FG Reduces Wage Award Allocation by N100 Billion in 2023 Supplementary Budget

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The Federal Government has made adjustments to the supplementary budget, reducing the allocation for wage awards to federal civil servants by N100 billion. The revised supplementary budget, which has been approved for Ministries, Departments, and Agencies (MDAs), was reviewed by Nairametrics.

Initially, the proposed document indicated that the wage award for four months would amount to approximately N210 billion. However, the approved version now reflects a reduction, bringing the cost to the Federal Government down to about N110 billion.

A notable beneficiary of the reallocation is the Ministry of Defence, which received an additional allocation of N69.67 billion. The ministry’s total allocation increased from N476.54 billion to N546.21 billion.

Within the Ministry of Defence, the Nigerian Navy saw an increase of N25 billion in its total allocation, reaching N87.8 billion in the approved document, compared to the proposed supplementary budget’s N62.8 billion. Notably, the controversial N5.095 billion earmarked for the purchase of a Presidential yacht was redirected to the acquisition of a self-propelled barge, as indicated in the document.

Self-propelled barges are vessels designed for cargo transport on inland waterways. The Nigerian Navy also received additional funds for the construction of two buildings in Enugu and Ebonyi, each valued at N3 billion. Furthermore, N19 billion was allocated for the acquisition of two tugboats, essential for maneuvering or salvaging larger ships.

The Defence Intelligence Agency also experienced an increase of N30 billion in its total allocation, rising from N17.04 billion in the proposed budget to N47.04 billion in the approved version.

The reduction in the wage award allocation raises questions, especially considering the challenges faced by federal workers due to the removal of the fuel subsidy and other government policies. The reasons behind this decision remain undisclosed.

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