IMF Reveals FG May Need Supplementary Budget To Pay Minimum Wage

The International Monetary Fund has disclosed that the Federal Government may need to raise a supplementary budget to accommodate the proposed minimum wage increase for Nigerian workers.

According to the international lender, this has become necessary as the negotiated amount may surpass the budgeted amount in the original 2024 budget.

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This was contained in the IMF’s 2024 Article IV Consultation report recently published.

“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report stated.

It also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the apex bank’s Ways and Means.

The new minimum wage has been an ongoing matter between Organised Labour and the government since the beginning of this year to cushion the impacts of the harsh economy.

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Recent reforms in Nigeria including the removal of fuel subsidy and the unification of the foreign exchange market have pushed the cost of living to newer levels.

While labour leaders demand N615,000 from N30,000 as salaries for lowest ranked workers, there are indications the tripartite committee may recommend N70,000 as the new minimum wage.