Subsidy Removal, FX Reforms Yielded N15.8tn in 30 Months – FG

The Federal Government says the removal of petrol subsidy and foreign exchange reforms generated N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during a media briefing on the benefits, costs and harm prevented by the Federal Government’s economic reforms.

Oyedele said the N15.8 trillion represented resources mobilised through the reforms during the 30-month period.

He explained that the resources were distributed among the Federal Government, states and local governments in accordance with the revenue-sharing arrangement.

The minister said the reforms had also increased the resources available to governments at all levels, allowing them to meet growing financial obligations.

According to him, the Federal Government generated N20.4 trillion in incremental resources during the period when additional revenue and borrowing were also taken into account.

Oyedele said the Federal Government's share of the N15.8 trillion was about N5.4 trillion.

He noted that the government subsequently spent N9.39 trillion on wage adjustments, increases in the national minimum wage and other allowances for public workers between June 2023 and December 2025.

The minister said the figure showed that the additional expenditure on workers alone exceeded the Federal Government's entire share of the resources generated from subsidy removal and foreign exchange reforms.

He added that another significant portion of the government's incremental resources was used to service external debt, whose naira cost increased substantially following the depreciation of the currency.

Oyedele said the government had therefore deployed the additional resources to meet rising expenditure obligations rather than leaving them idle.

The Federal Government has continued to defend the reforms, arguing that although they created short-term economic pressures, they have improved public revenue and reduced the fiscal burden associated with petrol subsidy.

The disclosure comes amid ongoing debate over the impact of the reforms on Nigerians and how the additional resources generated have been utilised.