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The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has blamed about N30 trillion in monetary financing for inflationary pressures affecting Nigerians, arguing that economic reforms introduced by President Bola Tinubu’s administration helped avert a deeper crisis.
Mr Oyedele said Nigeria could have experienced inflation of up to 1,000 per cent without the reforms, including the removal of the petrol subsidy and changes to the foreign exchange market.
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“If this reform had not happened, ladies and gentlemen, today, you would be talking about inflation in a thousand per cent,” he said on Tuesday in Abuja.
He spoke at the 56th Annual Accountants’ Conference of the Institute of Chartered Accountants of Nigeria, where he defended the government’s economic policies amid continued concerns about the cost of living.
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According to the minister, foreign exchange shortages, excessive monetary financing and the use of future crude oil production to fund petrol subsidies had weakened the economy before the reforms.
“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.
He argued that the inflationary effects of excessive money creation could take time to emerge, adding that the government’s policies were intended to address longstanding weaknesses in the economy.
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He did not, however, provide calculations to support the 1,000 per cent inflation scenario or explain how the N30 trillion figure was calculated.
Cost of living remains a concern
Mr Oyedele acknowledged the pressure on households but said the government was focusing on raising incomes rather than artificially suppressing prices.
“We’re putting all our effort towards how to raise the income of the Nigerian people faster than inflation,” he said.
The remarks came as Nigeria’s annual inflation rate continued to ease. Data from the National Bureau of Statistics (NBS) showed that headline inflation fell to 14.63 per cent in September, from 15.39 per cent in August and 20.98 per cent in September 2025.
Annual food inflation, however, edged up slightly to 19.59 per cent in September from 19.57 per cent in August, showing that food prices remained a concern for households.
PREMIUM TIMES had reported that the minister had described the economic shocks following petrol subsidy removal and foreign exchange reforms as unavoidable, arguing that the changes were intended to correct longstanding distortions in the economy.
The reforms, introduced in 2023, contributed to higher petrol prices and increased transport and logistics costs, adding to the financial pressure on households and businesses.
Mr Oyedele also disclosed that the Federal Government had spent twice the amount saved from petrol subsidy removal on salary adjustments and wage awards. He did not provide the figures to support the comparison.
He listed student loans, support for vulnerable households and subsidised credit for small businesses among the interventions intended to cushion the effects of the reforms.
Cash transfers, public accounts
On concerns about transparency in cash transfers, Mr Oyedele said the government had improved beneficiary identification through the National Identification Number system.
READ ALSO: Subsidy Return: International investors, markets have written off Nigerian opposition politicians as unserious, says Oyedele
He said the World Bank had acknowledged progress in reaching vulnerable households but rejected calls to publish beneficiaries’ personal details, arguing that disclosure could undermine their dignity.
He also said that the Federal Government had completed the audit of its 2022 financial statements and pledged to bring outstanding accounts up to date by the first quarter of 2027.
He added that subsequent audited accounts would be published within six months of the end of each financial year.
The minister further announced plans for a national economic policy framework to improve consultation and coordination in government decisions, adding that the ministry of finance had signed a memorandum of understanding with the Central Bank of Nigeria to strengthen cooperation between the institutions.
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