…To publish detailed account of fuel subsidy savings, spending

…Oyedele assures stability must now deliver prosperity

The federal government is developing a new framework to reduce the cost of capital without introducing fresh subsidies, as it seeks to unlock private sector investment and sustain the gains from its economic reforms, Taiwo Oyedele, minister of finance and coordinating minister of the economy said on Thursday.

Speaking at the 7th Africa Emerging Markets Forum in Abuja, Oyedele said the initiative would complement the Central Bank of Nigeria’s efforts to tame inflation while easing financing costs for businesses, describing high borrowing costs as one of the biggest constraints to economic growth.

“There is a high cost of borrowing in an economy where you need growth to deliver results from reforms,” Oyedele said. “Within the Ministry of Finance, we are working on a framework on how to bring down the cost of capital without introducing subsidies because we believe we can complement the work of the monetary authorities.”

The minister also disclosed that the government would soon publish a comprehensive report detailing savings from the removal of fuel and foreign exchange subsidies and how the funds have been utilised, responding to growing public scrutiny over the impact of the reforms.

“The combined impact of the subsidy on fuel, as well as what I call the subsidy on FX, was about 5% of GDP,” he said.

“In a few days, you will see the detailed analysis because we believe we owe a duty to…