Responding to concerns over the utilisation of the subsidy savings, he described the question as legitimate and said the government owed Nigerians an explanation. According to him, the combined cost of fuel subsidy and what he described as the “subsidy on foreign exchange” was about five per cent of Nigeria’s Gross Domestic Product (GDP). He stressed that while the reforms generated savings, their primary objective was to eliminate distortions and corruption in the system. He explained that higher interest rates had also increased the government’s debt servicing costs, with borrowing rates rising to as much as 24 per cent. The fiscal policy expert also said the increase in the minimum wage from N30,000 to N70,000 had nearly doubled the Federal Government’s wage bill.