FG Spent N9.39trn Subsidy Savings On Wage Increase Payment—Oyedele

The Federal Government said 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, disclosed the figure on Wednesday at a press briefing in Abuja where he outlined the fiscal impact of reforms introduced by President Bola Tinubu’s administration.

Oyedele said the rise followed the administration’s approval in June 2024 to raise the national minimum wage from N30,000 to N70,000 after Parliament passed the new minimum wage law, which sets statutory reviews every three years.

“Between June 2023 and December 2025 the federal government spent N9.39 trillion on wage adjustments, minimum wage increases and allowances,” the minister said. He added that this incremental wage bill alone exceeded the federal government’s entire share of resources realised from the removal of the petrol subsidy.

According to Oyedele, reforms that included subsidy removal and foreign exchange adjustments mobilised N15.8 trillion for the federation in that period, of which the federal government received N5.4 trillion and the balance of N10.4 trillion was shared with state and local governments.

Oyedele said the federal government’s total incremental resources during the period — including reform proceeds, additional revenue and new borrowing — amounted to N20.4 trillion, while incremental expenditure reached N30.64 trillion.

Aside from the N9.39 trillion on wages, Oyedele said the government spent N9.37 trillion on external debt servicing and N6.5 trillion on strategic infrastructure projects.

He linked the surge in wage spending to post‑reform adjustments, noting that the June 2023 subsidy removal had pushed up petrol prices and added to household and business costs. Oyedele acknowledged the reforms’ burden on Nigerians but said the administration had taken measures to cushion the impact.

“These were decisions that came at a real cost, and we are not here to pretend otherwise,” he said.