The International Monetary Fund, IMF has given indications that the Federal Government of Nigeria may need to raise a supplementary budget to accommodate the proposed minimum wage increase for workers.
The IMF gave this recommendation in its latest staff country report for Nigeria.
It said the negotiated amount between the labour and the federal government may surpass the budgeted amount in the original 2024 budget.
“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report stated.
IMF also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the apex bank’s Ways and Means.
It further noted that the country’s budget deficit for 2024 is expected to surpass projections, owing to implicit subsidies for fuel and electricity, alongside rising interest expenses on debt.
Meanwhile, the report also urged the government to consider meeting its financing needs from the market and external borrowing.
