Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified how the government is distributing funds saved from the elimination of fuel and foreign exchange subsidies. Speaking at the 7th Africa Emerging Markets Forum in Abuja, Oyedele stated that these resources are being directed toward debt repayments, wage hikes, and the national student loan initiative.
Addressing public scrutiny, the official promised to publish a comprehensive report detailing the expenditure. He noted that the fuel and foreign exchange subsidies previously accounted for roughly five percent of the nation’s GDP. The primary goal of these reforms, he argued, was to eradicate systemic corruption and market distortions.
Oyedele highlighted that significant portions of the savings have been absorbed by the increased cost of servicing debts, which has climbed as interest rates rose from eight to 24 percent. Furthermore, the government has used these funds to implement the new N70,000 minimum wage and support the Nigerian Education Loan Fund, which provides tuition assistance and stipends to over 1.5 million students.
Regarding the government’s continued borrowing despite higher-than-expected revenue, Oyedele explained that revenue targets alone do not cover total budgetary requirements. He asserted that borrowing remains a valid fiscal tool as long as the borrowed capital is utilized for productive investments that generate value exceeding the cost of the debt.
