FG Spent ₦9.39tn on Higher Public-Sector Wages, Exceeding Fuel Subsidy Savings

The Federal Government spent ₦9.39 trillion on wage adjustments, minimum-wage increases and allowances for public-sector workers, according to Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. He said the government mobilised ₦20.4 trillion in additional resources through fuel-subsidy reforms, higher independent revenue and borrowing. However, incremental spending reached ₦30.64 trillion, meaning the funds were quickly absorbed by rising costs. Personnel expenses accounted for ₦9.39 trillion, which Oyedele said was more than the savings from fuel-subsidy removal. He also said external debt servicing cost ₦9.37 trillion, with naira depreciation sharply increasing the local cost of dollar-denominated obligations.

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