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FG to begin payment of new minimum wage in April

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FG to begin payment of new minimum wage in April

The Federal Government on Thursday said a new minimum wage regime would come into effect on April 1, 2024.

The Minister of Information and National Orientation, Idris Mohammed, who disclosed this in an interview in Abuja, said the current N30,000 minimum wage would expire at the end of March 2024.

Mohammed said this on Thursday as an analysis of the 2024 –2026 Fiscal Framework budgets by our correspondents indicated that the Federal Government would spend N24.66tn on salaries in 2024, 2025, and 2026.

Following the removal of the fuel subsidy by President Bola Tinubu on May 29, 2023, the Federal Government agreed to pay N35,000 to each of its workers to cushion the effect of the subsidy removal.

But the organised Labour insisted that the N35,000 wage award was a temporary measure, adding that the minimum wage should be reviewed in 2024.

The Federal Government’s team and the Joint National Public Service Negotiating Council on October 18, 2019, agreed on the implementation of the N30,00 minimum wage after months of negotiations.

However, Labour unions on Thursday confirmed that they had started a negotiation process with the Federal Government, adding that based on the country’s labour law, the minimum wage should be reviewed every five years.

The Nigeria Labour Congress National President, Joe Ajaero, recently said, “It is open knowledge that the review of the national minimum wage is a matter of the law which is expected to happen in 2024.”

On his part, the Minister of Information and National Orientation, Mohammed, told The PUNCH that the improved take-home pay was meant to replace the temporary palliative measure put in place by the government to ameliorate the hardship caused by the fuel subsidy removal.

New wage regime

He said, “Certainly, there is a new wage regime that will come in on April 1, 2024. That is why these palliatives were targeted so they would cushion economic hardship before then. In our negotiation with Labour, we said that the wage issue was not something one could just fix. A committee that will also involve Labour itself will work on it.

“The committee is being constituted and we are talking to Labour about it. And by the time this current wage regime expires by the end of March, we will expect that a new wage will begin by April. It is in this wage regime that we will now have a proper salary structure for workers across the length and breadth of Nigeria. We expect that the private sector and state governors will also do the same.”

A top official of the NLC, in an interview with The PUNCH, said the organised Labour had initiated talks with the government

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He said, “By April 1, 2024, the current minimum wage will expire. We have all agreed to set up a national wage negotiation committee, and that the committee should comprise all parties.’’

Also, the Head of Information of the NLC, Benson Upah, in an interview with The PUNCH said, “The new minimum wage is to come into effect next year.”

N24.66tn for salaries

As the organised Labour demands a new minimum wage, an analysis of the 2024 –2026 Fiscal Framework shows that the Federal Government intends to spend 29.18 per cent of its total budgets for 2024, 2025, and 2026 on salaries, overheads, and pensions.

The total amount budgeted for these three items amounts to N24.66tn; 29.18 per cent of the N84.50tn budgeted for the three years.

With anticipated salary increases from 2024 amid worsening economic conditions, personnel costs, and the two others are expected to jump by 8.51 per cent from the amount (N7.36tn) budget in 2023 to N7.99tn in 2024.

It is then expected to rise by 2.41 per cent to N8.18tn in 2025, and then by 3.77 per cent to N8.49tn in 2026. The amount pales when compared to the N23.37tn (27.65 per cent of its total budget) the government intends to spend on capital expenditure in the period under review.

This signifies the continuation of a culture of high overheads at the expense of high fiscal deficits. As of the end of September 2023, the Federal Government had devoted 29.76 per cent (N3.78tn) of its total spending (N12.7tn) on salaries.

The amount spent on salaries is 157.14 per cent more than the N1.47tn that has been spent on capital allocations for the year.

The government said, “The actual spending was N12.7tn. Of this amount, N5.79tn was for debt service, and N3.78tn for personnel costs, including pensions.

“Only about N1.47tn (25 per cent of the pro-rata budget) has been released for MDAs’ capital expenditure as of September 2023.”

