The Federal Government has projected a notable rise in personnel and pension costs for 2025, primarily driven by the implementation of the new minimum wage.
According to an analysis of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027, personnel and pension expenses are expected to soar from N6.07 trillion in 2024 to N9.64 trillion in 2025, marking an increase of 58.7 percent.
The MTEF/FSP document outlines: “N9.64 trillion (including N1.02 trillion for GOEs) is allocated for personnel and pension costs. This represents an increase of N3.56 trillion or 58.7 percent over the 2024 provision, driven mainly by the implementation of the new minimum wage and its consequential adjustments.”
Nigeria’s total recurrent (non-debt) expenditure is also set to rise from N11.27 trillion in 2024 to N14.21 trillion in 2025, a 26 percent increase.
This category, which includes personnel costs, pensions, and other administrative expenses, is projected to grow further to N14.38 trillion in 2026 and N14.59 trillion in 2027, highlighting the growing fiscal pressure of sustaining government operations.
