FG Utilizes Fuel Subsidy Savings for Debt and Wages

Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained the Federal Government's allocation of savings from the removal of fuel and foreign exchange subsidies during the 7th Africa Emerging Markets Forum in Abuja. He stated that these funds are directed towards debt servicing, implementing the new national minimum wage, and supporting the Nigerian Education Loan Fund (NELFUND), which has aided over 1.5 million students.

Oyedele emphasized the importance of transparency, promising a detailed breakdown of the subsidy savings will be made public soon. He noted that the combined cost of the subsidies represented about five percent of Nigeria’s GDP and highlighted the increased debt servicing costs due to rising interest rates.

The national minimum wage has increased from N30,000 to N70,000, nearly doubling the Federal Government’s wage bill. Oyedele addressed concerns regarding ongoing borrowing despite exceeding revenue targets, explaining that higher revenue does not negate the need for borrowing when expenditures surpass income.