Fuel subsidy savings insufficient to transform Nigeria – Oyedele
…says sub-$50bn federal budget can’t cater for 200m-person economy
By Kunle Sanni –
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has warned that Nigeria’s current resources are insufficient to transform an economy serving more than 200 million citizens.
Speaking at a one-day capacity-building training on the Nigeria Tax Act (2025) for members of the State House Press Corps in Abuja, Oyedele stressed that even the removal of fuel subsidy cannot generate the level of funding required to deliver large-scale infrastructure and services.
“Even if you remove corruption and waste completely, the resources at our disposal are not enough to transform Nigeria. Subsidy savings alone cannot deliver the level of infrastructure and services required. Our fiscal space is simply too small,” he said.
According to him, the combined annual budgets of the federal government, states, the Federal Capital Territory and all 774 local governments amount to less than $50 billion — a figure he described as inadequate for meaningful national transformation.
Oyedele further criticised past policy missteps, including the demolition of toll gates and reversal of the refineries’ privatisation, which he said had weakened the country’s economic capacity.
On tax reforms, he clarified that the Tinubu administration has not introduced any new levies, noting that the new regime scheduled to take effect in January 2026 is aimed at simplifying the system rather than creating additional burdens.
