Nigeria's FG received only 34% of subsidy savings

Nigeria's Federal Government received only N5.43 trillion of the N15.8 trillion in savings generated from the removal of fuel subsidies and the unification of exchange rates between June 2023 and December 2025, Finance Minister Taiwo Oyedele disclosed on Wednesday. The majority of the subsidy savings, N10.4 trillion, was distributed to the nation's 36 states and 774 local governments.

Presenting the administration's reform scorecard in Abuja, Oyedele clarified that the N15.8 trillion was not a cash reserve but represented increased resources shared through the Federation Account. The federal government's share amounted to 34% of the total. The 36 states received N6.52 trillion, accounting for 41%, while the local governments collectively obtained N3.88 trillion, or 24%. This distribution, the minister emphasized, demonstrated that the reforms were not primarily designed to boost federal revenue but to eliminate entrenched corruption in the fuel subsidy and foreign exchange markets.

Oyedele explained that the subsidy savings were one component of the federal government's additional resources during the period. It also generated N3.12 trillion in other incremental revenues, mainly...