FG Spent N9.39tn on Wage Hike, Allowances in 31 Months, Says Oyedele

The Federal Government spent N9.39 trillion on wage adjustments, minimum wage increases and other allowances for public workers between June 2023 and December 2025, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.

Oyedele disclosed this on Wednesday during a media conference on Nigeria’s reform scorecard titled, “The Benefits, Costs and Harm Prevented.”

He said the amount spent on workers exceeded the Federal Government’s N5.4 trillion share of the N15.8 trillion in resources mobilised through petrol subsidy removal and foreign exchange reforms during the 31-month period.

According to him, the Federal Government generated N20.4 trillion in incremental resources during the period through subsidy-related savings, increased independent revenue and additional borrowing.

He explained that the resources were deployed to meet rising government obligations rather than left unused.

“Of these, N9.39tn went to wage adjustments, minimum wage increases, and allowances for public salaries,” Oyedele said.

The minister noted that the Federal Government’s additional spending on higher wages was greater than the entire savings it received from petrol subsidy removal.

He said another N9.37 trillion was spent on servicing external debt, largely due to the depreciation of the naira, which increased the domestic currency cost of servicing dollar-denominated obligations.

Oyedele explained that the government could not delay debt-service payments because doing so could have serious financial consequences.

The disclosure comes amid preparations for fresh negotiations with the Nigeria Labour Congress over a new minimum wage for civil servants.

The minister said the figures provided a clearer picture of how resources generated from the government’s economic reforms had been deployed between June 2023 and December 2025.