Harry Archie
The Federal Government spent N9.39 trillion on salary increases, minimum wage adjustments and allowances for public workers between June 2023 and December 2025.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Wednesday in Abuja.
He said the spending increased after the government raised the national minimum wage from N30,000 to N70,000 in 2024.
Oyedele said the government’s reforms, including the removal of fuel subsidy and changes in the foreign exchange system, generated N15.8 trillion for the federation during the period.
Of this amount, the Federal Government received N5.4 trillion, while N10.4 trillion was shared among state and local governments.
He said the Federal Government received a total of N20.4 trillion in additional resources during the period, including reform proceeds, higher revenue and new borrowing.
However, its additional spending reached N30.64 trillion.
Apart from wages, the government spent N9.37 trillion on servicing external debt and N6.5 trillion on major infrastructure projects.
Oyedele acknowledged that the reforms increased the cost of living for Nigerians but said the government had introduced measures to reduce the impact.
“These were decisions that came at a real cost, and we are not here to pretend otherwise,” he said.
