FG allocates ₦845bn in 2025 Budget for minimum wage adjustments
The Federal Government has allocated ₦845.28 billion in the 2025 budget to address minimum wage-related adjustments following the recent hike in the national minimum wage to ₦70,000.
This budgetary allocation underscores the government’s commitment to improving the welfare of civil servants and alleviating the economic challenges faced by the workforce.
The fund is part of the Service-Wide Vote outlined in the 2025 budget presented to the National Assembly by President Bola Ahmed Tinubu. In addition to minimum wage adjustments, the budget addresses other pressing national priorities.
Key Allocations in the 2025 Budget
1. Payment of Local Contractors’ Debts
The government has set aside ₦10.96 billion to settle outstanding debts owed to local contractors. This move is aimed at stimulating economic activity and restoring confidence in the public procurement process.
2. Group Life Assurance
₦17.31 billion has been allocated to cover group life insurance for all Ministries, Departments, and Agencies (MDAs), including the Department of State Services (DSS). The provision extends to sensitive assets and administrative monitoring.
3. National Security Operations
A total of ₦100 billion has been earmarked for military operations, including “Operation Lafiya Dole,” to combat insurgency and address security challenges across the country.
4. Recapitalization of MOFI
The Ministry of Finance Incorporated (MOFI) will receive ₦20 billion for recapitalization, enhancing its capacity to manage federal investments effectively and promote economic growth.
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5. Presidential Amnesty Programme
The Niger Delta Presidential Amnesty Programme has been allocated ₦65 billion to ensure the successful reintegration of ex-militants and support peacebuilding in the region.
6. Benefits for Retired Officials
₦2.3 billion will be used for the entitlements of former presidents, vice presidents, and chiefs of general staff.
₦10.51 billion has been set aside for benefits owed to retired heads of service and permanent secretaries.
Focus on Welfare and Security
The 2025 budget demonstrates a balanced approach to addressing economic and security challenges while maintaining fiscal discipline. The ₦845.28 billion allocation for minimum wage adjustments reflects the government’s dedication to improving living standards for public servants and easing the burden of inflation.
Meanwhile, the funds for military operations and MOFI recapitalization signal efforts to boost security and strengthen the economy.
As the budget awaits implementation, its successful execution will be critical to achieving these goals and driving sustainable national development.
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