The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said that the savings from the removal of fuel and foreign exchange subsidies have largely gone into debt servicing, increased workers’ wages, student loans, and other major government obligations.
Speaking at the 7th African Emerging Markets Forum, organised by the Central Bank of Nigeria (CBN), in Abuja on Thursday, Mr Oyedele acknowledged 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 the savings were not saved.
“But 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,” he said.
