The Federal Government has released a breakdown of the N15.8 trillion savings generated from the removal of fuel subsidy and other economic reforms implemented by the Bola Tinubu administration over the past three years.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the figures on Wednesday during a press conference.
Oyedele said the reforms generated N15.8 trillion in savings, which accrued to the Federation Account and were shared among the Federal Government, states and local governments.
According to him, the Federal Government received N5.43 trillion, states got N6.52 trillion, while local governments received N3.88 trillion from the subsidy removal savings.
He added that the reforms also generated N3.12 trillion in incremental revenues and N11.85 trillion in incremental borrowing.
Oyedele said these figures brought the Federal Government’s total incremental resources during the period to approximately N20.4 trillion.
However, he noted that additional government expenditures within the same period stood at about N30.64 trillion.
“The Federal Government had approximately N20.4 trillion in incremental resources.
“Over the same period, additional expenditures amounted to approximately N30.64 trillion. Subsidy removal therefore did not create one large pool of cash available to the Federal Government. It reduced a major fiscal burden and the amount of additional borrowing that would otherwise have been required,” he said.
Breaking down the expenditure, Oyedele said N9.39 trillion was spent on wage adjustments, while N9.37 trillion went towards servicing external debts.
He added that N6.47 trillion was allocated to infrastructure, while N3.14 trillion was spent on electricity subsidies.
The disclosure comes more than three years after President Tinubu announced the removal of the petrol subsidy in May 2023, shortly after assuming office.
The administration also introduced reforms to liberalise the foreign exchange market, resulting in significant increases in petrol prices and fluctuations in the value of the naira.
The Federal Government has maintained that the reforms were necessary to reduce fiscal pressures, cut wasteful spending and redirect resources towards critical sectors of the economy.
