By Sarafa Ibrahim
On Wednesday, Governor Ademola Adeleke presented the 2025 budget estimates to the Osun State House of Assembly. The fiscal bill, themed “Budget of Sustainable Growth and Transformation,” totals N390 billion, with N245 billion allocated for recurrent expenditure and N144 billion for capital expenditure.
Of the N245 billion proposed for recurrent expenditure, N102 billion is designated for salaries, allowances, pensions, and gratuities, while N145 billion is reserved for other purposes. This significant amount has sparked concerns, as the purpose for this allocation isn’t explicitly stated, leaving many Osun residents questioning its intended use.
The purpose of presenting a budget for legislative scrutiny is to provide transparency in government spending, ensuring citizens know how their funds will be allocated. Given the attention the 2025 budget has attracted, it’s clear that Osun residents are increasingly vigilant about public finances—a promising trend.
Now, let’s clarify the purpose of the N145 billion allocation, which appears to be the focus of public concern. In July, President Bola Tinubu announced a new minimum wage of N70,000, with many states adopting rates between N70,000 and N85,000, likely to take effect next year. In Osun, a similar increase is anticipated, as the state’s wage committee finalizes the template.
The increased minimum wage—more than double the previous N30,000 minimum—is one expense the N145 billion allocation will cover. For instance, adopting N70,000 as the minimum wage adds at least N40,000 per worker to the existing wage bill, which, considering Osun’s civil servant population, represents a substantial financial commitment.
The new minimum wage also impacts bonuses and allowances. For example, a worker previously receiving a N15,000 leave bonus will now receive at least N35,000, an increase covered by the N145 billion recurrent expenditure.
Additionally, this allocation will support adjustments in pension benefits, reflecting the new wage structure. The recruitment of public school teachers, although delayed by the minimum wage decision, is also factored into this budget, with salaries and allowances for new hires covered under the N145 billion provision.
Furthermore, the upcoming Imole Corps youth volunteering scheme, set to engage thousands in community service roles across education, health, and transportation, has its volunteer benefits accounted for within this budget.
Debt servicing also falls under the N145 billion allocation. Last year, debt servicing costs were around N27 billion, but with current exchange rates, this may increase to N30 billion in 2025. Additionally, payments owed to workers and pensioners from the previous administration will be covered by this allocation.
Ultimately, this budget proposal represents expected revenue, not guaranteed funds. The N145 billion, along with the total N390 billion budget estimate, reflects the government’s projection of what is needed to cover essential expenses smoothly.
This transparency in budgeting shows that the Adeleke administration is committed to judiciously managing public funds, as evidenced by significant achievements over the past 23 months. There’s no reason to doubt that this trend will continue.
- Sarafa Ibrahim is a Special Assistant to the Osun State Governor on Print Media and writes from Osogbo, Osun State.
