The Federal Government says it spent N30.64 trillion between June 2023 and December 2025 to cushion the impact of economic reforms introduced by President Bola Tinubu, including the removal of petrol subsidy.
According to the government, the reforms generated N15.8 trillion in additional resources for the Federation during the period.
The figures were disclosed by the Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during the presentation of the Federal Government’s Nigeria Reform Scorecard, titled “The Benefits, Costs and Harm Prevented.”
Oyedele explained that the N15.8 trillion did not appear as a separate fund labelled “subsidy savings” in the Federation Account.
He said the savings were reflected through increased revenue collections following the reforms.
“Many people will say, ‘Where is the subsidy saving?’ As a matter of fact, there wasn’t any line in the Federation Account with the description, ‘subsidy savings.’”
The minister explained that the removal of subsidy and changes to the foreign exchange system increased the naira value of revenues collected from areas such as customs duties and petroleum-related taxes.
He said, “The savings showed up in the Federation accounts by way of higher revenue collections as a result of the reforms.”
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However, the Federal Government received only N5.4 trillion, representing 34 per cent of the N15.8 trillion generated from the reforms. States received N6.5 trillion, while local governments received N3.9 trillion through the Federation Account allocation system.
Oyedele also stressed that the additional resources were not solely a result of petrol subsidy removal, saying the foreign exchange reforms also eliminated what he described as an implicit subsidy that benefited rent-seekers.
“Not just the subsidy removal, but also the exchange rate flotation, because we were subsidising the exchange rate.”
Meanwhile, the Federal Government said its total additional resources stood at N20.4 trillion, including N3.1 trillion in increased independent revenue and N11.9 trillion from additional borrowing.
Despite the additional resources, government expenditure rose to N30.64 trillion, leaving a gap of N10.24 trillion.
The government said the funds were absorbed by rising wage bills, debt servicing, infrastructure projects and other financial obligations linked to the economic reforms.
According to the scorecard, borrowing accounted for 58 per cent of the Federal Government’s additional resources, while subsidy savings contributed 27 per cent and other revenue made up the remaining 15 per cent.
The government said the figures were presented to give Nigerians a clearer picture of how resources generated from the reforms were mobilised and spent.
