Nigeria Generates N15.8 Trillion From Fuel Subsidy Removal

Finance Minister Taiwo Oyedele announced that the removal of fuel subsidies and the liberalization of the naira generated N15.8 trillion in savings for the Federation between June 2023 and December 2025. Presenting a three-year economic reform scorecard in Abuja, Oyedele detailed that N10.4 trillion of these savings accrued to state and local governments, while the federal government received N5.4 trillion.

Including independent revenue and N11.9 trillion in borrowing, the federal government's total incremental resources reached N20.4 trillion. However, these funds were eclipsed by N30.64 trillion in additional expenditures. The primary costs included N9.39 trillion for public sector wage adjustments—which Oyedele noted exceeded the federal government's own subsidy savings—N9.37 trillion for external debt servicing, and N6.5 trillion for strategic infrastructure.

The government reported that these reforms, initiated by President Bola Ahmed Tinubu, prevented a total economic collapse and restored investor confidence. Macroeconomic indicators showed improvement, with foreign reserves reaching approximately $49 billion by March 2026 and S&P Global Ratings upgrading Nigeria's sovereign credit rating to B in May 2026. Other benefits included the expansion of student loans via the Nigerian Education Loan Fund and social transfers to 15 million households.

Despite these gains, Oyedele acknowledged the real cost to citizens, including sharp increases in petrol prices and interest rates. While the International Monetary Fund and World Bank noted improved stability, critics and citizens highlighted a severe cost-of-living crisis and questioned the accountability of sub-national governments in utilizing their share of the windfall.