Nigeria's Petrol Subsidy Reform Mobilizes N15.8 Trillion

Between June 2023 and December 2025, the removal of petrol subsidies in Nigeria is estimated to have mobilized approximately N15.8 trillion in additional resources for the Federation. Of this amount, about N5.43 trillion accrued to the Federal Government, N6.52 trillion to states, and N3.88 trillion to local governments.

The Federal Government's N5.43 trillion is part of a broader financial picture that includes N3.12 trillion in additional independent revenue and N11.85 trillion in incremental borrowing, totaling roughly N20.4 trillion in federal resources. However, additional expenditure pressures are estimated at N30.64 trillion, which includes N9.39 trillion for wage adjustments and N9.37 trillion for increased external-debt servicing costs.

The reform period has led to measurable interventions, such as NELFUND student-loan disbursements exceeding N303 billion, revitalization of nearly 3,000 primary healthcare centers, and the construction of over 10,000 housing units across 14 states and the FCT.