The Federal Government has disclosed how the ₦15.8 trillion saved from fuel subsidy removal and gains from other economic reforms were distributed over the past three years.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, gave the breakdown on Wednesday while presenting the government’s reforms scorecard in Abuja.
According to Oyedele, the ₦15.8 trillion accrued to the Federation Account and was shared among the Federal Government, states, and local governments.
The Federal Government received ₦5.43 trillion, states got ₦6.52 trillion, while local governments received ₦3.88 trillion.
Oyedele said the reforms also generated ₦3.12 trillion in additional revenue, while the Federal Government recorded ₦11.85 trillion in incremental borrowing.
This brought the Federal Government’s total incremental resources to about ₦20.4 trillion during the period.
However, additional government expenditure stood at approximately ₦30.64 trillion.
The minister said ₦9.39 trillion of the expenditure went to wage adjustments, ₦9.37 trillion to external debt servicing, ₦6.47 trillion to infrastructure, and ₦3.14 trillion to electricity subsidies.
Oyedele stressed that subsidy removal did not create a single pool of cash for the Federal Government, but reduced a major fiscal burden and the amount of borrowing that would otherwise have been required.
President Bola Tinubu removed the petrol subsidy in May 2023, while the naira was subsequently allowed to float, triggering major changes in fuel prices and the exchange rate.
The government has continued to defend the reforms, arguing that they helped strengthen public finances and avert a deeper economic crisis, although the measures have also increased the cost-of-living burden on Nigerians.
Leave feedback about this