The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has claimed that Nigeria could have seen inflation as high as 1,000 per cent if President Bola Tinubu’s administration had not introduced sweeping economic reforms, including removing the petrol subsidy and changing the foreign exchange market.
Oyedele made the assertion on Tuesday during the 56th Annual Accountants’ Conference of the Institute of Chartered Accountants of Nigeria in Abuja, where he defended the government’s economic policies despite the hardship confronting households and businesses.
He said, “If this reform had not happened, ladies and gentlemen, today, you would be talking about inflation in a thousand per cent.”
Oyedele argued that Nigeria was already approaching a severe economic crisis before the reforms, citing foreign exchange shortages, extensive monetary financing and the use of future crude oil production to fund petrol subsidies.
According to him, the printing of about N30tn contributed significantly to the inflationary pressures still affecting Nigerians.
“We printed plenty of naira. Plenty trillion naira was printed. The inflation we are dealing with today, the reason why your bread is more expensive, is the N30tn showing up,” he said.
Oyedele explained that the inflationary consequences of excessive money creation were not immediate, adding that the current administration had moved to address the underlying weaknesses.
He recalled that foreign exchange shortages previously prevented businesses from accessing dollars, while international airlines struggled to repatriate their earnings and manufacturers faced difficulties obtaining letters of credit.
The minister also criticised politicians advocating the restoration of petrol subsidies, arguing that previous subsidy arrangements had committed future crude oil production and weakened government finances.
He acknowledged the rising cost of living but maintained that the solution was to increase household incomes rather than artificially suppress prices.
“We’re putting all our effort towards how to raise the income of the Nigerian people faster than inflation,” he said.
He further disclosed that the Federal Government had spent twice the amount saved from petrol subsidy removal on salary adjustments and wage awards, although he did not provide the actual expenditure figures.
“The federal government spent twice what is saved from subsidy in adjusted salaries,” Oyedele said.
He identified student loans, support for vulnerable households and subsidised credit for small businesses as other interventions intended to reduce the impact of the reforms.
Responding to questions about transparency in cash transfers, Oyedele said the government had improved beneficiary identification through the National Identification Number system, adding that the World Bank had acknowledged progress in reaching vulnerable households.
He rejected demands to publish beneficiaries’ personal details, arguing that doing so could undermine their dignity.
The minister also disclosed that the Federal Government had only recently completed the audit of its 2022 financial statements, promising to bring outstanding accounts up to date by the first quarter of 2027.
He said subsequent audited accounts would be published within six months of the end of each financial year.
Oyedele further announced plans for a national economic policy framework to improve consultation, coordination and consistency in government decisions.
He said the Ministry of Finance had signed a memorandum of understanding with the Central Bank of Nigeria to strengthen institutional cooperation.
Speaking at the conference, Lagos State Governor, Babajide Sanwo-Olu, backed the Federal Government’s reforms, saying the removal of petrol subsidy and unification of exchange rates had strengthened public finances despite their painful consequences.
Sanwo-Olu cited official figures showing that Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while inflation declined to 14.63 per cent in September.
He added that gross external reserves reached $54.93bn at the end of September, while the country’s non-oil economy expanded by 4.31 per cent.
According to the governor, Federation Account distributions increased from N10tn in 2023 to N21.9tn in 2025, with more than N20tn distributed in the first nine months of 2026.
He also said revenue collections reached N21.6tn in the first half of 2026, representing a 49 per cent increase over the corresponding period of 2025.
On Lagos State’s finances, Sanwo-Olu disclosed that internally generated revenue reached approximately N1.2tn in the first half of 2026, compared with N816bn for the whole of 2023 and N1.26tn in 2024.
He said the state’s N4.24tn budget for 2026 was expected to be funded largely through internally generated revenue, stressing that credible financial reporting was essential to investment and economic security.
The governor urged accountants to strengthen public financial accountability, support the implementation of tax reforms and ensure that government financial statements were published promptly.
Earlier, the President of ICAN, Queensley Seghosime, said Nigeria’s economic recovery must translate into better living standards rather than improved statistics alone.
She noted that the economy grew by approximately 4.2 per cent in the first half of 2026 but stressed the need for productive employment, stronger institutions and improved public services.
“Our responsibility is not merely to prepare Nigeria for the next election, but to help build a Nigeria that will prosper well beyond it,” she said.
Seghosime disclosed that about 12,000 delegates registered for the conference, physically and virtually, while the institute had more than 72,000 members.
The conference brought together policymakers, accountants and business leaders to examine economic reforms, financial transparency and national development.