Oyedele tells NOA forum why many Nigerians are still poor

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said many Nigerians are yet to experience the full benefits of the Federal Government’s economic reforms because the country is still adjusting to the effects of the removal of fuel subsidy and other fiscal measures.

Oyedele made the remarks while responding to questions at a public engagement organised by the National Orientation Agency (NOA), explaining that the reforms were designed to reset the economy after years of what he described as “fiscal illusions” created by subsidy payments and other distortions.

According to the minister, the removal of fuel subsidy inevitably increased poverty in the short term, stressing that no country could eliminate subsidies and expect citizens to become wealthier immediately, even though the reforms were necessary to place the economy on a more sustainable path.

He, however, said the economy had begun to recover, noting that Nigeria recorded nearly 10 per cent real per capita growth in dollar terms in 2025, a development he said positioned the country among the fastest in lifting people out of poverty, while adding that the government was committed to sustaining the progress.

Speaking further at the NOA event, Oyedele acknowledged public concerns over the use of savings generated from the removal of fuel subsidy and foreign exchange subsidies, describing the questions as legitimate and assuring Nigerians that the government would soon publish a detailed breakdown of how the funds had been utilised.

He explained that the primary objective of removing the subsidies was not merely to save money but to eliminate distortions and corruption in the economy, adding that part of the savings had been used to finance higher debt servicing costs following rising interest rates, implement the new N70,000 minimum wage and support key intervention programmes.

The minister also cited the Nigerian Education Loan Fund (NELFUND) as one of the major beneficiaries of the reforms, saying more than 1.5 million students were receiving tuition support and monthly stipends, thereby reducing the financial burden on their families and allowing households to redirect resources to businesses and other essential needs.

Oyedele urged Nigerians to assess the reforms by considering what the country’s economic situation would have been without them rather than comparing current conditions with the past, assuring participants at the NOA forum that the Federal Government would continue to improve transparency by releasing a comprehensive account of the subsidy savings and their application.