The N15.8 trillion fuel subsidy savings under President Bola Ahmed Tinubu’s administration has been broken down, showing how the money flowed to the Federal Government, states and local governments.
According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reform Committee, the reforms generated N15.8 trillion in savings for the Federation Account over the period under review.
The Federal Government received N5.43 trillion, while states received N6.52 trillion. Local governments received N3.88 trillion.
However, Oyedele stressed that the N15.8 trillion fuel subsidy savings did not create a single pool of cash that the Federal Government could spend freely.
Instead, he said the subsidy removal reduced a major financial burden and lowered the amount of borrowing the government would otherwise have needed.
The reforms also produced N3.12 trillion in additional revenue. In addition, the government recorded N11.85 trillion in incremental borrowing.
Together, these resources gave the Federal Government about N20.4 trillion in additional funds during the period.
Yet, government spending rose significantly. Additional expenditure reached approximately N30.64 trillion over the same period.
Oyedele said N9.39 trillion went towards wage adjustments. Another N9.37 trillion was used for external debt servicing.
Meanwhile, the government spent N6.47 trillion on infrastructure and N3.14 trillion on electricity subsidies.
The figures come three years after Tinubu removed the petrol subsidy and liberalised the foreign exchange market in 2023.
Those decisions triggered sharp increases in petrol prices and significant fluctuations in the value of the naira.
The government has defended the reforms as necessary steps to reduce fiscal pressure and redirect public resources.
Nevertheless, the figures also highlight the scale of the financial challenges facing the country.
The N15.8 trillion fuel subsidy savings therefore remains a key measure of the fiscal impact of the reforms, even as Nigerians continue to face higher living costs.
Meta description: N15.8 trillion fuel subsidy savings have been shared across Nigeria as Tinubu’s reforms reshape government revenue, borrowing and spending.