The Federal Government has about N1.5 million workers and it will review minimum wage by 2024. There are concerns that the government is operating a bloated civil service with many agencies with overlapping functions. This has led to calls for agency mergers and scrapping, where they might apply.

With salaries weighing heavily on its spending, the government, in its 2024 – 2026 fiscal framework, said, “The budget deficit is projected to be N9.18tn in 2024, i.e., N4.6tn down from N11.60tn budgeted in 2023.

“The proposed deficit represents about 50 per cent of total Federal Government’s revenues and 3.88 per cent of the estimated GDP (Gross Domestic Product ). The high projected level of fiscal deficit in 2024 is partly attributable to the proposed salary review of Federal workers across board, increased pension obligations, and higher debt service cost.

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“At 3.88 per cent, the projected level of deficit is higher than the three per cent threshold stipulated in the Fiscal Responsibility Act (FRA), 2007, but significantly lower than the 2023 level of 6.11 per cent; FRA 2007, however, allows the government to exceed the 3 per cent threshold if justified by threats to national security.”

The fiscal deficit for the three years under review is expected to total N30.89tn. In June 2023, the World Bank disclosed that the Federal Government’s spending on personnel costs and debt servicing exceeded total revenues in 2022.

According to the Washington-based bank, this was the first time the Federal Government’s personnel costs and debt servicing surpassed its total revenue. It noted that the government is spending a lot on these costs, leaving little room for capital expenditure.

It declared, “Overall, the rigidity of expenditure has increased, squeezing fiscal space for the discretionary spending needed to meet development objectives.

Personnel costs and interest payments comprise a growing share of total general government expenditures (59 per cent in 2022) and for the first time in 2022 exceeded total government revenues (102 percent).”

Rising personnel cost is leaving little room for investments in infrastructure and in his budget presentation speech, President Bola Tinubu disclosed that the government would leverage the private sector to plug its capital expenditure spending holes.

He said, “In view of the limited resources available through the federal budget, we are also exploring Public Private Partnership arrangements to finance critical infrastructure.

“We, therefore, invite the private sector to partner with us to ensure that our fiscal, trade, and monetary policies, as well as our developmental programmes and projects, succeed in unlocking the latent potential of our people and other natural endowments, in line with our national aspirations.”

Recently, the Minister of Budget and National Economic Planning, Abubakar Bagudu, declared that the government was only managing to pay salaries considering its dwindling revenue sources.

The minister represented by the Director (International Cooperation), Dr Sampson Ebimaro at an event said, “Government faces enormous challenge especially now, the government is facing revenue deficit. There’s no money anywhere in the country, the government is just managing to pay salaries.

“The growth rate is very slow, and the population growth is fast pacing and increasing. unemployment is surging amid high inflation. These are issues which non-governmental organisations must take on board in helping the government to cover the space government could not cover.”

FG to begin payment of new minimum wage in April

(PUNCH)

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Tinubu Nominates Tegbe as Minister of Power, Seeks Senate Confirmation

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Tinubu Nominates Tegbe as Minister of Power, Seeks Senate Confirmation

President Bola Ahmed Tinubu has nominated Mr Joseph Olasunkanmi Tegbe as the new Minister of Power, subject to confirmation by the Senate.

The nomination, contained in a State House press release issued on Thursday, has been formally transmitted to the National Assembly in line with constitutional provisions requiring legislative screening and approval of ministerial appointments.

Mr Tegbe’s nomination follows the resignation of the former Minister of Power, Adebayo Adelabu, who stepped down from office to pursue elective political ambitions.

According to the Presidency, the nominee is a seasoned fiscal and economic reform expert with more than 35 years of experience across both public and private sectors. He previously served as Senior Partner and Head of Advisory Services at KPMG Africa, where he led major initiatives in fiscal policy reform, institutional restructuring, and governance.

