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, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has disclosed.
Oyedele made the disclosure during a media briefing on Nigeria’s reform scorecard, titled “The Benefits, Costs and Harm Prevented,” aired on Channels Television on Wednesday.
According to Oyedele, the amount spent on workers was higher than the Federal Government’s N5.4 trillion share of the N15.8 trillion in resources mobilised for the Federation through petrol subsidy removal and foreign exchange reforms during the period.
He said the Federal Government generated N20.4 trillion in additional resources from subsidy related savings, increased independent revenue and additional borrowing, but the funds were largely used to meet rising government obligations.
The minister said the government’s total incremental expenses stood at N30.64 trillion, with wage adjustments, minimum wage increases and allowances accounting for N9.39 trillion.
Oyedele explained that another N9.37 trillion was spent on servicing external debt, largely due to the depreciation of the naira, which significantly increased the domestic currency cost of servicing dollar denominated obligations.
He said the figures provided further insight into how resources generated from the removal of the petrol subsidy were deployed, stressing that the funds were not left unused.
The disclosure comes as the Federal Government prepares for fresh negotiations with organised labour over a new minimum wage for public workers.
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