Nigeria's N15.8tn Subsidy Savings Distribution Explained

The Federal Government of Nigeria, through the Federal Ministry of Finance, revealed that N15.8tn was generated from the removal of petrol subsidy and foreign exchange reforms between June 2023 and December 2025. This amount was distributed among the three tiers of government: the Federal Government received N5.4tn (34%), states received N6.5tn (41%), and local governments received N3.9tn (24%).

Finance Minister Wale Oyedele clarified that the subsidy savings were not listed separately in the Federation Account but reflected in increased revenue collections. The Federal Government's total incremental resources reached N20.4tn, including N3.1tn from other revenue and N11.9tn from borrowing.

Total incremental expenses during this period amounted to N30.64tn, with the largest expenditures being wage adjustments (N9.39tn) and external debt service (N9.37tn). Other significant expenses included infrastructure development (N6.47tn) and electricity subsidies (N3.14tn).