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The Minister of Finance and Coordinating Minister of the Economy, , has defended the Federal Government’s economic reforms, saying the initial rise in poverty was an inevitable consequence of correcting years of economic distortions.
Speaking during an interview with the (NOA) on Wednesday, Oyedele said the removal of fuel subsidy and other fiscal reforms were designed to reset the economy for sustainable growth, even though they came with short-term hardship.
Addressing concerns over increasing poverty and unemployment, the minister said he disagreed with the narrative that the reforms had worsened poverty.
”I tend to disagree with the narrative by the World Bank. The World Bank would say that poverty has gone up despite the reforms. I say, yes, poverty has gone up because you cannot remove subsidy and people become richer,” he said.
According to him, the reforms were necessary because Nigeria had for years operated under what he described as “fiscal illusions,” masking the true state of the economy.
”The reform itself was a reset. We were living in fiscal illusions, so we needed to stop deceiving ourselves, so the country can move forward. That reset meant that income levels, in real terms, would fall, and that would increase poverty,” Oyedele explained.
He, however, maintained that the difficult measures were beginning to produce positive outcomes, citing improvements in income growth in 2025.
”But the good news is that the numbers for 2025, in dollar terms, real per capita income growth was nearly 10 per cent. That makes Nigeria one of the fastest countries in lifting people out of poverty. We intend to sustain that,” he said.
The minister said the government’s objective was not only to stabilise the economy but also to create conditions for sustained economic growth, higher incomes and improved living standards for Nigerians.
His remarks come amid continued debate over the impact of the Federal Government’s economic reforms, including the removal of fuel subsidy and foreign exchange liberalisation, which have increased the cost of living but are being projected by the government as laying the foundation for long-term economic recovery and inclusive growth.
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