The Federal Government says Nigeria recorded estimated savings of ₦15.8 trillion from fuel subsidy removal and foreign exchange market liberalisation between June 2023 and December 2025. However, it said the reforms did not leave the government with a huge pool of cash.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this in Abuja while presenting the administration’s economic reform scorecard.
Oyedele said the ₦15.8 trillion savings were shared among the three tiers of government and other statutory beneficiaries. The Federal Government received ₦5.43 trillion, states got ₦6.52 trillion, while local governments received ₦3.88 trillion.
He said the Federal Government generated about ₦20.4 trillion in incremental resources from subsidy savings, higher revenues and borrowing, but spent about ₦30.64 trillion on wages, debt servicing, infrastructure, electricity support and other obligations.
“The figures tell a financing story, not simply a savings story,” Oyedele said.
He said the savings mainly reduced fiscal pressure and the need for additional borrowing.
The government spent ₦9.39 trillion on wages and ₦9.37 trillion servicing external debt. It also invested ₦6.47 trillion in strategic infrastructure and spent ₦3.14 trillion on electricity subsidy.
Oyedele said borrowing continued because government revenue remained insufficient to cover spending.
“Subsidy removal resulted in less borrowing than would otherwise have been required, rather than eliminating the need to borrow,” he said.
He added that borrowing remained subject to National Assembly approval and existing fiscal and debt laws.
The resources also supported salary increases, salaries and pensions, pension arrears, NELFUND, consumer and SME credit schemes, and major road projects.
Oyedele acknowledged the hardship caused by the reforms, saying social intervention programmes had been introduced to cushion their effects.
Meanwhile, DMO Director-General Patience Oniha said the First Abu Dhabi Bank loan was meant to diversify funding sources and secure competitive financing. She said the deal followed due process, received National Assembly approval and complied with the Fiscal Responsibility Act.
“The objective is to diversify our resource base and access funding at competitive rates while maintaining transparency and compliance with the country’s debt management framework,” Oniha said.
