The Senate of the Federal Republic of Nigeria on Wednesday confirmed the appointment of Taiwo Oyedele as Minister of State for Finance after a rigorous confirmation hearing that lasted nearly three hours, during which senators across party lines questioned him on a wide range of economic and financial matters. The comprehensive vetting session allowed Oyedele to outline his strategic approach to stabilising government revenues, addressing the perennial challenge of delayed contractor payments, and broadening Nigeria’s revenue base beyond its traditional reliance on oil and taxation. Oyedele’s confirmation followed his detailed responses to senators’ inquiries, during which he emphasised pragmatic solutions to fiscal management and economic growth, signalling his readiness to assume office with a clear plan for immediate action.
During the hearing, Oyedele highlighted his proposed strategies for managing Nigeria’s dependence on crude oil, particularly the use of forward sales to insulate the economy from volatile global oil prices while providing predictable fuel pricing for citizens. He said, “One strategy used in several countries is selling crude forward. Nigeria can lock in a price for a portion of our crude for a period of time. That would guarantee budget financing and also give Nigerians stability, so prices are not fluctuating the way we have seen in recent days.”
He further outlined measures to mitigate the effects of delayed contractor payments, proposing that contracts be awarded based on available funds to prevent a “trust deficit premium,” whereby projects initially costing N1 billion could double in price due to government delays. Oyedele also drew attention to Nigeria’s untapped revenue potential outside oil and taxation, stressing the need to diversify economic focus. “For many years as a country, we have disproportionately focused on taxation and oil and gas, and that has taken our attention away from other areas where we can generate revenue,” he said, adding that the solid minerals sector could become a significant contributor to national income if policy certainty is ensured.
He noted, “What we have identified as the biggest impediment to the growth of the solid minerals sector is policy uncertainty. The team and the Minister of Solid Minerals have been doing a lot, but we need to complement that with a policy certainty environment. We may be coming to the National Assembly in this regard.”
Oyedele also addressed the importance of realistic budgeting and full execution of approved projects, emphasising that nearly half of Nigeria’s budgets, when combined at federal and state levels, are deficit-financed. “When we have budgets, we need to ensure that there is funding behind them and that there are releases so that we can execute them 100 per cent if possible particularly for capital expenditure. Looking at Nigeria’s budgets over the past five years, many appeared too ambitious compared to the revenue. We were focusing on expenditure without paying enough attention to the revenue side,” he explained. He stressed that achieving a sustainable fiscal framework requires careful monitoring and strategic prioritisation.
“Today, if you combine the federal and state governments, nearly half of our budgets are deficit-financed. We need to pay more attention to realistic revenue to drive our projects,” he added. Highlighting his immediate priorities if confirmed, Oyedele said he would first create a clear status quo analysis of obligations to contractors, current government funds, and funding gaps, outlining strategies to bridge those gaps. “If I am confirmed by this distinguished Senate, one of the first things I will do is create a clear status quo analysis. If we owe contractors, we should know it. We should say: as of today, this is how much we owe contractors, this is how much we have, this is the gap, and this is how we plan to raise the money,” he stated.
On government spending, inflation, and the effective use of resources, Oyedele emphasised the importance of channeling funds to priority areas that directly benefit citizens. “If the government gets more revenue because subsidies have been removed, it is actually a transfer from the people to the government. The only way we can make that sacrifice worthwhile is to spend that money in areas of priority for the people,” he said. He also outlined the economic value of targeted investments in infrastructure, particularly projects linking farms to markets, which he described as capable of delivering rapid, tangible benefits. “Those priorities can be as basic as roads from the farm to the warehouse, to the factory, and to the markets. When that happens, people see the impact almost immediately,” Oyedele said, highlighting the immediate socioeconomic benefits of such interventions.
Following the extensive confirmation hearing, the Senate formally approved Oyedele’s appointment as Minister of State for Finance. In his remarks, Senate President Godswill Akpabio commended President Bola Tinubu for appointing “a round peg for a round hole,” praising Oyedele’s technical expertise, financial acumen, and suitability for the role. Akpabio’s endorsement reflected confidence in Oyedele’s ability to implement sound fiscal policies, improve government revenue management, and strengthen Nigeria’s financial architecture. With his confirmation, Oyedele is expected to immediately commence work on stabilising the nation’s revenues, enhancing budget execution, and implementing policies designed to promote sustainable economic growth and development across Nigeria.