FG Says Subsidy, FX Reforms Generated N15.8tn in 30 Months

The Federal Government says the removal of petrol subsidy and foreign exchange reforms generated N15.8 trillion in additional resources for the federation between June 2023 and December 2025.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the figures while presenting the government’s economic reforms scorecard following a directive by President Bola Tinubu for the administration to explain the gains and costs of its policies.

According to Oyedele, the Federal Government received about N5.4 trillion, while the 36 states and 774 local governments received a combined N10.4 trillion from the additional resources.

He also said the Federal Government recorded about N11.9 trillion in additional borrowing during the period, arguing that borrowing would have been considerably higher without the fiscal space created by the reforms.

Oyedele said incremental federal spending during the period reached about N30.64 trillion, including N9.39 trillion for wage adjustments, minimum wage increases and allowances, N9.37 trillion for external debt servicing linked to exchange-rate depreciation, and N6.5 trillion for infrastructure.

The government maintains that subsidy removal was aimed at reducing a major fiscal burden rather than creating a large pool of money exclusively available to the Federal Government.

However, former Vice-President Atiku Abubakar has challenged the administration's accounting, calling for a comprehensive reconciliation of about N30 trillion in Federation revenues, deductions, savings and transfers which he says require further explanation.

The debate comes as Nigerians continue to face the effects of the economic reforms, including higher energy and living costs, despite government claims that the measures have strengthened public finances and improved fiscal stability.

Why It Matters

The N15.8 trillion figure provides a clearer picture of the fiscal resources the government says were created by its reforms. The key public-policy question is how those resources, alongside additional borrowing and existing revenues, have translated into improvements in infrastructure, services and living standards.

What We Know

The government says N15.8 trillion in additional resources was generated between June 2023 and December 2025.

It says N5.4 trillion went to the Federal Government while states and local governments received N10.4 trillion.

The government also reported N11.9 trillion in additional borrowing during the period.

What Remains Unconfirmed

The government’s claims about how much additional borrowing would have occurred without the reforms are based on a counterfactual economic estimate and cannot be directly observed.

Atiku’s demand for reconciliation of roughly N30 trillion also remains a political challenge to the government’s accounting, rather than an independently established finding of missing funds.

Evidence

Federal Government economic reforms scorecard presented by Finance Minister Taiwo Oyedele.

Federation Account figures and expenditure breakdown presented at the government briefing.

Public challenge issued by former Vice-President Atiku Abubakar seeking further reconciliation of Federation Account revenues and deductions.