Taiwo Oyedele outlines FG's spending since petrol subsidy removal, says external debt servicing gulped N9trn
Nigeria's Minister of Finance, Taiwo Oyedele, reported that the federal government spent N9.39 trillion on public sector wage adjustments between June 2023 and December 2025. This expenditure, alongside significant debt servicing costs, has exceeded the total savings generated from the removal of the petrol subsidy.
Why it matters
The report highlights the fiscal strain on the Nigerian government as it balances economic reforms with the rising costs of public sector wages and debt obligations.
The federal government says it 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 spoke on Wednesday at a press conference in Abuja on the financial impact of the economic reforms introduced by the administration of President Bola Tinubu.
In June 2024, Tinubu approved the increase of minimum wage from N30,000 to N70,000 after assenting to the national minimum wage legislation.
The legislation provides for a review of the minimum wage every three years.
Against this backdrop, Oyedele said the federal government spent N9.39 trillion on wage adjustments, minimum wage increases and allowances between June 2023 and December 2025.
He said the amount spent on wages during the period exceeded the federal government’s entire share of resources generated from the removal of the petrol subsidy.
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