₦airaland Forum

https://www.youtube.com/watch?v=32Mas9GObVU?si=HMkWMdhiqKC4TtBW

I wonder why they avoided the heavyweight road projects and wastages. Seems someone is fully aware of the superfluity such roads and exercises is to a struggling and indebted third world country.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, says the savings from fuel and foreign exchange subsidies have largely gone into debt servicing, increased workers’ wages, student loans, and other major government obligations.

Speaking yesterday in Abuja at the 7th African Emerging Markets Forum, organised by the Central Bank of Nigeria (CBN), Oyedele acknowledged the growing public concerns over the fate of the subsidy savings, describing the question as legitimate and promising greater transparency in the coming days.

He said the combined impact of the subsidy on fuel and foreign exchange was about 5 per cent of the country’s gross domestic product, but that the savings were not saved. According to him, “saving money was not the primary objective. It was eliminating the distortion and the corruption in the system, which is more fundamental.

“But where has the money gone to? In a few days, you will see the detailed analysis because we believe that we owe a duty to explain what we do to the Nigerian people. That’s what transparency looks like.”

The minister explained that though the reforms generated fiscal savings, the government immediately faced higher financial obligations arising from the reforms themselves, including debt servicing costs and increased public sector wages.

Before the reforms, he said, Nigeria financed part of its expenditure by printing money, which fuelled inflation but reduced immediate borrowing needs. However, he explained that part of the subsidy removal savings was used to service debts, including money printed before the reforms.

“Many Nigerians will conclude that the reforms are not working for them. Some would even say it’s a bad reform,” the minister stated. “What we do not normally compare is what would have been if the reforms were not carried out.

“Before the reforms, we were printing money to spend, the interest rates were about eight per cent, and the minimum wage was N30,000. If you just think about those three, those are big numbers.

“If you stop printing, the spending doesn’t disappear. You need to finance the money you were printing before. That was part of where the savings went.”

Oyedele further explained that the reforms triggered higher inflation, prompting interest rates to rise, increasing the government’s debt servicing costs. Consequently, “instead of paying eight per cent on our debts, we were paying as high as 24 per cent.

“When you need to service debts, you do not debate whether you need to pay. You cannot negotiate it. You pay, and you pay on time.”

According to the minister, the government also committed substantial resources to implementing the new national minimum wage and financing higher education through the Nigerian Education Loan Fund (NELFUND), with over 1.5 million students now receiving funding for both tuition and monthly stipends, thereby allowing parents to redirect money previously set aside for school fees to other essential household needs.

He also noted that “minimum wage went up from N30,000 to N70,000. That’s almost double the wage bill of the government.

In “a million households, the parents no longer have to save, borrow, and be stressed just to pay the tuition. Now they can deploy those resources into their small businesses and take care of other important basic needs.”

Nevertheless, the minister said the government would soon provide Nigerians a detailed account of both the savings realised from the reforms and how the resources have been allocated.

https://guardian.ng/news/oyedele-explains-how-nigeria-spent-fx-subsidy-removal-savings/

Right from the beginning, I knew this Student Loan initiative excuse, will be used to justify recklessness and mask unaccountability.

And I'm not surprised.

The minister should explain why this administration is still borrowing money recklessly despite the huge money generated from subsidy removal, increased crude oil sale .

I thought removing the subsidy would reduce debt but instead this administration has continued to borrow.

Taiwo Oyedele,ayoung minister with beautiful credentials is not far off of corruption running in their DNA,you are a fraudster, like minister like president,Morocco constructed a 1055km of superhighway at $1 billion but your nepotistic president's coastal highway is $15billion,as same as Sokoto-badagry,Nelfund is heavily skewed to favour Yoruba students,how much of crude oil is coming your southwest,what about the borrowing if subsidies are used as claimed with your putrefying,opprobius discussions,Nigerians are fools,it is better the country be divided.Tell your President he will not be able to rig the 2027 general elections.

What kind of reforms takes interest rates payments from 8% to 24%? Are you reforming the economy info the bottom of the well? What else does a failed economic measure look like?

In any other part of the world, such a report will lead to massive resignation of as many ministers serving such an irresponsible government as possible.

Stephen0mozzy:
Right from the beginning, I knew this Student Loan initiative excuse, will be used to justify recklessness and mask unaccountability.

And I'm not surprised.

