……Wage increases, allowances cost N9.39trn from savings
NIyi jacobs
Nigeria mobilised N15.8 trillion in resources from the removal of petrol subsidy between June 2023 and December 2025, Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, has disclosed.
Oyedele made the disclosure on Wednesday at a media conference in Abuja on the scorecard of Nigeria’s economic reforms between 2023 and 2026.
According to the minister, the subsidy removal generated significant resources for the Federation during the period under review.
He said the N15.8 trillion was mobilised following the removal of the petrol subsidy by the administration of President Bola Tinubu.
The disclosure comes amid continued debate over the economic impact of the subsidy removal and how the resources generated from the policy have been utilised.
The subsidy was removed in June 2023 shortly after Tinubu assumed office, as part of the administration’s broader economic reform agenda.
The government has maintained that the policy was necessary to reduce the financial burden of subsidy payments on public finances and redirect resources to other areas of the economy.
Oyedele’s latest disclosure provides an indication of the scale of resources mobilised since the subsidy regime was discontinued more than two years ago.
The Federal Government also spent N9.39 trillion on wage adjustments, minimum wage increases and allowances for public servants between June 2023 and December 2025, Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, has disclosed.
Oyedele made the disclosure on Wednesday in Abuja at a press conference on the financial impact of the economic reforms introduced by the administration of President Bola Tinubu.
According to the minister, the expenditure was funded from savings generated following the removal of the petrol subsidy and other reforms implemented by the administration.
He said the wage-related spending reflected the government’s efforts to cushion the impact of the reforms on workers and households while responding to rising living costs.
The minister highlighted the financial implications of the reforms and the government’s measures to mitigate their effects on Nigerians.
The disclosure comes amid continued debate over the use of savings from petrol subsidy removal and the broader economic impact of the Tinubu administration’s reforms.
Oyedele’s remarks provide an indication of the scale of government spending on public-sector wages and related benefits since the reforms began in 2023.
