The Federal Government of Nigeria generated N15.8 trillion in additional resources from fuel subsidy removal and foreign exchange reforms over a 30-month period spanning June 2023 to December 2025, according to Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele. Of this total, the federal government retained N5.4 trillion, while states and local governments received N10.4 trillion through federation allocations.
Oyedele disclosed these figures during a live media conference on Thursday titled "Nigeria's Reforms ScoreCard: The Benefits, Causes, and Harms Prevented." The minister explained that the resources provided federal, state, and local governments with the fiscal space to manage rising wage bills, debt obligations, and infrastructure costs.
Breakdown of Additional Resources and Borrowing
Beyond the N15.8 trillion in reform-generated savings, Oyedele stated that the government raised an additional N11.9 trillion through incremental borrowing during the same 30-month period. This brought the total additional resources available to the federation to approximately N20.4 trillion. The minister emphasized that the reforms reduced the amount the government would otherwise have needed to borrow.
Oyedele noted that the gains extended beyond petrol subsidy savings alone. The unification and floating of the exchange rate also boosted government revenue, including higher customs receipts. According to the minister, the reforms removed what he described as artificial distortions in Nigeria's fuel and foreign exchange markets, placing the economy on a more sustainable path by correcting structural imbalances.
Spending Allocation: Wages, Debt, and Infrastructure
Oyedele provided a detailed breakdown of how the funds were utilized. N9.39 trillion was allocated to wage adjustments, minimum wage increases, and allowances for civil servants. N9.37 trillion went toward external debt servicing. N6.5 trillion was directed at strategic infrastructure projects.
The minister pointed out that personnel costs alone exceeded the federal government's entire N5.4 trillion share of the reform savings, underscoring the fiscal pressure accompanying the policy changes. He said the scorecard was designed to show Nigerians precisely how the resources were generated and how they were used, adding that the funds could be fully accounted for.
Purpose of the Reforms and Fiscal Context
Oyedele was clear that generating revenue was not the primary aim of the reforms. He stated that the government introduced the measures to eliminate artificial distortions in Nigeria's fuel and foreign exchange markets and to correct structural imbalances within the economy. The minister reiterated that the reforms were intended to place the economy on a more sustainable fiscal path.
In a related development, the Dangote Petroleum Refinery has opened petrol sales to all licensed marketers, ending its previous consortium marketing arrangement. The move is expected to reshape competition in Nigeria's downstream petroleum sector. Qualified marketers can now purchase products directly from its loading gantry. The decision accompanies a reduction in the refinery's ex-gantry price of petrol to N1,075 per litre from N1,125.
