By Eniola Odetoye 

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

The figure is higher than the government’s share of savings from the removal of the petrol subsidy over the same period.

Oyedele disclosed the details during a media conference on Nigeria’s reform scorecard. He explained that while subsidy removal and foreign exchange reforms generated about N15.8 trillion for the Federation, the Federal Government’s own share of those resources was N5.4 trillion.

He said the government generated a total of N20.4 trillion in incremental resources during the 31-month period from subsidy-related savings, higher independent revenue and additional borrowing. These funds were used to meet rising obligations rather than left idle.

Of the Federal Government’s incremental expenses of N30.64 trillion, N9.39 trillion went to wage adjustments and allowances, making it the largest single expenditure item. Another N9.37 trillion was spent on servicing external debt, largely due to the naira’s depreciation which raised the cost of meeting dollar-denominated obligations.

Oyedele noted that the amount spent on higher wages for public workers exceeded the entire savings the Federal Government earned from subsidy removal.

The disclosure comes as the government prepares for fresh minimum wage negotiations with the Nigeria Labour Congress next year.