Finance Minister Taiwo Oyedele has defended the Federal Government’s economic reforms, arguing that the removal of fuel subsidy was a difficult but necessary decision to correct long-standing financial distortions and place Nigeria on a sustainable growth path.
Oyedele, who is also the Coordinating Minister of the Economy, said the reforms were introduced because the country had been operating under what he described as “fiscal illusions” that could no longer be maintained.
Speaking during an event organised by the National Orientation Agency (NOA), the minister acknowledged that many Nigerians experienced increased hardship after the subsidy removal but insisted that the policy was part of a broader economic reset.
“The reform itself was a reset. We were living in fiscal illusions. So we needed to stop deceiving ourselves so the country can move forward, and that reset meant that income in that term will fall,” Oyedele said.
He disagreed with assessments that Nigeria’s poverty situation worsened solely because of the reforms, arguing that immediate challenges were expected when major economic adjustments were introduced.
“Poverty has gone up because you cannot remove subsidy and people become richer, right?” he said.
However, Oyedele said the economy had begun showing signs of recovery, pointing to improved growth figures recorded in 2025.
“The good news is that the numbers for 2025 in dollar terms say that real per capita growth was nearly 10 per cent. That makes Nigeria one of the fastest countries in lifting people out of poverty,” he stated.
The minister also addressed questions over how savings from the removal of fuel subsidy have been spent, saying transparency remained a priority for the government.
He explained that subsidy payments, including what he called foreign exchange-related distortions, accounted for a significant burden on the economy.
“The whereabouts of the subsidy savings is a valid question,” Oyedele said, adding that the government would soon release a detailed breakdown of how the funds were saved and utilised.
According to him, the goal of the reform was not only to save money but also to eliminate inefficiencies and corruption associated with the previous system.
“Saving money was not the primary objective. It was eliminating the distortion and corruption in the system, which is more fundamental,” he said.
Oyedele urged Nigerians to consider not only the current difficulties but also the possible consequences of failing to implement the reforms.
He highlighted rising debt costs, increased minimum wage payments and government programmes such as student loan support under NELFUND as some of the areas affected by the policy changes.
The minister said the government would continue implementing measures aimed at delivering economic growth while providing further explanations on how reform savings are being deployed.
