infrastructure Fund.

Part of this money will be used to provide funding for major projects such as the Lagos-Calabar railway and other key initiatives.

"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% funding, while the federal government is yet to provide the 15% counterpart finance," Bagudu said.

He further said 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."

Bagudu also revealed that N530 billion was allocated for major rail projects and N522 billion was set aside for water, irrigation and dam projects.

During his opening remarks, Committee Chairperson Abubakar Bichi asked the minister to provide more details about the Appropriation Bill, including the N3.2 trillion increase in capital spending and the N3 trillion for recurrent expenses.

Bichi emphasized the need for Nigerians to be fully informed about the proposed N6.2 trillion budget, which was in addition to the N28.7 trillion Appropriation Act approved for the 2024 fiscal year.

Last week, the National Council on Nutrition approved new strategies to tackle malnutrition and food insecurity in Nigeria, aligned with the Tinubu-led administration's goal to enhance the nutritional well-being of Nigerians.