Reforms saved Nigeria from economic crisis- Oyedele
Abuja, Aug. 2026?TBL Africa) The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, says Nigeria’s economic reforms have prevented deeper fiscal and economic crises.
Oyedele stated this on Wednesday in Abuja while presenting Nigeria’s Reform scorecard, highlighting the benefits, costs and harms prevented by the reforms.
He said the removal of fuel subsidy and unification of the foreign exchange market came with significant costs to households and businesses.
According to him, the reforms were necessary to address long-standing economic distortions, corruption, arbitrage and unsustainable fiscal pressures.
Oyedele said that subsidy savings mobilised N15.8 trillion for the Federation between June 2023 and December 2025.
He said that N5.4 trillion accrued to the Federal Government, while N10.4 trillion was shared among states and local governments.
The minister added that the Federal Government generated N3.1 trillion in incremental independent revenue, mainly through remittances from government-owned entities.
He said that the incremental borrowing contributed N11.9 trillion, which would have been significantly higher without the fiscal space created by the reforms.
Oyedele said the Federal Government’s total incremental resources during the period stood at N20.4 trillion.
He explained that the resources partly funded N30.64 trillion in incremental expenditure during the period.
According to him, N9.39 trillion went into wage adjustments, minimum wage increases and allowances for public servants.
He added that N9.37 trillion was spent on external debt servicing, while N6.5 trillion went into strategic infrastructure.
Oyedele said that 58 per cent of the incremental resources came from borrowing, 27 per cent from subsidy savings and 15 per cent from other revenue.
He said the reforms were not introduced primarily to raise revenue, but to tackle entrenched corruption and distortions.
The minister said the scorecard assessed 25 indicators across fiscal sustainability, external stability, investment climate, social impact, growth and productivity.
He said that the assessment compared Nigeria’s May 2023 baseline with verified mid-2026 data and projected outcomes without reforms.
Oyedele said that the reforms had improved workers’ welfare, with the minimum wage rising from N30,000 to N70,000.
According to him, NELFUND has supported more than 1.5 million students through affordable student loans.
The minister said cash transfers, subsidised mortgages and agricultural interventions had also supported vulnerable households.
He said the new Tax Act exempted low-income earners and small businesses while simplifying the tax system.
Oyedele said that the reforms also prevented deeper economic problems that would have affected states, businesses and households.
He said that 27 states struggled to pay salaries in May 2023, compared with none currently facing such challenges.
The minister said the government estimated that at least 30 states could have faced salary payment difficulties without the reforms.
He said the official exchange-rate premium over the parallel market had fallen from above 60 per cent to below five per cent.
According to him, the premium could have exceeded 150 per cent if the previous exchange-rate regime had continued.
Oyedele said the N30 trillion Ways and Means stock had been curtailed rather than allowed to double.
He, however, acknowledged that the reforms imposed significant costs, including higher interest rates and petrol prices.
He said the monetary policy rate rose from 18.5 per cent to 26.5 per cent as part of the stabilisation process.
Oyedele said petrol prices increased from about N185 per litre to between N1,100 and N1,400.
He said petrol could have become unavailable at the old official price and traded above N3,000 on the black market.
The minister said food inflation had eased from 24.82 per cent to 17.52 per cent as of June 2026.
He acknowledged that poverty and household welfare recovery remained unfinished business for the government.
Oyedele said headline inflation had declined to 15.91 per cent in June 2026 from 22.41 per cent in May 2023.
He said gross foreign reserves increased from about 35 billion dollars to 52.5 billion dollars.
Net reserves, he added, rose from approximately three billion dollars to 34.8 billion dollars.
The minister said market capitalisation increased from about N31 trillion to approximately N150 trillion.
He added that real Gross Domestic Product (GDP) growth strengthened to 3.89 per cent from the 2.31 per cent baseline.
“S&P Global upgraded Nigeria’s sovereign credit rating to ‘B’ in May, marking the country’s first upgrade in 14 years.
“Nigeria’s exit from the FATF grey list in October 2025 and the European Union’s Anti-Money Laundering and Combating the Financing of Terrorism (EU AML/CFT) deficiency list in January 2026.”
The minister said the reforms were not yet complete; they need to translate macroeconomic gains into improved household welfare.
He said government would continue implementing the Nigeria Tax Act and pursue further fiscal reforms.
Oyedele said efforts would focus on reducing inflation, maintaining exchange-rate stability and improving the quality of public spending.
He added that government would expand cash transfers and agricultural interventions to further reduce food prices.
He urged Nigerians to support positive policies, criticise government constructively and seek facts instead of misinformation and sensationalism.
Oyedele said the full Reform Scorecard and underlying data were available on the Federal Ministry of Finance website for public scrutiny.
Earlier, the Minister of Information and National Orientation, Alhaji Mohammed Idris, said the briefing was aimed at providing factual information on savings from fuel subsidy removal.
Idris, who said the Federal Government redirected savings to public welfare, investments, said the subsidy removal was one of the administration’s most significant and difficult economic reforms.
He acknowledged the sacrifices made by individuals, families, businesses and communities following the policy.
The minister said resources previously committed to fuel subsidies were being redirected towards sustainable investments and improved public welfare.
Idris said that Nigerians had the right to know the financial implications of major economic decisions taken on their behalf.
He commended Oyedele and the economic management team for presenting the facts and figures to Nigerians.
He urged the media to report the government’s programmes and policies accurately, honestly and responsibly.
The Minister of Budget and Economic Planning, Alhaji Atiku Bagudu, said that the administration inherited one of the world’s lowest revenue-to-GDP ratios.
According to him, Nigeria is one of most populous countries, still has one of the smallest budgets globally.
“Nigeria is still not where it wants to be despite increased government revenue following the removal of fuel subsidy, but it’s a work in progress.
He said Nigeria had inherited more than six billion dollars unpaid petroleum import obligations.
The minister said that the Nigerian National Petroleum Corporation had to borrow money to finance imports.
Bagudu urged stakeholders to support efforts to increase Nigeria’s revenue-to-GDP ratio.
He said the administration was also prioritising security, infrastructure and support for Nigerians affected by the reforms.
Bagudu added that investments were being made across the six geopolitical zones to improve connectivity and strengthen the federation.
