…Govt saved N15.8trn from subsidy removal, naira floatation

…FG got only N5.43trn, borrowed N11.85trn

…No large pool of cash available to FG

By Emma Ujah, Abuja Bureau Chief

ABUJA — The Federal Government has clarified that the N15.8 trillion saved from fuel subsidy removal and the flotation of the naira between June 2023 and December 2025 did not translate into a huge pool of cash available to it.

Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, disclosed this on Wednesday while presenting the government’s economic reforms scorecard in Abuja.

Oyedele explained that the N15.8 trillion in estimated subsidy savings was shared among the Federal Government, states, local governments and other statutory recipients, with the Federal Government receiving only N5.43 trillion.

According to him, the Federal Government’s total incremental resources during the period stood at about N20.4 trillion, comprising its share of subsidy savings, additional revenues and borrowing.

He said the N20.4 trillion comprised N5.43 trillion from subsidy savings, N3.12 trillion in other incremental revenues and N11.85 trillion in additional borrowing.

The minister, however, said the government’s incremental expenditure during the same period was significantly higher, reaching approximately N30.64 trillion.

He listed additional spending on wages, debt servicing, infrastructure, electricity support, social programmes and other government obligations as major components of the expenditure.

Oyedele said the figures should therefore be viewed as a financing story rather than simply a savings story.

“The N15.8 trillion commonly described as subsidy savings was not retained by the Federal Government alone. It was shared across all the tiers of government.

“The Federal Government’s estimated share was N5.43 trillion. When combined with N3.12 trillion in other incremental revenues and N11.85 trillion in incremental borrowing, the Federal Government had approximately N20.4 trillion in incremental resources,” he said.

He added that the government’s additional expenditure of N30.64 trillion during the period meant that the savings from subsidy removal were insufficient to cover its increased financial obligations.

“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,” Oyedele said.

The minister’s explanation comes amid widespread perceptions that the removal of the petrol subsidy had freed up a huge volume of resources for the Federal Government to spend.

Oyedele said the reform should instead be understood as a measure that eased pressure on public finances and reduced the need for even greater borrowing.

He maintained that the government’s fiscal position remained constrained by competing expenditure demands, including personnel costs, debt obligations and investments in infrastructure and social programmes.

…Lists wage increases, infrastructure, NELFUND, social transfers as benefits of reforms

By Emma Ujah

ABUJA — The Federal Government has said reforms involving the removal of fuel subsidy and the liberalisation of the naira generated savings of N15.8 trillion for the Federation between June 2023 and December 2025.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at a media conference on Nigeria’s reform scorecard titled, “The Benefits, Costs and Harm Prevented.”

Oyedele said the savings from the reforms had provided additional resources for government to fund critical programmes and interventions across the country.

“Between June 2023 and December 2025, subsidy savings mobilised a sum of N15.8tn in resources for the Federation,” he said.

The minister outlined several areas where the government had deployed resources generated through the reforms, saying the measures were aimed at cushioning their impact while improving the welfare of Nigerians.

According to him, the reforms have contributed to wage increases and the timely payment of salaries and pensions, as well as the settlement of pension arrears and gratuities owed to retirees.

He also listed gains in the capital market, infrastructure development and improved access to affordable credit among the benefits of the reforms.

Oyedele said the government had also expanded access to student loans through the Nigerian Education Loan Fund (NELFUND), while supporting affordable consumer and small and medium enterprise (SME) credit.

Other interventions, he said, included subsidised mortgage and housing schemes, as well as social transfers targeted at about 15 million vulnerable households.

The minister said agricultural interventions had also been strengthened as part of efforts to improve food security and reduce the impact of rising food costs on households.

He further cited improved fuel availability and efforts to address energy shortages despite global economic shocks as some of the outcomes of the reforms.

According to him, the reforms have also helped restore investor confidence, leading to increased local and international investments.

On taxation, Oyedele said the government had introduced exemptions for low-income earners and small businesses while working towards creating a more business-friendly tax environment.

He said the reforms should therefore be assessed not only by their immediate costs but also by the economic benefits and potential harm they had helped the country avoid.

The minister maintained that the government remained committed to ensuring that resources generated through the reforms were channelled into programmes and investments capable of improving living standards and strengthening the Nigerian economy.

How The Reforms Benefit Average Nigerians

1. Wage increases and timely payment of salaries and pensions
2. Settlement of pension arrears and gratuities owed to retirees
3. Wealth creation for millions of Nigerians through capital market gains
4. Transformative infrastructures development nationwide
5. Top globally friendly student loan scheme ( NELFUND ) and affordable consumer /SME credit
6. Subsidized mortgage and housing schemes, plus social transfers to the most vulnerable (15m Households)

7.Agricultural interventions strengthening food security

8. Fuel availability and energy scarcity despite global shocks
9. Return of investors confidence, driving local and international investment
10. Tax exemption for low-income earners and small businesses, and a friendlier tax environment .