Nigeria’s fuel subsidy and foreign exchange reforms generated N15.8 trillion in additional resources for the federation between June 2023 and December 2025, Taiwo Oyedele, the minister of finance and coordinating minister of the economy, said.
Oyedele said the resources generated by the reforms helped create fiscal space for the federal, state, and local governments at a time when the government was also dealing with higher wage costs, debt obligations, and increased infrastructure spending.
Speaking at a live media conference themed Nigeria’s Reforms ScoreCard: The benefits, causes, and harms prevented, the minister said the federal government’s share of the N15.8 trillion was N5.4 trillion between June 2023 and December 2025, while N10.4 trillion went to states and local governments through federation allocations.
He said the gains were not limited to the direct savings from the removal of the petrol subsidy, as the reforms also strengthened revenue collection, including higher customs receipts following the unification and floating of the exchange rate.
According to Oyedele, the government also relied on additional borrowing to finance its spending requirements, with N11.9 trillion coming from incremental borrowing during the period, stressing the figure would have been higher if not for the fiscal space the reform created.
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Combined, the subsidy-related fiscal savings, independent government revenue and incremental borrowing…
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