The federal government led by President Bola Ahmed Tinubu, has announced that personnel expenditure will rise by at least 60% in 2025 due to the implementation of the new national minimum wage and consequential salary adjustments for civil servants.
With N4.1 trillion allocated for personnel costs in the 2024 budget, the 60% increase translates into an additional N2.46 trillion, bringing the total to an estimated N6.56 trillion in the 2025 budget.
This information was contained in the newly released 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper, which The Punch newspaper obtained on Sunday, November 17.
The document approved by the Federal Executive Council (FCE) last Thursday facilitates the alignment of policy objectives with the available financial resources.
Legit.ng reported that in July 2024, President Tinubu signed the new minimum wage bill into law, further confirming his approval of an increase from N30,000 to N70,000 for Nigerian workers.
The new law is reviewable every three years as part of the agreement reached with organised labour.
In recent days, findings revealed that federal workers have started receiving the new wage....Read Full Article [Click Here>]
However, in the MTEF report, the government said N2.67tn, representing 65 percent of the N4.10tn appropriated in the 2024 budget, has been disbursed as of August.
It further envisioned that personnel cost expenditure will increase by 60 percent next year.
The report read:
“The 2025 FGN personnel cost expenditure is expected to increase significantly to align with the updated National Minimum Wage.
“The personnel cost for FY2023 was N3.83tn. As of July, the figure for FY2024 is N2.67tn, 65 per cent of the N4.10tn appropriated in the 2024 Budget. For 2025, the personnel cost is projected to increase by about 60 per cent due to adjustments in minimum wage and consequential adjustments, which will directly impact employees’ salaries.”
Legt.ng understands that the projected personnel expenditure for 2025 that rose to N6.56 trillion will favour Nigerian workers as part of the funds is meant for the payment of the new minimum wage.
