- An analysis of 2019 budget showed that the sum of N160bn had been provisioned to take care of public wage adjustment and salary increases
- The minister of budget and national planning, Senator Udo Udoma, said the government was committed to increasing the minimum wage
- Udoma said a committee had been set up to advise on ways to ensure the adjustments in the minimum wage could be funded without necessarily increasing the level of borrowings
Emerging reports have claimed that the federal government has budgeted a total of N160 billion this year, 2019 to take care of adjustments that might come up as a result of the planned increase in minimum wage.
The Punch reports that the amount is contained in the 2019 budget proposal which was submitted by President Muhammadu Buhari to the National Assembly.
Legit.ng gathered that 2019 budget has an estimate of N8.83tn made up of N4.04tn for recurrent expenditure, N2.03tn for capital expenditure and N2.14tn for debt servicing, among others.
It was learnt that an analysis of the budget showed that the sum of N160bn had been provisioned to take care of public wage adjustment and salary increases in the ministries, departments and agencies of the government.
The minister of budget and national planning, Senator Udo Udoma, said the government was committed to increasing the minimum wage.
Udoma had while speaking during the public presentation of the 2019 budget explained that already, provisions had been made in the 2019 budget for the wage increase.
According to him, “Government committed to an increase in the minimum wage. Provision has been made for this in the 2019 budget.”
He said already, a high-powered technical committee had been set up to advise on ways to ensure that the adjustments in the minimum wage could be funded without necessarily increasing the level of borrowings.
Udoma stated that the setting up of the committee became imperative so as to minimise any potential threat of wage increase on the level of inflation.
He said: “A High-powered Technical Committee has been set up to advise on ways to ensure that the attendant wage adjustments for those already over the minimum wage can be funded without increasing the level of borrowing.
“The committee is also to advise on ways to implement these consequential adjustments in such a manner as to minimise their inflationary impact.
“The recommendations of the committee will be captured in the Finance Bill to be presented to the National Assembly together with the Minimum Wage Bill.”
Meanwhile, Legit.ng had reported that Peter Obi, vice presidential candidate of the PDP, joined the debate on national minimum wage and submitted the need for states to determine what they pay their workers based on their realities.
He said: “Minimum wage doesn’t have to be universal. I don’t believe that somebody in Lagos should earn the same thing as somebody who is in, maybe, Anambra state or somebody in Maiduguri.”
He, however, stressed that it was important to have a federal minimum wage which is the product of proper talks with labour.
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