FG Says N15.8trn Saved From Subsidy Removal in 30 Months, Shares Spending Breakdown
- Finance Minister Taiwo Oyedele presented a reform scorecard showing how much the government raised from subsidy and FX changes
- The Federal Government received N5.4trn of the total, while states and local governments shared the remaining N10.4trn
- Oyedele revealed the government also borrowed an additional N11.9trn during the same 30-month period to meet spending needs
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The federal government says its fuel subsidy removal and foreign exchange reforms brought in N15.8 trillion in extra resources for the federation over 30 months, from June 2023 to December 2025.
Taiwo Oyedele, who serves as both Finance Minister and Coordinating Minister of the Economy, made the disclosure at a live media conference on Thursday titled "Nigeria's Reforms ScoreCard: The Benefits, Causes, and Harms Prevented."
Source: Facebook
Oyedele said the resources gave federal, state, and local governments room to manage growing wage bills, debt obligations, and infrastructure costs.
Of the N15.8 trillion total, the federal government's share was N5.4 trillion, while states and local governments received N10.4 trillion through federation allocations.
The minister said the gains went beyond petrol subsidy savings alone, noting that the unification and floating of the exchange rate also boosted government revenue, including higher customs receipts.
How the Money Was Spent
Beyond the subsidy-related savings, Oyedele said the government raised a further N11.9 trillion through incremental borrowing during the same period, bringing total additional resources to about N20.4 trillion.
He said the reforms reduced how much the government would otherwise have needed to borrow, BusinessDay reports.
The minister outlined where the funds went: N9.39 trillion covered wage adjustments, minimum wage increases, and allowances for civil servants; N9.37 trillion went to external debt servicing; and N6.5 trillion was directed at strategic infrastructure projects.
Oyedele noted that personnel costs alone exceeded the Federal Government's entire N5.4 trillion share of the reform savings, underlining the fiscal pressure that accompanied the policy changes.
Source: Getty Images
Purpose of the Reforms
The minister was clear that generating revenue was not the primary aim of the reforms.
He said the government introduced the measures to remove what he called artificial distortions in Nigeria's fuel and foreign exchange markets, and to place the economy on a more sustainable path by correcting structural imbalances.
Oyedele said the scorecard was designed to show Nigerians precisely how the resources were generated and how they were used, adding that the funds could be fully accounted for.
Dangote refinery opens petrol sales
Earlier, Legit.ng reported that Dangote Petroleum Refinery has opened the sale of petrol, to all licensed marketers, ending its previous consortium marketing arrangement.
The move is expected to reshape competition in Nigeria's downstream petroleum sector. Qualified marketers can now purchase products directly from its loading gantry.
The decision comes alongside a reduction in the refinery's ex-gantry price of petrol to 1,075 per litre from N1,125.
Source: Legit.ng
