Federal Government Allocates ₦6.2 Trillion for Infrastructure and Minimum Wage

In a recent announcement, the Federal Government of Nigeria revealed that the proposed ₦6.2 trillion supplementary budget will be used to address the new minimum wage and fund various infrastructure projects across the country. The budget is intended to provide N3 trillion for recurrent expenditure, which will largely be used to address the new minimum wage, while N3.2 trillion will be allocated for capital expenditure.

The Minister of Budget and National Planning, Abubakar Atiku Bagudu, stated that the budget amendment bill seeks to provide the sum of N3.2 trillion for the “Renewed Hope Infrastructure Projects” and other critical infrastructure projects across the country. The N3 trillion recurrent component of the budget will be used to meet further recurrent expenditure requirements necessary for the proper operation of the federal government.

Some of the infrastructure projects that will be funded by the supplementary budget include the Lagos-Calabar, 1,000-kilometer road project, which requires N150 billion, and the Sokoto-Badagry road projects, as well as rail projects for which the Chinese government has provided 85% funding, with the federal government yet to provide the 15% counterpart funding.

The supplementary budget also aims to provide equity contributions for water, irrigation, and dam projects, with the sum of N522 billion being provided for these purposes. The proposed N3.2 trillion capital expenditure increase is intended to fund the infrastructure projects encapsulated in the amendment to the 2024 Appropriation Bill.

The Federal Government has assured that the projects proposed in the supplementary budget will not limit the revenue available to implement the 2024 Appropriation Act. The budget amendment bill has been presented to the National Assembly for consideration and passage, and it is expected that the implementation of these projects will stimulate the economy and improve the lives of Nigerians.

The increase in the minimum wage is a significant development, as it will provide much-needed relief to workers who have been struggling to make ends meet. The Federal Government’s commitment to funding infrastructure projects is also commendable, as it will create jobs, improve transportation, and boost economic growth.