The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the Federal Government has channelled savings from the removal of fuel and foreign exchange subsidies into servicing debts, paying workers’ salaries, implementing the new ₦70,000 national minimum wage and funding the Nigerian Education Loan Fund (NELFUND).

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Speaking on Thursday at the 7th Africa Emerging Markets Forum in Abuja, Oyedele said Nigerians had a legitimate right to know how the savings were being utilised and disclosed that the government would soon publish a detailed breakdown of the funds saved and their expenditure. He explained that the combined cost of fuel and foreign exchange subsidies had amounted to about five per cent of Nigeria’s Gross Domestic Product (GDP), stressing that the reforms were introduced not only to save money but also to eliminate economic distortions and corruption. According to him, part of the savings was used to offset Ways and Means obligations, meet rising debt servicing costs following higher interest rates, finance the increased wage bill resulting from the new minimum wage, and support student loans that have benefited more than 1.5 million Nigerians.

Oyedele also defended the Federal Government’s continued borrowing despite improved revenue performance, saying higher revenue does not automatically eliminate the need for loans when expenditure exceeds income. Using a simple budget illustration, he explained that borrowing remains necessary whenever there is a funding gap between government revenue and planned spending. He maintained that borrowing is not inherently harmful, provided the funds are invested in productive projects capable of generating returns that exceed their cost, adding that the government remains committed to transparency by providing a full account of the subsidy savings and how they have been utilised.