The Nigerian government has said the removal of petrol subsidy and the unification of the foreign exchange market generated N15.8trillion in additional resources for the Federation between June 2023 and December 2025.
The government said states and local governments received the larger share of the additional resources.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Wednesday at a media conference on Nigeria’s reform scorecard titled, “The Benefits, Costs and Harm Prevented.”
Oyedele explained that the subsidy savings did not appear in the Federation Account as a separate line item, but were reflected in increased revenue collections resulting from changes in the exchange rate and the removal of subsidy-related distortions.
“Between June 2023 and December 2025, subsidy savings mobilised a sum of N15.8tn in resources for the Federation,” Oyedele said.
He explained that there was no line in the Federation Account specifically labelled “subsidy savings.”
“So, the subsidy savings showed up in the form of higher collection by Customs because, for every one dollar of import duty before, at N460, it became one dollar at N1,004, N1,003, N1,005.
“The NRS, Petroleum Profit Tax that it collected before, same dollar, higher amount in naira. So, the savings showed up in the Federation accounts by way of higher revenue collections as a result of the reforms,” he said.
The minister said the additional fiscal resources were not generated by the petrol subsidy removal alone, noting that the foreign exchange reforms also eliminated what he described as an implicit subsidy that created opportunities for rent-seeking.
He said, “Not just the subsidy removal, but also the exchange rate flotation, because we were subsidising the exchange rate. And that subsidy was not going to the ordinary person or manufacturers. It was going to rent-seekers.”
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