FG Says Subsidy And FX Reforms Yielded N15.8tn For Federation

The Federal Government says petrol subsidy removal and foreign exchange reforms yielded N15.8tn in additional resources for the Federation between June 2023 and December 2025.

Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele gave the breakdown on Wednesday while explaining how the government says the reform gains were reflected in public revenue.

According to the figures reported by Punch and Daily Post, the Federal Government received N5.43tn, states received N6.52tn and local governments received N3.88tn from the subsidy-removal gains.

Oyedele said the money did not appear in the Federation Account as a separate line called subsidy savings. He said the effect showed through higher collections after petrol subsidy removal and the exchange-rate changes.

Daily Post also reported that the reforms generated N3.12tn in other incremental revenues and N11.85tn in incremental borrowing, leaving the Federal Government with about N20.4tn in incremental resources during the period reviewed.

The minister said additional spending during the same period stood at about N30.64tn, including wage adjustments, external debt service, infrastructure and electricity subsidies.

The explanation comes more than three years after President Bola Tinubu announced the end of petrol subsidy and changes to the foreign exchange regime.

Sources: Punch, Daily Post