The Federal Government has pledged to release a detailed account of how funds saved from the removal of fuel and foreign exchange subsidies have been utilised, amid growing public concern over the impact of the reforms.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, made the commitment at the 7th Africa Emerging Markets Forum in Abuja.
He acknowledged that Nigerians had valid questions about subsidy savings and assured that a comprehensive breakdown would be published within days.
Oyedele explained that the combined effect of removing fuel and FX subsidies amounted to about five per cent of GDP.
He noted that part of the savings had been absorbed by higher debt servicing costs, the new N70,000 minimum wage, and expanded social programmes such as the Nigerian Education Loan Fund, which has supported over 1.5 million students.
Responding to concerns raised by World Bank Chief Economist Indermit Gill, Oyedele stressed that the reforms were designed to correct distortions rather than simply generate fiscal savings.
He argued that without them, Nigeria would have remained trapped in “fiscal illusions.”Gill had praised the Central Bank of Nigeria for reducing inflation from above 30 per cent to below 15 per cent but urged stronger fiscal support to translate reforms into improved living conditions.
Meanwhile, CBN Director of Statistics, Dr Okpanachi Moses, presented findings from a study of 36 Sub-Saharan African countries, showing that food price volatility and inflation reinforce each other, limiting the effectiveness of monetary policy.
He warned that conflict-affected economies should focus on stabilising food systems rather than relying solely on interest rate hikes.
By promising transparency, the government aims to reassure Nigerians that subsidy savings are being channelled into debt obligations, wage reforms, and social investments, while laying the groundwork for broader economic stability.
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