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Nigeria’s personnel costs to jump 79% to N4.1 trln in 2022

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Nigeria will spend more on personnel costs than it was sepending a year ago next year, according to the proposed budget for 2022 recently presented to the National Assembly by President Mohammadu Buhari.

While Nigeria budgeted a total of N2.29 trillion for personnel costs in 2019, in the proposed budget for 20222, the country hope to spend N4.11 trillion, representing an increase of 79.47 percent over the 2019 spent.

Data obtained from the budget implementation report of the Federal Government, showed that Nigeria spent on personnel and recurrent expenditure continue to rise.

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Also, analysis of the personnel cost since 2017 showed a consistent rise in allocation and spending from N1.69 trillion in 2016. In 2017, it rose to N2.90 trillion, while in 2018, the personnel cost rose by N7 billion or 2.41 percent to N2.97 trilion.

The following year, the personnel cost reduced by N68 billion, dropping to N2.29 trillion. However, the budget rose again in 2020 to N3.05 rilliontn, representing an increase of N760 billion, indicating 33.19 percent between 2019 and 2020.

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Nigeria started the implementation of the new minimum wage in 2020, which may have accounted for the jump in spent on personnel cost during the year.

In 2021, the cost continued to increase as N3.75 trillion was budgeted for personnel costs, representing an increase of N7 billion or 22.95 percent. Of the 3.75 trillion budget, about N2.57 trillion had been spent from January to August.

In the latest 2022 budget proposal which has passed the second reading at the Senate, the personnel cost hit an all-time high of N4.11 trillion, representing an increase of N360 billion.

The personnel cost in the 2022 budget proposal does not include allowances for members of the National Youth Service Corps who are not medical doctors, contract staff and anticipated promotion projections of existing staff.

The personnel cost represents 25.08 percent of the entire budget in 2022 and is the single largest component in the budget.

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