By Ayodele Quadri, Lagos Times Correspondent
ABUJA, NIGERIA — Thirty months after President Bola Ahmed Tinubu announced the removal of the petrol subsidy and unified the foreign exchange market, the Federal Government generated N15.8 trillion in additional resources for the Federation. However, during the same period, total incremental government expenditure rose to N30.64 trillion to ease reform impacts and address structural obligations.
The disclosure was made by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press conference in Abuja presenting the government’s reform scorecard, titled “The Benefits, Costs and Harm Prevented.”
Distribution of the N15.8tn Reform Savings
Addressing the recurring question regarding where petrol subsidy savings were directed, the Finance Minister explained that the N15.8 trillion was not deposited into a dedicated “subsidy account.” Instead, it materialized through higher naira-denominated statutory collections via Customs duty, Petroleum Profit Tax (PPT), and domestic revenue agencies due to exchange rate adjustments and subsidy elimination.
Under the constitutional Federation Account sharing formula, the resources were disbursed as follows:
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States Share: N6.5 trillion (41%)
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Federal Government Share: N5.4 trillion (34%)
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Local Governments Share: N3.9 trillion (24%)
