Taiwo Oyedele Explains How FG Says It Used Fuel Subsidy Savings

Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, says savings from the removal of fuel and foreign-exchange subsidies have been used for debt servicing, wage obligations, student loans and other government commitments. Speaking at the Africa Emerging Markets Forum in Abuja, Oyedele said the combined subsidy costs had previously accounted for about five per cent of Nigeria’s GDP. He said the Federal Government would soon publish a detailed breakdown of the savings and how they were spent. According to him, part of the funds went towards clearing Ways and Means obligations, meeting higher debt-servicing costs and implementing the new national minimum wage. He also said the Nigerian Education Loan Fund has supported more than 1.5 million students with tuition payments and monthly stipends. Oyedele added that exceeding revenue targets does not remove the need for borrowing when government spending remains higher than total revenue. He said borrowing must be invested in ways that deliver more value than its cost.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.