The statement also highlighted Tegbe’s advisory roles to key government institutions and private sector organisations, particularly in the areas of regulatory frameworks, strategic reforms, and investment structuring.

Currently, Tegbe serves as Director General and Global Liaison for the Nigeria-China Strategic Partnership (NCSP), where he oversees efforts to deepen development cooperation between Nigeria and the People’s Republic of China. His role includes coordinating engagements with public sector stakeholders to advance economic and social development objectives aligned with the Forum on China-Africa Cooperation (FOCAC).

In the power sector, Tegbe is said to have participated in several reform-driven engagements involving agencies such as the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Bulk Electricity Trading Company (NBET), focusing on regulatory and institutional improvements.

The Presidency expressed confidence that, if confirmed, Tegbe would strengthen ongoing efforts to reform Nigeria’s power sector, improve grid stability, and attract sustainable investment in line with the administration’s Renewed Hope Agenda.

President Tinubu also urged the minister-designate to deploy his extensive expertise toward delivering measurable improvements in electricity supply and overall sector performance for Nigerians.

Tinubu Nominates Tegbe as Minister of Power, Seeks Senate Confirmation

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Tinubu Orders Crackdown on Plateau Killers, Approves ₦2bn Relief Package

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President Bola Ahmed Tinubu
President Bola Ahmed Tinubu

Tinubu Orders Crackdown on Plateau Killers, Approves ₦2bn Relief Package

President Bola Tinubu has pledged to deploy the full instruments of federal authority against individuals and groups responsible for the recurring violence in Plateau State, warning that those identified as instigators or sponsors of unrest will face decisive government action.

The President made the declaration on Tuesday evening during a high-level meeting with Plateau State leaders and stakeholders at the Presidential Villa in Abuja, where he also approved a ₦2 billion humanitarian relief package for victims of the March 29 attack in Angwan Rukuba, Jos North Local Government Area.

The meeting, which lasted several hours and ended around 8 p.m., brought together Governor Caleb Mutfwang, all living former governors of Plateau State, traditional rulers, religious leaders, and political stakeholders, including the APC National Chairman, Prof. Nentawe Yilwatda.

According to the Presidency, Tinubu told the delegation that his administration would no longer tolerate cycles of violence, urging leaders in the state to take responsibility in identifying those fueling conflict.

“No protocols, no obstacles; we are here to speak our minds and find a permanent solution to a recurring conflict and chaos,” the President said.

He stressed that tolerance, unity, and accountability among leaders were essential to ending decades of recurring communal clashes in the state.

Tinubu also issued a strong directive to state authorities to identify individuals allegedly responsible for instigating violence, warning that they would face firm government action.

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“If you identify and you know the names of troublemakers, agents provocateurs who want to continue killing or instigate killing, let us know. We will use the instrument of office to deal with them,” he warned.

The President added that anyone found to be recruiting or inciting violence would face the full weight of federal power.

He further called for fairness, justice, and ethnic inclusiveness in governance, insisting that peace-building efforts must be rooted in equity and mutual respect among communities.

At the meeting, the Federal Government approved ₦2 billion in humanitarian assistance for victims of the March 29 attack in Angwan Rukuba, where over 27 people were reportedly killed in a violent assault on returning worshippers.

The funds, according to officials, will be used to support displaced families, rebuild damaged property, and provide emergency relief to affected communities through the Ministry of Humanitarian Affairs and Poverty Reduction.

The approval follows Tinubu’s earlier promise during his visit to Jos on April 2, shortly after the incident.

Tinubu reiterated his support for the establishment of state police, describing it as a necessary reform to address Plateau’s persistent security challenges.

He urged federal lawmakers present at the meeting to work toward constitutional backing for decentralized policing, arguing that local security structures would improve response times and enforcement.

The President also directed the newly constituted Plateau peace committee—made up of all living former governors of the state—to review existing white papers on past conflict resolutions and present consolidated recommendations.

