Minimum wage: FG asks technical committee to look for additional revenue
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Minimum wage: FG asks technical committee to look for additional revenue

- The federal government has asked the minimum wage to look for sources to pay the minimum wage

- The minister of budget and national planning, Senator Udoma, said the move is to ensure that the government will meet the increased costs that would arise from a new minimum wage

- Udoma added that looking for additional revenue source will ensure that the new minimum wage will not affect the government’s expenditure on education, health, infrastructure, etc.

President Muhammadu Buhari has asked the newly inaugurated technical committee on the Implementation of the new minimum wage to look for additional sources of revenue to pay the minimum wage and the salary adjustment that will follow.

The Punch reports that the minister of budget and national planning, Senator Udoma Udo Udoma, on Friday, January 11, explained that the committee would, among other things, identify additional sources of revenue to ensure that the government could meet the increased costs that would arise from the implementation of a new minimum wage.

According to Udoma, whenever a new minimum wage bill is enacted, there are demands for some wage increases even from those already earning more than the new minimum wage.

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He said: “All these salary increases will impose additional costs on the government. Therefore, the committee is expected to make suggestions as to how the government can raise additional revenues to ensure that the government can still meet its expenditure on other services such as education, health, infrastructure and other important functions of the government, after paying the increased salaries.”

Also, a statement signed on Sunday, January 13, by the minister’s special adviser on media added: “The committee is expected to, among other things, look at how to get additional revenues so that as our wage bill goes up, we are able to increase our revenues to ensure that our spending on capital projects, basic infrastructure, health, education and others is not reduced. In short, the committee is to advise on ways to ensure that notwithstanding the increase in payroll costs, there continues to be adequate funding for other government activities. This is not just for the 2019 fiscal year, but going forward, thereafter.”

Udoma said that due to the government’s commitment to the minimum wage and increased salaries, the amount provided for recurrent (non-debt) spending would rise from N3.53tn in 2018 to N4.72tn in 2019.

“This is the reason why the president has set up a technical committee to look at additional revenue sources so that we can pay the minimum wage and the consequential salary adjustment,” he reiterated.

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Meanwhile, Legit.ng previously reported that the Nigeria Labour Congress (NLC) said the federal government’s advisory committee has no relevance to the new national minimum wage agreement.

Ayuba Wabba, NLC president, who spoke in an interview with NAN on Thursday, January 10, in Abuja, said the committee has no bearing with the agreement reached on the minimum wage.

President Muhammadu Buhari had on Wednesday inaugurated a technical advisory committee on the implementation of the new national minimum wage and reiterated his commitment to its payment.

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