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2025 Budget: FG Earmarks ₦845bn for New Minimum Wage

Kehinde Fajobi

The federal government has allocated ₦845.3 billion in the 2025 budget to address adjustments linked to the new ₦70,000 minimum wage.

This allocation is part of the Service-Wide Vote in the 2025 budget presented by President Bola Ahmed Tinubu to the National Assembly on Wednesday.

Other critical allocations include ₦10.95 billion for settling local contractors’ debts and ₦17.31 billion for group life assurance for Ministries, Departments, and Agencies (MDAs), including the Department of State Services (DSS).

The insurance provision also covers sensitive assets, corps members, and administrative monitoring.

Security received a significant boost, with ₦100 billion set aside for “Operation Lafiya Dole” and other military operations.

The funds aim to strengthen the armed forces in combating insurgency and addressing national security challenges.

In the Niger Delta, ₦65 billion has been allocated for the Presidential Amnesty Programme to support the reintegration of ex-militants, promoting peace and regional development.

Meanwhile, ₦20 billion was earmarked for the recapitalisation of the Ministry of Finance Incorporated (MOFI) to manage government investments effectively and drive economic growth.

The entitlements of former presidents, heads of state, vice presidents, and chiefs of general staff will cost ₦2.3 billion.

Benefits for retired heads of the civil service and permanent secretaries are set at ₦10.51 billion.

The government explained that these measures reflect its commitment to improving public service conditions, enhancing security, and stimulating economic recovery.

The budget allocations aim to address pressing national issues while maintaining fiscal discipline.