He encouraged flexibility in restructuring previous peace frameworks, stressing that ineffective committees should be dissolved or merged for better results.

“Forget those committees you mentioned to me; if it’s not working, it’s not working. Consider this group as the committee until we find a lasting solution,” he said.

The Gbong Gwom Jos, Da Jacob Gyang Buba, urged the Federal Government to strengthen security deployments in the state, noting that existing forces were overstretched and required better equipment and manpower.

He also reiterated the need for the promised installation of thousands of AI-enabled surveillance cameras across Plateau State to enhance monitoring and early warning systems.

Governor Caleb Mutfwang described the meeting as historic, noting that it was the first time all living former governors of Plateau State were gathered together in a unified peace initiative.

He pledged full cooperation with the Federal Government’s peace efforts and emphasized the need to rebuild trust across ethnic and religious divides.

Former Deputy Speaker Idris Wase also highlighted drug abuse as a growing driver of insecurity in the state, calling for stronger enforcement measures.

Tinubu concluded the meeting by urging stakeholders to prioritize unity, warning that continued violence would only deepen poverty and instability in the region.

He also proposed expanded inclusion of non-indigenous communities in governance structures as part of broader reconciliation efforts.

The President reaffirmed that his administration is committed to ending violence in Plateau State and across Nigeria, stressing that peace and stability remain central to national development.

Tinubu Orders Crackdown on Plateau Killers, Approves ₦2bn Relief Package

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Tinubu Appoints Bianca Ojukwu as Minister of Foreign Affairs

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Bianca Odumegwu-Ojukwu
Bianca Odumegwu-Ojukwu

Tinubu Appoints Bianca Ojukwu as Minister of Foreign Affairs

President Bola Tinubu has appointed Ambassador Bianca Odumegwu-Ojukwu as Nigeria’s new Minister of Foreign Affairs following the resignation of Ambassador Yusuf Tuggar, who reportedly stepped down to pursue political ambitions ahead of the 2027 elections.

The appointment places Ojukwu in charge of Nigeria’s external relations, diplomatic engagements, and international partnerships at a time the administration is intensifying efforts to reposition the country’s global image and strengthen economic diplomacy.

Until her latest appointment, Bianca Odumegwu-Ojukwu served as Minister of State for Foreign Affairs, where she was involved in Nigeria’s diplomatic outreach and regional engagement programmes.

Her elevation to the substantive ministerial role is seen as a continuation of her work within the foreign affairs ministry and a move to ensure continuity in Nigeria’s diplomatic policy direction.

In a related development, President Tinubu also nominated Ambassador Sola Enikanolaiye as Minister of State for Foreign Affairs, pending confirmation by the Senate.

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Enikanolaiye, who hails from Kogi State, previously served as Senior Special Assistant to the President on Foreign Affairs and International Relations. He is a career diplomat with over 30 years of experience in Nigeria’s foreign service.

His extensive diplomatic background includes serving as Permanent Secretary in the Ministry of Foreign Affairs, as well as postings in several Nigerian missions abroad, including Addis Ababa, Belgrade, Ottawa, London, and New Delhi.

The Presidency said the appointments are part of broader efforts to strengthen Nigeria’s foreign policy architecture, improve coordination in international engagements, and expand economic and strategic partnerships across key global regions.

President Tinubu congratulated both appointees and urged them to prioritise national interest, enhance economic diplomacy, support regional stability, and ensure the protection of Nigerians in the diaspora.

He further emphasised the need for a more proactive foreign policy approach that aligns with Nigeria’s economic growth agenda and global competitiveness objectives.

The Ministry of Foreign Affairs remains central to Nigeria’s international relations, overseeing bilateral and multilateral engagements, consular services, and diplomatic missions worldwide.

Political analysts say the reshuffle signals a renewed focus by the Tinubu administration on strengthening diplomatic leadership and expanding Nigeria’s influence in global affairs.

Tinubu Appoints Bianca Ojukwu as Minister of Foreign Affairs

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