BREAKING: FG To Fund New Minimum Wage With ₦3tr Supplementary Budget

FG has said it will fund the new minimum wage with ₦3tr Supplementary Budget.

 

NewsOnline Nigeria reports that the federal government has declared that the ₦3 trillion recurrent component of the ₦6.2 trillion supplementary budget before the National Assembly will largely be used to pay the new national minimum wage.

 

This was disclosed on Monday by the Minister of Budget and National Planning, Atiku Bagudu, while addressing the House of Representatives Committee on Appropriation chaired by Hon. Abubakar Bichi.

 

He said the President, Bola Tinubu, would soon forward a new minimum wage bill to the National Assembly for approval based on the agreed ₦70,000 new minimum wage for Nigerian workers.

 

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The Committee chairman had asked the Minister to give the details of expenditures included in the supplementary budget.

 

Bagudu explained that the ₦3.2 trillion capital component of the supplementary budget is meant as additional funding for priority projects in road, rail, water, irrigation and dam projects in the 2024 fiscal year.

 

According to him, some of the projects expected to benefit from the budget include the Lagos-Calabar, 1,000-kilometer road project for which the sum of N150 billion is required; the 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 fund.

 

Bagudu added that the proposed budget was aimed at providing counterpart funding for rail projects that have literally been stopped in the last year, including the longest among them – Port Harcourt Main gauge, which will traverse Rivers, Imo, Enugu, Ebonyi, Anambra, Benue, Nasarawa, Plateau, Katsina, Bauchi, and Gombe States.

 

The other rail projects he said are the Badagry-Tin Can Port- Lekki Port as well as Lagos – Ibadan Standard Gauge, the Kano-Marada Standard Gauge, as well as funding for rolling stock that is required.

 

The Minister also disclosed that the sum of N522 billion was also provided in the supplementary budget for water, irrigation and dams.

 

In his words, “We have the National Highway Construction Projects which needed additional funding, because this is already in the 2024 budget. What we did was make additional appropriation for the Lagos-Calabar Coastal Road, which is to tranverse Lagos-Ogun, Ondo, Delta, Bayelsa, Port Harcourt, Akwa Ibom , and Cross River, as well as Sokoto-Badagry, which is in Greenfield.

 

“Sokoto-Badagry has been on the National Development Plan of Nigeria since 1970. It was actually awarded in 1975, but not much progress was made. But because of the visionary and bold endeavor of Asiwaju Bola Tinubu, he has brought it back to life, and this is going to tranverse Lagos again, Ogun, Oyo, kwaraa, Niger, Kebbi and terminating in Sokoto State, as well as the Africa-Sahara Highway to traverse Benue, Kogi, Nasarawa, and Abuja.

 

“In addition to this, Mr. President and the team recognize that to support our agriculture and food security, we need to take bold measures on our water, irrigation and dam infrastructure.We have met with a number of investors, including the International Finance Corporation, who are saying, if you can put some money to do your dams, we will also put money to provide infrastructure.

 

“In recognition of the fact that every year, when it rains, a lot of Nigeria is flooded, and soon thereafter, we are looking for water. So investment in water, irrigation, and dams has accelerated, because this is such that if we put some money, private capital would also come in to support our dream.So a sum of 522 billion is provided.

 

“We have provided more for agriculture, and sorry, before then, we have provided, as part of the Renew Hope Agenda, 270 million for the expansion of the compressed natural gas infrastructure.

 

“The compressed natural gas is not just an alternative to premium motor spirit .It’s a lower-chip, lower source of energy that can help Nigeria maintain energy competitiveness, like countries like Egypt and Pakistan have done. So accelerating this expansion will ensure migration to the cheaper source of wealth, as well as ensuring that Nigeria remains energy competitive.

 

“Just as an example, the Ministry of Science and Innovation tested two vehicles, from Abuja to Ibadan, one on premium motor spirit, which consumed 42,000 Naira worth of oil, and one on CNG, which consumed 14,000 Naira worth of CNG.

 

“So in order to help Nigerian citizens with this, we need more finance. The other investment in agriculture and food security, as well as the additional water resources, are to support ongoing projects for which the funding commitments are not adequate, and they are critical to the delivery of our agriculture and food security objectives”.

 

Bagudu also assured the lawmakers that the projects captured in the amendment to the 2024 Appropriation bill will not limit the revenue available for the implementation of the 2024 Appropriation Act.