The Federal Government has released details of the financial gains recorded from the removal of the petrol subsidy and other economic reforms introduced under President Bola Ahmed Tinubu.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the figures on Wednesday during a press briefing, stating that the reforms generated about N15.8 trillion in savings that accrued to the Federation Account.
According to Oyedele, the funds were distributed among the three tiers of government, with the Federal Government receiving N5.43 trillion, states receiving N6.52 trillion and local governments getting N3.88 trillion.
The minister explained that the subsidy removal was not the only source of additional resources generated during the period. Other reforms produced an estimated N3.12 trillion in additional revenue, while increased borrowing provided another N11.85 trillion.
Combined, these measures gave the Federal Government approximately N20.4 trillion in additional resources during the period under review.
Oyedele, however, stressed that the figures should not be interpreted as N15.8 trillion in cash sitting freely with the Federal Government.
He explained that the removal of the subsidy mainly reduced the financial burden on government and lowered the amount of borrowing that would otherwise have been required to fund public spending.
The minister said the government incurred about N30.64 trillion in additional expenditure during the same period.
A breakdown showed that N9.39 trillion went into wage adjustments, while N9.37 trillion was spent on servicing external debt.
Another N6.47 trillion was allocated to infrastructure, with N3.14 trillion spent on electricity subsidies.
Oyedele’s explanation comes three years after President Tinubu announced major economic reforms shortly after assuming office in 2023.
Among the most significant measures was the removal of the petrol subsidy, which immediately triggered a sharp increase in fuel prices.
The administration also liberalised the foreign exchange market, leading to major movements in the value of the naira.
The government has consistently defended the reforms as necessary measures aimed at reducing fiscal pressure, improving government revenue and creating a more sustainable economic system.
However, the policies have also attracted criticism over their impact on household expenses, transportation costs and the general cost of living.
The latest disclosure is expected to renew debate over how the savings from subsidy removal have been distributed and how effectively the additional resources have been used to address Nigeria’s economic challenges.
