Federal Government spent more on wages than subsidy savings
Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, revealed that the Federal Government spent N9.39tn on wage increases, salary adjustments, and allowances for public workers between June 2023 and December 2025. This amount exceeded the government’s share of savings from the removal of the petrol subsidy. Oyedele shared these details during a media conference on Nigeria’s reform scorecard. The information sheds light on how the government allocated resources following subsidy removal.
TLDR
- The Federal Government spent N9.39tn on wage hikes, salary adjustments, and allowances for public workers between June 2023 and December 2025.
- This expenditure was higher than the N5.4tn the government received from subsidy removal savings.
- Taiwo Oyedele stated that the total incremental expenses for the government during this period reached N30.64tn.
- Another N9.37tn was spent on servicing external debt, mainly due to naira depreciation.
- The disclosure answers questions about how savings from the removal of the petrol subsidy were used.
