The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the federal government’s post-subsidy reforms have improved fiscal transparency and increased revenue to the federation account.
Speaking on Wednesday at a World Bank panel session on Nigeria’s economic outlook, Edun said the removal of petrol subsidy, which previously consumed about five percent of the country’s GDP, has freed up funds for distribution among the federal, state, and local governments.
“Funds have flowed to the federation account, and most of those deductions have been removed once and for all,” he said. “We can now expect greater transparency, greater efficiency, and greater funding for development at the federal, state, and local levels.”
The minister said the government is reviewing deductions made before statutory allocations are shared to ensure compliance with the constitutional requirement that all federally collected revenues be remitted in full before distribution.
Edun noted that states are benefitting from the new fiscal discipline, with many directing the additional revenues toward capital projects and development programmes.
“The World Bank data show that states are spending much of the extra revenue they are getting on development, on capital projects – and that is commendable,” he said.
On social welfare, the minister said the government plans to complete direct cash transfers to 15 million households before the end of 2025.
“By the end of October, we will have done about 10 million households covering 50 million Nigerians,” he said, adding that the programme will reach 15 million households before year-end.
READ ALSO: Wale Edun Showcases Nigeria’s Energy Investment Prospects at SEforALL Forum
He said the process has been strengthened through the integration of the National Identity Management Commission (NIMC) and the national social register, ensuring each beneficiary is uniquely identified and paid electronically.
“Each person that benefits is biometrically and uniquely identified by name, and payments are digital — so there’s transparency and accountability,” Edun said.
He added that the administration plans to make targeted social transfers a permanent feature of the national budget to sustain support for vulnerable Nigerians.
Edun said the government’s fiscal reforms are designed to create a more transparent and inclusive economy capable of sustaining growth while protecting the poor.