NIGERIA’S economic reforms, including the removal of petrol subsidy and the liberalisation of the foreign exchange market, generated an additional N15.8 trillion for the Federation Account between June 2023 and December 2025, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.
Oyedele disclosed this on Wednesday, August 19, at a press conference on the Federal Government’s reforms scorecard, where he provided a breakdown of what the government describes as the fiscal gains from the reforms.
He said the N15.8 trillion did not come into the Federation Account as a single payment labelled “subsidy savings”.
He also explained that the savings were reflected through increased naira revenue from customs collections, petroleum profit tax and other sources following the removal of the petrol subsidy and the floating of the naira.
“Between June 2023 and December 2025, subsidy savings mobilised the sum of N15.8 trillion in resources for the federation,” Oyedele said.
“Many people will say, where is the subsidy saving? As a matter of fact, there wasn’t any alert to the Federation Account with the description on subsidy savings.”
How the N15.8tn was generated
According to the minister, the exchange rate reform was an important component of the increase in naira revenue.
He explained that when the naira-dollar exchange rate moved from about N460 to over N1,000 to a dollar, dollar-denominated revenues translated into substantially higher naira collections.
“For every one naira or one dollar of import duty before, at N460, it became one dollar at N1,004, N1,003, N1,005,” he said.
Oyedele said the same effect was seen in petroleum profit tax collections, where the same dollar-denominated revenue translated into higher naira receipts after the exchange rate adjustment.
“The savings showed up in the Federation Account by way of higher revenue collections as a result of the reforms. Not just the subsidy removal, but also the exchange rate flotation,” he said.
He argued that the previous foreign exchange regime amounted to another form of subsidy, which he said benefited rent seekers rather than ordinary Nigerians and manufacturers.
FG got N5.4tn, states, LGs N10.4tn
Oyedele further said of the N15.8 trillion in additional federation resources, the Federal Government’s share was N5.4 trillion, while N10.4 trillion went to state and local governments through the Federation Account.
He further disclosed that the Federal Government received an additional N3.1 trillion in independent revenue remittances from government-owned entities during the period.
He said government agencies generated higher surpluses, contributing to the increase in the Federal Government’s available resources.
“Altogether, the Federal Government’s incremental resources during the period amounted to N20.4 trillion,” he said.
According to the minister, the additional resources helped fund increased government expenditure, with total Federal Government expenses during the period standing at N30.6 trillion.
Tinubu links reforms to infrastructure spending
The latest figures come amid repeated claims by President Bola Tinubu that the removal of the petrol subsidy has strengthened government finances and created room for infrastructure investment.
In May 2026, Tinubu said the subsidy removal had saved Nigeria from imminent bankruptcy and laid the foundation for economic recovery.
He said the reform had helped create fiscal space for infrastructure, agriculture and other government programmes.
The president had also said the government was spending enormous resources under the former subsidy regime, which he described as unsustainable.
He argued that those resources could instead be deployed to roads, healthcare, education, housing and other critical infrastructure.
At a recent meeting with the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, on Thursday, August 13, the president similarly said the removal of the subsidy had enabled his administration to mobilise funding for long-term infrastructure projects and maintain regular salary payments across the three tiers of government.
He cited projects including the Lagos-Ibadan Expressway, Abuja-Kaduna, Abuja-Sokoto and Badagry road corridors as examples of infrastructure investments being pursued by his administration.
Reform came with significant hardship
However, the government’s claims of increased fiscal resources come against the backdrop of significant economic hardship experienced by Nigerians since the reforms began.
Tinubu announced the removal of the petrol subsidy in his inaugural address on May 29, 2023, with petrol prices subsequently rising sharply from June 2023.
The government also unified the foreign exchange market, leading to a substantial depreciation of the naira.
The reforms contributed to a sharp increase in the cost of transportation and other goods and services, while inflation rose to record levels.
Although inflation has since moderated from its peak, the cost of living remains significantly higher than before the reforms.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M