Nigeria's Subsidy Removal Yields N15.8tn in 30 Months

The Federal Government of Nigeria reported that the removal of the petrol subsidy and the unification of the foreign exchange market resulted in N15.8 trillion in additional resources for the Federation from June 2023 to December 2025. This information was disclosed by Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, during a media conference titled “The Benefits, Costs and Harm Prevented.” The government clarified that the subsidy savings did not appear as a separate line item in the Federation Account but were reflected in increased revenue collections due to changes in the exchange rate and the removal of subsidy-related distortions.

Oyedele explained that the N15.8 trillion was not labeled as “subsidy savings” in the Federation Account, but rather manifested through higher revenue collections by Customs and increased naira value of revenues. He emphasized that the reforms not only stemmed from the subsidy removal but also from foreign exchange reforms that eliminated an implicit subsidy benefiting rent-seekers rather than the general populace.