The Federal Government's expenditure on personnel costs is set to increase by at least 60% in 2025, driven by the implementation of the new national minimum wage and adjustments across the federal civil service.
This was revealed in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) approved by the Federal Executive Council. The document projects personnel costs to rise from N4.1 trillion in the 2024 budget to N6.56 trillion in 2025.
President Bola Ahmed Tinubu raised the minimum wage from N30,000 to N70,000 in July 2024, with federal workers already receiving the updated wage. However, implementation among state governments has been uneven, prompting the Nigerian Labour Congress to issue a December 1, 2024, ultimatum to non-compliant states.
The MTEF report also highlights a projected N13.08 trillion budget deficit for 2025—3.87% of GDP—citing the increased wage bill, pension obligations, and rising debt costs as contributing factors. The government plans to finance the deficit largely through domestic borrowings while aiming to reduce it in subsequent years.
Pension and personnel costs, totaling N9.64 trillion in 2025, account for a 58.7% increase from 2024, reflecting the financial strain of the wage adjustments and associated benefits.
