Nigeria's ₦15.8tn Subsidy Savings vs ₦11.85tn Borrowing

The federal government of Nigeria announced on August 19, 2026, that the removal of petrol subsidy generated an estimated ₦15.8 trillion in savings from June 2023 to December 2025. Finance Minister and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, detailed that the federal government’s share of this amount was ₦5.43 trillion, with states receiving ₦6.52 trillion and local governments ₦3.88 trillion.

Despite these savings, the government borrowed ₦11.85 trillion to address fiscal pressures, leading to a total of ₦20.4 trillion in additional resources. However, the expenditure pressures reached ₦30.64 trillion, indicating a reliance on debt despite the subsidy removal, which was intended to free resources for productive investment and social protection.

Finance expert Mike Akannor commented on the paradox of the situation, where savings were consumed by a larger fiscal deficit, leaving citizens to face increased costs for fuel, transport, and food.