Nigerian minister of Budget and National Planning, Senator Udoma Udo Udoma, has given indication that the Nigerian government may increase Value Added Tax (VAT) to fund the new national minimum wage.
He said this on Tuesday when he appeared before the Senate Committee on Finance at the hearing to deliberate on the new national minimum wage of N30,000 approved by the Senate.
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 reversing 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