He also mentioned wages etc

Buhari was borrowing to pay for subsidy

Governors in Nigeria now have enough money to pay salaries and construct projects

I done know say na wetin dem go talk in the end..They can only fool their followers but not we…

I have no issues with the cost savings used for other purposes, however, can we get an explanation on why more debt is being taken as if tomorrow no dey.
I'm so sure about 2more loans will still be requested for before May 29th 2027

Newsmills:
Taiwo Oyedele,ayoung minister with beautiful credentials is not far off of corruption running in their DNA,you are a fraudster, like minister like president,Morocco constructed a 1055km of superhighway at $1 billion but your nepotistic president's coastal highway is $15billion,as same as Sokoto-badagry

I hate to be the guy. Really I do. But the Lagos-Calabar highway goes through very thick rainforest , and in some parts, delta region. That markedly increases the cost.

By contrast, the road project iN Morroco goes through desert.

I won't be surprised if there is contract inflation, no be Nigeria we be, but the cost of a highway through the rainforests is going to be higher than that through near desert.

That's why road projects are a pain in places like the South south and even south east and south west. Add high population density, which means houses must be demolished and people paid compensation...and the cost of our road project makes sense.

,Nelfund is heavily skewed to favour Yoruba students,how much of crude oil is coming your southwest

Kind of true...

South West: 308,998 studentsNorth Central: 290,102 studentsNorth West: 284,446 studentsNorth East: 237,214 studentsSouth South: 167,251 studentsSouth East: 120,924 students

Also see here: https://pmnewsnigeria.com/2026/07/27/why-many-students-are-not-accessing-nelfund-in-south-east/

The above does indicate that students are benefiting, though slow payment was an inital issue.

(I don't support the programme though. It does not solve the issue of funding...and is unrealistic).

,what about the borrowing if subsidies are used as claimed with your putrefying,opprobius discussions

Well, in a situation where

1. Oil prices have been below the budget benchmark for years and

2. Tax uptake is low...our tax to gdp is lower than the African average self..and most nigerians do not pay income taxes to the federal and state governments...

Borrowing is going to keep on continuing.

Your government is to blame, by not improving domestic productivity, the tax to gdp and fighting corruption. But the oppostion sadly also has no ideas too on the matter, for now. (still we have to vote out APC, and hope the new guys do something about the mess)

,Nigerians are fools,it is better the country be divided.

Yes, and you would get a biafra that would be indebt to the IMF In ten years, because you would not let your leaders force your nation into industrial productivity, you would want them to share the fresh oil money you have

Oh and dividing the country also means the loans NIgeria owes will be divided among the new countries. Ask every country that has done division. IMF and the World bank will wait a few months, and then send messages to the finance ministers of the new countries inviting them to a meeting in Geneva to discuss the debt ....or else.

Tell your President he will not be able to rig the 2027 general elections.

[

Amen, may tinubu be voted out, but if we want something different done, we have to, in addition to fighting corruptuion, accept a leader who would improve productivity, and also, remove subsides on electricity, and also improve tax to gdp ratios, and so forth, or else, we will still end with the same old.

I am sure there will be protest if Tinubu is reelected.

Una go explain tire, no evidence. Every Monday morning, una go provide new explanation as old one refuses to sell.

Stephen0mozzy:
Right from the beginning, I knew this Student Loan initiative excuse, will be used to justify recklessness and mask unaccountability.

And I'm not surprised.

Didn't they lie that the funding for the NELFUND will be coming from the private sector? Does it mean NELFUND will eventually serve as subsidy?

This man is pathetic liar

AMINDA:
Didn't they lie that the funding for the NELFUND will be coming from the private sector? Does it mean NELFUND will eventually serve as subsidy?

Is the NELFUND extended to those in private universities. It looks the loan is going to end up free money based on politics. I don't understand why they are classifying it like cost that won't be recovered .

Godfullsam:
The minister should explain why this administration is still borrowing money recklessly despite the huge money generated from subsidy removal, increased crude oil sale .

He cannot contradict his Oga now.

This guy was trained to lie to the public.

He lies without conscience. Is it not the said student's loan they said was being funded by recovered loots from EFCC the fake financial crimes commission??

I know the people who handed over their brains to APC leadership will say they never said so.

But it's simple, tell a lie until it starts resembling the truth!!

So you didn't know the roads is majorly privately sponsored?

But Tinubu and Eden told us NELFUND would come from a different place entirely.

What Tinubu kept telling us is that we should hold the governors accountable that subsidy money is shared amongst them.