The administration of President Bola Ahmed Tinubu has released a detailed breakdown of ₦15.8 trillion in savings generated from fuel subsidy removal and other reforms over the past three years.
Minister of Finance Taiwo Oyedele disclosed the figures at a press conference on Wednesday, explaining that the savings were distributed among the three tiers of government:
Federal Government: ₦5.43 trillionStates: ₦6.52 trillionLocal Governments: ₦3.88 trillion
Oyedele added that reforms also yielded ₦3.12 trillion in incremental revenues and ₦11.85 trillion in additional borrowing, giving the Federal Government about ₦20.4 trillion in extra resources during the review period.
However, he noted that expenditures during the same period amounted to ₦30.64 trillion, meaning subsidy removal did not create a “large pool of cash” but instead reduced fiscal pressure and borrowing needs.
Breakdown of expenditures included:
₦9.39 trillion on wage adjustments₦9.37 trillion on external debt servicing
₦6.47 trillion on infrastructure₦3.14 trillion on electricity subsidies
The announcement comes three years after Tinubu’s May 2023 decision to remove fuel subsidy and liberalise the naira, reforms that triggered sharp increases in fuel prices and currency fluctuations.
The government maintains that the measures, though painful, were necessary to ease Nigeria’s fiscal burden and redirect resources toward critical sectors.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com