FG’s wages to rise by N556bn in three years

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If the personnel cost budget of N2.67tn proposed by the Federal Government for next year is approved by the National Assembly, then the wage bill of Ministries, Departments and Agencies of government would have increased by N556bn in three years from N2.11tn in 2018 to N2.67tn in 2022. The amount was contained in the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2020 to 2020.

An analysis of the document showed that the wage bill of government has been assuming an upward trajectory owing to number of personnel in the public sector. The document showed that personnel cost rose by N170bn from N2.11tn in 2018 to N2.28tn in 2019. Between 2019 and 2020, the wage bill of government is expected to increase by N386bn from N2.28tn to N2.67tn.

Further analysis showed that in 2021, the wage bill of government is expected to rise by N81bn from the 2020 amount of N2.67tn to N2.75tn, before hitting N2.83tn in 2022. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, had during a consultation with stakeholders on the MTEF said the 2020 to 2022 fiscal years would be challenging, particularly with respect to revenue generation and rapid growth in personnel costs.

Ahmed attributed the growth in personnel cost to the creation of new ministries and appointment of additional ministers. She, however, assured that the government was ready to take firm decisions.

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