We May Have To Increase Taxes To Pay New Minimum Wage, FG Says

Buhari

Minister of Budget and National Planning, Senator Udo Udoma, has said that the Federal government might consider the upward review of Value Added Tax to successfully pay the new minimum wage.

Udoma said this on Tuesday while appearing before the Senate Committee on Finance headed by Senator John Owan-Enoh.

The Nigeria senate, had on Tuesday, passed the new minimum wage bill setting the new minimum wage at 30,000 naira.

Udoma told the committee that the Technical Advisory Committee on the minimum wage will submit its report to President Muhammadu Buhari this week.

Senate Approves N30,000 As New Minimum Wage For Nigerian Workers

He said, “The current minimum wage of N18,000 is really too low. It is difficult for workers to manage on that amount.

“The President supported a review, but it is important that as we are revising it, we should be able to fund it.

“It is in the light of this that we would be coming to you (Senate) because there may be the need to make some changes, especially the VAT, in order to fund the minimum wage once it is announced.”

He also said efforts were on, too, to ensure that capital projects and other sectors of the economy are adequately funded.

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