The N15.8 trillion in additional Federation Account resources did not represent a direct payment tagged “subsidy savings.” Instead, the increase resulted largely from higher revenue collections following the reforms
By Mmesoma Onwuka
The Minister of Finance and Coordinating Minister of the Economy, Professor Taiwo Oyedele, has said the Federal Government’s fuel subsidy removal and foreign exchange reforms mobilised N15.8 trillion in resources for the Federation between June 2023 and December 2025.
The minister disclosed this while presenting the government’s “Nigeria’s Reforms Scorecard: The Benefits, Costs and Harms Prevented,” an assessment of the economic impact of the reforms, including resources generated, expenditure, benefits recorded and potential crises avoided.
He acknowledged that the reforms imposed significant costs on Nigerians, including higher petrol prices, naira depreciation and increased pressure on households and businesses.
According to him, the scorecard was designed to provide a balanced assessment rather than portray the reforms as painless.
The minister explained that the N15.8 trillion in additional Federation Account resources did not represent a direct payment tagged “subsidy savings.” Instead, the increase resulted largely from higher revenue collections following the reforms.
He said the foreign exchange adjustment increased the naira value of customs duties and petroleum-related taxes, while the removal of fuel subsidy reduced government expenditure.
Of the N15.8 trillion, the Federal Government received N5.4 trillion, while N10.4 trillion was distributed to states and local governments through the Federation Account.
The Federal Government also generated N3.1 trillion in additional independent revenue and undertook N11.9 trillion in incremental borrowing between June 2023 and December 2025.
The minister said the reforms created fiscal space that helped the government meet increased expenditure obligations, which reached N30.64 trillion during the period.
He said N9.39 trillion was spent on wage adjustments, minimum wage increases and allowances, while N9.37 trillion went into external debt servicing. Another N6.5 trillion was allocated to strategic infrastructure.
The minister said the reforms also helped strengthen Nigeria’s external position. Gross foreign reserves, he noted, rose from about $35 billion to $52.5 billion, while net reserves increased from approximately $3 billion to $34.8 billion.
He said the foreign exchange premium between official and parallel markets, previously above 60 per cent, had fallen below five per cent.
On fuel prices, the minister acknowledged that petrol prices increased from about N185 per litre to between N1,100 and N1,400, but argued that without reform, petrol could have become largely unavailable despite its official price, potentially trading above N3,000 on the black market.
He also highlighted improvements in minimum wage, student financing through NELFUND, cash transfers, agricultural support and infrastructure development.
However, the minister admitted that poverty, food prices and household welfare remained major challenges.
He said the government’s next phase would focus on translating macroeconomic gains into improved living standards, while continuing tax, fiscal and foreign exchange reforms.
“We are not here to pretend these reforms were painless,” he said. “We are here to show you honestly and with the numbers what it cost, the benefit they delivered, and the harm that they prevented.”