In the midst of continuing discussions over the minimum wage, President Bola Tinubu has suggested raising the recurrent expenditure in the 2024 budget by N3 trillion.
President Tinubu is requesting a new N6.2 trillion supplemental budget in a letter delivered to both chambers on Wednesday. Of that amount, N3.2 trillion is suggested for construction expenses and N3 trillion for ongoing costs.
Paying salaries and overheads is the purpose of the budget’s recurrent component. The entire recurrent component would rise to N11.77 trillion if approved.
The president is scheduled to meet with labor leaders once more, despite the fact that the government and organized labor have not yet reached a consensus on a national minimum wage.
President Tinubu met with the leaders of the Trade Union Congress (TUC) and the Nigerian Labour Congress (NLC) last week, but no agreement was made public.
The budget proposal gives an indication of the government’s intentions regarding the minimum wage, even though the government and labor organizations have not yet reached a consensus on an amount.
A supplementary budget usually targets capital expenditure and other intervention funds rather than recurrent spending, therefore it is uncommon to see a significant increase in recurrent expenditure.
