Fuel Subsidy Exit: Nigeria Saved ₦15.8trn In 30 Months, Says Oyedele

The Federal Government says Nigeria saved ₦15.8 trillion in resources between June 2023 and December 2025 following the removal of petrol subsidy.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the figure while explaining the financial impact of President Bola Tinubu’s economic reforms.

According to Oyedele, the money was not transferred into a separate government account labelled “subsidy savings.” Instead, the figure represents resources that became available to the Federation after the government stopped funding the petrol subsidy.

How The ₦15.8trn Was Distributed

Oyedele said the Federal Government received ₦5.4 trillion, while ₦10.4 trillion went to states and local governments through the Federation Account.

He explained that Nigerians looking for a specific ₦15.8 trillion payment would not find one because the savings were reflected through increased resources available to the Federation.

Government Generated More Revenue

The Finance Minister also revealed that the Federal Government generated an additional ₦3.1 trillion in independent revenue during the same period.

The additional revenue reportedly came largely from remittances by government-owned entities and increased surpluses from government agencies.

At the same time, the Federal Government borrowed an additional ₦11.9 trillion between June 2023 and December 2025.

Together, the additional revenue and borrowing brought the Federal Government’s incremental resources during the period to ₦20.4 trillion.

However, Oyedele said incremental expenditure was considerably higher at ₦30.64 trillion.

Why Was The Subsidy Removed?

President Tinubu announced the end of the petrol subsidy during his inauguration on May 29, 2023, declaring, “Subsidy is gone.”

The government argued that the subsidy had become an unsustainable burden on public finances and was draining resources that could be directed towards other areas of the economy.

The policy, however, came with significant consequences for Nigerians.

Petrol prices increased sharply, pushing up transportation, logistics and production costs. Businesses subsequently faced higher operating expenses, while households had to spend more on transportation and essential goods.

Government Introduces Relief Measures

The Federal Government has since introduced several measures aimed at reducing the impact of the reforms.

These include wage adjustments, agricultural support programmes and the expansion of Compressed Natural Gas initiatives as an alternative to petrol-powered transportation.

Oyedele maintained that the subsidy removal, alongside the government’s foreign exchange reforms, was necessary to correct what he described as long-standing distortions in Nigeria’s economy.

The Bigger Question

While the government says the removal created ₦15.8 trillion in additional resources, the key issue for Nigerians remains how effectively those resources are being converted into better infrastructure, jobs, public services and improved living standards.

For many households, the immediate effect of the reform has been higher living costs.

The ₦15.8 trillion figure therefore represents resources freed up by ending the subsidy—not ₦15.8 trillion sitting untouched in a government bank account.