The Federal Government spent N30.64 trillion between June 2023 and December 2025 to cushion the impact of its economic reforms, including the removal of the petrol subsidy and the unification of the foreign exchange market.
At the same time, the reforms generated N15.8 trillion in additional resources for the Federation, according to figures disclosed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The government explained that its incremental expenditure during the 30-month period exceeded the additional resources available to the Federal Government by N10.24 trillion, representing about 50.2 per cent.
The additional resources came from subsidy savings, increased revenue and borrowing. Rather than creating a large pool of unused funds, the government said the money was absorbed by rising wage costs, debt servicing, infrastructure spending and other obligations associated with the reforms.
How the Subsidy Savings Were Shared
The N15.8 trillion generated through the reforms was distributed among the three tiers of government through the Federation Account allocation system.
The Federal Government received N5.4 trillion, representing about 34 per cent of the savings. States received N6.5 trillion, while local governments received N3.9 trillion.
The figures highlight the significant fiscal changes that followed the removal of the petrol subsidy under President Bola Tinubu's administration.
Government Spending Outpaced Additional Resources
According to the government's figures, for every N100 generated in additional resources, the Federal Government spent approximately N150.
This means that although the subsidy removal created additional fiscal space, the government still had to rely on existing revenue and other financing sources to meet its growing obligations.
The figures are likely to fuel further debate over the economic impact of the subsidy removal, particularly its effect on government finances, households and the wider Nigerian economy.
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