…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.

By Innocent Anaba

The National Insurance Commission (NAICOM) has revoked the license  of Universal Insurance Plc and appointed a receiver/provisional liquidator to commence the process of winding up the company’s affairs.

The cancellation, which took effect on August 14, 2026, followed the company’s alleged failure to meet the prescribed Minimum Capital Requirement (MCR) applicable to its category of licence within the stipulated compliance period.

In a notice dated August 13, 2026, and addressed to the Chairman of Universal Insurance’s Board of Directors, NAICOM said the action was taken pursuant to powers conferred on it by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.

The commission subsequently appointed Ogbonna Chukwumerije, a Partner at Pinheiro LP, as Receiver/Provisional Liquidator.

According to the  appointment letter dated August 14, Chukwumerije is required to immediately trace, recover, secure and take possession of the company’s assets.

He is also mandated to collate and settle the company’s liabilities in accordance with NIIRA 2025, liaise with NAICOM on information available to the commission and submit periodic reports on the progress of the liquidation.

In a separate public notice dated August 18, 2026, Chukwumerije notified banks, financial institutions, policyholders, creditors, debtors, customers and members of the public of the company’s receivership.

He said his appointment followed NAICOM’s cancellation of Universal Insurance’s licence over its failure to meet the applicable minimum capital requirement.

Chukwumerije said that, under NIIRA 2025 and the terms of his appointment, he was empowered to take over the management and control of the company and take necessary steps to preserve, protect and realise its assets.

He also directed persons and institutions dealing with the company’s funds, assets, records, policies, claims, liabilities or other affairs to verify the authority of anyone purporting to act on behalf of Universal Insurance.

Banks and other financial institutions were advised not to honour or process any instruction, mandate, withdrawal, transfer or payment direction purportedly issued on behalf of the company unless it was authorised by the receiver.