Osamagbe Imadiyi
The approved 2025 budget increased the amount allocated for personnel costs, which include salaries and benefits for state civil servants, from N2.036 trillion in 2024 to N3.87 trillion.
According to its budget implementation report, the 36 subnationals only paid out a total of N2.036 trillion in 2024, a decrease of N764 billion, even though they had allotted a total of N2.8 trillion for salaries.
The increase brought on by the newly approved N70,000 minimum wage and spiraling political appointments represents a nearly 90.23% increase, according to data taken from the 36 state governments’ approved budgets for 2025. Additionally, the approved budgets are available on Open States, a website supported by BudgIT that acts as a database for government budget information.
At least 27 states in the federation would have to wait for federal allocations from the central government in order to pay workers’ salaries this year, according to the budget report.
A substantial increase in the minimum wage for Nigerian workers was authorized by President Bola Tinubu in July 2024, going from N30,000 to N70,000. Following months of intense deliberations and negotiations between the government and labor unions, this decision was made.
Though some states have yet to adopt the new minimum wage, the country-wide rollout of this wage increase has been gradual. The Nigerian Labour Congress responded to this delay by giving state governments a strict deadline of December 1, 2024, to fully implement the new wage structure. The anticipated financial relief for workers has been further delayed by the fact that several states have yet to implement the revised minimum wage despite this pressure.
Significant differences in personnel costs between states were found after a thorough examination of the budget document: While 16 states saw a more moderate increase, with salary increases staying below the 50% threshold, 20 states saw increases in personnel expenses that exceeded 50%.
Subsequent analysis revealed that the states of Abia, Cross Rivers, Ekiti, Niger, Rivers, and Taraba experienced the largest payroll increases, surpassing 100% of their 2024 personnel cost budget. On the other hand, Gombe, Osun, and Ondo received the lowest percentage of pay increases—less than 15%.
