Reforms generated N15.8tn subsidy savings in 30 months – FG

The federal government says the removal of petrol subsidy and foreign exchange reforms generated N15.8tn in savings for the Federation between June 2023 and December 2025.

The figure was contained in the Nigeria Reform Scorecard presented by the Federal Ministry of Finance on Wednesday as part of the government’s assessment of the economic reforms introduced by President Bola Tinubu’s administration.

However, the ministry clarified that the entire N15.8tn did not accrue to the Federal Government, as the funds were shared among the three tiers of government through the statutory allocation system.

According to the scorecard, the Federal Government received N5.4tn, representing 34 per cent of the subsidy savings, while state governments received N6.5tn, or 41 per cent. Local governments received N3.9tn, representing 24 per cent.

This means that while the Federal Government’s share stood at N5.4tn, states and local governments collectively received N10.4tn.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the subsidy savings did not appear as a separate item labelled subsidy savings in the Federation Account.

“Between June 2023 and December 2025, subsidy savings mobilised a sum of N15.8tn in resources for the Federation,” Oyedele said.

He explained that the savings were reflected through higher revenue collections following the implementation of the reforms.